Federal Register / Vol. 69, No. 209 / Friday, October 29, 2004 / Rules and Regulations 63043

election by contract price. However, 

until such evaluation is complete, no 

changes will be made to the Peanut 

Crop Provisions.

List of Subjects in 7 CFR Part 457

Crop insurance, Peanut, reporting and 

recordkeeping requirements.

Final Rule

■ Accordingly, as set forth in the 

preamble, the Federal Crop Insurance 

Corporation proposes to amend 7 CFR 

part 457, Common Crop Insurance 

Regulations, for the 2005 and succeeding 

crop years as follows:

PART 457—COMMON CROP 

INSURANCE REGULATIONS

■ 1. The authority citation for 7 CFR part 

457 continues to read as follows:

Authority: 7 U.S.C. 1506(l) and 1506(p).

■ 2. Amend § 457.134 as follows:

■ a. Remove and reserve section 2 under 

the heading ‘‘Peanut Crop Insurance 

Provisions.’’

■ b. Revise the introductory text to read 

as follows:

§ 457.134 Peanut crop insurance 

provisions.

* * * * *

The peanut crop insurance provisions 

for the 2005 and succeeding crop years 

are as follows:

* * * * *

Signed in Washington, DC, on October 25, 

2004. 

Ross J. Davidson, Jr., 

Manager, Federal Crop Insurance 

Corporation.

[FR Doc. 04–24177 Filed 10–28–04; 8:45 am] 

BILLING CODE 3410–08–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service 

7 CFR Part 984

[Docket No. FV04–984–2 IFR] 

Walnuts Grown in California; 

Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, 

USDA.

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule decreases the 

assessment rate established for the 

Walnut Marketing Board (Board) for the 

2004–05 and subsequent marketing 

years from $0.0101 to $0.0094 per 

kernelweight pound of assessable 

walnuts. The Board locally administers 

the marketing order (order) which 

regulates the handling of walnuts grown 

in California. Authorization to assess 

walnut handlers enables the Board to 

incur expenses that are reasonable and 

necessary to administer the program. 

The marketing year began August 1 and 

ends July 31. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated.

DATES: Effective October 30, 2004. 

Comments received by December 28, 

2004, will be considered prior to 

issuance of a final rule.

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., Stop 0237, 

Washington, DC 20250–0237; Fax: (202) 

720–8938, or E-mail: 

moab.docketclerk@usda.gov; or Internet: 

http://www.regulations.gov. Comments 

should reference the docket number and 

the date and page number of this issue 

of the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Toni 

Sasselli, Program Analyst, or Kurt J. 

Kimmel, Regional Manager, California 

Marketing Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 2202 

Monterey Street, suite 102B, Fresno, 

California 93721; telephone: (559) 487–

5901, Fax: (559) 487–5906; or George 

Kelhart, Technical Advisor, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue SW., Stop 0237, 

Washington, DC 20250–0237; telephone: 

(202) 720–2491, Fax: (202) 720–8938. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, 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 E-mail: 

Jay.Guerber@usda.gov.

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 984, both as amended (7 

CFR part 984), regulating the handling 

of walnuts grown in California, 

hereinafter referred to as the ‘‘order.’’

The marketing agreement and order are 

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. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing 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 as issued herein will be 

applicable to all assessable walnuts 

beginning on August 1, 2004, and 

continue until amended, suspended, or 

terminated. This rule will not preempt 

any State or local laws, or policies, 

unless they present an irreconcilable 

conflict with this rule.

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) 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 USDA’s 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 established for the Board for the 

2004–05 and subsequent marketing 

years from $0.0101 to $0.0094 per 

kernelweight pound of assessable 

walnuts. 

The order provides authority for the 

Board, with the approval of the USDA, 

to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the program. The 

members of the Board are producers and 

handlers of California walnuts. They are 

familiar with the Board’s needs and 

with the costs for goods and services in 

their local area and are thus in a 

position to formulate an appropriate 

budget and assessment rate. The 

assessment rate is formulated and 

discussed in a public meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2003–04 and subsequent 

marketing years, the Board 

recommended, and USDA approved, an 

assessment rate of $0.0101 per 

63044 Federal Register / Vol. 69, No. 209 / Friday, October 29, 2004 / Rules and Regulations 

kernelweight pound of assessable 

walnuts that would continue in effect 

from year to year unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

information available to USDA. 

The Board met on September 10, 

2004, and unanimously recommended 

2004–05 expenditures of $2,749,500 and 

an assessment rate of $0.0094 per 

kernelweight pound of assessable 

walnuts. In comparison, last year’s 

budgeted expenditures were $2,863,350. 

The assessment rate of $0.0094 is 

$0.0007 lower than the $0.0101 rate 

currently in effect. The lower 

assessment rate is necessary because 

this year’s crop is estimated by the 

California Agricultural Statistics Service 

(CASS) to be 325,000 tons (292,500,000 

kernelweight pounds merchantable), 

and the budget is about 4 percent less 

than last year’s budget. Sufficient 

income should be generated at the lower 

rate for the Board to meet its anticipated 

expenses. 

