Rule2025-18179
Pistachios Grown in California, Arizona, and New Mexico; Decreased Assessment Rate
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 19, 2025
Effective
October 20, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements a recommendation from the Administrative Committee for Pistachios (Committee) to decrease the assessment rate established for the 2024-2025 and subsequent production years from $0.0007 to $0.0003 per pound of assessable pistachios handled under the marketing order. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 90 Issue 180 (Friday, September 19, 2025)</title>
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[Federal Register Volume 90, Number 180 (Friday, September 19, 2025)]
[Rules and Regulations]
[Pages 45117-45119]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18179]
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Rules and Regulations
Federal Register
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having general applicability and legal effect, most of which are keyed
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Federal Register / Vol. 90, No. 180 / Friday, September 19, 2025 /
Rules and Regulations
[[Page 45117]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 983
[Doc. No. AMS-SC-24-0021]
Pistachios Grown in California, Arizona, and New Mexico;
Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule implements a recommendation from the
Administrative Committee for Pistachios (Committee) to decrease the
assessment rate established for the 2024-2025 and subsequent production
years from $0.0007 to $0.0003 per pound of assessable pistachios
handled under the marketing order. The assessment rate will remain in
effect indefinitely unless modified, suspended, or terminated.
DATES: Effective October 20, 2025.
FOR FURTHER INFORMATION CONTACT: Peter Sommers, Marketing Specialist,
or Abigail Maharaj, Chief, West Region Branch, Market Development
Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487-
5901; or Email: <a href="/cdn-cgi/l/email-protection#2e7e4b5a4b5c7c007d4143434b5c5d6e5b5d4a4f00494158"><span class="__cf_email__" data-cfemail="d080b5a4b5a282fe83bfbdbdb5a2a390a5a3b4b1feb7bfa6">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#0f4e6d66686e666321426e676e7d6e654f7a7c6b6e21686079"><span class="__cf_email__" data-cfemail="94d5f6fdf3f5fdf8bad9f5fcf5e6f5fed4e1e7f0f5baf3fbe2">[email protected]</span></a>.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Marketing Development
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, or
Email: <a href="/cdn-cgi/l/email-protection#d392bda7bcbabdb6a7a7b6fd90b2a1a7b6a193a6a0b7b2fdb4bca5"><span class="__cf_email__" data-cfemail="b5f4dbc1dadcdbd0c1c1d09bf6d4c7c1d0c7f5c0c6d1d49bd2dac3">[email protected]</span></a>.
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 final rule is issued under Marketing Order No.
983, as amended (7 CFR part 983), regulating the handling of pistachios
grown in California, Arizona, and New Mexico. Part 983 (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 Committee locally administers the Order and is
comprised of producers and handlers of pistachios operating within the
production area, and a public member.
The Agricultural Marketing Service (AMS) is issuing this final rule
in conformance with Executive Order 12866, as amended by Executive
Order 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 final rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires federal agencies to consider whether their rulemaking actions
would have tribal implications. AMS has determined that 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 final rule has been reviewed under Executive Order 12988--
Civil Justice Reform. Under the Order now in effect, pistachio handlers
are subject to assessments. Funds to administer the Order are derived
from such assessments. It is intended that the assessment rate will be
applicable to all assessable pistachios for the 2024-2025 production
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 8c(15)(A) of the
Act (7 U.S.C. 608(c)(15)(A)), any handler subject to an order may file
with U. S. Department of Agriculture (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 no later than 20 days after the date of the
entry of the ruling.
This final rule decreases the assessment rate for pistachios
handled under the Order from $0.0007 per pound, the rate that was
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 the approval of AMS, to formulate an annual budget of expenses and
collect assessments from handlers to administer the program. The
members of the Committee are familiar with the Committee's needs and
the costs of goods and services in their local area and are able to
formulate an appropriate budget and assessment rate. The assessment
rate is formulated and discussed in a public meeting and all directly
affected persons have an opportunity 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
of assessable pistachios within the production area (87 FR 22105). That
rate continues in effect from production year to production year unless
modified, suspended, or terminated by AMS upon recommendation and
information submitted by the Committee or other information available
to AMS. This final rule decreases the assessment rate from $0.0007 to
$0.0003 per pound of assessable pistachios for the 2024-2025 and
subsequent production years.
