51924 Federal Register / Vol. 75, No. 163 / Tuesday, August 24, 2010 / Rules and Regulations 

PART 205—NATIONAL ORGANIC 

PROGRAM 

■ 1. The authority citation for 7 CFR 

part 205 continues to read as follows: 

Authority: 7 U.S.C. 6501–6522. 

■ 2. Section 205.603(d)(1) is revised to 

read as follows: 

§ 205.603 Synthetic substances allowed 

for use in organic livestock production. 

* * * * * 

(d) * * * 

(1) DL–Methionine, DL–Methionine— 

hydroxy analog, and DL–Methionine— 

hydroxy analog calcium (CAS #–59–51– 

8; 63–68–3; 348–67–4)—for use only in 

organic poultry production until 

October 1, 2012, at the following 

maximum levels of synthetic 

methionine per ton of feed: laying 

chickens—4 pounds; broiler chickens— 

5 pounds; turkeys and all other 

poultry—6 pounds. 

* * * * * 

Dated: August 17, 2010. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–20977 Filed 8–23–10; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 922 

[Doc. No. AMS–FV–10–0050; FV10–922–1 

FR] 

Apricots Grown in Designated 

Counties in Washington; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

Washington Apricot Marketing 

Committee (Committee) for the 2010–11 

and subsequent fiscal periods from 

$1.00 to $1.50 per ton for Washington 

apricots. The Committee is responsible 

for local administration of the marketing 

order regulating the handling of apricots 

grown in designated counties in 

Washington. Assessments upon 

handlers of apricots are used by the 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period for the marketing order 

begins April 1 and ends March 31. The 

assessment rate would remain in effect 

indefinitely unless modified, suspended 

or terminated. 

DATES: Effective Date: August 25, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Robert Curry or Gary Olson, Northwest 

Marketing Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1220 

SW. Third Avenue, Suite 385, Portland, 

OR 97204; Telephone: (503) 326–2724; 

Fax: (503) 326–7440; or E-mail: 

Robert.Curry@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Antoinette 

Carter, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence, SW., 

STOP 0237, Washington, DC 20250– 

0237; Telephone: (202) 690–3919; Fax: 

(202) 720–8938; or E-mail: 

Antoinette.Carter@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

922 (7 CFR part 922), as amended, 

regulating the handling of apricots 

grown in designated counties in 

Washington, 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.’’ 

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, apricot handlers in designated 

counties in Washington 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 Washington 

apricots beginning April 1, 2010, 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 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 increases the assessment 

rate established for the Committee for 

the 2010–11 and subsequent fiscal 

periods from $1.00 to $1.50 per ton for 

Washington apricots handled under the 

order. 

The order provides authority for the 

Committee, 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 Committee are 

producers and handlers of apricots in 

designated counties in Washington. 

They are familiar with the Committee’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 at a public meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2009–10 and subsequent fiscal 

periods, the Committee recommended, 

and the USDA approved, an assessment 

rate of $1.00 per ton of apricots handled. 

This rate continues in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

information available to USDA. 

The Committee met on May 19, 2010, 

and unanimously recommended 2010– 

11 expenditures of $8,145. In 

comparison, last year’s budgeted 

expenditures were $7,843. In addition, 

the Committee recommended that the 

$1.00 per ton assessment rate be 

increased by $0.50 to $1.50 per ton of 

apricots handled. Committee members 

reported that apricot production this 

season may be lower than that of last 

season since portions of the Washington 

apricot production area experienced 

freezing weather in October 2009, and 

high winds in April of this year. As a 

result, the Committee has estimated that 

shipments of fresh apricots will 

approximate 5,550 tons this season— 

somewhat less than the 6,860 tons of 

fresh apricots reported last season. The 

Committee thus recommended that the 

assessment rate be increased by $0.50 to 

help ensure that budgeted expenses are 

adequately covered. 

The major expenditures 

recommended by the Committee for the 

2010–11 fiscal period include $4,800 for 

the management fee, $1,300 for 

Committee travel, $100 for compliance, 

$750 for the annual audit review, and 

$1,195 for equipment maintenance, 

insurance, bonds, and miscellaneous 

expenses. In comparison, major 


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Federal Register / Vol. 75, No. 163 / Tuesday, August 24, 2010 / Rules and Regulations 51925 

expenditures for the 2009–10 fiscal 

period included $4,800 for the 

management service fee, $1,000 for 

travel, $100 for compliance, and $1,943 

for audits, insurance and bonds, 

equipment maintenance and 

miscellaneous expenses. 

