[Federal Register Volume 85, Number 56 (Monday, March 23, 2020)]
[Rules and Regulations]
[Pages 16229-16231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05224]



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 Rules and Regulations
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  Federal Register / Vol. 85, No. 56 / Monday, March 23, 2020 / Rules 
and Regulations  

[[Page 16229]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1216

[Document Number AMS-SC-19-0073]


Peanut Promotion, Research, and Information Order; Amendment to 
Primary Peanut-Producing States and Adjustment of Membership

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule adds the State of Missouri as a primary peanut-
producing State under the Peanut Promotion, Research, and Information 
Order (Order). The Order is administered by the National Peanut Board 
(Board) with oversight by the U.S. Department of Agriculture (USDA). 
This rule also adds a producer member and alternate member to the Board 
to represent the State of Missouri. The Board recommended this action 
to ensure the Board's representation reflects changes in the 
geographical distribution of the production of peanuts.

DATES: Effective April 22, 2020.

FOR FURTHER INFORMATION CONTACT: Jeanette Palmer, Marketing Specialist, 
Promotion and Economics Division, Specialty Crops Program, AMS, USDA, 
Stop 0244, 1400 Independence Avenue SW, Room 1406-S, Washington, DC 
20250-0244; telephone: (202) 720-9915; facsimile: (202) 205-2800; or 
electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule affecting the Order (7 CFR part 
1216) is authorized under the Commodity Promotion, Research, and 
Information Act of 1996 (1996 Act) (7 U.S.C. 7411-7425).

Executive Orders 12866, 13563, and 13771

    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules and promoting flexibility. 
This final rule falls within a category of regulatory actions that the 
Office of Management and Budget (OMB) exempted from Executive Order 
12866 review. Additionally, because this rule does not meet the 
definition of a significant regulatory action it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).

Executive Order 13175

    This final rule has been reviewed in accordance with the 
requirements of Executive Order 13175, Consultation and Coordination 
with Indian Tribal Governments. The review reveals that this regulation 
will not have substantial and direct effects on Tribal governments and 
would not have significant Tribal implications.

Executive Order 12988

    In addition, this final rule has been reviewed under Executive 
Order 12988, Civil Justice Reform. It is not intended to have 
retroactive effect. Section 524 of the 1996 Act (7 U.S.C. 7423) 
provides that it shall not affect or preempt any other Federal or State 
law authorizing promotion or research relating to an agricultural 
commodity.
    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).
    Under section 519 of the 1996 Act (7 U.S.C. 7418), a person subject 
to an order may file a written petition with USDA stating that an 
order, any provision of an order, or any obligation imposed in 
connection with an order, is not established in accordance with the 
law, and request a modification of an order or an exemption from an 
order. Any petition filed challenging an order, any provision of an 
order, or any obligation imposed in connection with an order, shall be 
filed within two years after the effective date of an order, provision, 
or obligation subject to challenge in the petition. The petitioner will 
have the opportunity for a hearing on the petition. Thereafter, USDA 
will issue a ruling on the petition. The 1996 Act provides that the 
district court of the United States for any district in which the 
petitioner resides or conducts business shall have the jurisdiction to 
review a final ruling on the petition, if the petitioner files a 
complaint for that purpose not later than 20 days after the date of the 
entry of USDA's final ruling.

