18026 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

sector agencies. The Department has not

identified any relevant Federal rules

that duplicate, overlap, or conflict with

this rule.

The Committee’s meetings were

widely publicized throughout the

production area. All interested persons

were invited to attend the meetings. The

Committee actively seeks participation

in its deliberations at all of its meetings.

Both the October 8 and November 12,

1996, meetings were open to the public

and representatives of both large and

small entities expressed their views on

these and related issues. The majority of

the Committee, composed of six

producers and three handlers, as well as

a public member and respective

alternates for each position, represent

small entities. Additionally, in the

proposed rule published in the Federal

Register (62 FR 5933) on February 10,

1997, interested persons were invited to

submit information on the regulatory

and informational impacts of this action

on small businesses. A copy of the

proposal was also made available on the

Internet by the U. S. Government

Printing Office. The comment period

ended March 12, 1997, and no

comments were received concerning the

impacts of this action on small

businesses.

After consideration of all relevant

matter presented, including the

information and recommendation

submitted by the Committee 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 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 1997 shipping season

begins in June; (2) handlers are well

aware of this action which was

discussed at two open public meetings

which were widely publicized in the

production area; and (3) a proposed rule

was published on this action and

provided for a 30-day comment period.

No comments were received.

List of Subjects in 7 CFR Part 956

Marketing agreements, Onions,

Reporting and record keeping

requirements.

For the reasons set forth in the

preamble, 7 CFR Part 956 is amended as

follows:

PART 956—SWEET ONIONS GROWN

IN THE WALLA WALLA VALLEY OF

SOUTHEAST WASHINGTON AND

NORTHEAST OREGON

1. The authority citation for 7 CFR

Part 956 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. New sections 956.162 and 956.163

are added to Subpart—Rules and

Regulations to read as follows:

§ 956.162 Container markings.

Effective April 15, 1997, no handler

shall ship any container of Walla Walla

Sweet Onions except in accordance

with the following terms and

provisions:

(a) Each container of Walla Walla

Sweet Onions shall be conspicuously

marked with the ‘‘Genuine Walla Walla

Sweet Onion’’ logo. The marking may be

in the form of a decal or a stamped

imprint of any color and size: Provided,

That the decal or stamped imprint must

be placed in plain sight and easy to

read.

(b) Walla Walla Sweet Onions may be

handled not subject to the marking

requirements of this section when

handlers ship such onions pursuant to

§ 956.163, or ship such onions in field

packed bulk bins containing more than

500 pounds net weight for sale to

roadside stands and farmers’ market

operators for repacking and direct

consumer sale: Provided, That subject to

Committee verification of handler

container inventories, handlers may use

their existing inventories of unmarked

containers until April 15, 1999.

§ 956.163 Handling for specified purposes.

(a) Assessment and container marking

requirements specified in this part shall

not be applicable to shipments of onions

for any of the following purposes:

(1) Shipments of Walla Walla Sweet

Onions for relief or to charitable

institutions: Provided, That such

shipments must be donated and not sold

in order for this exemption to apply;

(2) Shipments of Walla Walla Sweet

Onions for livestock feed;

(3) Shipments of Walla Walla Sweet

Onions for planting and for plants;

(4) Shipments of Walla Walla Sweet

Onions as salad onions;

(5) Shipments of Walla Walla Sweet

Onions for all processing uses

including, pickling, peeling,

dehydration, juicing, or other

processing;

(6) Shipments of Walla Walla Sweet

Onions for disposal;

(7) Shipments of Walla Walla Sweet

Onions for seed.

(b) [Reserved]

Dated: April 7, 1997.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 97–9479 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Docket No. FV96–982–2 FIR]

Hazelnuts Grown in Oregon and

Washington; Establishment of Interim

and Final Free and Restricted

Percentages for the 1996–97 Marketing

Year

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

which established interim and final free

and restricted percentages for domestic

inshell hazelnuts for the 1996–97

marketing year under the Federal

marketing order for hazelnuts grown in

Oregon and Washington. The

percentages allocate the quantity of

domestically produced hazelnuts which

may be marketed in the domestic inshell

market. The percentages are intended to

stabilize the supply of domestic inshell

hazelnuts to meet the limited domestic

demand for such hazelnuts and provide

reasonable returns to producers. This

rule was recommended unanimously by

the Hazelnut Marketing Board (Board),

which is the agency responsible for

local administration of the order.