[[Page 45118]]
The Committee held a public meeting on April 9, 2024, and
unanimously recommended an assessment rate of $0.0003 per pound of
assessable pistachios for the 2024-2025 and subsequent production
years. The Committee also met on July 10, 2024, and unanimously
recommended 2024-2025 production year expenditures of $956,700. In
comparison, last period's budgeted expenses were $1,145,161. The
assessment rate of $0.0003 is $0.0004 less than the rate currently in
effect. The Committee recommended decreasing the assessment rate to
help ensure the Committee's compliance with Sec. 983.74, which
stipulates that assessments will be reduced to bring reserve funds to
an amount that is less than or equal to two production years' budgeted
expenses.
The major expenditures recommended by the Committee 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. By comparison, budgeted expenses for these items during the
2023-24 production year were $631,900, $125,000, $200,000, $76,450, and
$10,000, respectively.
The Committee derived the recommended assessment rate by
considering anticipated expenses, anticipated production of assessable
pistachios, and the amount of funds available in the authorized
reserve. The expected 1 billion pounds of pistachios for the 2024-2025
production year would generate $300,000 in assessment revenue at the
assessment rate (1,000,000,000 pounds multiplied by $0.0003 assessment
rate). Income derived from handler assessments, along with the
California Pistachio Research Board (CPRB) management income and funds
from the Committee's authorized reserve, should be adequate to cover
budgeted expenses of $956,700. Funds available in the reserve
(currently about $844,000) will be kept within the maximum level of
approximately two production years' budgeted expenses as authorized by
the Order.
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by AMS upon recommendation and
information submitted by the Committee or other available information.
Although this assessment rate will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
production year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or AMS.
Committee meetings are open to the public and interested persons may
express their views at these meetings. AMS will evaluate Committee
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 2024-2025 budget, and those
for subsequent production 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), AMS has considered the economic impact of
this final 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, 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 19 handlers subject to regulation under the Order, and
approximately 1,871 producers of pistachios in the production area.
Small agricultural producers of pistachios are defined by the Small
Business Administration (SBA) as those having annual receipts equal to
or less than $3.75 million (NAICS code 111335, Tree Nut Farming). Small
agricultural service firms (handlers) have been defined as those whose
annual receipts are equal to or less than $34 million (NAICS code
115114, Postharvest Crop Activities) (13 CFR 121.201).
Data from USDA's National Agricultural Statistics Service (NASS)
can be used to characterize the proportion of small versus large
pistachio producers and handlers according to the SBA standards. Due to
the significant year-to-year variation in pistachio production and crop
value, it is helpful to use two-year averages. The average value for
crop years 2022 and 2023 ($1.861 and $2.98 billion, respectively) is
$2.42 billion. Dividing $2.42 billion by 1,871 producers yields an
estimated average sales receipt per producer estimate of about $1.29
million, which is well below the $3.75 million threshold for small
producers. Assuming normal distribution, the majority of pistachio
producers may be classified as small entities.
Estimating the proportion of small handlers requires an additional
computation. An average price per handler can be estimated using AMS
Market News prices for pistachio packages at the San Francisco terminal
market. The average terminal market price for 12 one-pound packages of
pistachios at the San Francisco terminal market from January to July
2024 was $41 per package. Dividing $41 by the weight of the package (12
pounds) yields a handler average price estimate of $3.417 per pound.
Dividing the SBA size standard of $34 million by $3.417 by yields an
estimate of 9.951 million pounds per year (just under 10 million
pounds). The Committee reported that 12 out of 19 handlers (63 percent)
handled under 10 million pounds per year. Therefore, 63 percent of the
pistachio handlers would be considered small handlers under the SBA
standard.
The Committee's recommended assessment rate of $0.0003 per pound of
assessable pistachios complies with section 983.71(b) of the Order,
which states that any assessment rate must not exceed one-half of one
percent of the average price received by producers in the preceding
production year. The decreased assessment rate of $0.0003 per pound is
well below the computed maximum allowable rate of $0.01 per pound (0.5
percent times $2.00, the 2023 average producer price reported by NASS).
