[Federal Register Volume 69, Number 137 (Monday, July 19, 2004)]
[Rules and Regulations]
[Pages 42850-42852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-16271]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[Docket No. FV04-958-02 FR]
Onions Grown in Certain Designated Counties in Idaho, and Malheur
County, Oregon; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule increases the assessment rate established for the
Idaho-Eastern Oregon Onion Committee (Committee) for the 2004-2005 and
subsequent fiscal periods from $0.095 to $0.105 per hundredweight of
onions handled. The Committee locally administers the marketing order
that regulates the handling of onions grown in designated counties in
Idaho, and Malheur County, Oregon. Authorization to assess onion
handlers enables the Committee to incur expenses that are reasonable
and necessary to administer the program. The fiscal period begins July
1 and ends June 30. The assessment rate will remain in effect
indefinitely unless modified, suspended, or terminated.
EFFECTIVE DATE: July 20, 2004.
FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220 SW., Third Ave, Suite 385,
Portland, OR 97204; telephone: (503) 326-2724; Fax: (503) 326-7440; 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: [email protected].
SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing
Agreement No. 130 and Marketing Order No. 958, both as amended (7 CFR
part 958), regulating the handling of onions grown in certain
designated counties in Idaho, and Malheur County, Oregon, 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. Under the marketing order now in effect, Idaho-Eastern
Oregon onion handlers are subject to assessments. Funds to administer
the order are derived from such assessments. It is intended that the
assessment rate as issued herein will be applicable to all assessable
onions beginning July 1, 2004, and continue until amended, suspended,
or terminated. 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. Such
handler is afforded the opportunity for
[[Page 42851]]
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 not later than 20
days after the date of the entry of the ruling.
This rule increases the assessment rate established for the
Committee for the 2004-2005 and subsequent fiscal periods from $0.095
to $0.105 per hundredweight of onions handled.
The Idaho-Eastern Oregon onion marketing order provides authority
for the Committee, with the approval of USDA, to formulate an annual
budget of expenses and collect assessments from handlers to administer
the program. The Committee consists of six producer members, four
handler members and one public member. Each member is familiar with the
Committee's needs and with the costs for goods and services in their
local area and are thus in a position to formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in a public meeting. Thus, all directly affected persons have
an opportunity to participate and provide input.
For the 2003-2004 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on April 1, 2004, and unanimously recommended
2004-2005 expenditures of $997,442. In comparison, last year's budgeted
expenditures were $957,000. At that same meeting, the Committee, in a
vote of seven in favor, two opposed (desired continuation of the
current rate), and one abstention, recommended increasing the
assessment rate to $0.105 per hundredweight of onions handled. The
assessment rate of $0.105 is $0.01 higher than the rate currently in
effect. The order authorizes the Committee to establish an operating
reserve of up to one fiscal period's operational expense. However, the
Committee's policy is to maintain the operating reserve at a level of
approximately one-half of one fiscal period's operational expenses. The
Committee, over the last five fiscal periods, has reduced its operating
reserve to slightly below this level. The Committee recommended the
$0.01 increase so the total of assessment income ($932,400),
contributions ($75,600), interest income ($7,000), and other income
($2,000) would sufficiently fund the recommended expenses for 2004-2005
of $997,442. The increased assessment income is anticipated to add
approximately $19,558 to the operating reserve, increasing it to an
estimated $504,661 at the end of the 2004-2005 fiscal period.
The major expenditures recommended by the Committee for the 2004-
2005 fiscal period include $10,000 for committee expenses, $163,482 for
salary expenses, $81,960 for travel/office expenses, $60,000 for
production research expenses, $32,000 for export market development
expenses, $600,000 for promotion expenses, and $50,000 for unforeseen
marketing order contingencies. Budgeted expenses for these items in
2002-2003 were $10,000, $148,353, $72,610, $59,170, $27,250, $589,617,
and $50,000, respectively.
The Committee estimates that fresh market onion shipments for the
2004-2005 fiscal period will be approximately 8,880,000 hundredweight,
which should provide $932,400 in assessment income. Income derived from
handler assessments, along with contributions ($75,600), interest
income ($7,000), and other income ($2,000) would be sufficient to cover
budgeted expenses and increase the operating reserve approximately
$19,558. The Committee estimates that its operating reserve will be
approximately $485,103 at the beginning of the 2004-2005 fiscal period.
Funds in the reserve will be kept within the maximum permitted by the
order of approximately one fiscal year's operational expenses (Sec.
958.44.)
