[Federal Register: April 9, 2003 (Volume 68, Number 68)]
[Rules and Regulations]
[Page 17267-17272]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ap03-2]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. FV02-993-3 FR]
Dried Prunes Produced in California; Revising the Regulations
Pertaining to a Voluntary Prune Plum Diversion Program
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule changes the administrative rules and regulations
pertaining to a voluntary prune plum diversion program under the
California prune marketing order (order). The order regulates the
handling of dried prunes produced in California and is administered by
the Prune Marketing Committee (Committee). The changes made reflect
changes in industry structure and current economic conditions, and
modify administrative procedures used in connection with implementing a
diversion program. These changes will provide for more timely and
efficient implementation of a diversion program if recommended in the
future.
EFFECTIVE DATE: This final rule becomes effective May 9, 2003.
FOR FURTHER INFORMATION CONTACT: Richard P. Van Diest, Marketing
Specialist, California Marketing Field Office, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 2202
Monterey Street, suite 102B, Fresno, California 93721; telephone: (559)
487-5901, Fax: (559) 487-5906; or George Kelhart, Technical Advisor,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; telephone: (202) 720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or e-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Agreement and Order No. 993, both as amended (7 CFR part 993),
regulating the handling of dried prunes produced in California,
hereinafter referred to as the ``order.'' 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 Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
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. A
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA will 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.
This final rule revises the administrative rules and regulations
pertaining to a voluntary prune plum diversion program under the
California prune marketing order (order). The order regulates the
handling of dried prunes produced in California and is administered by
the Committee. The changes made reflect changes in industry structure
and current economic conditions, and modify administrative
[[Page 17268]]
procedures used in connection with implementing a diversion program.
These changes will also provide for more timely and efficient
implementation if a diversion program is needed in the future. These
changes were unanimously recommended by the Committee at a meeting on
November 29, 2001.
Volume Regulation Authority
Section 993.54 of the order provides authority for volume control
in the form of reserve pooling. Volume control regulation is designed
to promote orderly marketing conditions, stabilize prices and supplies,
and improve producer returns. When volume regulation is in effect, a
certain percentage of the California prune crop may be sold by handlers
to any market (salable or free tonnage) while the remaining percentage
must be held by handlers in a reserve pool (or reserve) for the account
of the Committee. Reserve prunes are disposed of through various
programs authorized under the order. Net proceeds generated from sales
of reserve prunes are distributed to the reserve pool's equity holders,
primarily producers.
Diversion Program Authority
The order also provides authority under Sec. 993.62 for prune
producers to participate in a voluntary prune plum diversion program
when a reserve pool is implemented. Under this program, prune producers
can elect to divert part of their prune plum crop from normal prune or
prune product markets in lieu of placing prunes in a reserve pool.
Section 993.62 also authorizes establishment of rules and regulations
to implement and administer a diversion program.
Section 993.162 contains the rules and regulations necessary for
governing the implementation of a diversion program.
Prune Marketing Committee Recommendations
Because a diversion program has not been implemented since the
1970's, the administrative rules and regulations contain several
outdated provisions. Section 993.162(a) of the regulations currently
establishes specific dryaway ratios by producing regions within the
production area. Dryaway ratios represent the ratio of the weight of
fresh prune plums needed to produce dried prunes, and are the basis for
computing the dried weight equivalent of diverted fresh prune plums.
The ratios range from 2.6 to 3.25 pounds of fresh plums to make a pound
of French prunes, depending on the producing region. For non-French
prunes, the dryaway ratio is established at 3.5 pounds of plums for one
pound of non-French prunes for the entire production area.
The dryaway ratios can change from year to year depending upon
weather conditions, fruit maturity at time of harvest, fruit solids and
other factors. The dryaway ratios used in the early 1970's are no
longer valid. Expanding production together with limited dehydration
capacity has forced some growers to begin harvesting earlier and
continue later than in the past. This has resulted in dryaway ratios
higher than those currently specified. Because of this, and to provide
more flexibility, the Committee recommended removing the specific
dryaway ratios for non-French prunes from Sec. 993.162(a) of the
regulations and adding language that will allow the Committee to
compute dryaway ratios for the applicable producing regions based on a
survey of at least eight commercial prune dehydrators geographically
dispersed within the production area.