Using the new rate, 2024-2025 annual Committee assessment as a
percent of producer revenue (crop value) can be approximated using
average production and crop value for the two prior years. NASS
reported utilized inshell pistachio production of 882 million pounds
and 1.49 billion pounds, respectively, for the 2022 and 2023 crop
years, with an average of 1.186 billion pounds. Multiplying 1.186
billion pounds by $0.0003 per pound yields estimated annual Committee
revenue of $355,800. Dividing estimated Committee revenue of $355,800
by the two-year average crop value of $2.42 billion crop yields an
estimate of 0.01 percent. That is, the $355,800 estimated annual
assessment total represents one hundredth of one percent of estimated
producer revenue.
This final rule decreases the assessment rate collected from
handlers for the 2024-2025 and subsequent production years from $0.0007
to $0.0003 per pound of assessable pistachios. The Committee
unanimously recommended 2024-2025 production year expenditures of
$956,700 and an assessment rate of $0.0003 per pound of
[[Page 45119]]
assessable pistachios. The assessment rate of $0.0003 is $0.0004 lower
than the rate currently in effect. The volume of assessable pistachios
for the 2024-2025 production year is estimated at one billion pounds.
Thus, the $0.0003 per pound of assessable pistachios should provide
$300,000 in assessment income (1,000,000,000 pounds multiplied by
$0.0003 assessment rate). Income derived from handler assessments,
along with CPRB management income of approximately $220,200 and funds
from the Committee's authorized reserve of approximately $436,500,
should be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee 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. By comparison, budgeted expenses for these activities for the
2023-24 production year were $631,900, $125,000, $200,000, $76,450, and
$10,000, respectively.
The Committee recommended decreasing the assessment rate to utilize
funds from the authorized reserve to cover Committee expenditures and
ensure the financial reserve remains in compliance with Order
requirements.
Prior to arriving at this budget and assessment rate, the Committee
considered alternate potential expenditure levels and the impact of
reducing the assessment rate more and/or less than the rate herein.
However, the Committee determined that the recommended assessment rate
would achieve its goals of both adequately funding Committee operations
and reducing the reserve to an appropriate level.
A review of historical information and preliminary information
pertaining to the upcoming production year indicates the average
producer price for the 2024-2025 season should be approximately $2 per
pound. Therefore, the estimated assessment revenue for the 2024-2025
production year as a percentage of total producer revenue is expected
to be about .015 percent ($0.0003 divided by $2 multiplied by 100).
This action decreases the assessment obligation imposed on
pistachio handlers. Assessments are applied uniformly on all handlers,
and some of the cost may be passed on to producers. However, these
costs are expected to be offset by the benefits derived by the
operation of the Order.
The Committee's meetings are widely publicized throughout the
pistachio industry and all interested persons are invited to attend the
meeting and participate in Committee deliberations on all issues. Like
all Committee meetings, the April 9, 2024, and July 10, 2024, meetings
were public and all entities, both large and small, were able to
express views on this issue. Finally, interested persons were invited
to submit comments on this rule, including the regulatory and
information collection impacts of this action on small businesses.
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 OMB and assigned OMB No. 0581-0215, Pistachios.
No changes in those requirements are necessary as a result of this
action. Should any changes become necessary, they would be submitted to
OMB for approval.
This final rule will not impose any additional reporting or
recordkeeping requirements on either small or large pistachio 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.
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.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action published in the Federal
Register on October 30, 2024 (89 FR 86287). A 30-day comment period
ending November 29, 2024, was provided to all interested persons to
respond to the proposal. AMS received three comments regarding this
proposal. One comment supported the decreased assessment rate and two
comments did not address the merits of the proposed rule. Accordingly,
AMS made no changes 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:
<a href="https://www.ams.usda.gov/rules-regulations/moa/small-businesses">https://www.ams.usda.gov/rules-regulations/moa/small-businesses</a>. 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 recommendations submitted by the Committee and
other available information, AMS has determined that this rule is
consistent with and will effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 983
Marketing agreements, Nuts, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 983 as follows:
PART 983--PISTACHIOS GROWN IN CALIFORNIA, ARIZONA, AND NEW MEXICO
0
1. The authority citation for 7 CFR part 983 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 983.253 is revised to read as follows:
Sec. 983.253 Assessment rate.
On and after September 1, 2024, an assessment rate of $0.0003 per
pound is established for California, Arizona, and New Mexico pistachios
covered under the Order.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-18179 Filed 9-18-25; 8:45 am]
BILLING CODE P
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