[Federal Register Volume 81, Number 227 (Friday, November 25, 2016)]
[Rules and Regulations]
[Pages 85107-85108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28254]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Doc. No. AMS-SC-16-0031; SC16-932-1 FIR]


Olives Grown in California; Suspension and Revision of Incoming 
Size-Grade 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 incoming size-
grade authority under the California olive marketing order, which 
regulates the handling of olives in California. The rule, which was 
recommended by the California Olive Committee (Committee), also made 
conforming changes to the corresponding size-grade requirements in the 
order's rules and regulations and two Committee forms. The Committee 
locally administers the order and is comprised of producers and 
handlers of olives operating within the area of production. The interim 
rule suspended the incoming size-grade authority of the marketing order 
and revised the corresponding size-grade requirements in the order's 
rules and regulations. The change is expected to benefit handlers 
because the current size-grading requirements hinder handler operations 
and flexibility, increase costs, and diminish their competitiveness.

DATES: Effective November 28, 2016.

FOR FURTHER INFORMATION CONTACT: Peter Sommers, Marketing Specialist, 
or Jeffrey Smutny, Regional Director, California Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, 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 and agreement regulations by viewing a guide at 
the following Web site: http://www.ams.usda.gov/rules-regulations/moa/small-businesses; or by contacting Richard Lower, Marketing Order and 
Agreement Division, Specialty Crops Program, 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 Marketing Order No. 932, both as amended (7 CFR part 
905), regulating the handling of olives grown in California, 
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 Orders 12866, 13563, and 13175.
    Prior to this change, the size requirements were based on count 
ranges, mid-points and average counts per pound, while new technology 
sizes olives using mass and volume. Thus, the size-grading requirements 
and the more advanced sizing technology available now are incompatible 
and hinder handler operations and flexibility, increase costs, and 
diminish handler competitiveness. Suspending the incoming size-grading 
requirements will provide an opportunity for the industry to develop 
new requirements applicable both to currently-available technology and 
future needs.
    In an interim rule published in the Federal Register on July 18, 
2016, and effective on July 19, 2016, (81 FR 46567, Doc. No. AMS-SC-16-
0031, SC16-932-1 IR), paragraphs (a)(1)(ii) through (a)(5) in Sec.  
932.51 were suspended indefinitely. In addition, the rule revised 
language in Sec.  932.151, bringing that section into conformity with 
the intent of the rule, and necessitated minor conforming changes to 
two Committee forms, the Weight & Grade Report (COC-3c) and Report of 
Limited and Undersize and Cull Olives Inspection and Disposition (COC-
5).

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.

[[Page 85108]]

    There are two California olive handlers subject to regulation under 
the marketing order and about 1,000 olive producers in the production 
area. Small agricultural service firms are defined by the Small 
Business Administration (SBA) as those having annual receipts of less 
than $7,500,000, and small agricultural producers are defined as those 
whose annual receipts are less than $750,000 (13 CFR 121.201). Based 
upon information from the Committee and the National Agricultural 
Statistics Service (NASS), the average producer price for the 2013-14 
crop year (the last year information was available) was $1,150 per ton 
of canning-size olives and $385 per ton for limited-use size olives. 
The total assessable volume was 85,668 tons. Canning sizes represented 
88 percent of the assessable olive volume, while limited-use sizes 
represented 12 percent of the assessable olive volume. Based on 
production, producer prices, and the total number of California olive 
producers, the average annual producer revenue is less than $750,000. 
Thus, the majority of olive producers may be classified as small 
entities. Both of the handlers may be classified as large entities.
    This rule continues in effect the suspension of the incoming size-
grading regulations in Sec.  932.51, beginning with the 2016-17 crop 
year. It also continues in effect the revision of regulations in Sec.  
932.151, bringing the rules and regulations into conformity with the 
rule and its intent. In addition, the rule continues in effect 
conforming changes made to the Committee forms, COC-3c and COC-5.
    This action is expected to result in increased handler flexibility 
and competitiveness, while reducing some of the costs associated with 
size-grading. In addition, this action will allow the Committee time to 
develop new requirements that address advancing technology and 
equipment.
    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. 0581-0178. Minor conforming changes to those 
requirements were necessary as a result of this action. AMS submitted a 
request to OMB to make minor conforming changes to forms COC-3c and 
COC-5.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large olive 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.
    Further, the Committee's meeting was widely publicized throughout 
the California olive industry and all interested persons were invited 
to attend the meeting and participate in Committee deliberations. Like 
all Committee meetings, the February 17, 2016, meeting was a public 
meeting and all entities, both large and small, were able to express 
their views on this issue.
    Comments on the interim rule were required to be received on or 
before September 16, 2016. 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: https://www.gpo.gov/fdsys/pkg/FR-2016-07-18/pdf/2016-16704.pdf.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; 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 finalizing the interim rule, without change, as published in the 
Federal Register (81 FR 46567, July 18, 2016) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 932

    Marketing agreements, Olives, Reporting and recordkeeping 
requirements.


0
Accordingly, the interim rule that amended 7 CFR part 932 and that was 
published at 81 FR 46567 on July 18, 2016, is adopted as a final rule, 
without change.

    Dated: November 18, 2016.
Bruce Summers,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2016-28254 Filed 11-23-16; 8:45 am]
 BILLING CODE 3410-02-P