Background

    This final rule adds the State of Missouri as a primary peanut-
producing State under the Order. According to the Order, primary 
peanut-producing states must maintain a 3-year average production of at 
least 10,000 tons of peanuts to maintain this classification. 
Missouri's peanut production meets this requirement.
    The Order is administered by the Board with oversight by USDA. 
Primary peanut-producing states have seats on the Board. This final 
rule adds one producer member and alternate seat to the Board to 
represent the State of Missouri. Board members and alternates are 
nominated by producers or producer groups. This final rule ensures that 
the Board's representation reflects changes in the geographical 
distribution of the production of peanuts covered by the Order.
    The Order became effective on July 30, 1999. Pursuant to the Order, 
the Board administers a nationally-coordinated program of promotion, 
research and information designed to strengthen the position of peanuts 
in the market place and to develop, maintain and expand the demand for 
peanuts in the United States. Under the program, assessments are levied 
on all farmers stock peanuts sold. Assessments are levied at a rate of 
$3.55 per ton for Segregation 1 peanuts and $1.25 per ton for 
Segregation 2 and 3 peanuts, as those terms are defined in Sec.  
996.13(b)-(d) of title 7. The assessments are remitted to the Board by 
handlers and, for peanuts under loan, by the Commodity Credit 
Corporation.
    The Order distinguishes between the terms ``minor peanut-producing 
states'' and ``primary peanut-producing states'' for purposes of Board 
representation

[[Page 16230]]

and voting at meetings. Section 1216.21 currently defines primary 
peanut-producing states as Alabama, Arkansas, Florida, Georgia, 
Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina, 
Texas and Virginia. These States must maintain a 3-year average 
production of at least 10,000 tons of peanuts. All other peanut-
producing States are defined as minor peanut-producing States in Sec.  
1217.15.
    Pursuant to Sec.  1216.40(b), at least once in each five-year 
period, the Board must review the geographical distribution of peanuts 
in the United States and make a recommendation to the Secretary of 
Agriculture (Secretary) to continue the program without change or 
recommend that changes should be made in the number of representatives 
on the Board to reflect changes in the geographical distribution of the 
production of peanuts.

Board Recommendation

    As required by the Order, the Board met and reviewed the 
geographical distribution of peanuts. According to data from the USDA's 
Federal State Inspection Service, for the years 2016, 2017 and 2018, 
9,552, 13,059 and 12,597 tons of peanuts were inspected in Missouri, 
respectively. Based on this data, the 3-year average annual peanut 
production for Missouri totals 11,736 tons per year, which exceeds the 
requirement in the Order of maintaining a 3-year average of 10,000 tons 
per year to be considered a primary peanut-producing State.
    Based on Federal State Inspection Service data, the Board voted 
unanimously on August 28, 2019, to add Missouri as a primary peanut-
producing State under the Order. Accordingly, one producer member and 
one alternate member will be added to the Board to represent the State 
of Missouri.
    These changes help ensure that the Board's representation reflects 
changes in the geographical distribution of the production of peanuts. 
Accordingly, this final rule amends Sec. Sec.  1216.15 and 1216.21 to 
add the State of Missouri as a primary peanut-producing State. Prior to 
the changes made in this rule, the Board could be composed or no more 
than 12 peanut producers and their alternates. This final rule also 
revises Sec.  1216.40(a) to specify that the Board can be composed of 
no more than 13 peanut producer members and their alternates. Further, 
Sec.  1216.40(a)(1) is revised to provide that 12 Board members and 
their alternates represent primary peanut-producing states, up from 11.