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
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
fiscal period 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 USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2004-2005 budget and those
for subsequent fiscal periods would be reviewed and, as appropriate,
approved by USDA.
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 the 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 37 handlers of Idaho-Eastern Oregon onions
who are subject to regulation under the order and approximately 250
onion producers in the regulated production area. Small agricultural
service firms are defined by the Small Business Administration (13 CFR
121.201) as those whose annual receipts are less than $5,000,000, and
small agricultural producers are defined as those whose annual receipts
are less than $750,000.
The Committee estimates that 32 of the 37 handlers of Idaho-Eastern
Oregon onions ship under $5,000,000 worth of onions on an annual basis.
According to the Vegetables 2003 Summary reported by the National
Agricultural Statistics Service, the total farm gate value of onions in
the regulated production area for 2003 was $130,768,000. Therefore, the
2003 average gross revenue for an onion producer in the regulated
production area was $523,072. Based on this information, it can be
concluded that the majority of handlers and producers of Idaho-Eastern
Oregon onions may be classified as small entities.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2004-2005 and subsequent
fiscal periods from $0.095 to $0.105 per hundredweight of onions
handled. The Committee recommended 2004-2005 expenditures of $997,442
and an assessment rate of $0.105 per hundredweight, which is $0.01
higher than the rate currently in effect. The quantity of assessable
onions for the 2004-2005 fiscal period is estimated at 8,880,000
hundredweight. Thus, the $0.105 rate should provide $932,400 in
assessment income, which
[[Page 42852]]
along with anticipated contributions, interest income, and other income
should be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2004-
2005 fiscal period include $10,000 for committee expenses, $163,482 for
salary expenses, $81,960 for travel/office expenses, $60,000 for
production research expenses, $32,000 for export market development
expenses, $600,000 for promotion expenses, and $50,000 for unforeseen
marketing order contingencies. Budgeted expenses for these items in
2003-2004 were $10,000, $148,353, $72,610, $59,170, $27,250, $589,617,
and $50,000, respectively.
The Committee reviewed and unanimously recommended 2004-2005
expenditures of $997,442. This budget includes increases in the budget
line items for salary expenses, travel and office expenses, research
expenses, export expenses, and promotion expenses. Committee expenses
and the marketing order contingency fund would remain the same. Prior
to arriving at this budget, the Committee considered information from
various sources, including the Idaho-Eastern Oregon Onion Executive,
Research, Export, and Promotion Committees. These subcommittees
discussed alternative expenditure levels, based upon the relative value
of various research and promotion projects to the Idaho-Eastern Oregon
onion industry. The assessment rate of $0.105 per hundredweight of
assessable onions was then determined by taking into consideration the
estimated level of assessable shipments, other revenue sources, and the
Committee's goal of not having to use reserve funds during 2004-2005.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the producer
price for the 2004-2005 season could be about $10.80 per hundredweight.
Therefore, the estimated assessment revenue for the 2004-2005 fiscal
period as a percentage of total producer revenue could be about 1.1
percent.
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
are offset by the benefits derived by the operation of the order. In
addition, the Committee's meetings were widely publicized throughout
the Idaho-Eastern Oregon onion industry and all interested persons were
invited to attend the meetings and participate in Committee
deliberations on all issues. Like all Committee meetings, the April 1,
2004, meeting was open to the public and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons were invited to submit information on the regulatory and
informational impacts of this action on small businesses.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large Idaho-Eastern Oregon onion
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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on May 21, 2004 (69 FR 29244). Copies of the proposed rule
were also mailed or sent via facsimile to all onion handlers. Finally,
the proposal was made available through the Internet by the Office of
the Federal Register and USDA. A 30-day comment period ending June 21,
2004, was provided for interested persons to respond to the proposal.
No comments were received.
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 material 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.
Pursuant to 5 U.S.C. 553, it also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because: (1) The
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis; (2) the 2004-2005 fiscal period began
on July 1, 2004, and the order requires that the rate of assessment for
each fiscal period apply to all assessable onions handled during such
fiscal period; (3) handlers are aware of this action which was
unanimously recommended by the Committee at a public meeting; and (4) a
30-day comment period was provided for in the proposed rule, and no
comments were received.
List of Subjects in 7 CFR Part 958
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 958 is amended as
follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
0
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 958.240 is revised to read as follows:
Sec. 958.240 Assessment rate.
On and after July 1, 2004, an assessment rate of $0.105 per
hundredweight is established for Idaho-Eastern Oregon onions.
Dated: July 13, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-16271 Filed 7-16-04; 8:45 am]
BILLING CODE 3410-02-P