Major categories in the budget 

recommended by the Board for 2004–05 

include $2,037,500 for research and 

marketing programs ($1,393,500 for 

market research and development, 

$550,000 for production research, and 

$94,000 to the California Agricultural 

Statistics Service for a crop estimate), 

$332,000 for employee expenses 

(administrative and office salaries, 

payroll taxes, workers compensation, 

and other employee benefits), $97,000 

for office expenses (rent, office supplies, 

telephone, fax, postage, printing, 

equipment maintenance, and furniture), 

$96,000 for other operating expenses 

(management travel, field travel, 

insurance, and financial audits), $5,000 

for controlled (compliance check) 

purchases, $75,000 for a production 

research director, and $107,000 as a 

reserve for contingency. Budgeted 

expenses for these items in 2003–04 

were $2,438,000, $334,625, $83,000, 

$82,000, $5,000, $73,000, and $15,725, 

respectively. 

The assessment rate recommended by 

the Board was derived by dividing 

anticipated expenses by expected 

shipments of California walnuts 

certified as merchantable. Merchantable 

shipments for the year are estimated at 

292,500,000 kernelweight pounds 

which should provide $2,749,500 in 

assessment income and allow the Board 

to cover its expenses. Unexpended 

funds may be used temporarily to defray 

expenses of the subsequent marketing 

year, but must be made available to the 

handlers from whom collected within 5 

months after the end of the year, 

according to § 984.69. 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and other 

information submitted by the Board or 

other available information. 

Although this assessment rate is 

effective for an indefinite period, the 

Board will continue to meet prior to or 

during each marketing year to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Board meetings are 

available from the Board or USDA. 

Board meetings are open to the public 

and interested persons may express 

their views at these meetings. USDA 

will evaluate Board recommendations 

and other available information to 

determine whether modification of the 

assessment rate is needed. Further 

rulemaking will be undertaken as 

necessary. The Board’s 2004–05 budget 

and those for subsequent marketing 

years will be reviewed and, as 

appropriate, approved by USDA.

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA), the 

Agricultural Marketing Service (AMS) 

has considered the economic impact of 

this rule on small entities. Accordingly, 

AMS has prepared this initial 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. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 5,800 

producers of walnuts in the production 

area and about 43 handlers subject to 

regulation under the order. Small 

agricultural producers are defined by 

the Small Business Administration (13 

CFR 121.201) as those having annual 

receipts of less than $750,000, and small 

agricultural service firms are defined as 

those having annual receipts of less than 

$5,000,000. 

Current industry information shows 

that 14 of the 43 handlers (32.5 percent) 

shipped over $5,000,000 of 

merchantable walnuts and could be 

considered large handlers by the Small 

Business Administration. Twenty-nine 

of the 43 walnut handlers (67.5 percent) 

shipped under $5,000,000 of 

merchantable walnuts and could be 

considered small handlers. An 

estimated 58 walnut producers, or about 

1 percent of the 5,800 total producers, 

would be considered large producers 

with annual incomes over $750,000. 

Based on the foregoing, it can be 

concluded that the majority of 

California walnut handlers and 

producers may be classified as small 

entities. 

This rule decreases the assessment 

rate established for the Board and 

collected from handlers for the 2004–05 

and subsequent marketing years from 

$0.0101 to $0.0094 per kernelweight 

pound of assessable walnuts. The Board 

unanimously recommended 2004–05 

expenditures of $2,749,500. The 

decreased assessment rate should 

generate sufficient income to meet the 

Board’s 2004–05 anticipated expenses. 

The lower assessment rate is primarily 

due to a lower budget and based on an 

estimated crop of 325,000 tons for the 

year (292,500,000 kernelweight pounds 

estimated merchantable).

Major categories in the budget 

recommended by the Board for 2004–05 

include $2,037,500 for research and 

marketing programs ($1,393,500 for 

market research and development, 

$550,000 for production research, and 

$94,000 to the California Agricultural 

Statistics Service for a crop estimate), 

$332,000 for employee expenses 

(administrative and office salaries, 

payroll taxes, workers compensation, 

and other employees benefits), $97,000 

for office expenses (rent, office supplies, 

telephone, fax, postage, printing, 

equipment maintenance, and furniture), 

$96,000 for other operating expenses 

(management travel, field travel, Board 

expenses, insurance, and financial 

audits), $5,000 for controlled 

(compliance check) purchases, $75,000 

for a production research director, and 

$107,000 as a reserve for contingency. 

Budgeted expenses for these items in 

2003–04 were $2,438,000, $334,625, 

$83,000, $82,000, $5,000, $73,000, and 

$15,725, respectively. 

Prior to arriving at this budget, the 

Board considered information from 

various sources, such as the Board’s 

Budget and Personnel Committee, 

Research Committee, and Marketing 

Development Committee. Alternative 

expenditure levels were discussed by 

these groups based upon the relative 

value of various research projects to the 

walnut industry. The recommended 

$0.0094 per kernelweight pound 

assessment rate was then determined by 

dividing the total recommended budget 

by the 292,500,000 kernelweight pound 

estimate of assessable walnuts for the 

year. Unexpended funds may be used 

temporarily to defray expenses of the 

Federal Register / Vol. 69, No. 209 / Friday, October 29, 2004 / Rules and Regulations 63045

subsequent marketing year, but must be 

made available to the handlers from 

whom collected within 5 months after 

the end of the year according to 

§ 984.69. 

