Proposed Rule2026-04580
Olives Grown in California; Decreased Assessment Rate
Primary source
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Published
March 9, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the California Olive Committee (Committee) to decrease the assessment rate established for the 2025 fiscal year and subsequent fiscal years from $28.00 to $24.00 per ton of assessable olives grown in California. The proposed assessment rate would remain in effect indefinitely until modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 91 Issue 45 (Monday, March 9, 2026)</title>
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[Federal Register Volume 91, Number 45 (Monday, March 9, 2026)]
[Proposed Rules]
[Pages 11184-11187]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04580]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Doc. No. AMS-SC-25-0002]
Olives Grown in California; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
California Olive Committee (Committee) to decrease the assessment rate
established for the 2025 fiscal year and subsequent fiscal years from
$28.00 to $24.00 per ton of assessable olives grown in California. The
proposed assessment rate would remain in effect indefinitely until
modified, suspended, or terminated.
DATES: Comments must be received by April 8, 2026.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments can be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments can also be sent to the Docket Clerk electronically by email:
<a href="/cdn-cgi/l/email-protection#105d71627b7564797e775f62747562537f7d7d757e6450656374713e777f66"><span class="__cf_email__" data-cfemail="b3fed2c1d8d6c7daddd4fcc1d7d6c1f0dcdeded6ddc7f3c6c0d7d29dd4dcc5">[email protected]</span></a> or via the internet at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number and
the date and page number of this issue of the Federal Register.
Comments submitted in response to this proposed rule will be included
in the record, will be made available to the public and can be viewed
at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Please be advised that public comments
are posted to <a href="http://regulations.gov">regulations.gov</a> without change.
FOR FURTHER INFORMATION CONTACT: Kathie Notoro, 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#89c2e8fde1e0eca7c7e6fde6fbe6c9fcfaede8a7eee6ff"><span class="__cf_email__" data-cfemail="723913061a1b175c3c1d061d001d32070116135c151d04">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#b4f5d6ddd3d5ddd89af9d5dcd5c6d5def4c1c7d0d59ad3dbc2"><span class="__cf_email__" data-cfemail="efae8d86888e8683c1a28e878e9d8e85af9a9c8b8ec1888099">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
Order No. 932 as amended (7 CFR part 932), regulating the handling of
olives grown in California. Part 932 (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
California Olive Committee (Committee) locally administers the Order
and is comprised of producers and handlers of olives operating within
the area of production.
This action is exempt from the Office of Management and Budget
(OMB) review process required by Executive Order 12866. This rule
amends the existing Marketing Order No. 932 (7 CFR part 932), Olives
Grown in California and is necessary for the continued operation of
Marketing Order No. 932. Additionally, this action is exempt from the
requirements of Executive Order 14192, ``Unleashing Prosperity Through
Deregulation,'' pursuant to section 5(c).
This proposed 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 proposed
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.
[[Page 11185]]
This proposed rule has been reviewed under Executive Order 12988,
``Civil Justice Reform.'' Under the Order now in effect, California
olive handlers are subject to assessments. Funds to administer the
Order are derived from such assessments. It is intended that the
assessment rate would be applicable to all assessable olives for the
2025 fiscal year, and continue until amended, suspended, or terminated.
This proposed rule would decrease the assessment rate for
assessable olives handled under the Order from $28.00 to $24.00 per ton
for the 2025 fiscal year and subsequent fiscal years.
Sections 932.38 and 932.39 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
with the costs of goods and services in their local area and can
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 2024 fiscal year and subsequent fiscal years, the Committee
recommended, and AMS approved, an assessment rate of $28 per ton of
assessable olives within the production area. That rate continues in
effect from fiscal year to fiscal year until modified, suspended, or
terminated by AMS upon recommendation and information submitted by the
Committee or other information available to AMS.
The Committee met on December 19, 2024, and unanimously recommended
2025 fiscal year expenditures of $1,174,697 and an assessment rate of
$24 per ton of assessed olives. In comparison, the 2024 fiscal year
budgeted expenditures were $1,100,151. The proposed assessment rate of
$24 is $4 lower than the rate currently in effect. Although the
recommended 2025 fiscal year expenditures are higher than those in
2024, the Committee recommended decreasing the assessment rate due to
the significantly higher crop size in 2024 (fruit that is marketed over
the course of the 2025 fiscal year), and the need to maintain its
reserve funds within a level authorized under the marketing order. The
Committee estimates approximately 48,560 tons of olives from the 2024
crop year that will be assessable during the 2025 fiscal year. This
amount is substantially higher than the 34,000 tons of olives that were
harvested in 2023.
