[Federal Register: June 17, 2005 (Volume 70, Number 116)]
[Rules and Regulations]
[Page 35163-35165]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17jn05-1]
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Rules and Regulations
Federal Register
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[[Page 35163]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Docket No. FV05-946-1 FR]
Irish Potatoes Grown in Washington; 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
State of Washington Potato Committee (Committee) for the 2005-2006 and
subsequent fiscal periods from $0.002 to $0.0035 per hundredweight of
potatoes handled. The Committee locally administers the marketing order
which regulates the handling of Irish potatoes grown in Washington.
Authorization to assess potato 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.
DATES: Effective Date: June 18, 2005.
FOR FURTHER INFORMATION CONTACT: Teresa L. Hutchinson, Marketing
Specialist, Northwest Marketing Field Office, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1220 SW
Third Avenue, Suite 385, Portland, OR 97204; Telephone: (503) 326-2724,
Fax: (503) 326-7440; or George J. 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.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 113 and Marketing Order No. 946, both as amended (7 CFR
part 946), regulating the handling of Irish potatoes grown in
Washington, 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, Washington
potato 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
potatoes beginning July 1, 2005, 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 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 2005-2006 and subsequent fiscal periods from $0.002
to $0.0035 per hundredweight of potatoes handled.
The 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 members of the
Committee are producers and handlers in Washington. They are 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 was formulated and
discussed at a public meeting, thus all directly affected persons had
an opportunity to participate and provide input.
For the 1997-98 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 February 3, 2005, and unanimously recommended
2005-2006 expenditures of $36,750 and an assessment rate of $0.0035 per
hundredweight of potatoes. In comparison, last year's budgeted
expenditures were $38,500. The assessment rate of $0.0035 is $0.0015
higher than the rate for the 2004-2005 fiscal period. The Committee
recommended the higher assessment rate to maintain its monetary reserve
at a satisfactory level.
The major expenditures recommended by the Committee for the 2005-
2006 fiscal period include $18,000 for surveillance inspections, $4,800
for Washington State Potato Commission (Commission) expenses, $3,000
for office supplies, $3,000 for Committee expense, $1,500 for Committee
member compensation, and $1,500 for the financial audit. The Committee
operates under an agreement with the Commission. The Commission
provides the Committee office space and administrative services.
Budgeted expenses for these items in 2004-2005 were $20,000, $4,800,
$3,000, $1,500, $1,500, and $2,000, respectively.
[[Page 35164]]
The assessment rate recommended by the Committee was derived by
multiplying anticipated shipments of Washington potatoes by various
assessment rates. Applying the $0.0035 per hundredweight assessment
rate to the Committee's 10,000,000 hundredweight crop estimate should
provide $35,000 in assessment income. Thus, income derived from handler
assessments and interest ($800) plus $950 from the Committee's monetary
reserve will be adequate to cover the recommended $36,750 budget for
2005-2006.
Funds in the reserve were $50,277 as of January 31, 2005. The
Committee estimates that $17,700 will be deducted from the reserve to
cover budgeted expenses for 2004-2005. Thus, the Committee estimates a
reserve of $32,577 on June 30, 2005, which will be within the maximum
permitted by the order of approximately two fiscal period's operational
expenses (Sec. 946.42).
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 the 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 2005-2006 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 48 handlers of Washington potatoes subject
to regulation under the order and approximately 286 producers in the
regulated production area. Small agricultural service firms are defined
by the Small Business Administration (SBA) (13 CFR 121.201) as those
having annual receipts of less than $6,000,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000.
During the 2003-2004 marketing year, 10,652,495 hundredweight of
Washington potatoes were inspected under the order and sold into the
fresh market. Based on an estimated average f.o.b. price of $7.45 per
hundredweight, the Committee estimates that 45 handlers, or about 94
percent, had annual receipts of less than $6,000,000.
