22108 Federal Register / Vol. 87, No. 72 / Thursday, April 14, 2022 / Rules and Regulations 

■ 2. Section 983.253 is revised to read 

as follows: 

§ 983.253 Assessment rate. 

On and after September 1, 2021, an 

assessment rate of $0.0007 per pound is 

established for California, Arizona, and 

New Mexico pistachios. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–08009 Filed 4–13–22; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 986 

[Doc. No. AMS–SC–21–0080; SC21–986–2 

FR] 

Decreased Assessment Rate for 

Pecans Grown in 15 States 

AGENCY: Agricultural Marketing Service, 

Department of Agriculture (USDA). 

ACTION: Final rule. 

SUMMARY: This rule decreases the 

assessment rate established for the 

2021–22 fiscal year and subsequent 

fiscal years. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Effective May 16, 2022. 

FOR FURTHER INFORMATION CONTACT:

Abigail Campos, Marketing Specialist, 

or Christian D. Nissen, Regional 

Director, Southeast Region Branch, 

Market Development Division, Specialty 

Crops Program, AMS, USDA; 

Telephone: (863) 324–3375, Fax: (863) 

291–8614, or Email: Abigail.Campos@

usda.gov or Christian.Nissen@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Market Development Division, Specialty 

Crops Program, AMS, USDA, 1400 

Independence Avenue SW, STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, or Email: 

Richard.Lower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

amends regulations issued to carry out 

a marketing order as defined in 7 CFR 

900.2(j). This rule is issued under 

Marketing Agreement and Marketing 

Order No. 986, as amended (7 CFR part 

986), regulating the handling of pecans 

grown in the states of Alabama, 

Arkansas, Arizona, California, Florida, 

Georgia, Kansas, Louisiana, Missouri, 

Mississippi, North Carolina, New 

Mexico, Oklahoma, South Carolina, and 

Texas. Part 986, (referred to as ‘‘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 

Council locally administers the Order 

and is comprised of growers and 

handlers of pecans operating within the 

production area, and one accumulator 

and one public member. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

12866 and 13563. Executive Orders 

12866 and 13563 direct agencies to 

assess all costs and benefits of available 

regulatory alternatives and, if regulation 

is necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. This action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. 

This rule has been reviewed under 

Executive Order 13175—Consultation 

and Coordination with Indian Tribal 

Governments, which requires agencies 

to consider whether their rulemaking 

actions would have tribal implications. 

USDA has determined this rule is 

unlikely to have substantial direct 

effects on one or more Indian tribes, on 

the relationship between the Federal 

Government and Indian tribes, or on the 

distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the Order now in effect, 

pecan handlers are subject to 

assessments. Funds to administer the 

Order are derived from such 

assessments. It is intended that the 

assessment rates will be applicable to all 

assessable pecans for the 2021–22 fiscal 

year, 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. 

The Order provides that based on the 

recommendation of the Council or other 

available data, the Secretary shall fix 

three base rates of assessments for 

inshell pecans handled during each 

fiscal year. This rule decreases the 

assessment rates from $0.03 per pound 

for improved varieties and $0.02 per 

pound for native and seedling varieties 

and for substandard pecans, the rates 

that were established for the 2016–17 

and subsequent fiscal years, to $0.01 per 

pound for improved varieties and $0.00 

per pound for native and seedling 

varieties and for substandard pecans 

handled for the 2021–22 and subsequent 

fiscal years. 

The Order authorizes the Council, 

with the approval of Agricultural 

Marketing Service (AMS), to formulate 

an annual budget of expenses and 

collect assessments from handlers to 

administer the program. The members 

of the Council are familiar with the 

Council’s needs and with the costs of 

goods and services in their local area 

and can formulate an appropriate 

budget and assessment rates. The 

assessment rates are formulated and 

discussed in a public meeting, and all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2016–17 and subsequent fiscal 

years, the Council recommended, and 

AMS approved, assessment rates of 

$0.03 per pound for improved varieties 

and $0.02 per pound for native and 

seedling varieties and for substandard 

pecans handled. The assessment rates 

continue in effect from fiscal year to 

fiscal year unless modified, suspended, 

or terminated by AMS upon 

recommendation and information 

submitted by the Council or other 

information available to AMS. 