When the Committee believes a diversion program is needed, the
Committee will obtain annual average dryaway ratios from commercial
dehydrators surveyed and compute a five-year average dryaway ratio for
each dehydrator. The Committee will then add together the participating
commercial dehydrators' five-year average dryaway ratios for each
producing region within the production area, and divide the total
dryaway ratio by the number of participating commercial dehydrators to
obtain each year's average dryaway ratio by producing region. In the
event any of the annual dryaway ratios for any of the crop years are
abnormally high or low in any year, the Committee could replace the
abnormal year's data with that of an earlier year. After the
computations are made, the resulting ratios will be announced and
commercial dehydrators will be notified by letter prior to the
beginning of any crop year in which reserve pooling and a diversion
program was being contemplated. This will result in more accurate
dryaway ratios in determining the dried weight equivalent of fresh
prune plums being diverted.
No change to the dryaway ratio for non-French prunes was
recommended. Production of these prunes is small (0.06 percent of total
prune production), little data is available, and it is believed that
the currently listed ratio of 3.5 to 1 is accurate.
As previously mentioned, dryaway ratios for French prunes are
calculated and applied to various producing regions within the
production area. Section 993.162(a) of the regulations currently
contains reference to 13 counties that no longer produce prunes. Prune
production has shifted within the production area over the years. Thus,
the Committee recommended updating the prune producing regions and
condensing them into fewer regions. The regions used in determining
dried weight equivalents for a diversion program in Sec. 993.162(a)
will be realigned as follows:
French Prunes
--North Sacramento Valley--The counties of Butte, Glenn, Shasta,
and Tehama.
--South Sacramento, Napa, Sonoma, and Santa Clara Valleys and the
counties of Amador, Colusa, Lake, Placer, Solano, Sutter, Yolo, Yuba,
Napa, Sonoma, San Benito, and Santa Clara.
--San Joaquin Valley--The counties of Fresno, Kern, Kings, Madera,
Merced, San Joaquin, Stanislaus, and Tulare.
This final rule also will allow the Committee to assign any new
counties of production to one of these three regions or remove counties
when production ceases. When prune acreage ceases to exist in a county,
the Committee will remove that county from the existing production
region, with the approval of the Secretary, and announce the removal to
the industry. In like manner, if there were new producing counties
within the State, the Committee will, with the approval of the
Secretary, be allowed to assign them to one of the existing regions
based on geographic proximity and/or production/dehydration
characteristics, instead of listing the counties in the rules and
regulations. These assignments also will be announced to the industry.
This process will allow the Committee to make timely changes to the
producing regions so they reflect the current industry situation.
Section 993.162(a) is modified to reflect these changes.
The region for non-French prunes will continue to include all
counties within the production area because specific information on
growing regions within the State is not maintained.
Section 993.162(b) of the regulations currently establishes the
following eligible diversion methods: (1) Disposing of harvested prune
plums under Committee supervision for nonhuman use at a location and in
a manner satisfactory to the Committee; and (2) Leaving unharvested the
entire production of prune plums from a solid block of bearing trees
designated by the producer applying for the diversion. This final rule
will specifically
[[Page 17269]]
reference the removal of prune plum trees prior to harvest as an
eligible diversion method. In the past, it has been determined that
removing trees will qualify as unharvested production under the
existing regulations. However, the Committee recommended adding
clarifying language to the regulations to ensure that the removal of
trees will qualify as an eligible diversion method.
A final change to Sec. 993.162(b) will require the Committee to
conduct a meeting prior to the beginning of any crop year in which a
diversion program was being contemplated to determine which diversion
method or methods may be used, and announce the eligible diversion
method(s) to the industry. Section 993.162(b) is modified to reflect
these changes.