Final Regulatory Flexibility Act Analysis

    In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C. 
601-612), AMS is required to examine the impact of the rule on small 
entities. Accordingly, AMS has considered the economic impact of this 
action on small entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions so that small businesses will not be 
disproportionately burdened. The Small Business Administration (SBA) 
defines, in 13 CFR part 121, small agricultural producers as those 
having annual receipts of no more than $1 million and small 
agricultural service firms (handlers) as those having annual receipts 
of no more than $30 million.
    According to the Board, there were approximately 8,126 producers 
and 34 handlers of peanuts who were subject to the program in 2018.
    Most producers would be classified as small agricultural production 
businesses under the criteria established by the SBA (no more than $1 
million in annual sales). USDA's National Agricultural Statistics 
Service (NASS) reports that the crop values of the peanuts produced in 
the top 11 peanut-producing states in the years 2016 through 2018 were 
$1.09 billion, $1.63 billion and $1.16 billion, respectively. The 3-
year crop average was $1.29 billion. With a 2018 crop value of $1.16 
billion and a total of 8,126 producers, average peanut sales per 
producer were approximately $142,000. With a 2015-2018 average crop 
value of $1.29 billion, average sales per producer were approximately 
$159,000. Both figures are well below the $1 million threshold for a 
small producer, providing strong evidence that most peanut producers 
are small businesses.
    For the 34 handlers, the average annual peanut crop value per 
handler from 2016 to 2018 ranged from $32 million to $48 million, with 
a 3-year average of $38 million. With average sales figures moderately 
higher than the small business threshold size of $30 million, it 
appears that a number of handlers are small businesses and there are 
also a number that are large businesses--no definitive statement can be 
made.
    The pounds of U.S. peanut production from the 11-primary peanut-
producing states for 2016 through 2018 are 5.58 billion, 7.12 billion 
and 5.46 billion, respectively. The 3-year average was 6.05 billion 
pounds. Computations based on NASS data show that Georgia was the 
largest producer, with 50.8 percent of the 3-year average quantity, 
followed by Alabama (10.3 percent), Texas (9.6 percent), Florida (9.3 
percent), North Carolina (6.7 percent), South Carolina (6.0 percent), 
Mississippi (2.3 percent), Arkansas (2.1 percent), Virginia (1.6 
percent), with Oklahoma and New Mexico both under one percent.
    This final rule amends Sec. Sec.  1216.15, 1216.21 and 1216.40 to 
add the State of Missouri as a primary peanut-producing State and to 
add a member and alternate to the Board to represent Missouri. Pursuant 
to the Order, primary peanut-producing States must maintain a 3-year 
average production of at least 10,000 tons of peanuts. Missouri's 
peanut production meets this requirement. This final rule ensures that 
the Board's representation reflects changes in the geographical 
distribution of the production of peanuts covered under the Order. This 
action is authorized under Sec.  1216.40(b) and section 515(b)(3) of 
the 1996 Act.
    Regarding the economic impact of this rule on affected entities, 
this rule imposes no costs on producers or handlers. The changes define 
the State of Missouri as a primary peanut-producing State based on 
recent production data and add a seat on the Board for the State of 
Missouri.
    With regard to alternatives, the Board reviewed the peanut 
production for all the minor peanut-producing States and determined 
that Missouri was the only State so designated that met the Order's 
requirement for a 3-year average peanut production of at least 10,000 
tons in order to qualify to become a primary peanut-producing State.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the background form (AD-755), which represents the 
information collection and recordkeeping requirements that will be 
imposed by this rule, was previously approved under OMB control number 
0581-0093.
    Adding a producer member and alternate to represent the State of 
Missouri on the Board requires four additional producers to submit 
background forms (AD-755) to USDA once every three years in order to be 
considered for appointment to the Board. The Secretary requires two 
names to be submitted for each open seat on the Board. The public 
reporting burden is estimated to increase the total burden hours for 
this information collection by less than one hour. This additional 
burden will be included in the existing information collection approved 
for use under OMB control number 0581-0093. In addition, serving on the 
Board is optional, and the burden

[[Page 16231]]

of submitting the background form would be offset by the benefits of 
additional representation on the Board.
    As with all Federal promotion programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this rule.
    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.
    Regarding outreach efforts, the Board discussed Missouri's peanut 
production level at its December 4-5, 2018 meeting. All the Board's 
meetings are open to the public and interested persons are invited to 
participate and express their views. The Board notified the primary 
peanut-producing States (Georgia, Alabama, Texas, Florida, North 
Carolina, South Carolina, Mississippi, Arkansas, Virginia, Oklahoma and 
New Mexico) of Missouri's production numbers by disseminating 
information through the Board's weekly newsletter, which is titled News 
in a Nutshell. The Board voted on August 28, 2019, to recommend adding 
the State of Missouri as a primary peanut-producing state.
    A proposed rule concerning this action was published in the Federal 
Register on December 2, 2019 (84 FR 65929). A 30-day comment period 
ending on January 2, 2020, was provided to allow interested persons to 
respond to the proposal.