EFFECTIVE DATE: May 14, 1997.

FOR FURTHER INFORMATION CONTACT:

Teresa L. Hutchinson, Marketing

Specialist, Northwest Marketing Field

Office, Fruit and Vegetable Division,

Agricultural Marketing Service, USDA,

1220 SW Third Ave., Room 369,

Portland, OR 97204; telephone (503)

326–2055 or Mark A. Slupek, Marketing

Specialist, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, Room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone (202) 205–

2830. Small businesses may request

information on compliance with this

regulation by contacting: Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, Room

2525–S, Washington, DC 20090–6456;

telephone (202) 720–2491; FAX (202)

720–5698.
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18027

SUPPLEMENTARY INFORMATION: This final

rule is issued under Marketing

Agreement No. 115 and Order No. 982

(7 CFR part 982), both as amended,

regulating the handling of hazelnuts

grown in Oregon and Washington,

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 is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12988, Civil Justice

Reform. It is intended that this action

apply to all merchantable hazelnuts

handled during the 1996–97 marketing

year (July 1, 1996—June 30, 1997). 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 the Secretary 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. A

handler is afforded the opportunity for

a hearing on the petition. After the

hearing, the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after date of the entry

of the ruling.

This rule establishes marketing

percentages which allocate the quantity

of inshell hazelnuts that may be

marketed in domestic markets. The

Board is required to meet prior to

September 20 of each marketing year to

compute its marketing policy for that

year and compute and announce an

inshell trade demand if it determines

that volume regulations would tend to

effectuate the declared policy of the Act.

The Board also computes and

announces preliminary free and

restricted percentages for that year.

The inshell trade demand is the

amount of inshell hazelnuts that

handlers may ship to the domestic

market throughout the marketing

season. The order specifies that the

inshell trade demand be computed by

averaging the preceding three ‘‘normal’’

years’ trade acquisitions of inshell

hazelnuts, rounded to the nearest whole

number. The Board may increase the

three-year average by up to 25 percent,

if market conditions warrant an

increase. The Board’s authority to

recommend volume regulations and the

computations used to determine

released percentages are specified in

§ 982.40 of the order.

The National Agricultural Statistics

Service (NASS) estimated hazelnut

production at 20,000 tons for the Oregon

and Washington area. After discussion,

the consensus of the Board was to use

the NASS estimate as the basis for the

preliminary, interim final and final free

and restricted percentage computations.

The majority of domestic inshell

hazelnuts are marketed in October,

November, and December. By

November, the marketing season is well

under way.

The quantity marketed is broken

down into free and restricted

percentages to make available hazelnuts

which may be marketed in domestic

inshell markets (free) and hazelnuts

which are exported, shelled or

otherwise disposed of (restricted). The

preliminary free percentage releases 80

percent of the adjusted inshell trade

demand. The preliminary free

percentage is expressed as a percentage

of the total supply subject to regulation

(supply) and is based on the preliminary

crop estimate. The Board used the

NASS crop estimate of 20,000 tons.

At its August 29, 1996, meeting, the

Board computed and announced

preliminary free and restricted

percentages of 16 percent and 84

percent, respectively. The purpose of

releasing only 80 percent of the inshell

trade demand under the preliminary

percentage was to guard against

underestimates of crop size. The

preliminary free percentage released

3,238 tons of hazelnuts from the 1996

supply for domestic inshell use. The

preliminary restricted percentage of the

1996 supply for export and kernel

markets totaled 13,007 tons.

Under the order, the Board must meet

a second time, on or before November

15, to recommend interim final and

final percentages. The Board uses then

current crop estimates to calculate the

interim final and final percentages. The

interim final percentages are calculated

in the same way as the preliminary

percentages and release the remaining

20 percent (to total 100 percent of the

inshell trade demand) previously

computed by the Board. Final free and

restricted percentages may release up to

an additional 15 percent of the average

of the preceding three years’ trade

acquisitions to provide an adequate

carryover into the following season. The

final free and restricted percentages

must be effective by June 1, at least 30

days prior to the end of the marketing

year, June 30. The final free and

restricted percentages can be made

effective earlier, if recommended by the

Board and approved by the Secretary.