The Council held a virtual meeting on 

September 22, 2021, and recommended 

2021–22 expenditures of $9,002,508, 

and a decreased assessment rate of $0.01 

per pound of improved varieties, and 

$0.00 per pound for native and seedling 

varieties and for substandard pecans. In 

comparison, the previous fiscal year’s 

budget expenditures were $11,741,400. 

The assessment rate for improved 

varieties of $0.01 and the assessment 

rate of $0.00 for native and seedling 

varieties and for substandard pecans are 


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Federal Register / Vol. 87, No. 72 / Thursday, April 14, 2022 / Rules and Regulations 22109 

$0.02 lower than the rates currently in 

effect. 

On February 12, 2021, USDA 

established the Pecan Promotion, 

Research and Information Order, a new 

research and promotion program. Under 

the new program, research and 

promotion activities for pecans are 

funded through the collection of 

assessments from U.S. growers and 

foreign importers. 

With the new program in effect, the 

Council recommended reducing 

expenditures for research and 

promotion under the Order. With these 

reductions, total budgeted expenditures 

for 2021–22 are estimated at $9,002,508 

which is $2,738,892 less than the 

$11,741,400 budgeted for 2020–21. The 

Council unanimously voted to decrease 

the assessment rates to reflect the 

reduction in expenditures, and to offset 

the assessments collected under the new 

program so the assessment burden on 

the industry does not increase. 

The major expenditures for the 

Council for the 2021–22 year include 

$2,510,000 for international relations, 

$2,180,000 for marketing, and 

$1,447,066 for general administration. 

Budgeted expenses for these items in 

2020–21 were $1,968,000, $6,715,000, 

and $1,425,000, respectively. 

The Council derived the 

recommended assessment rates by 

considering anticipated expenses, 

expected shipments of pecans, Market 

Access Program (MAP) funds, and the 

amount of funds available in the 

authorized reserve. Assessable 

shipments for the year are an estimated 

315 million pounds of improved 

varieties, which should provide 

approximately $3,150,000 in assessment 

income (315,000,000 pounds multiplied 

by $0.01). Income derived from handler 

assessments calculated at the new rate, 

along with interest income, MAP funds, 

and funds from the Council’s authorized 

reserve, should be adequate to cover 

projected budgeted expenses of 

$9,002,508. Funds in the reserve are 

estimated to be $2,800,000 at the end of 

the 2021–22 fiscal year, which is within 

the maximum permitted by § 986.64 of 

the Order (approximately three fiscal 

years’ expenses). 

The assessment rate will continue in 

effect indefinitely unless modified, 

suspended, or terminated by AMS upon 

recommendation and information 

submitted by the Council or other 

available information. 

Although these assessment rates will 

be in effect for an indefinite period, the 

Council will continue to meet prior to 

or during each fiscal year to recommend 

a budget of expenses and consider 

recommendations for modification of 

the assessment rates. The dates and 

times of Council meetings are available 

from the Council or AMS. Council 

meetings are open to the public and 

interested persons may express their 

views at these meetings. AMS will 

evaluate Council recommendations and 

other available information to determine 

whether modification of the assessment 

rates is needed. Further rulemaking 

would be undertaken as necessary. The 

Council’s 2021–22 budget and those for 

subsequent fiscal years will be reviewed 

and, as appropriate, approved by AMS. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), 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 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act are unique in that they are brought 

about through group action of 

essentially small entities acting on their 

own behalf. 

There are approximately 4,500 

growers of pecans in the production 

area and approximately 150 handlers 

subject to regulation under the Order. 

Small agricultural growers are defined 

by the Small Business Administration 

(SBA) as those having annual receipts 

less than $1,000,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $30,000,000 (13 CFR 121.201). 