A review of historical information and 

preliminary information pertaining to 

the current marketing year indicates that 

the grower price for 2004–05 could 

range between $0.50 and $0.70 per 

kernelweight pound of assessable 

walnuts. Therefore, the estimated 

assessment revenue for the 2004–05 

marketing year as a percentage of total 

grower revenue could range between 1.3 

and 1.9 percent. 

This action decreases 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 Board’s meeting was widely 

publicized throughout the walnut 

industry and all interested persons were 

invited to attend the meeting and 

participate in Board deliberations on all 

issues. Like all Board meetings, the 

September 10, 2004, meeting was a 

public meeting and all entities, both 

large and small, were able to express 

views on this issue. Finally, interested 

persons are invited to submit 

information on the regulatory and 

informational impacts of this action on 

small businesses. 

This action imposes no additional 

reporting or recordkeeping requirements 

on either small or large California 

walnut 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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material 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, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect, and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register

because: (1) The 2004–05 marketing 

year began on August 1, 2004, and the 

order requires that the rate of 

assessment for each marketing year 

apply to all merchantable walnuts 

handled during the year; (2) this action 

decreases the assessment rate for 

merchantable California walnuts; (3) 

handlers are aware of this action which 

was unanimously recommended by the 

Board at a public meeting and is similar 

to other assessment rate actions issued 

in past years; and (4) this interim final 

rule provides a 60-day comment period, 

and all comments timely received will 

be considered prior to finalization of 

this rule.

List of Subjects in 7 CFR Part 984

Walnuts, Marketing agreements, Nuts, 

Reporting and recordkeeping 

requirements.

■ For the reasons set forth in the 

preamble, 7 CFR part 984 is amended as 

follows:

PART 984—WALNUTS GROWN IN 

CALIFORNIA

■ 1. The authority citation for 7 CFR part 

984 continues to read as follows:

Authority: 7 U.S.C. 601–674.

■ 2. Section 984.347 is revised to read as 

follows:

§ 984.347 Assessment rate. 

On and after August 1, 2004, an 

assessment rate of $0.0094 per 

kernelweight pound is established for 

California merchantable walnuts.

Dated: October 22, 2004. 

A.J. Yates, 

Administrator, Agricultural Marketing 

Service.

[FR Doc. 04–24160 Filed 10–28–04; 8:45 am] 

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Rural Utilities Service 

7 CFR Part 1720

RIN 0572–AB83

Guarantees for Bonds and Notes 

Issued for Electrification or Telephone 

Purposes

AGENCY: Rural Utilities Service, USDA.

ACTION: Final rule.

SUMMARY: This rule establishes 

procedures for a guarantee program for 

cooperatives and other not-for-profit 

lenders that make loans eligible for 

assistance under the Rural 

Electrification Act of 1936 (the RE Act). 

Criteria for eligibility of lenders and 

transactions are set forth in the rule 

together with application procedures. 

Program participants are required to pay 

an annual fee for the guarantee. The fee 

will be credited to the Rural 

Development Subaccount to provide 

funds for zero-interest loans and grants 

pursuant to section 313 of the RE Act. 

The Farm Security and Rural 

Investment Act of 2002 (Pub. L. 107–

171), amended the RE Act, by adding 

section 313A which establishes this 

program. In addition to providing funds 

to enhance rural development, this 

program will contribute to improving 

the technology and reliability of our 

rural electric transmission and 

distribution system.

DATES: This rule will become effective 

November 29, 2004.

FOR FURTHER INFORMATION CONTACT:

Doris Nolte, Chief, Policy Analysis and 

Loan Management Staff, Electric 

Program, Rural Utilities Service, U.S. 

Department of Agriculture, 1400 

Independence Avenue, SW., STOP 

1560, Room 5155, Washington, DC 

20250–1560. Telephone: (202) 720–

0424. Fax: (202) 690–0717. E-mail: 

Doris.Nolte@usda.gov.

SUPPLEMENTARY INFORMATION: 

Executive Order 12866

This rule has been determined to be 

significant for purposes of Executive 

Order 12866 and, therefore, has been 

reviewed by the Office of Management 

and Budget (OMB). 

Executive Order 12988

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. RUS has determined that this 

rule meets the applicable standards 

provided in section 3 of that Executive 

Order. In addition, all State and local 

laws and regulations that are in conflict 

with this rule will be preempted. No 

retroactive effect will be given to the 

rule and, in accordance with section 

212(e) of the Department of Agriculture 

Reorganization Act of 1994 (7 U.S.C. 

6912(e)), administrative appeal 

procedures must be exhausted before an 

action against the Department or its 

agencies may be initiated. 

Regulatory Flexibility Act Certification 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.), the 

Administrator of RUS certifies that this