The assessment rate recommended by 

the Committee was derived by dividing 

the anticipated expenses of $8,145 by 

the projected 2010 apricot production of 

5,550 tons. Applying the $1.50 per ton 

recommended assessment rate to this 

crop estimate should provide $8,325 in 

assessment income. Funds in the 

Committee’s monetary reserve are 

projected to be $7,854 on March 31, 

2011. This is within the order’s limit of 

approximately one fiscal period’s 

operational expenses. 

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 Committee or other 

available information. 

Although this assessment rate will be 

effective for an indefinite period, the 

Committee will continue to meet prior 

to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of the Committee’s 

meetings are available from the 

Committee or USDA. The Committee’s 

meetings are open to the public and 

interested persons may express their 

views at these meetings. USDA would 

evaluate the Committee’s 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The 

Committee’s 2010–11 budget has been 

reviewed and approved by USDA; those 

for subsequent fiscal periods would also 

be reviewed and, as appropriate, 

approved. 

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. 

There are approximately 94 apricot 

producers within the regulated 

production area and approximately 20 

regulated handlers. 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 whose annual receipts are less 

than $7,000,000. 

The Washington Agricultural 

Statistics Service reported that the total 

8,500 ton Washington apricot utilization 

(including both fresh and processed 

markets) in 2009 sold for an average of 

$888 per ton. The total 2009 farm-gate 

value was approximately $7,551,000. 

Based on the number of producers in 

the production area (94), the average 

annual producer revenue from the sale 

of apricots in 2009 can thus be 

estimated at approximately $80,330. In 

addition, based on information from the 

Committee and USDA’s Market News 

Service, 2009 f.o.b. prices for WA No. 1 

apricots ranged from $14.00 to $24.00 

per 24-pound loose-pack container, and 

from $12.00 to $22.00 for 2-layer tray 

pack containers. The average 2009 price 

across all sizes and packs was $17.50, 

with an estimated industry gross intake 

of approximately $10,913,636 in f.o.b. 

receipts for the 2009 crop—leaving 

average receipts for each of the 20 

handlers well below the SBA’s 

$7,000,000 threshold for small 

businesses. Therefore, the majority of 

producers and handlers of Washington 

apricots may be classified as small 

entities. 

This rule increases the assessment 

rate established for the Committee and 

collected from handlers for the 2010–11 

and subsequent fiscal periods from 

$1.00 to $1.50 per ton for apricots 

handled under the order. The 

Committee also unanimously 

recommended 2010–11 expenditures of 

$8,145. With a 2010–11 Washington 

apricot crop estimate of 5,550 fresh 

market tons, the Committee anticipates 

assessment income of about $8,325. The 

Committee recommended the 

assessment rate increase to help ensure 

that budgeted expenses are adequately 

covered. 

The major expenditures 

recommended by the Committee for the 

2010–11 fiscal period include $4,800 for 

the management fee, $1,300 for 

Committee travel, $100 for compliance, 

$750 for the annual audit review, and 

$1,195 for equipment maintenance, 

insurance, bonds, and miscellaneous 

expenses. In comparison, major 

expenditures for the 2009–10 fiscal 

period included $4,800 for the 

management service fee, $1,000 for 

travel, $100 for compliance, and $1,943 

for audits, insurance and bonds, 

equipment maintenance and 

miscellaneous expenses. Funds in the 

Committee’s monetary reserve are 

projected to be $7,854 on March 31, 

2011. This is within the order’s limit of 

approximately one fiscal period’s 

operational expenses. 

The Committee discussed alternatives 

to the assessment rate increase. Leaving 

the assessment rate at $1.00 per ton 

would have provided the Committee 

with about $5,550 in income, an amount 

considerably less than the 2010 

budgeted expenditures of $8,145. The 

Committee felt that this would have 

significantly depleted its monetary 

reserves, and thus recommended the 

$.50 increase. The Committee did not 

consider an assessment rate greater than 

$1.50. 

A review of historical crop and price 

information, as well as preliminary 

information pertaining to the upcoming 

crop year indicates that the producer 

price for the 2010–11 season could 

average about $1,000 per ton for fresh 

Washington apricots. Therefore, the 

estimated assessment revenue for the 

2010–11 fiscal period as a percentage of 

total producer revenue is 0.15 percent 

for Washington apricots. 