Analysis of Comments

    Four comments were received in response to the proposed rule. Two 
comments support the proposal. The other two comments expressed concern 
about the use of taxpayer dollars to fund the peanut Order.
    Both commenters in support of the proposal pointed out that the 
Board's activities are fully funded by peanut farmers and not by 
taxpayers. These commenters explained that the Order supports 
activities that benefit the entire peanut industry, such as research to 
reduce production costs and improve quality and yield, and research 
about nutrition. One commenter stated that Missouri served on the Board 
as the at-large producer member in 2019, and that its average 
production over the last three years justifies its addition to the list 
of primary producing States. Both commenters agree that farmers will 
continue to benefit from Board activities under the Order.
    Two commenters expressed concern regarding the use of taxpayer 
dollars to fund the peanut Order. However, the Order, which is 
authorized under the 1996 Act and administered by the Board for the 
benefit of the peanut industry, is funded through assessments paid by 
peanut producers, as described in the Final Regulatory Flexibility 
Analysis section of this document. The peanut program does not receive 
taxpayer funds. Further, AMS charges the Board user fees for 
administrative oversight of the program.
    One commenter suggested that Missouri should not be added to the 
Board because it produces a small amount of peanuts. However, as 
described in the proposed rule, Missouri maintained a three-year 
average production of at least 10,000 tons of peanuts, qualifying it as 
a primary peanut-producing State under the Order and producer 
membership on the Board. Therefore, Missouri is being added as a 
primary peanut-producing State on the Board. USDA has considered all 
comments received and has not made any changes to the rule as proposed 
based on those comments.
    After consideration of all relevant matters presented, including 
the information and recommendation submitted by the Board and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, is consistent with and will effectuate the 
purposes of the 1996 Act.

List of Subjects in 7 CFR Part 1216

    Administrative practice and procedure, Advertising, Consumer 
information, Marketing agreements, Reporting and recordkeeping 
requirements, Peanut promotion.

    For the reasons set forth in the preamble, amend 7 CFR part 1216 as 
follows:

PART 1216--PEANUT PROMOTION, RESEARCH, AND INFORMATION ORDER

0
1. The authority citation for 7 CFR part 1216 continues to read as 
follows:

    Authority: 7 U.S.C. 7411-7425; 7 U.S.C. 7401.


0
2. Revise Sec.  1216.15 to read as follows:


Sec.  1216.15  Minor peanut-producing states.

    Minor peanut-producing states means all peanut-producing states 
with the exception of Alabama, Arkansas, Florida, Georgia, Mississippi, 
Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Texas 
and Virginia.

0
3. Revise Sec.  1216.21 to read as follows:


Sec.  1216.21  Primary peanut-producing states.

    Primary peanut-producing states means Alabama, Arkansas, Florida, 
Georgia, Mississippi, Missouri, New Mexico, North Carolina, Oklahoma, 
South Carolina, Texas and Virginia, Provided, these states maintain a 
3-year average production of at least 10,000 tons of peanuts.

0
4. Amend Sec.  1216.40 by revising paragraph (a) introductory text and 
paragraph (a)(1) to read as follows:


Sec.  1216.40  Establishment and membership.

    (a) Establishment of a National Peanut Board. There is hereby 
established a National Peanut Board, hereinafter called the Board, 
composed of no more than 13 peanut producers and alternates, appointed 
by the Secretary from nominations as follows:
    (1) Twelve members and alternates. One member and one alternate 
shall be appointed from each primary peanut-producing state, who are 
producers and whose nominations have been submitted by certified peanut 
producer organizations within a primary peanut-producing state.
* * * * *

    Dated: March 10, 2020.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2020-05224 Filed 3-20-20; 8:45 am]
BILLING CODE 3410-02-P