A recent action modifies regulations concerning the handling of pistachios grown in California, arizona, and New mexico. This final rule, operating under Marketing Order No.983 (7 CFR part 983), adjusts the assessment rate for pistachios in these states. The rule is enacted under the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674). The Committee, consisting of pistachio producers, handlers, and a public member, oversees the Order at the local level.

The agricultural marketing Service (AMS) is implementing this rule in accordance wiht Executive Order 12866,as amended by Executive Order 13563,which directs agencies to evaluate the costs and benefits of regulatory alternatives. The rule aims to maximize net benefits, considering economic, environmental, public health, safety, and equity impacts. The Office of Management and Budget (OMB) has exempted this action from review under Executive Order 12866.

Executive Order 13175, concerning Consultation and Coordination with Indian Tribal Governments, has also been considered. AMS has determined that this rule is unlikely to have significant direct effects on Indian Tribes or the relationship between the Federal government and Indian Tribes.

This rule has been reviewed under Executive Order 12988-Civil Justice Reform. Pistachio handlers are subject to assessments to fund the management of the Order. The assessment rate is intended to apply to all assessable pistachios for the 2024-2025 production year and will remain in effect until amended, suspended, or terminated.

The Act stipulates that administrative proceedings must be completed before parties can file suit in court. Under section 8c(15)(A) of the Act (7 U.S.C. 608(c)(15)(A)), any handler subject to the order may petition the U. S. Department of Agriculture (USDA) if they believe the order is not in accordance with the law. The handler can request a modification or exemption and is entitled to a hearing on the petition.USDA will then rule on the petition, and the district court has jurisdiction to review USDA’s ruling, provided an action is filed within 20 days of the ruling.

The final rule reduces the assessment rate for pistachios from $0.0007 per pound, the rate established for the 2021-2022 and subsequent production years, to $0.0003 per pound for the 2024-2025 and subsequent production years.

sections 983.70 and 983.71 of the Order authorize the Committee, with AMS approval, to create an annual budget and collect assessments from handlers. The Committee members are learned about local costs and needs and can formulate an appropriate budget and assessment rate.The assessment rate is discussed in a public meeting,allowing affected parties to participate and provide input.

For the 2021-2022 and subsequent production years, the Committee recommended, and AMS approved, an assessment rate of $0.0007 per pound (87 FR 22105). This rate remains in effect unless modified, suspended, or terminated by AMS based on Committee recommendations or other available information. The new rule decreases the rate to $0.0003 per pound for the 2024-2025 and subsequent production years.

During a public meeting on April 9, 2024, the Committee unanimously recommended the $0.0003 per pound assessment rate. On july 10, 2024, they also recommended expenditures of $956,700 for the 2024-2025 production year, compared to $1,145,161 in the previous period. The Committee suggested the decrease to comply with § 983.74, which requires reducing assessments to bring reserve funds to an amount equal to or less than two production years’ budgeted expenses.

Budget and Expenditures

“The assessment rate will continue in effect indefinitely unless modified, suspended, or terminated by AMS.”

Major expenditures recommended for the 2024-2025 production year include $512,900 for salaries and related expenses, $125,000 for research, $100,000 for a contingency fund, $73,500 for administrative expenses, and $10,000 for compliance expenses. In comparison, the 2023-24 budget included $631,900, $125,000, $200,000, $76,450, and $10,000 for these items, respectively.

The Committee determined the assessment rate by considering anticipated expenses, pistachio production, and available reserve funds. The expected 1 billion pounds of pistachios for the 2024-2025 production year should generate $300,000 in assessment revenue. This revenue, along with California pistachio Research Board (CPRB) management income and funds from the Committee’s reserve, should cover the budgeted expenses of $956,700. The reserve funds (currently about $844,000) will be maintained within the authorized maximum level of approximately two production years’ budgeted expenses.

The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated by AMS based on Committee recommendations or other information. The Committee will continue to meet to recommend a budget and consider modifications to the assessment rate. Meeting dates and times are available from the Committee or AMS, and the public is welcome to attend and express their views. AMS will evaluate committee recommendations and other available information to determine whether to modify, suspend, or terminate the assessment rate.