To participate in the diversion program, producers must file an
application with the Committee. Section 993.162(c) of the regulations
currently requires that when a producer applies for the diversion
program, a deposit fee shall accompany the application. The deposit
fees established in the current regulations are as follows: For each
producer application, the fee shall be the greater of either $100 or
the amount obtained by multiplying the quantity, in tons, of prune
plums to be diverted by $3.50. For commercial dehydrators acting as an
agent for a group of four or more producers, the fee shall be the
greatest of either $200 or the amount obtained by multiplying the
aggregate quantity in tons of prune plums to be diverted by the group
by $3.50. The deposit fees charged to diverting growers were intended
to finance the Committee's administrative costs for the entire
diversion program with any excess monies to be refunded on a prorate
basis to participants. Because of changed economics since these fees
were established in the 1970's, the deposit fees established in the
regulations will not currently cover these costs. The Committee,
therefore, recommended revising the regulations to provide that
whenever a diversion program is implemented, the Committee shall, with
the approval of the Secretary, compute and announce the deposit fees
associated with filing applications for the diversion program. The
deposit fees will be announced to the industry, instead of specifying
the deposit fees in the rules and regulations. It is intended that the
computed fees will reflect Committee administrative costs associated
with administering a diversion program whenever such a program is
recommended.
These changes will allow flexibility in the regulations by allowing
the Committee to compute and announce the fees. Section 993.162(c) is
modified to reflect these changes.
The Committee also recommended changes to Sec. 993.162(d) of the
regulations. This section includes criteria for approving diversion
applications and establishes fees in connection with modifying
applications. The changes will remove reference to specific fees and
allow the Committee to apply fees consistent with the process regarding
deposit fees. The changes also will increase the service charge for
modifying applications from $1 to $2 per ton to reflect current
administrative costs. Section 993.162(d) is modified accordingly.
The rules and regulations pertaining to implementing a prune
diversion program were developed in the 1970's, and several provisions
are outdated. These changes are designed to bring the rules and
regulations in line with the present California prune industry
practices. The changes also provide for flexibility in years when
reserve pooling and a diversion program are implemented.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), 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
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and rules issued thereunder, are unique in that
they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 1,205 producers of dried prunes in the
production area and approximately 24 handlers subject to regulation
under the marketing order. Small agricultural producers are defined by
the Small Business Administration (13 CFR 121.201) as those having
annual receipts of less than $750,000, and small agricultural service
firms are defined as those whose annual receipts are less than
$5,000,000.
An updated industry profile shows that 9 out of 24 handlers (37.5
percent) shipped over $5,000,000 worth of dried prunes and could be
considered large handlers by the Small Business Administration. Fifteen
of the 24 handlers (62.5 percent) shipped under $5,000,000 worth of
prunes and could be considered small handlers. An estimated 32
producers, or less than 3 percent of the 1,205 total producers, would
be considered large growers with annual receipts over $750,000. The
majority of handlers and producers of California dried prunes may be
classified as small entities. USDA does not have precise numbers on the
total number of commercial dehydrators in the industry or their size.
However, it may be assumed that many may be considered small under SBA
criteria.
Under Sec. 993.62 of the order, when volume control in the form of
a reserve pool is implemented, prune producers can elect to divert part
of their prune plum crop from normal markets in lieu of placing prunes
in a reserve pool. Section 993.162 contains the administrative rules
and regulations necessary to administer a diversion program. This rule
will revise those regulations.
One of the changes will remove references in the regulations to
establish dryaway ratios for prune plums of the French variety. Dryaway
ratios are used to determine the dried weight equivalent of fresh prune
plums diverted from normal markets. Because these dryaway ratios are
outdated, the Committee recommended replacing them by a process that
will allow the Committee to compute and announce current dryaway ratios
based on a survey of commercial dehydrators. Surveying commercial prune
dehydrators will impose a minor information collection burden on such
entities. It is estimated that between 8 and 15 commercial dehydrators
will be requested to furnish information on their annual average
dryaway ratios to the Committee, and that it will take approximately 15
minutes to furnish the information. The total estimated annual burden
of collecting this information is estimated to be 225 minutes (3 hours
and 45 minutes) for the industry. However, the Committee believes that
the burden to complete a commercial dehydrator dryaway ratio survey
will be outweighed by obtaining and using updated dryaway ratio data
for French prunes when dryaway ratios are used to determine the dried
weight equivalent of fresh prune plums diverted from normal markets.
