[Federal Register Volume 76, Number 140 (Thursday, July 21, 2011)]
[Rules and Regulations]
[Pages 43533-43534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-18396]



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  Federal Register / Vol. 76, No. 140 / Thursday, July 21, 2011 / Rules 
and Regulations  

[[Page 43533]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Doc. No. AMS-FV-11-0019; FV11-916/917-5 FIR]


Nectarines and Peaches Grown in California; Suspension of 
Handling Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that suspended the quality, 
inspection, reporting, and assessment requirements specified under the 
California nectarine and peach marketing orders (orders). The interim 
rule suspended the handling regulations for the 2011 and subsequent 
marketing seasons relieving handlers of all regulatory burdens under 
the orders while USDA processes the terminations of the orders.

DATES: Effective July 22, 2011.

FOR FURTHER INFORMATION CONTACT: Jerry L. Simmons, Marketing 
Specialist, or Kurt J. Kimmel, Regional Manager, California Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA; Telephone: (559) 487-5901; Fax: (559) 
487-5906; or E-mail: [email protected] or 
[email protected].
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide; or 
by contacting Laurel May, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, S.W., STOP 
0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 
720-8938, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement Nos. 916 and 917, both as amended (7 CFR parts 916 and 917), 
regulating the handling of nectarines and peaches grown in California, 
hereinafter referred to as the ``orders.'' The orders are effective 
under the Agricultural Marketing Agreement Act of 1937, as amended (7 
U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    The handling of nectarines and peaches grown in California is 
regulated by 7 CFR parts 916 and 917, respectively. In early 2011, USDA 
conducted mandatory referenda among California nectarine and peach 
growers to determine if they favored continuation of their programs. 
The referenda results demonstrated a lack of grower support for 
continuing the orders. Thus, USDA intends to terminate the orders.
    In an interim rule published in the Federal Register on April 18, 
2011, and effective on April 19, 2011, (76 FR 21615, Doc. No. AMS-FV-
11-0019, FV11-916/917-5 IR), Sec. Sec.  916.110, 916.115, 916.234, 
916.235, 916.350 and 916.356 and 917.143, 917.150, 917.258, 917.259, 
917.442, and 917.459, were suspended indefinitely.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this action on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 97 California nectarine and peach handlers 
subject to regulation under the orders, and about 447 growers of these 
fruits in California. Small agricultural service firms, which include 
handlers, are defined by the Small Business Administration as those 
having annual receipts of less than $7,000,000, and small agricultural 
growers are defined as those having annual receipts of less than 
$750,000 (13 CFR 121.201). A majority of these handlers and growers may 
be classified as small entities.
    For the 2010 marketing season, the committees' staff estimated that 
the average handler price received was $10.50 per container or 
container equivalent of nectarines or peaches. A handler would have to 
ship at least 666,667 containers to have annual receipts of $7,000,000. 
Given data on shipments maintained by the committees' staff and the 
average handler price received during the 2010 season, the committees' 
staff estimates that approximately 46 percent of handlers in the 
industry would be considered small entities.
    For the 2010 marketing season, the committees' staff estimated the 
average grower price received was $5.50 per container or container 
equivalent for nectarines and peaches. A grower would have to produce 
at least 136,364 containers of nectarines and peaches to have annual 
receipts of $750,000. Given data maintained by the committees' staff 
and the average grower price received during the 2010 season, the 
committees' staff estimates that more than 80 percent of the growers 
within the industry would be considered small entities.
    This rule continues in effect the suspension of the quality, 
inspection, reporting, and assessment requirements for nectarines and 
peaches under the orders. This action is consistent with USDA's 
decision to seek termination of the nectarine and peach order 
provisions. Suspension of the requirements is expected to reduce the 
regulatory burden on handlers and growers of all sizes.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
Chapter 35), the orders' information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189, Marketing Order Administration Branch

[[Page 43534]]

Generic OMB Fruit Crops. No changes in those requirements as a result 
of this action are necessary. Should any changes become necessary, they 
would be submitted to OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large California nectarine or peach 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. In addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap 
or conflict with this rule.
    Comments on the interim rule were required to be received on or 
before June 17, 2011. No comments were received. Therefore, for the 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-11-0019-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866 and 12988, the Paperwork Reduction 
Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that the regulatory requirements suspended by the interim rule, (76 FR 
21615, April 18, 2011), affirmed in this action, do not tend to 
effectuate the declared policy of the Act.

List of Subjects

7 CFR Part 916

    Marketing agreements, Nectarines, Reporting and recordkeeping 
requirements.

7 CFR Part 917

    Marketing agreements, Peaches, Pears, Reporting and recordkeeping 
requirements.

    Accordingly, the interim rule that amended 7 CFR parts 916 and 917 
and that was published at 76 FR 21615 on April 18, 2011, is adopted as 
a final rule, without change.

    Dated: July 14, 2011.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2011-18396 Filed 7-20-11; 8:45 am]
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