In addition, based on information provided by the National
Agricultural Statistics Service, the average producer price for
Washington potatoes for the 2003 marketing year was $5.25 per
hundredweight. The average annual producer revenue for the 286
Washington potato producers is therefore calculated to be approximately
$195,544. In view of the foregoing, the majority of the Washington
potato producers and handlers may be classified as small entities.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2005-2006 and subsequent
fiscal periods from $0.002 to $0.0035 per hundredweight for potatoes.
The Committee unanimously recommended 2005-2006 expenditures of $36,750
and the $0.0035 per hundredweight assessment rate. The assessment rate
of $0.0035 is $0.0015 higher than the rate for the 2004-2005 fiscal
period. With an estimated 2005-2006 potato crop of 10,000,000
hundredweight, the $0.0035 rate should provide the Committee with
$35,000 in assessment income which combined with interest income and
funds from the monetary reserve will be adequate to cover budgeted
expenses. The Committee recommended the higher assessment rate to help
ensure that its monetary reserve is maintained at a satisfactory level.
Funds in the reserve were $50,277 as of January 31, 2005. The Committee
estimates that $17,700 will be deducted from the reserve to cover
budgeted expenses for 2004-2005. Thus, the Committee estimates a
reserve of $32,577 on June 30, 2005, which will be within the maximum
permitted by the order of approximately two fiscal period's operational
expenses (Sec. 946.42).
The major expenditures recommended by the Committee for the 2005-
2006 fiscal period include $18,000 for surveillance inspections, $4,800
for Commission expenses, $3,000 for office supplies, and $3,000 for
Committee expense, $1,500 for Committee member compensation, and $1,500
for the financial audit. The Committee operates under an agreement with
the Commission. The Commission provides the Committee office space and
administrative services. Budgeted expenses for these items in 2004-05
were $20,000, $4,800, $3,000, $1,500, $1,500, and $2,000, respectively.
The Committee discussed alternatives to this rule, including
alternative expenditure levels. The Committee ultimately determined
that the recommended expenses were reasonable. Lower assessment rates
were considered, but not recommended because they would not generate
the income necessary to administer the program with an adequate
reserve.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the producer price
for the 2005-2006 season could range from about $5.25 per hundredweight
to about $5.85 per hundredweight. Therefore, the estimated assessment
revenue for the 2005-2006 fiscal period as a percentage of total
producer revenue could range between 0.060 and 0.067 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 meeting was widely publicized throughout the
Washington potato industry and all interested persons were invited to
attend and participate in the Committee's deliberations on all issues.
Like all Committee meetings, the February 3, 2005, meeting was a public
meeting and all entities, both large and small, were able to express
views on this issue.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large Washington potato 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.
[[Page 35165]]
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 April 1, 2005 (70 FR 16759). Copies of the proposed rule
were also mailed or sent via facsimile to all Committee members.
Finally, the proposal was made available through the Internet by USDA
and the Office of the Federal Register. A 30-day comment period ending
May 2, 2005, 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.ama.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 is 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
2005-2006 fiscal period begins on July 1, and the marketing order
requires that the rate of assessment for each fiscal period apply to
all assessable Washington potatoes handled during such fiscal period;
(2) the Committee needs to have sufficient funds to pay for expenses
which are incurred on a continuous basis; and (3) handlers are aware of
this action which was unanimously recommended by the Committee at a
public meeting and is similar to other assessment rate actions issued
in past years. Also, a 30-day comment period was provided for in the
proposed rule and no comments were received.
List of Subjects in 7 CFR Part 946
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 946 is amended as
follows:
PART 946--IRISH POTATOES GROWN IN WASHINGTON
0
1. The authority citation for 7 CFR part 946 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 946.248 is revised to read as follows:
Sec. 946.248 Assessment rate.
On and after July 1, 2005, an assessment rate of $0.0035 per
hundredweight is established for Washington potatoes.
Dated: June 9, 2005.
Barry L. Carpenter,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-12005 Filed 6-16-05; 8:45 am]
BILLING CODE 3410-02-P