This action increases 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 

would be offset by the benefits derived 

by the operation of the order. 

The Committee’s meeting was widely 

publicized throughout the Washington 

apricot industry and all interested 

persons were invited to attend and 

participate in Committee deliberations 

on all issues. Like all Committee 

meetings, the May 19, 2010 meeting was 

a public meeting and all entities, both 

large and small, were able to express 

views on the issues. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large Washington 

apricot 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. As noted in the initial 

regulatory flexibility analysis, USDA 

has not identified any relevant Federal 

rules that duplicate, overlap, or conflict 

with this rule. 

AMS is committed to complying with 

the E-Government Act, to promote the 


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51926 Federal Register / Vol. 75, No. 163 / Tuesday, August 24, 2010 / Rules and Regulations 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

A proposed rule regarding this action 

was published in the Federal Register 

on June 30, 2010 (FR 75 37740). Copies 

of the proposed rule were also made 

available to all apricot handlers by 

Committee staff. The proposal was also 

made available through the Internet by 

USDA and the Office of the Federal 

Register. A 15-day comment period 

ending July 15, 2010, was provided for 

interested persons to respond to the 

proposal. 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/ 

AMSv1.0/ams.fetchTemplate

Data.do?template=TemplateN&

page=MarketingOrdersSmallBusiness

Guide. Any questions about the 

compliance guide should be sent to 

Antoinette Carter 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 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 2010–11 fiscal period 

began on April 1, 2010, and the order 

requires that the assessment rate for 

each fiscal period apply to all assessable 

apricots handled during such fiscal 

period; (2) Washington apricots are 

currently being harvested and shipped 

to market; (3) the Committee needs to 

have sufficient funds to pay its 

expenses, which are incurred on a 

continuous basis; (4) handlers are aware 

of this action, which was recommended 

by the Committee at a public meeting 

and is similar to other assessment rate 

actions issued in past years; and (5) a 

15-day comment period was provided in 

the proposed rule. 

List of Subjects in 7 CFR Part 922 

Apricots, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 922 is amended as 

follows: 

PART 922—APRICOTS GROWN IN 

DESIGNATED COUNTIES IN 

WASHINGTON 

■ 1. The authority citation for 7 CFR 

part 922 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 922.235 is revised to read 

as follows: 

§ 922.235 Assessment rate. 

On and after April 1, 2010, an 

assessment rate of $1.50 per ton is 

established for the Washington Apricot 

Marketing Committee. 

Dated: August 17, 2010. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–21037 Filed 8–23–10; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 984 

[Doc. No. AMS–FV–09–0036; FV09–984–4 

FR] 

Walnuts Grown in California; Changes 

to the Quality Regulations for Shelled 

Walnuts 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule revises the quality 

regulations for shelled walnuts under 

the Federal marketing order for 

California walnuts (order). The order 

regulates the handling of walnuts grown 

in California and is administered locally 

by the California Walnut Board (Board). 

This rule requires inspection and 

certification of shelled walnut products 

after manufacturing instead of before 

manufacturing. It also establishes a 

process to specify that manufactured 

products smaller than eight sixtyfourths of an inch in diameter are 

derived from walnut pieces that have 

been inspected and certified to U.S. 

Commercial grade standards. These 

changes will result in more efficient and 

cost-effective handler operations, and 

will certify the final Size And Grade Of 

All Manufactured Walnut Pieces. 

DATES: Effective Date: August 25, 2010. 

FOR FURTHER INFORMATION CONTACT: Jeff 

Smutny, 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: 

Jeffrey.Smutny@ams.usda.gov or 

Kurt.Kimmel@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Antoinette 

Carter, 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: 

Antoinette.Carter@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This final 

rule is issued under Marketing Order 

No. 984, 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.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have retroactive effect. 

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. A 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 final rule revises the quality 

regulations for shelled walnuts to 

require inspection and certification after 

chopping or dicing them into smaller 

pieces (manufacturing) instead of before 

manufacturing, and to establish a 

process for specifying that 

manufactured products smaller than 

eight sixty-fourths of an inch in 

diameter are derived from walnut pieces 

that have been inspected and certified to 

U.S. Commercial grade standards. This 

will result in more efficient and costeffective handler operations and will 

certify the final size and grade of all 

manufactured walnut pieces. This rule 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1