Another change will update the prune producing regions to which the
dryaway ratios for French prunes are applied, and allow the Committee
to update the areas based on current production information. Dryaway
ratios vary from area to area, and prune production shifts over time.
Another change will specify in the regulatory text that tree removal is
an acceptable diversion method, and
[[Page 17270]]
that the Committee may determine, with the approval of the Secretary,
and announce which method(s) of diversion may be used whenever a
program is implemented. Another change will remove from the regulations
outdated deposit fees for diversion program participants and authorize
the Committee to compute such fees based on current program
administration costs.
The changes to the prune producing regions, addition of acceptable
diversion methods, and the Committee's authority to determine which
methods of diversion are to be used are not expected to have a
significant impact on growers or handlers, either small or large. These
changes will update the regulations to reflect changes in the industry
and to facilitate administration and implementation of a voluntary
diversion program, if recommended in the future.
The changes regarding deposit fees will allow the Committee to
collect charges from diversion program participants that reflect actual
administrative costs incurred by the Committee. The fees specified in
the regulations are outdated and will not cover the Committee's actual
costs if a diversion program was needed to be implemented in the
future. These changes will help to ensure that the growers
participating in a future diversion program will pay the administrative
costs of the program, as specified in Sec. 993.62(g) of the order.
Because growers participating in a diversion program are the
beneficiaries of the program, it is appropriate that they pay the
administrative fees of the program. In addition, because the diversion
program is voluntary, growers will determine individually whether the
costs will outweigh the benefits prior to their participation. It is
not known how many growers will participate in a diversion program,
since there has not been one implemented under the marketing order
since the 1970's.
This final rule will be applied to small and large entities
equally, regardless of size. The Committee believes that these actions
will benefit the prune industry by updating the regulations to reflect
changes in the industry, and by providing a process that will
facilitate timelier implementation of a diversion program, if
recommended.
The Committee discussed alternatives to this change on November 29,
2001, including taking no action. However, that will leave any future
diversion program a less viable supply management tool due to outdated
program elements. Another alternative was to update the data on dryaway
ratios, prune producing regions, and diversion application charges
through informal rulemaking the next time a diversion program was
considered, rather than changing to a formula or survey procedure as
stated herein. This alternative was not recommended because the
Committee believed that this final rule would provide for more
flexibility in administering a future diversion program.
This action will allow the Committee to survey commercial prune
dehydrators to estimate costs applicable to drying prune plums. The
reporting and record keeping burdens are necessary for compliance
purposes and for developing statistical data to administer a future
program. This rule will impose some additional reporting or
recordkeeping requirements on both small and large California prune
plum commercial dehydrators. It is estimated that between 8 and 15
commercial dehydrators will be requested to furnish information on
their annual average dryaway ratios to the Committee, and that it will
take an average of 15 minutes per response to furnish this information.
The total estimated annual burden of collecting this information is
estimated to be 225 minutes (3 hours and 45 minutes) for the industry.
However, the Committee believes that the burden to complete a
commercial dehydrator dryaway ratio survey will be outweighed by
obtaining and using updated dryaway ratio data for French prunes when
dryaway ratios are used to determine the dried weight equivalent of
fresh prune plums from normal markets.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), AMS is seeking approval by the Office of Management and
Budget (OMB) for the additional burden imposed by the commercial
dryaway ratio survey. Upon OMB approval, the additional burden will be
merged into the information collection currently approved under OMB No.
0581-0178, Vegetable and Specialty Crop Marketing Orders. As noted in
the initial regulatory flexibility analysis, USDA has not identified
any relevant Federal rules that duplicate, overlap or conflict with
this rule. 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.
In addition, the Committee's Supply Management Subcommittee meeting
on November 28, 2001, and the Committee meeting on November 29, 2001,
where this action was deliberated, were both public meetings widely
publicized throughout the prune industry. All interested persons, both
large and small, were invited to attend the subcommittee and Committee
meetings and participate in the industry's deliberations.
