[Federal Register Volume 77, Number 71 (Thursday, April 12, 2012)]
[Rules and Regulations]
[Pages 21841-21842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-8822]



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  Federal Register / Vol. 77, No. 71 / Thursday, April 12, 2012 / Rules 
and Regulations  

[[Page 21841]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 983

[Doc. No. AMS-FV-11-0077; FV11-983-2 FIR]


Pistachios Grown in California, Arizona, and New Mexico; 
Decreased Assessment Rate

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 decreased the assessment 
rate established for the Administrative Committee for Pistachios 
(Committee) for the 2011-12 and subsequent production years from 
$0.0007 to $0.0005 per pound of assessed weight pistachios. The 
Committee locally administers the marketing order which regulates the 
handling of pistachios grown in California, Arizona, and New Mexico. 
The interim rule was necessary to allow the Committee to provide 
sufficient revenue to meet its expenses while maintaining a financial 
reserve within the limit authorized under the order.

DATES: Effective Date: April 13, 2012.

FOR FURTHER INFORMATION CONTACT: Andrea Ricci or Kurt J. Kimmel, 
California Marketing Field Office, Marketing Order and Agreements 
Division, Fruit and Vegetable Programs, AMS, USDA; Telephone: (559) 
487-5901, Fax: (559) 487-5906, or Email: [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 Agreement Division, Fruit and 
Vegetable Programs, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, 
Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax: (202) 720-
8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 983, both as amended (7 CFR part 983), 
regulating the handling of pistachios grown in California, Arizona, and 
New Mexico, hereinafter referred to as the ``order.'' The order is 
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.
    Under the order, California, Arizona, and New Mexico pistachio 
handlers are subject to assessments, which provide funds to administer 
the order. Assessment rates as issued under the order are intended to 
be applicable to all assessable pistachios for the entire production 
year and continue indefinitely until amended, suspended, or terminated. 
The Committee's fiscal period begins on September 1, 2011, and ends on 
August 31, 2012.
    In an interim rule published in the Federal Register on September 
29, 2011, and effective on September 30, 2011, (76 FR 60361, Doc. No. 
AMS-FV-11-0077; FV 983-2 IR], Sec.  983.253 was amended by decreasing 
the assessment rate established for California, Arizona, and New Mexico 
pistachios for the 2011-12 and subsequent production years from $0.0007 
to $0.0005 per pound of assessed weight pistachios. The decrease in the 
per pound assessment rate allows the Committee to provide sufficient 
revenue to meet its expenses while maintaining a financial reserve 
within the limit authorized under the order.

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 rule 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 900 producers of pistachios in the 
production area and approximately 25 handlers subject to regulation 
under the marketing order. Small agricultural producers are defined by 
the Small Business Administration as those having annual receipts less 
than $750,000 and small agricultural service firms are defined as those 
whose annual receipts are less than $7,000,000. (13 CFR 121.201) Based 
on Committee data, it is estimated that over 70 percent of the handlers 
ship less than $7,000,000 worth of pistachios and would thus be 
considered small business under the SBA definition. It is also 
estimated that over 80 percent of the growers in the production area 
produce less than $750,000 worth of pistachios and would thus be 
considered small businesses under the SBA definition.
    This rule continues in effect the action that decreased the 
assessment rate established for the Committee and collected from 
handlers for the 2011-12 and subsequent production years from $0.0007 
to $0.0005 per pound of assessed weight pistachios. At its July 21, 
2011 meeting, the Committee unanimously recommended 2011-12 
expenditures of $681,850 and an assessment rate of $0.0005 per pound of 
assessed weight pistachios. The assessment rate of $0.0005 is $0.0002 
lower than the 2010-11 rate. Applying the $0.0005 per pound assessment 
rate to the Committee's 400,000,000 pound crop estimate should provide 
$200,000 in assessment income. Thus, income derived from handler 
assessments combined with the 2010-11 financial reserve, estimated 
interest income, and funds received from the CPRB is expected to 
provide sufficient revenues for the Committee to meet its expenses 
while maintaining a financial reserve within the limit authorized under 
the order.

[[Page 21842]]

    According to NASS, the season average producer price was $1.67 in 
2009 and $2.22 per pound of assessed weight pistachios in 2010. A 
review of historical information and preliminary information pertaining 
to the upcoming production year indicates that the grower price for the 
2011-12 production year could range between $1.67 and $2.22 per pound 
of assessed weight pistachios. Therefore, the estimated assessment 
revenue for the 2011-12 production year as a percentage of total 
producer revenue during the 2011-12 production year could range between 
0.030 and 0.023 percent.
    This rule continues in effect the action that decreased the 
assessment obligation imposed on handlers. Assessments are applied 
uniformly on all handlers, and some of the costs may be passed on to 
producers. However, decreasing the assessment rate reduces the burden 
on handlers, and may reduce the burden on producers.
    In addition, the Committee's meeting was widely publicized 
throughout the California, Arizona, and New Mexico pistachio industry 
and all interested persons were invited to attend the meeting and 
participate in Committee deliberations on all issues. Like all 
Committee meetings, the July 21, 2011, meeting was a public meeting and 
all entities, both large and small, were able to express views on this 
issue.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0215 Pistachios Grown in California. No changes 
in those requirements as a result of this action are anticipated. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large California, Arizona, and New 
Mexico 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.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes. 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 November 28, 2011. No comments were received. Therefore, for 
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-11-0077-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866 and 12988, and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (76 FR 60361, September 29, 2011) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 983

    Marketing agreements, Pistachios, Reporting and recordkeeping 
requirements.

PART 983--PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, AND NEW MEXICO

0
Accordingly, the interim rule amending 7 CFR part 983, which was 
published at 76 FR 60361 on September 29, 2011, is adopted as a final 
rule, without change.

    Dated: April 6, 2012.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2012-8822 Filed 4-11-12; 8:45 am]
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