According to the National 

Agricultural Statistics Service (NASS), 

the 2020–21 crop value was $435.28 

million. With a crop size of 305.36 

million pounds, the season average 

grower price was $1.43 per pound. 

Dividing the $435.28 million crop value 

by the estimated number of pecan 

growers (4,500) yields an annual average 

receipts per grower estimate of $96,729. 

This is well below the SBA threshold 

for small growers. 

Evidence presented at the pecan 

marketing order promulgation hearing 

indicates an average handler margin of 

$0.58 per pound. Adding this margin to 

the average grower price of $1.43 per 

pound for in-shell pecans yields an 

estimated annual handler price of $2.01 

per pound. With a total 2020–21 

utilization of 305.36 million pounds, the 

total estimated value of production at 

the handler level for the fiscal year was 

$613.77 million ($2.01 per pound 

multiplied by 305.36 million pounds). 

Dividing this $613.77 million figure by 

the number of handlers (150) yields an 

average annual receipts per handler 

estimate of $4.09 million. This is well 

below the SBA threshold for small 

agricultural service firms. Assuming a 

normal distribution, the majority of 

pecan growers and handlers may be 

classified as small entities. 

This action decreases the assessment 

rates collected from handlers for the 

2021–22 and subsequent fiscal years 

from $0.03 to $0.01 per pound of 

improved varieties and from $0.02 to 

$0.00 per pound of native and seedling 

varieties and for substandard pecans 

handled. The Council recommended 

2021–22 fiscal year expenditures of 

$9,002,508 and assessment rates of 

$0.01 per pound for improved varieties 

and $0.00 per pound for native and 

seedling varieties and for substandard 

pecans. The assessment rates are $0.02 

per pound lower than 2016–17 rates. 

The quantity of assessable pecans for 

the 2021–22 fiscal year is estimated at 

315 million pounds. Thus, the $0.01 per 

pound for improved varieties and $0.00 

per pound for native and seedling 

varieties and for substandard pecans 

rate should provide $3,150,000 in 

assessment income. Income derived 

from handler assessments, along with 

interest income, MAP funds, and funds 

from the Council’s authorized reserve, 

will be adequate to cover budgeted 

expenses. 

The major expenditures projected by 

the Council for the 2021–22 year 

include $2,510,000 for international 

relations, $2,180,000 for marketing, and 

$1,447,066 for general administration. 

Budgeted expenses for these items in 

2020–21 were $2,510,000, $6,285,000, 

and $1,447,066, respectively. 

The Council recommended decreasing 

the assessment rates to reflect a 

reduction in research and promotion 

expenditures as these activities will be 

carried out by the new USDA research 

and promotion program also funded by 

the industry. Consequently, the Council 

recommended a corresponding decrease 

in the assessment rates to reflect the 

decrease in research and promotion 

expenditures. 

Prior to arriving at the estimated 

expenditures and assessment rates, the 

Council considered information from 

various sources, such as the Council’s 

Governance Committee. Alternative 

expenditure levels were discussed by 

this Committee, based upon the relative 

value of various activities to the pecan 

industry and the impact of the new 

research and promotion program. The 

Council determined that based on the 

information currently available, 


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22110 Federal Register / Vol. 87, No. 72 / Thursday, April 14, 2022 / Rules and Regulations 

program activities should be 

appropriately funded, and no alternate 

expenditure levels were deemed 

appropriate. 

Using NASS data, a weighted average 

grower price for the past 3 seasons 

(2018–19 through 2020–21) is $1.66 per 

pound. This provides a reasonable 

forecast of the average grower price for 

2021–22 season. The new assessment 

rate of $0.01 per pound for improved 

varieties represents 0.6 percent of the 

$1.66 weighted average price (six tenths 

of one percent; $0.01 divided by $1.66 

× 100). 

This action will decrease the 

assessment obligation imposed on 

handlers. Assessments are applied 

uniformly on all handlers, and some of 

the costs may be passed on to growers. 

However, decreasing the assessment 

rates reduces the burden on handlers 

and may also reduce the burden on 

growers. 

The September 22, 2021, Council 

meeting was widely publicized 

throughout the pecan industry. 

