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Rules and Regulations
Federal Register Vol. 86, No. 118
Wednesday, June 23, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service 7 CFR Part 984
Doc. No. AMSSC200075; SC209842
FR

Walnuts Grown in California;
Decreased Assessment Rate Agricultural Marketing Service, USDA.
ACTION: Final rule.
AGENCY:

This final rule implements a recommendation from the California Walnut Board Board to decrease the assessment rate established for the 202021 and subsequent marketing years. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
DATES: Effective July 23, 2021.
FOR FURTHER INFORMATION CONTACT:
Bianca Bertrand, Management and Program Analyst, California Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: 559
4875901, Fax: 559 4875906, or Email: Biancam.Bertrand@usda.gov or Gary Olson, Acting Regional Director;
Telephone: 503 3262055, or Email:
GaryD.Olson@usda.gov.
Small businesses may request information on complying with this regulation by contacting Richard Lower, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 202500237; Telephone: 202 720
2491, or Email: Richard.Lower@
usda.gov.
SUMMARY:

This action, pursuant to 5 U.S.C. 553, implements an amendment to regulations issued to carry out a marketing order as defined in 7 CFR
900.2j. This rule is issued under Marketing Order No. 984, as amended 7

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SUPPLEMENTARY INFORMATION:

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CFR part 984, regulating the handling of walnuts grown in California. Part 984, referred to as the Order is effective under the Agricultural Marketing Agreement Act of 1937, as amended 7
U.S.C. 601674, hereinafter referred to as the Act. The Board locally administers the Order and is comprised of growers and handlers operating within the area of production, and a public member.
The Department of Agriculture USDA is issuing this rule in conformance with Executive Orders 13563 and 13175. In accordance with Executive Order 13175, AMS has not identified any tribal implications as a result of this rule. This rule falls within a category of regulatory actions that the Office of Management and Budget OMB exempted from Executive Order 12866 review.
This rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the Order now in effect, California walnut handlers are subject to assessments. Funds to administer the Order are derived from such assessments. It is intended that the assessment rate be applicable to all assessable walnuts for the 202021
marketing year, and continue until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 608c15A of the Act, any handler subject to an order may file with USDA a petition stating that the order, any provision of the order, or any obligation imposed in connection with the order is not in accordance with law and request a modification of the order or to be exempted therefrom. Such handler is afforded the opportunity for a hearing on the petition. After the hearing, USDA would rule on the petition. The Act provides that the district court of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, has jurisdiction to review USDAs ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling.
This rule decreases the assessment rate from $0.0400 per kernelweight pound assessable walnuts, the rate that was established for the 201718 and subsequent marketing years, to $0.0250
per kernelweight pound of assessable
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walnuts handled for the 202021 and subsequent marketing years.
The Order provides authority for the Board, with the approval of USDA, to formulate an annual budget of expenses and collect assessments from handlers to administer the program. The members are familiar with the Boards needs and with the costs of goods and services in their local area and are thus able to formulate an appropriate budget and assessment rate. The assessment rate is formulated and discussed in a public meeting and all directly affected persons have an opportunity to participate and provide input.
For the 201718 and subsequent marketing periods, the Board recommended, and USDA approved, an assessment rate of $0.0400 per kernelweight pound of assessable walnuts handled. That assessment rate continued until modified, suspended, or terminated by USDA upon recommendation and information submitted by the Board or other information available to USDA.
On September 11, 2020, the Board unanimously recommended 202021
expenditures of $17,990,000 and an assessment rate of $0.0250 per kernelweight pound of assessable walnuts. In comparison, last years budgeted expenditures were $25,760,000. The assessment rate of $0.0250 is $0.0150 lower than the rate currently in effect. The Board recommended decreasing the assessment rate to reduce the assessment burden on handlers. Funds from assessments and from the Boards reserve will be sufficient to cover proposed expenses, while maintaining the Boards reserve within the requirements of the Order at no more than two years budgeted expenses.
The major expenditures recommended by the Board for the 202021 marketing year include $1,930,000 for employee expenses, $283,000 for office expenses, $1,600,000
for production research, $825,000 for grades and standards activities, and $13,112,000 for domestic market development. Budgeted expenses for these items in 201920 were $1,896,000, $293,000, $2,000,000, $825,000, and $20,700,000, respectively.
The Board derived the recommended assessment rate by considering anticipated expenses; estimated certification certification means
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