[Code of Federal Regulations]
[Title 7, Volume 8]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR982.40]

[Page 525-526]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER IX--AGRICULTURAL MARKETING SERVICE (Marketing Agreements and 
      Orders; Fruits, Vegetables, Nuts), DEPARTMENT OF AGRICULTURE
 
PART 982_HAZELNUTS GROWN IN OREGON AND WASHINGTON--Table of Contents
 
                    Subpart_Order Regulating Handling
 
Sec.  982.40  Marketing policy and volume regulation.

    (a) General. As provided in this section, prior to September 20 of 
each marketing year, the Board may hold meetings for the purpose of 
computing its marketing policy for that year and shall do so for the 
purpose of submitting any recommendations on its policy to the 
Secretary. The Board may designate one of its employees to compute and 
announce the preliminary computed free and restricted percentages.
    (b) Inshell trade demand. If the Board determines that volume 
regulation would tend to effectuate the declared policy of the act, it 
shall compute and announce an inshell trade demand for that year prior 
to September 20. The inshell trade demand shall equal the average of the 
preceding three years' trade acquisitions of inshell hazelnuts: 
Provided, That the Board may increase such average by no more than 25 
percent if market conditions justify such an increase. If the trade 
acquisitions during any or all of these years were abnormal because of 
crop or marketing conditions, the Board may use a prior year or years in 
determining the three-year average.
    (c) Inshell allocation--(1) Preliminary computed percentages. Prior 
to September 20 of a marketing year, the Board shall compute and 
announce preliminary computed free and restricted percentages for that 
year, to release 80 percent of the inshell trade demand for that year. 
The preliminary computed free percentage shall be computed by 
multiplying that trade demand, adjusted by the declared carryin, by 80 
percent, and by dividing that amount by the Board's estimate of orchard-
run production less the average disappearance during the preceding three 
years, plus the undeclared carryin. The difference between 100 percent 
and the preliminary free percentage shall be the preliminary computed 
restricted percentage. At the same time, the Board may announce the 
portion of the restricted supply that may be shelled or exported, and 
the remainder of that supply to be disposed of in outlets approved by 
the Board pursuant to Sec.  982.52.
    (2) Interim final and final percentages. On or before November 15, 
the Board shall meet to recommend to the Secretary the interim final and 
final free and restricted percentages, including the portion of the 
restricted supply that may be shelled or exported. The interim final 
percentages shall release 100 percent of the inshell trade demand 
previously computed by the Board for the marketing year. The final free 
and restricted percentages may release an additional 15 percent of the 
average of the preceding three years' trade acquisitions of inshell 
hazelnuts for desirable carryout. If the trade acquisitions during any 
or all of these years were abnormal, the Board may use a prior year or 
years in determining this three-year average. The final free and 
restricted percentages shall become effective 30 days prior to the end 
of the marketing year, or earlier as may be recommended by the Board and 
approved by the Secretary. The recommendations to the Secretary shall 
include the following:
    (i) The estimated tonnage of merchantable hazelnuts expected to be 
produced during the marketing year.
    (ii) The estimated tonnage of inshell hazelnuts held by handlers on 
the first day of the marketing year which may be available for handling 
as inshell hazelnuts thereafter.
    (iii) Any other pertinent factors bearing on the marketing of 
hazelnuts during the marketing year.


Whenever the Secretary finds, on the basis of the recommendation of the 
Board or other available information that, to establish the interim 
final and final free and restricted percentages would tend to effectuate 
the declared policy of the act, the Secretary shall establish such 
percentages.
    (d) Grade and size regulations. Prior to September 20, the Board may 
consider grade and size regulations in effect and may recommend 
modifications thereof to the Secretary.
    (e) Revision of marketing policy. At any time prior to February 15 
of the

[[Page 526]]

marketing year, the Board may recommend to the Secretary revisions in 
the marketing policy for that year: Provided, That in no event shall any 
such recommendation provide for free and restricted percentages based on 
an inshell trade demand which is more than 125 percent of the average of 
the preceding three years' trade acquisitions computed pursuant to 
paragraph (b) of this section for that marketing year. At any time 
during the period December 1 through February 10 at the request of two 
or more handlers, who during the preceding marketing year handled at 
least 10 percent of all hazelnuts handled, the Board shall meet to 
determine whether the marketing policy should be revised.

[51 FR 29548, Aug. 19, 1986, as amended at 61 FR 17560, Apr. 22, 1996]