Meetings are held virtually or in a 

hybrid style. Participants have a choice 

whether to attend in person or virtually 

and can participate in the Council’s 

deliberations on all issues. Like all 

Council meetings, the September 22, 

2021, meeting was a public meeting and 

all entities, both large and small, were 

able to express views on this issue. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the Order’s information 

collection requirements have been 

previously approved by the OMB and 

assigned OMB No. 0581–0291 Federal 

Marketing Order for Pecans. No changes 

in those requirements are necessary as 

a result of this rule. Should any changes 

become necessary, they would be 

submitted to OMB for approval. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large pecan 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, AMS 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 

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 concerning this 

action was published in the Federal 

Register on December 6, 2021 (86 FR 

68934). Copies of the proposed rule 

were also mailed or sent via email to all 

pecan handlers. The proposal was made 

available through the internet by AMS 

and the Office of the Federal Register. A 

30-day comment period ending January 

5, 2022, was provided for interested 

persons to respond to the proposal. 

No comments were received. 

Accordingly, no changes will be made 

to the rule as proposed. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: https://

www.ams.usda.gov/rules-regulations/ 

moa/small-businesses. Any questions 

about the compliance guide should be 

sent to Richard Lower at the previously 

mentioned address in the FOR FURTHER

INFORMATION CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendations 

submitted by the Council and other 

available information, AMS has 

determined that this rule will tend to 

effectuate the declared policy of the Act. 

List of Subjects in 7 CFR Part 986 

Marketing agreements, Nuts, Pecans, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service is amending 7 CFR part 986 as 

follows: 

PART 986—PECANS GROWN IN THE 

STATES OF ALABAMA, ARKANSAS, 

ARIZONA, CALIFORNIA, FLORIDA, 

GEORGIA, KANSAS, LOUISIANA, 

MISSOURI, MISSISSIPPI, NORTH 

CAROLINA, NEW MEXICO, 

OKLAHOMA, SOUTH CAROLINA, AND 

TEXAS 

■ 1. The authority citation for 7 CFR 

part 986 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 986.161 is revised to read 

as follows: 

§ 986.161 Assessment rate. 

On and after October 1, 2021, 

assessment rates of $0.01 per pound for 

pecans classified as improved, $0.00 per 

pound for pecans classified as native 

and seedling, and $0.00 per pound for 

pecans classified as substandard pecans 

are established. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–08001 Filed 4–13–22; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 25 

[Docket No. FAA–2022–0127; Special 

Conditions No. 25–810–SC] 

Special Conditions: Dassault Aviation 

Model Falcon 6X Airplane; Dynamic 

Test Requirements for MultipleOccupant Side-Facing Seats With 

Inflatable Restraints 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final special conditions; request 

for comments. 

SUMMARY: These special conditions are 

issued for the Dassault Aviation 

(Dassault) Model Falcon 6X airplane. 

This airplane will have a novel or 

unusual design feature when compared 

to the state of technology envisioned in 

the airworthiness standards for 

transport-category airplanes. This 

design feature is multiple-occupant 

side-facing seats with inflatable 

restraints. The applicable airworthiness 

regulations do not contain adequate or 

appropriate safety standards for this 

design feature. These special conditions 

contain the additional safety standards 

that the Administrator considers 

necessary to establish a level of safety 

equivalent to that established by the 

existing airworthiness standards. 

DATES: This action is effective on 

Dassault on April 14, 2022. Send 

comments on or before May 31, 2022. 

ADDRESSES: Send comments identified 

by Docket No. FAA–2022–0127 using 

any of the following methods: 

• Federal eRegulations Portal: Go to 

https://www.regulations.gov/ and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30, U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE, Room W12–140, West 

Building Ground Floor, Washington, DC 

20590–0001. 

• Hand Delivery or Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE, Washington, DC, between 9 

a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: Except for Confidential 

Business Information (CBI) as described 

in the following paragraph, and other 

information as described in title 14, 

Code of Federal Regulations (14 CFR) 

11.35, the FAA will post to https:// 


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