Revisions in this marketing policy can

be made until February 15 of each

marketing year, but the inshell trade

demand can only be revised upward,

consistent with § 982.40(e).

The Board met on November 12, 1996,

and reviewed and approved an

amended marketing policy. The Board

recommended that the three-year

average trade acquisition figure of 4,513

tons be increased by 100 tons to provide

product for an experimental marketing

program using roasted inshell hazelnuts.

The Board also recommended the

establishment of interim final and final

free and restricted percentages. Interim

final percentages were recommended at

20 percent free and 80 percent

restricted. The interim final percentage

makes an additional 809 tons of inshell

hazelnuts available for the domestic

inshell market including roasted

product. The interim final marketing

percentages are based on the industry’s

final production estimates (20,000 tons)

and release 4,047 tons to the domestic

inshell market from the 1996 supply

subject to regulation. The interim final

restricted percentage resulted in a

restricted obligation of 13,007 tons.

The final free and restricted

percentages were recommended at 23

percent and 77 percent, respectively.

The Board also recommended that the

final percentages be effective on June 1,

1997. The established final marketing

percentages release for domestic inshell

use an additional 677 tons from the

supply subject to regulation. Thus, a

total of 4,724 tons of inshell hazelnuts

will be released from the 1996 supply

for domestic inshell use.

The marketing percentages are based

on the Board’s production estimates and

the following supply and demand

information for the 1996–97 marketing

year:

Inshell supply Tons

(1) Total production (NASS estimate) ..................................................................................................................................................... 20,000
18028 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

Inshell supply Tons

(2) Less substandard, farm use (disappearance) ................................................................................................................................... 1,362

(3) Merchantable production (the Board’s adjusted crop estimate) ........................................................................................................ 18,638

(4) Plus undeclared carryin as of July 1, 1996, subject to regulation ..................................................................................................... 1,668

(5) Supply subject to regulation (Item 3 plus Item 4) .............................................................................................................................. 20,306

Inshell Trade Demand

(6) Average trade acquisitions of inshell hazelnuts for three prior years ............................................................................................... 4,513

(7) Increase to encourage increased sales (2.2 percent of Item 6) ........................................................................................................ 100

(8) Less declared carryin as of July 1, 1996, not subject to regulation .................................................................................................. 566

(9) Adjusted Inshell Trade Demand ......................................................................................................................................................... 4,047

(10) 15 percent of the average trade acquisitions of inshell hazelnuts for three prior years (Item 6) ................................................... 677

(11) Adjusted Inshell Trade Demand plus 15 percent for carryout (Item 9 plus Item 10) ...................................................................... 4,724

Percentages Free Restricted

(12) Interim final percentages (Item 9 divided by Item 5)×100 ....................................................................................... 20 80

(13) Final percentages (Item 11 divided by Item 5)×100 ................................................................................................ 23 77

In addition to complying with the

provisions of the marketing order, the

Board also considered the Department’s

1982 ‘‘Guidelines for Fruit, Vegetable,

and Specialty Crop Marketing Orders’’

(Guidelines) when making its

computations in the marketing policy.

This volume control regulation provides

a method to collectively limit the

supply of inshell hazelnuts available for

sale in domestic markets. The

Guidelines provide that the domestic

inshell market has available a quantity

equal to 110 percent of prior years’

shipments before secondary market

allocations are approved. This provides

for plentiful supplies for consumers and

for market expansion, while retaining

the mechanism for dealing with

oversupply situation. At its November

12, 1996, meeting, the Board

recommended that an increase of 2.2

percent (100 tons) for market expansion

be included in the inshell trade demand

which was used to compute the interim

percentages. The established final

percentages are based on the final

inshell trade demand, and will make

available an additional 677 tons for

desirable carryout. The total free supply

for the 1996–97 marketing year is 5,290

tons of hazelnuts, which is the final

trade demand of 4,724 tons plus the

declared carryin of 566 tons. This

amount is 117 percent of prior years’

sales and exceeds the goal of the

Guidelines.