A proposed rule concerning this action was published in the Federal
Register on October 28, 2002, (67 FR 65732). Copies of this rule were
mailed or sent via facsimile to all Committee members, alternates and
dried prune handlers. Finally, the Office of the Federal Register and
USDA made the rule available through the Internet. The rule provided a
comment period that ended December 27, 2002. 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: http://www.ams.usda.gov/fv/moab.html.
Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant matter presented, including the
information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
List of Subjects in 7 CFR Part 993
Marketing agreements, Plums, Prunes, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 993 is amended as
follows:
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
0
1. The authority citation for 7 CFR part 993 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 993.162, paragraphs (a), (b), (c), and (d) are revised to
read as follows:
Sec. 993.162 Voluntary prune plum diversion.
(a) Quantity to be diverted. The Committee shall indicate the
quantity of prune plums that producers may divert pursuant to Sec.
993.62 whenever it recommends to the Secretary that diversion
operations for a crop year be permitted. Whenever diversion operation
for a crop year have been authorized by the Secretary, the Committee
shall notify producers, commercial dehydrators, and handlers, known to
it of such authorization and diversion program procedures. The
[[Page 17271]]
Committee shall compute the dried weight equivalent of prune plums so
diverted on a dryaway basis as follows:
(1) For prune plums of the French variety, the Committee shall
survey at least eight commercial prune dehydrators that are
geographically dispersed within the production area to obtain their
annual dryaway ratios for each of the preceding five crop years, and
compute a five-year average dryaway ratio for each dehydrator. The
Committee shall then add together the participating commercial
dehydrators' five-year average dryaway ratios for each producing region
within the production area, and divide the total by the number of
participating commercial dehydrators in that region to compute the
dryaway ratio by producing region. In the event any of the annual
dryaway ratios for any of the crop years is abnormally high or low in
any year, the Committee may replace the abnormal year's data with that
of an earlier year. The prune producing regions for which dryaway
ratios shall be computed for prune plums of the French variety are as
follows:
(i) North Sacramento Valley, which includes the counties of Butte,
Glenn, Shasta, and Tehama;
(ii) South Sacramento, Napa, Sonoma, and Santa Clara Valleys, which
includes the counties of Amador, Colusa, Lake, Placer, Solano, Sutter,
Yolo, Yuba, Napa, Sonoma, San Benito, and Santa Clara; and
(iii) San Joaquin Valley, which includes the counties of Fresno,
Kern, Kings, Madera, Merced, San Joaquin, Stanislaus, and Tulare.
(A) New producing counties within the area. If there were new
producing counties within the State of California, the Committee will,
with the approval of the Secretary, assign the new prune producing
county or counties, as the case may be, to one of the prune producing
regions based on geographic proximity and/or production/dehydration
characteristics. The addition of a county or counties, as the case may
be, to one of the producing regions will be announced to the industry.
(B) Removal of a county from a production area. When prune acreage
ceases to exist in a county, the Committee will, with the approval of
the Secretary, remove that county from the existing region. Removal of
a county from a production region also will be announced to the
industry.
(2) For prune plums of the non-French variety, the dryaway ratio
shall be 1 pound for each 3.50 pounds of prune plums diverted. The
prune-producing region for prune plums of non-French varieties is the
State of California.
(b) Eligible diversions. Eligible diversions shall preclude prune
plums from becoming prunes and may include the following methods:
(1) Disposing of harvested prune plums under Committee supervision
for nonhuman use at a location and in a manner satisfactory to the
Committee;
(2) Leaving unharvested the entire production of prune plums from a
solid block of bearing trees designated by the producer applying for
the diversion of removing prune plum trees prior to harvest; and/or
(3) Such other diversions as may be authorized by he Committee and
approved by the Secretary.
(4) In accordance with Sec. 993.62(c), eligible diversion shall
not apply to prune plums, which would not, under normal producer
practices, be dried and delivered to a handler. On or before July 20 of
each crop year when the Committee recommends a reserve pool and
diversion program (except the Committee with the approval of the
Secretary may extend this date by not more than 10 business days if
warranted by a late crop), the Committee shall identify, with the
approval of the Secretary, the acceptable method(s) of voluntary prune
plum diversion through reasonable publicity to producers, commercial
dehydrators, handlers, and the cooperative bargaining association(s).
