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

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REGISTER issue of each week.

Rules and Regulations Federal Register

9841 

Vol. 72, No. 43 

Tuesday, March 6, 2007 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 984 

[Docket No. AMS–FV–06–0196; FV06–984– 

2 FIR] 

Walnuts Grown in California; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: The Department of 

Agriculture (USDA) is adopting as a 

final rule, without change, an interim 

final rule which increased the 

assessment rate established for the 

Walnut Marketing Board (Board) for the 

2006–07 and subsequent marketing 

years from $0.0096 to $0.0101 per 

kernelweight pound of assessable 

walnuts. The Board locally administers 

the marketing order which regulates the 

handling of walnuts grown in 

California. Assessments upon walnut 

handlers are used by the Board to fund 

reasonable and necessary expenses of 

the program. The marketing year begins 

August 1 and ends July 31. The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

EFFECTIVE DATE: April 5, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Shereen Marino, Marketing Specialist, 

or Kurt J. Kimmel, Regional Manager, 

California Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487– 

5901, Fax: (559) 487–5906, or E-mail: 

Shereen.Marino@usda.gov or 

Kurt.Kimmel@usda.gov. 

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 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.’’ 

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, 2006, and 

continue until amended, suspended, or 

terminated. This rule will not preempt 

any State or local laws, regulations, 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 continues in effect the 

action that increased the assessment rate 

established for the Board for the 2006– 

07 and subsequent marketing years from 

$0.0096 to $0.0101 per kernelweight 

pound of assessable walnuts. 

The California walnut marketing 

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 

of the Board are producers and handlers 

of California walnuts. They are familiar 

with the Board’s needs and 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 at a public meeting. 

Thus, all directly affected persons have 

an opportunity to participate and 

provide input. 

For the 2005–06 and subsequent 

marketing years, the Board 

recommended, and USDA approved, an 

assessment rate of $0.0096 per 

kernelweight 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 8, 2006, 

and unanimously recommended 2006– 

07 expenditures of $3,222,860 and an 

assessment rate of $0.0101 per 

kernelweight pound of assessable 

walnuts. In comparison, last year’s 

budgeted expenditures were $2,937,600. 

The assessment rate of $0.0101 per 

kernelweight pound of assessable 

walnuts is $0.0005 per pound higher 

than the 2005–06 rate. The higher 

assessment rate is necessary to cover 

increased expenses including increased 

salaries, operating expenses and 

research for the 2006–07 marketing year. 

The following table compares major 

budget expenditures recommended by 

the Board for the 2005–06 and 2006–07 

marketing years: 


rwilkins on PROD1PC63 with RULES
9842 Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Rules and Regulations 

Budget expense categories 2005–06 2006–07 

Administrative Staff/Field Salaries & Benefits ................................................................................................................. $360,000 $415,000 

Travel/Board Expenses ................................................................................................................................................... 80,000 75,000 

Office Costs/Annual Audit ................................................................................................................................................ 132,500 142,500 

Program Expenses Including Research: 

Controlled Purchases ............................................................................................................................................... 5,000 5,000 

Crop Acreage Survey ............................................................................................................................................... 85,000 ....................

Crop Estimate ........................................................................................................................................................... 95,000 100,000 

Production Research Director .................................................................................................................................. 75,000 75,000 

Production Research ................................................................................................................................................ 500,000 650,000 

Domestic Market Development ................................................................................................................................ 1,550,000 1,750,000 

Reserve for Contingency .......................................................................................................................................... 55,100 10,360 

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 

318,600,000 kernelweight pounds 

which should provide $3,217,860 in 

assessment income. Assessment income 

combined with interest income should 

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 estimate for merchantable 

shipments is based on the California 

Agricultural Statistics Service’s crop 

estimate for the crop year of 354,000 

tons (inshell). Pursuant to § 984.51(b) of 

the order, this figure was converted to 

a merchantable kernelweight basis using 

a factor of .45 (354,000 tons × 2,000 

pounds/ton × .45). 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

available information. 

Although this assessment rate will be 

in effect 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 2006–07 budget 

and those for subsequent marketing 

years will be reviewed and, as 

appropriate, approved by USDA. 

Final 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 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. Thus, both statutes have small 

entity orientation and compatibility. 

There are currently 44 handlers of 

California walnuts subject to regulation 

under the marketing order and 

approximately 5,150 growers in the 

production area. Small agricultural 

service firms are defined by the Small 

Business Administration (SBA) (13 CFR 

121.201) as those whose annual receipts 

are less than $6,500,000, and small 

agricultural producers are defined as 

those whose annual receipts are less 

than $750,000. 

Current industry information suggests 

that 16 of the 44 handlers (36 percent) 

shipped over $6,500,000 of 

merchantable walnuts and could be 

considered large handlers by the SBA. 

Twenty-eight of the 44 walnut handlers 

(64 percent) shipped under $6,500,000 

of merchantable walnuts and could be 

considered small handlers. 

The number of large walnut growers 

(annual walnut revenue greater than 

$750,000) can be estimated as follows. 

According to the National Agricultural 

Statistics Service (NASS), the average 

yield per acre for 2003–05 is 1.567 tons. 

A grower with 353 acres with average 

yields would produce approximately 

553 tons. The average of grower prices 

for 2003–05 (published by NASS) is 

$1,357 per ton. At that average price, the 

553 tons produced on 353 acres would 

yield approximately $750,000 in annual 

revenue. The 2002 Agricultural Census 

indicated 56 walnut farms (just under 

one percent of the 7,025 walnut farmers 

in 2002) were 500 acres or larger. The 

500 acre threshold in the census data is 

somewhat larger than the 353 acres that 

would produce $750,000 in revenue 

with average yields and average prices. 