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 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 1,000

producers of hazelnuts in the

production area and approximately 23

handlers subject to regulation under the

marketing order. Small agricultural

producers have been defined by the

Small Business Administration (13 CFR

121.601) as those having annual receipts

of less than $500,000, and small

agricultural service firms are defined as

those whose annual receipts are less

than $5,000,000. Using this criteria,

virtually all of the producers are small

agricultural producers and an estimated

20 of the 23 handlers are small

agricultural service firms. Thus, the

majority of hazelnut producers and

handlers may be classified as small

entities.

Board meetings are widely publicized

in advance of the meetings and are held

in a location central to the production

area. The meetings are open to all

industry members and other interested

persons—who are encouraged to

participate in the deliberations and

voice their opinions on topics under

discussion. Thus, Board

recommendations can be considered to

represent the interests of small business

entities in the industry.

Many years of marketing experience

led to the development of the current

volume control procedures. These

procedures have helped the industry

solve its marketing problems by keeping

inshell supplies in balance with

domestic needs. The current volume

control procedures fully supply the

domestic inshell market, provide for

market expansion, and help prevent

oversupplies in that market.

Industry statistics show that total

hazelnut production has varied widely

over the last ten years, from a low of

13,000 tons in 1989 to a high of 41,000

tons in 1993. Average production has

been around 24,000 tons. As crop size

has fluctuated, volume regulations have

contributed towards orderly marketing

and market stability, and have helped

moderate the variation in returns for all

growers and handlers, both large and

small. For instance, production in the

shortest crop year (1989) was 54 percent

of the ten-year average (1985–1995).

Production in the biggest crop year

(1993) was 170 percent of the ten-year

average. The percentage releases

provide all handlers with the

opportunity to benefit from the most

profitable domestic inshell market. That

market is available to all handlers,

regardless of handler size.

NASS statistics show that the grower

price per pound has increased steadily

over the last four years from $.28 in

1992 to $.46 in 1995.

While the level of benefits of this

rulemaking are difficult to quantify, it is

clear that the stabilizing effects of the

volume regulations are still required in

order to help both small and large

handlers to maintain and expand

markets even though hazelnut supplies

fluctuate widely from season to season.

Hazelnuts produced under the order

comprise virtually all of the hazelnuts

produced in the U.S. This production

represents approximately 3 percent of

total U.S. tree nut production and

approximately 3 percent of the world’s

hazelnut production.

This volume control regulation

provides a method for the U.S. hazelnut

industry to limit the supply of domestic

inshell hazelnuts available for sale in

the U.S. Section 982.40 of the order

establishes a procedure and

computations for the Board to follow in

recommending to the Secretary the
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18029

preliminary, interim final, and final

quantities of hazelnuts to be released to

the free and restricted markets each

marketing year. The program results in

plentiful supplies for consumers and for

market expansion while retaining the

mechanism for dealing with oversupply

situations.

The marketing order authority for

regulating the quantity of hazelnuts

marketed is intended to stabilize

markets, in the interest of producers,

handlers, and consumers. The restricted

percentage limits the amount of the crop

that goes into the primary market

(domestic inshell market) so that this

market is adequately supplied. Inshell

hazelnuts sold to the domestic market

provide higher returns to the industry

than are obtained from shelling. The

domestic inshell market is quite small

and prone to oversupply in the absence

of volume regulation. The excess that is

not needed for the primary market is set

aside and sold into noncompetitive

market channels where such sales will

not depress primary market prices. The

quantity control authority provides the

industry with a framework for softening

the extremes in supply and prices that

can occur with agricultural

commodities, like hazelnuts, subject to

the vagaries of nature.

Currently, U.S. hazelnut production

can be successfully allocated between

the inshell domestic and secondary

markets. One of the best secondary

markets for hazelnuts is the export

market. Inshell hazelnuts produced

under the marketing order compete well

in export markets because of the high

quality of U.S. hazelnuts. Europe, and

Germany in particular, is the major

export market for U.S. produced inshell

hazelnuts. A third market is for shelled

hazelnuts sold domestically.

Domestically produced kernels

generally command a higher price in the

domestic market than imported kernels.