For the purposes of this section, cooperative bargaining association
means a nonprofit cooperative association of dried prune producers
engaged within the production area in bargaining with handlers as to
price and otherwise arranging for the sale of natural condition dried
prunes of its members.
(c) Applications for diversion.
(1) By producers. Each producer desiring to divert prune plums of
his own production shall, prior to diversion, file with the Committee a
certified application on Form PMC 10.1 ``Application for Prune Plum
Diversion'' containing at least the following information:
(i) The name and address of the producer; whether the producer is
an owner-operator, share-landlord, share-tenant, or cash tenant; and
the name and address of any other person or persons sharing a
proprietary interest in such prune plums;
(ii) The proposed method of diversion and the location where the
diversion is to take place;
(iii) The quantity and variety of prune plums proposed to be
diverted; and
(iv) The approximate period of diversion.
(v) A deposit fee shall accompany each producer's application to
cover costs associated with processing the application and
administering the diversion program. The Committee shall compute, with
the approval of the Secretary, and announce to the industry, the
deposit fee. The deposit fee announced shall be a set dollar amount or
a per ton cost based on the tonnage to be diverted. The fee paid by the
applicant shall be the greater of these amounts.
(2) By dehydrator as agent. Any producer, or group of producers,
may authorize a dehydrator to act as an agent to divert harvested prune
plums. Prior to diversion such dehydrator shall submit to the Committee
an application on Form PMC 10.1 ``Application for Prune Plum
Diversion'' for each producer or group of producers under contract with
the dehydrator. A deposit fee shall accompany each such application to
cover the costs associated with processing the application and
administration of the program. With respect to any group of four or
more producers under contract with a dehydrator, the deposit fee for
the group shall be the greater of either double the single deposit fee,
pursuant to paragraph (c)(1) of this section, or the amount obtained by
multiplying the total tonnage of prune plums to be diverted by the
group of producers covered in the dehydrator's application times the
per ton deposit rate announced by the Committee pursuant to (c)(1) of
this section.
(3) Receipt of applications. The Committee shall establish, and
give prompt notice to the industry, a final date for receipt of
applications for diversion: Provided, That the Committee may extend
such deadline if the total tonnage represented in all applications is
substantially less than the total tonnage established by the Committee
pursuant to paragraph (a) of this section.
(d) Approval of applications. No certificate of diversion shall be
issued by the Committee unless it has approved the application covering
such diversion.
(1) The Committee's approval of an application shall be in writing,
and include at least the following:
(i) The details as to the method of diversion to be followed;
(ii) The method of appraisal to be used by the Committee to
determine the quantity of prune plums diverted;
(iii) The lesser of either the quantity specified in the
application to be diverted, or modification of that quantity as a
result of any Committee action to prorate the total quantity to be
diverted by all producers; and
[[Page 17272]]
(iv) Such other information as may be necessary to assist the
applicant in meeting the requirements of this section, including the
conditions for proof of diversion.
(2) If the Committee determines that it cannot approve an
application it shall notify the applicant promptly. The Committee shall
state the reason(s) for failing to approve the application, and request
the applicant to submit, if practicable, an amended application
correcting the deficiencies in the original application.
(3) The Committee shall establish, and give prompt notice to the
industry of a final date by which a producer or dehydrator may modify
an approved application, including changing the method of diversion or
the quantity of prune plums to be diverted: Provided, That any such
change shall include information on the location or quantity of such
diversion and shall be accompanied by a payment of a second deposit
fee, calculated pursuant to paragraph (c)(1) or (c)(2), as applicable,
of this section, plus a $2 per ton service charge for any increase in
tonnage to be diverted.
(4) If an applicant cancels an approved diversion application prior
to diversion, no part of the deposit fee shall be refunded, except upon
approval by the Committee following review of all circumstances in the
matter.
* * * * *
Dated: April 3, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-8649 Filed 4-8-03; 8:45 am]
BILLING CODE 3410-02-P