Olives harvested in 2024 will be marketed over the course of the
2025 fiscal year, which began on January 1, 2025, as the harvested
olives are stored in brining tanks and processed over the subsequent
year. The 48,560 tons of assessable olives from the 2024 crop would
generate $1,165,440 (48,560 tons multiplied by the $24 assessment rate)
in assessment revenue over the 2025 fiscal year at the proposed
assessment rate. The balance of funds needed to cover budgeted
expenditures would come from interest income and the Committee's
financial reserve. The 2025 fiscal year assessment rate decrease is
appropriate to ensure the Committee has sufficient revenue to fund the
recommended 2025 fiscal year budgeted expenditures while also ensuring
that funds in the reserve do not exceed approximately one fiscal year's
expenses, the maximum reserve amount permitted by 7 CFR 932.40.
The Order has a fiscal year and a crop year that are independent of
each other. The crop year is a 12-month period that begins on August 1
of each year and ends on July 31 of the following year. The fiscal year
is the 12-month period that begins on January 1 and ends on December 31
of each year. Olives are an alternate-bearing crop, with a small crop
(2023) followed by a large crop (2024). For this proposed rule, the
Committee utilized the estimated 2024 crop year receipts to determine
the recommended assessment rate for the 2025 fiscal year.
The Committee derived the recommended assessment rate by
considering anticipated fiscal year expenses, the expected volume of
assessable olives, and the level of funds available in the authorized
financial reserve. The expected 48,560 tons of assessable olives would
generate $1,165,440 in assessment revenue at the proposed rate (48,560
tons multiplied by the $24 assessment rate). The income generated from
handler assessments, along with reserve funds and interest income,
would be sufficient to meet the Committee's estimated program
expenditures of $1,174,697 for the 2025 fiscal year. Funds available in
the financial reserve (currently about $1,723,008) would be kept within
the maximum permitted by the Order (approximately one fiscal year's
expenses as authorized by 7 CFR 932.40).
The proposed assessment rate would continue in effect indefinitely
until modified, suspended, or terminated by AMS upon recommendation and
information submitted by the Committee or other available information.
Although this assessment rate would be in effect for an indefinite
period, the Committee 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 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 evaluates Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. The Committee's 2025
fiscal year budget, and those for subsequent fiscal years, will be
reviewed and approved by AMS.
Initial 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 proposed rule on small entities. Accordingly, AMS has prepared
this initial 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.
The Small Business Administration (SBA) defines, in 13 CFR part
121, small agricultural service firms, including handlers, as those
whose average annual receipts are no greater than $34 million (North
American Industry Classification System (NAICS) code 115114,
Postharvest Crop Activities). SBA defines small agricultural producers
of olives as those having average annual receipts no greater than $3.5
million (NAICS code 111339, Other Noncitrus Fruit Farming).
According to the Committee, there are two handlers subject to
regulation under the Order. The volume of olives produced in the
production area--a two-year average of 31,520 tons for crop years 2023
to 2024--would require large scale processing facilities for just two
handlers to be able to process the entire California crop; therefore,
it is likely that both handlers would exceed the SBA threshold of $34
million in annual receipts, and therefore, not be considered small
businesses under the SBA definition of a small firm engaging in
postharvest crop activities.
In the 2022 Census of Agriculture, the most recent to date, the
National Agricultural Statistics Service (NASS)
[[Page 11186]]
reports the existence of 1,613 olive-farming operations in California
totaling 41,828 bearing acres. To estimate the number of olive growers
that would be considered to be ``small'' per the SBA definition, AMS
calculates the acreage required to produce the volume of olives at an
average price to reach the $3.5 million threshold. Due to the
alternate-bearing nature of olives, a two-year average is used to
estimate price and yield, based on the most recent NASS data for 2023
and 2024.