The industry is continuing its efforts to

develop and expand secondary markets,

especially the domestic kernel (shelled)

market. Small business entities, both

producers and handlers, benefit from

the expansion efforts resulting from this

program.

The critical marketing problem

confronting the hazelnut industry is that

the available supply for the 1996–97

marketing year far exceeds domestic

inshell market needs. The quantity

needed for the domestic inshell market

during the 1996–97 marketing year

(4,724 tons) is less than one-fourth of

the supply subject to regulation (20,306

tons). Hence, the Board determined that

volume regulation was needed to

stabilize supplies and prices. Without

the supply correction fostered by

regulation in 1996–97, the Board

believed that weak marketing conditions

and price cutting would cause the

industry’s economic condition to

deteriorate.

In considering quantity control for the

1996–97 marketing year, the Board

considered the estimated tonnage of

merchantable hazelnuts expected to be

produced during the 1996–97 marketing

year, the estimated tonnage of inshell

hazelnuts carried in from the previous

marketing year available for marketing

as inshell hazelnuts during 1996–97, all

available information on possible

markets for the crop taking into

consideration anticipated imports,

inventory in marketing channels, prices,

competing nut supplies, and other

economic conditions which could

impact the marketing of the 1996–97

inshell hazelnut crop. This all resulted

in the Board’s recommendation to limit

the amount of the 1996–97 crop going

into the domestic inshell market and the

marketing percentage computation table

set forth earlier in this document.

No change has occurred in the

relationship between supply and

demand since the interim final rule was

issued, and that rule made a sufficient

volume of free hazelnuts available for

the domestic inshell market. Hence, a

release of additional supplies at this

time of the season would make more

hazelnuts available for this market than

are needed, resulting in disorderly

marketing conditions. Also, the

additional supplies could adversely

impact the marketing of the upcoming

crop.

It is the Department’s view that the

marketing percentages recommended by

the Board, and established by the

Department, for the 1996–97 marketing

year have provided all members of the

industry, both large and small, with a

means for stabilizing supplies and

prices, and for maintaining and

expanding markets for hazelnuts.

There are some reporting,

recordkeeping and other compliance

requirements under the marketing order.

The reporting and recordkeeping

burdens are the minimum necessary for

compliance purposes and for

developing statistical data for

maintenance of the program. The forms

require information which is readily

available from handler records and

which can be provided without data

processing equipment or trained

statistical staff. As with other, similar

marketing order programs, reports and

forms are periodically studied to reduce

or eliminate duplicate information

collection burdens by industry and

public sector agencies. This final rule

does not change those requirements.

As noted in the initial regulatory

flexibility analysis, the Department has

not identified any relevant Federal rules

that duplicate, overlap or conflict with

this regulation.

The interim final rule was issued by

the Department on December 31, 1996;

put on public display at the Office of the

Federal Register on January 7, 1997; and

published in the Federal Register (62

FR 1035, January 8, 1997), with an

effective date of January 9, 1997. The

Board manager mailed information

concerning that action to all known

industry members, and it was also made

available through the Internet by the

Office of the Federal Register. That rule

provided a 30-day comment period

which ended February 7, 1997. No

comments were received concerning

either the interim final rule or the initial

regulatory flexibility analysis.

After consideration of all relevant

material presented, including the

Board’s recommendation, and other

information, it is found that finalizing

the interim final rule, without change,

as published in the Federal Register (62

FR 1035, January 8, 1997), will tend to

effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 982

Filberts, Hazelnuts, Marketing

agreements, Nuts, Reporting and

recordkeeping requirements.

For the reasons set forth in the

preamble, 7 CFR part 982 is amended as

follows:

PART 982—HAZELNUTS GROWN IN

OREGON AND WASHINGTON

Accordingly, the interim final rule

amending 7 CFR part 982 which was

published at 62 FR 1035 on January 8,

1997, is adopted as a final rule without

change.

Dated: April 8, 1997.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 97–9568 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[FV97–989–1IFR]

Raisins Produced From Grapes Grown

In California; Final Free and Reserve

Percentages for the 1996–97 Crop Year

for Natural (Sun-Dried) Seedless

Raisins

AGENCY: Agricultural Marketing Service,

USDA.