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Federal Register / Vol. 86, No. 231 / Monday, December 6, 2021 / Proposed Rules Washington, DC 202500237;
Telephone: 202 7202491, or Email:
Richard.Lower@usda.gov.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, proposes to amend regulations issued to carry out a marketing order as defined in 7 CFR 900.2j. This proposed rule is issued under Marketing Agreement and Marketing Order No. 986, as amended 7
CFR part 986, regulating the handling of pecans grown in the states of Alabama, Arkansas, Arizona, California, Florida, Georgia, Kansas, Louisiana, Missouri, Mississippi, North Carolina, New Mexico, Oklahoma, South Carolina, and Texas. Part 986, 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 Council locally administers the Order and is comprised of growers and handlers of pecans operating within the production area, and one accumulator and one public member.
The Department of Agriculture USDA is issuing this proposed rule in conformance with Executive Orders 12866 and 13563. 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 action falls within a category of regulatory actions that the Office of Management and Budget OMB exempted from Executive Order 12866 review.
This proposed rule has been reviewed under Executive Order 13175
Consultation and Coordination with Indian Tribal Governments, which requires agencies to consider whether their rulemaking actions would have tribal implications. AMS has determined that this proposed rule is unlikely to have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.
This proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the Order now in effect, pecan handlers are subject to assessments. Funds to administer the Order are derived from such
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assessments. It is intended that the assessment rates would be applicable to all assessable pecans for the 202122
fiscal 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.
The Order provides that based on the recommendation of the Council or other available data, the Secretary shall fix three base rates of assessments for inshell pecans handled during each fiscal year. This proposed rule would decrease the assessment rates from $0.03 per pound for improved varieties and $0.02 per pound for native and seedling varieties and for substandard pecans, the rates that were established for the 201617 and subsequent fiscal years, to $0.01 per pound for improved varieties and $0.00 per pound for native and seedling varieties and for substandard pecans handled for the 202122 and subsequent fiscal years.
The Order authorizes the Council, with the approval of USDA, to formulate an annual budget of expenses and collect assessments from handlers to administer the program. The members of the Council are familiar with the Councils needs and with the costs of goods and services in their local area and can formulate an appropriate budget and assessment rates. The assessment rates are formulated and discussed in a public meeting and all directly affected persons have an opportunity to participate and provide input.
For the 201617 and subsequent fiscal years, the Council recommended, and USDA approved, assessment rates of $0.03 per pound for improved varieties and $0.02 per pound for native and seedling varieties and for substandard pecans handled. The assessment rates continue in effect from fiscal year to fiscal year unless modified, suspended,
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or terminated by USDA upon recommendation and information submitted by the Council or other information available to USDA.
The Council held a virtual meeting on September 22, 2021, and recommended 202122 expenditures of $9,002,508, and a decreased assessment rate of $0.01
per pound of improved varieties, and $0.00 per pound for native and seedling varieties and for substandard pecans. In comparison, the previous fiscal years budget expenditures were $11,741,400.
The assessment rate for improved varieties of $0.01 and the assessment rate of $0.00 for native and seedling varieties and for substandard pecans are $0.02 lower than the rates currently in effect.
On February 12, 2021, USDA
established the Pecan Promotion, Research and Information Order, a new research and promotion program. Under the new program, research and promotion activities for pecans would be funded through the collection of assessments from U.S. growers and importers.
With the new program in effect, the Council recommended reducing expenditures for research and promotion under the Order. With these reductions, total budgeted expenditures for 202122 are estimated at $9,002,508
which is $2,738,892 less than the $11,741,400 budgeted for 202021. The Council unanimously voted to decrease the assessment rates to reflect the reduction in expenditures, and to offset the assessments collected under the new program so the assessment burden on the industry does not increase.
The major expenditures for the Council for the 202122 year include $2,510,000 for international relations, $2,180,000 for marketing, and $1,447,066 for general administration.
Budgeted expenses for these items in 202021 were $1,968,000, $6,715,000, and $1,425,000, respectively.
The Council derived the recommended assessment rates by considering anticipated expenses, expected shipments of pecans, Market Access Program MAP funds, and the amount of funds available in the authorized reserve. Assessable shipments for the year are an estimated 315 million pounds of improved varieties, which should provide approximately $3,150,000 in assessment income 315,000,000 pounds multiplied by $0.01. Income derived from handler assessments calculated at the proposed rate, along with interest income, MAP
funds, and funds from the Councils authorized reserve, would be adequate to cover projected budgeted expenses of $9,002,508. Funds in the reserve are
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