NASS reports 2023 and 2024 California grower prices for olives for
canning at $1,080 per ton and $1,140 per ton, respectively. This
results in a two-year average price received by California growers of
olives for canning of $1,110 per ton ($1,080 plus $1,140, divided by
2). Olive yields in California measured 3.04 tons per acre in 2023 and
3.78 tons per acre in 2024, resulting in an average yield of 3.41 tons
of olives per acre (3.04 tons plus 3.78 tons, divided by 2). These
figures are utilized in the equations below to estimate the amount of
acreage needed to produce the volume of olives sold at the average
price to reach the SBA threshold of $3.5 million.
Dividing the SBA threshold for a small olive grower of $3.5 million
by the $1,110 per ton average grower received price and by the
estimated average yield of 3.41 tons per acre results in approximately
925 acres that would be required for an olive grower to reach $3.5
million in annual receipts. Therefore, AMS concludes that an olive
grower would need 926 bearing acres to be considered ``large'' per the
SBA definition.
According to the 2022 Census of Agriculture, published by NASS in
February 2024, of the 1,613 olive farms in California, four had bearing
acreage between 750 and 999.9 acres, and three had bearing acreage
equal to or exceeding 1,000 acres. This means that between 99.6 percent
(1,613 minus 7 (4 plus 3), divided by 1,613) and 99.8 percent (1,613
minus 3, divided by 1,613) of farms, or growers, would be considered to
be small businesses under the SBA definition.
This proposal would decrease the assessment rate collected from
handlers for the 2025 fiscal year and subsequent fiscal years from
$28.00 to $24.00 per ton of assessable olives. The Committee
unanimously recommended 2025 expenditures of $1,174,697 and an
assessment rate of $24 per ton. The recommended assessment rate of $24
is $4 lower than the 2024 assessment rate. The 2024 crop is estimated
to be 48,560 tons. The $24 per ton should provide $1,165,440 in
assessment income (48,560 tons multiplied by $24 assessment rate).
Income derived from handler assessments, along with interest income and
funds from the authorized reserve, should be sufficient to cover
budgeted expenses.
The Committee deliberated on many of the expenses, weighed the
relative value of various programs or projects, and decreased their
expenses for inspection and marketing activities while increasing the
expenses of their program administration and research activities.
Overall, the 2025 budget of $1,174,697 is $74,546 more than the
$1,100,151 budgeted for the 2024 fiscal year.
Prior to arriving at this budget and assessment rate, the Committee
considered information from various sources including the Committee's
Executive, Marketing, Inspection, and Research Subcommittees. Alternate
expenditure levels were discussed by these groups, based upon the
relative value of various projects to the olive industry and the
increased olive production. The assessment rate of $24 per ton of
assessable olives was derived by considering anticipated expenses, the
high volume of assessable olives, the current balance in the monetary
reserve, and additional pertinent factors.
A review of NASS historical and preliminary information indicates
the two-year average producer price for California olives is
approximately $1,180 per ton. Therefore, utilizing the recommended
assessment rate of $24 per ton, assessment revenue for the 2024 fiscal
year as a percentage of total producer revenue would be approximately 2
percent ($24 divided by $1,180, multiplied by 100).
This proposed rule would decrease the assessment obligation imposed
on handlers. Assessments are applied uniformly to all handlers. Some of
the assessment costs to handlers may be passed on to producers.
Decreasing the assessment rate would reduce the burden on handlers and
may also, therefore, reduce the burden on producers.
The Committee's meetings are widely publicized throughout the
production area and all interested persons are invited to attend the
meetings and participate in Committee deliberations on all issues. Like
all Committee meetings, the December 19, 2024, meeting was a public
meeting and all entities, both large and small, were able to express
views on this issue. Finally, interested persons are invited to submit
comments on this proposed 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. 0581-0178, ``Vegetable
and Specialty Crops.'' No changes in those requirements would be
necessary because of this proposed rule. Should any changes become
necessary, they would be submitted to OMB for approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large California olive
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 proposed rule.
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 proposed rule
is consistent with, and would effectuate the purposes of, the Act.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 932 as follows:
PART 932--OLIVES GROWN IN CALIFORNIA
0
1. The authority citation for part 932 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 932.230 is revised to read as follows:
[[Page 11187]]
Sec. 932.230 Assessment rate.
On and after January 1, 2025, an assessment rate of $24 per ton is
established for California olives.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-04580 Filed 3-6-26; 8:45 am]
BILLING CODE P
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