Thus, it can be concluded that the 

number of large walnut farms in 2006 is 

still likely to be not much above one 

percent. 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 continues in effect the 

action that increased the assessment rate 

established for the Board and collected 

from handlers for the 2006–07 and 

subsequent marketing years from 

$0.0096 to $0.0101 per kernelweight 

pound of assessable walnuts. The Board 

unanimously recommended 2006–07 

expenditures of $3,222,860 and an 

assessment rate of $0.0101 per 

kernelweight pound of assessable 

walnuts. The assessment rate of $0.0101 

is $0.0005 higher than the 2005–06 rate. 

The quantity of assessable walnuts for 

the 2006–07 marketing year is estimated 

at 318,600,000 merchantable 

kernelweight pounds. Thus, the $0.0101 

rate should provide $3,217,860 in 

assessment income. Assessment income 

combined with an anticipated interest 

income of $5,000 should be adequate to 

meet this year’s expenses. The increased 

assessment rate is primarily due to 

increased budget expenditures. 

The following table compares major 

budget expenditures recommended by 

the Board for the 2005–06 and 2006–07 

marketing years: 


rwilkins on PROD1PC63 with RULES
Federal Register / Vol. 72, No. 43 / Tuesday, March 6, 2007 / Rules and Regulations 9843 

Budget expense categories 2005–06 2006–07 

Administrative Staff/Field Salaries & Benefits ................................................................................................................. $360,000 $415,000 

Travel/Board Expenses ................................................................................................................................................... 80,000 75,000 

Office Costs/Annual Audit ................................................................................................................................................ 132,500 142,500 

Program Expenses Including Research: 

Controlled Purchases ............................................................................................................................................... 5,000 5,000 

Crop Acreage Survey ............................................................................................................................................... 85,000 ....................

Crop Estimate ........................................................................................................................................................... 95,000 100,000 

Production Research Director .................................................................................................................................. 75,000 75,000 

Production Research ................................................................................................................................................ 500,000 650,000 

Domestic Market Development ................................................................................................................................ 1,550,000 1,750,000 

Reserve for Contingency .......................................................................................................................................... 55,100 10,360 

Prior to arriving at this budget, the 

Board considered alternative 

expenditure levels, but ultimately 

decided that the recommended levels 

were reasonable to properly administer 

the order. 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. 

According to NASS, the season 

average grower prices for years 2004 and 

2005 were $1,390 and $1,520 per ton, 

respectively. Dividing these average 

grower prices by 2,000 pounds per ton 

provides an inshell price per pound 

range of between $.70 and $.76. 

Adjusting by a few cents above and 

below those prices ($0.67 to $0.79 per 

inshell pound) provides a reasonable 

price range within which the 2006–07 

season average price is likely to fall. 

Dividing these inshell prices per pound 

by the 0.45 conversion factor designated 

in the order yields a 2006–07 price 

range estimate of $1.49 and $1.76 per 

kernelweight pound of assessable 

walnuts. 

To calculate the percentage of grower 

revenue represented by the assessment 

rate, the assessment rate of $0.0101 (per 

kernelweight pound) is divided by the 

low and high estimates of the price 

range and then multiplied by 100. The 

estimated assessment revenue for the 

2006–07 marketing year as a percentage 

of total grower revenue would likely 

range between .7 and .6 percent. 

This action continues in effect the 

action that increased the assessment 

obligation imposed on handlers. While 

assessments impose some additional 

costs on handlers, the costs are minimal 

and uniform on all handlers. Some of 

the additional costs may be passed on 

to producers. However, these costs are 

offset by the benefits derived by the 

operation of the marketing order. In 

addition, the Board’s meeting was 

widely publicized throughout the 

California 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 8, 

2006, meeting was a public meeting and 

all entities, both large and small, were 

able to express views on this issue. 

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. 

The 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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

An interim final rule concerning this 

action was published in the Federal 

Register on November 16, 2006 (71 FR 

66645). Copies of the rule were also 

mailed by the Board’s staff to all Board 

members and walnut handlers. In 

addition, the interim final rule was 

made available through the Internet by 

USDA and the Office of the Federal 

Register. The rule provided for a 60-day 

comment period, which ended on 

January 16, 2007, and no comments 

were received. 

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. 

List of Subjects in 7 CFR Part 984 

Marketing agreements, Walnuts, Nuts, 

Reporting and recordkeeping 

requirements. 

PART 984—WALNUTS GROWN IN 

CALIFORNIA 

■ Accordingly, the interim final rule 

amending 7 CFR part 984 which was 

published at 71 FR 66645 on November 

16, 2006, is adopted as a final rule 

without change. 

Dated: February 28, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–3818 Filed 3–5–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2006–26709; Directorate 

Identifier 2006–NM–202–AD; Amendment 

39–14968; AD 2007–05–07] 

RIN 2120–AA64 

Airworthiness Directives; Fokker 

Model F.28 Mark 0070 and 0100 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule. 

SUMMARY: The FAA is adopting a new 

airworthiness directive (AD) for all 

Fokker Model F.28 Mark 0070 and 0100 

airplanes. This AD requires inspecting 

the carbon-fiber reinforced plastic main 

landing gear (MLG) door to determine 

whether certain part numbers are 

installed. For airplanes having certain 

doors, this AD requires inspecting the 

MLG outboard door for cracks, play, and 

loose sealant/bolts/nuts, and related 


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