OMB No. 0581-0178

CWB 24-20 (Exp. 3/31/2024) Destroy previous editions.

CALIFORNIA WALNUT BOARD

101 Parkshore Drive, Suite 250 Reserve Year 20___

Folsom, CA 95630

Ph (916) 932-7070; Fax (916) 932-7071

SUBSTANDARD WALNUT USER AGREEMENT

THIS AGREEMENT made and entered into at Folsom, California, this __________ day of __________, 

20____, between the CALIFORNIA WALNUT BOARD (Board), established pursuant to the provisions 

of the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601 et seq.) and Marketing 

Order No. 984, as amended (Order), and ___________________________________, (Company), a 

corporation organized under the laws of the State of California.

WITNESSETH:

WHEREAS, the Board, pursuant to the provisions of sections 984.64 and 984.464(b) of the Order,

expects to dispose of substandard walnuts by diversion into oil or animal feed during the 20___ marketing 

year; and

WHEREAS, the Company is engaged in the business of crushing oil bearing materials for the production 

of oils, or selling agricultural products for manufacturing or processing into animal feed.

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

(1) The Board agrees to sell, and the Company agrees to buy, not less than 1,000 pounds 

kernelweight basis, of such substandard walnuts and walnut materials as it shall have available 

for oil stock during the 20___ marketing year. The Company agrees to accept delivery of up to 

500,000 pounds of walnuts, kernelweight basis, which shall be crushed for oil, sold for 

production of oil or sold for use as livestock feed directly or as an ingredient in animal feed and 

shall not be used for any other purpose whatsoever.

(2) The Company agrees to pay the Board __________ cents per pound of kernelweight for all 

walnuts delivered.

The company may also negotiate with and pay directly to the handler a fair market price beyond 

the __________ cents payable to the Board for all walnuts purchased.

At any time after December 1, 20___, the Board or the Company may, in writing, request 

renegotiation of the Board selling price herein provided for deliveries after a date specified in the 

request.

The kernelweight of each lot shall be determined on the basis of inspection certificates issued by 

the DFA OF CALIFORNIA.

The Board will invoice the Company monthly for all walnuts delivered. Each invoice will list the 

applicable inspection certificate number, the net weight of each lot as evidenced by the Public 

Weighmaster certificates, the kernel percentage, and the kernelweight. 

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a 

collection of information unless it displays a valid OMB control number. The valid OMB control number for this information collection is 0581-

0178. The time required to complete this information collection is estimated to average 15 minutes per response, including the time for reviewing 

instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of 

information.
OMB No. 0581-0178

CWB 24-20 (Exp. 3/31/2024) Destroy previous editions.

The Company will pay each invoice within thirty (30) days of the receipt thereof, which date of 

receipt shall be the date following the date said invoices are placed in the United States mail.

(3) Delivery will be made by the Board to the Company, FOB point of origin of the walnuts. The 

weight of each lot delivered shall be evidenced by a Public Weighmaster's certificate secured at 

the point of origin.

The Company has, prior to the effective date of this Agreement, accepted from handlers 

deliveries of substandard walnuts to its premises. For the purpose of this Agreement, such 

substandard walnuts are deemed to have been delivered to the Company, as of the date hereof.

(4) The Company will pay all transportation costs of the substandard walnuts delivered by the Board.

(5) The walnuts will be at the risk of the Company, from the time the Board delivers them at the FOB 

point to the Company, or its order.

(6) It is understood and agreed that if the walnuts are used for purposes other than as prescribed in 

this Agreement, serious and substantial damage will be sustained by the Board, the Walnut 

Industry and the Walnut Marketing Order. Since it will be difficult, if not impossible, to prove the 

full amount of such damages, the Company will pay to the Board by way of compensation and 

not as a penalty, liquidated damages in the sum of $2,000.00 per ton of kernelweight for any of 

the walnuts and walnut material delivered to the Company under this agreement and not crushed 

for oil, sold for production of oil or sold for use as livestock feed directly or as an ingredient in 

animal feed.

(7) It is further agreed that the provisions for liquidated damages shall not preclude the Board from 

using any and all legal remedies available to it to enforce the terms and conditions of this 

Agreement.

(8) The Company will accept deliveries at such intervals and such times as the Board shall elect to 

make them, beginning with the date of this Agreement and continuing through August 31, 20___. 

The company agrees that all walnuts and walnut materials delivered hereunder shall be fully 

processed by January 31, 20___.

The Company may, for the purpose of crushing into oil, transfer substandard walnuts delivered to 

it by the Board under this Agreement, to crushers approved by the Board to receive such 

substandard walnuts. The Company may also, for the purpose of processing into animal feed or 

feeding directly to livestock, transfer any substandard walnuts to feed mills, dairies and cattle 

feeders as the Board may certify as approved to receive substandard walnuts. The Company will 

report to the Board the quantities of substandard walnuts so transferred to any of the 

aforementioned outlets and agrees to maintain ownership and responsibility in accordance with 

the terms of this Agreement for such walnuts until they are crushed into oil, manufactured into 

animal feed or fed to livestock.

(9) If the operations of the Board shall be prevented or materially interfered with by the exercise of 

Government authority or by embargo, civil uprising, fire, strikes, or any other conditions beyond 

the control of the Board, it shall be excused from performance hereunder to such extent as such 

conditions prevent or interfere with performance hereunder.
OMB No. 0581-0178

CWB 24-20 (Exp. 3/31/2024) Destroy previous editions.

(10) If the Company fails to take delivery of walnuts pursuant to this Agreement, it shall be liable for 

damages, including any expenses incurred by the Board because of such failure, unless the 

Company is prevented from taking delivery because of material interference by Government 

authority, embargo, civil uprising, fire, strikes, or other like conditions beyond the control of the 

Company.

(11) The books and records of the Company with respect to transactions under this Agreement shall be 

open for inspection by the Board through its authorized representatives, which shall include, 

without being limited to, employees of the United States Department of Agriculture. Such books 

and records will be kept at the principal office of the Company and will be maintained by the 

Company for the period of three (3) years after the completion of this agreement for such 

inspection by the Board and the Department of Agriculture.

(12) As a further guarantee of the faithful performance of the provisions of this Agreement, the 

Company has delivered to the Board herewith a Surety Bond in the sum Twenty-five Thousand 

and 00/100 Dollars ($25,000.00), and it is agreed between the parties that any adjustment or 

extension of time beyond August 31, 20____ may be granted only with the consent of surety on 

said Bond, or delivery of a new Bond; and the Company further agrees that, should the sureties 

on Bond delivered herewith, or any Bond delivered hereafter in connection with the Agreement 

become unsatisfactory to the Board, the Company will, within thirty (30) days from receipt of 

demand, furnish a new Bond with sureties solvent and satisfactory to the Board.

WITNESS our hands as of the date first written above.

CALIFORNIA WALNUT BOARD COMPANY

By: ____________________________________ By: ___________________________________

Title: Executive Director Title:__________________________________

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its 

Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on 

race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, 

family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in 

any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by 

program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American 

Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202) 720-2600 (voice and TTY) or contact USDA 

through the Federal Relay Service at (800) 877-8339. Additionally, program information may be made available in languages other than English. 

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at 

http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of 

the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to 

USDA by: (1) mail: U.S. Department of Agriculture Office of the Assistant Secretary for Civil Rights 1400 Independence Avenue, SW 

Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov. USDA is an equal opportunity provider, 

employer, and lender.