[Federal Register: August 31, 2005 (Volume 70, Number 168)]
[Rules and Regulations]
[Page 51578-51581]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31au05-3]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[Docket No. FV05-958-1 FIR]
Onions Grown in Certain Designated Counties in Idaho, and Malheur
County, OR; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule which decreased the
assessment rate established for the Idaho-Eastern Oregon Onion
Committee (Committee) for the 2005-2006 and subsequent fiscal periods
from $0.105 to
[[Page 51579]]
$0.10 per hundredweight of onions handled. The Committee locally
administers the marketing order which 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 began July 1 and ends June 30. The assessment rate
will remain in effect indefinitely unless modified, suspended, or
terminated.
EFFECTIVE DATE: September 30, 2005.
FOR FURTHER INFORMATION CONTACT: Susan M. Hiller, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA; 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: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This 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 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.''
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, 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 continues in effect the action that decreased the
assessment rate established for the Committee for the 2005-2006 and
subsequent fiscal periods from $0.105 per hundredweight to $0.10 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 members of the Committee are producers and handlers of
Idaho-Eastern Oregon onions. 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 is formulated and discussed in a
public meeting. Thus, all directly affected persons have an opportunity
to participate and provide input.
For the 2004-2005 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 14, 2005, and unanimously recommended
2005-2006 expenditures of $956,001 and an assessment rate of $0.10 per
hundredweight of onions. In comparison, last year's budgeted
expenditures were $997,442. The assessment rate of $0.10 is $0.005
lower than the previous rate. The decreased assessment rate recommended
by the Committee reflects the reduction in anticipated expenditures.
Both producers and handlers in the regulated production area
expressed a need to decrease the assessment rate to help offset the
lower prices received by handlers. The National Agricultural Statistics
Service (NASS) reported in the Vegetables 2004 Summary, published in
January 2005, that the 2004 average F.O.B. price for the Idaho-Eastern
Oregon onions was $8.14 per hundredweight. That price is $1.42 below
the three year average F.O.B. price of $9.56 per hundredweight for this
production area. The Committee considered assessment rates lower than
$0.10 per hundredweight; however, it determined that the lower rates
would not generate the income necessary to sustain the current level of
programs desired by the industry.
The major expenditures recommended by the Committee for the 2005-
2006 year include $10,000 for committee expenses, $104,371 for salary
expenses, $81,160 for travel/office expenses, $62,470 for production
research expenses, $32,000 for export market development expenses,
$616,000 for promotion expenses, and $50,000 for unforeseen marketing
order contingencies. Budgeted expenses for these items in 2004-2005
were $10,000 $13,482, $81,960, $60,000, $32,000, $600,000, and $50,000,
respectively.
The Committee based its recommended assessment rate decrease on the
2005-2006 crop estimate, the 2005-2006 program expenditure needs, and
the current and projected size of its monetary reserve. The Committee
estimated onion shipments for 2005-2006 at 8,464,000 hundredweight
which should provide $846,400 in assessment income. Income derived from
handler assessments, along with contributions ($73,600), interest
income ($7,400), other income ($2,000), and funds from the Committee's
authorized reserve ($26,601), should be adequate to cover budgeted
expenses. The Committee estimates that its operating reserve will be
approximately $596,074 at the end of the 2005-2006 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 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 is effective for an indefinite
period, the Committee will continue to meet prior
[[Page 51580]]
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 2005-2006
budget and those for subsequent fiscal periods will 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 233 producers of onions in the production
area and approximately 37 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (SBA) (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 $6,000,000.
According to the NASS Vegetables 2004 Summary, the total F.O.B.
value of onions in the regulated production area for 2004 was
$110,355,000. Therefore, based on an industry of 233 producers and 37
handlers, it can be concluded that the majority of handlers and
producers of Idaho-Eastern Oregon onions may be classified as small
entities.
This rule continues in effect the action that decreased the
assessment rate established for the Committee and collected from
handlers for the 2005-2006 and subsequent fiscal periods from $0.105 to
$0.10 per hundredweight of onions. The Committee unanimously
recommended 2005-2006 expenditures of $956,001 and an assessment rate
of $0.10 per hundredweight. The assessment rate of $0.10 is $0.005
lower than the rate in effect during the 2004-2005 fiscal period. The
quantity of assessable onions for the 2005-2006 year is estimated at
8,464,000 hundredweight which should provide $846,400 in assessment
income. Income derived from handler assessments, along with
contributions ($73,600), interest income ($7,400), other income
($2,000), and funds from the Committee's authorized reserve ($26,601),
should be adequate to cover budgeted expenses. The decreased assessment
rate recommended by the Committee reflects the reduction in anticipated
expenditures from $997,442 to $956,001.
Both producers and handlers in the regulated production area
expressed a need to decrease the assessment rate to help offset the
lower prices received by handlers. The NASS reported in the Vegetables
2004 Summary, which was published in January 2005, that the 2004
average F.O.B. price for the Idaho-Eastern Oregon onions was $8.14 per
hundredweight. That price is $1.42 below the three-year average F.O.B.
price of $9.56 per hundredweight for this production area. The
Committee considered lower assessment rates; however, it determined
that lower rates would not generate the income necessary to sustain the
current level of programs desired by the industry.
The major expenditures recommended by the Committee for the 2005-
2006 year include $10,000 for committee expenses, $104,371 for salary
expenses, $81,160 for travel/office expenses, $62,470 for production
research expenses, $32,000 for export market development expenses,
$616,000 for promotion expenses, and $50,000 for unforeseen marketing
order contingencies. Budgeted expenses for these items in 2004-2005
were $10,000, $163,482, $81,960, $60,000, $32,000, $600,000, and
$50,000, respectively.
The Committee reviewed and unanimously recommended 2005-2006
expenditures of $956,001 which includes decreases in salary expenses
and travel/office expenses, as well as increases in production research
expenses and promotion expenses. Prior to arriving at this budget, the
Committee considered information from various sources, such as the
Committee's Executive, Promotion, Research, and Export subcommittees.
These subcommittees discussed alternative expenditure levels, based
upon the relative value of various research and promotion projects to
the onion industry. The assessment rate of $0.10 per hundredweight of
assessable onions was then determined by taking into consideration the
estimated level of assessable shipments, the market situation, program
expenditure needs, and the desire to sustain a monetary reserve at a
viable level.
A review of historical information and preliminary information
pertaining to the upcoming year indicates that the producer price for
the 2005-2006 season could range between $5.50 and $8.00 per
hundredweight of onions. Therefore, the estimated assessment revenue
for the 2005-2006 year as a percentage of total producer revenue could
range between 1.82 and 1.25 percent.
This action continues in effect the action that decreased the
assessment obligation imposed on handlers. Assessments are applied
uniformly on all handlers, and some of the costs may be passed on to
producers. However, decreasing the assessment rate reduces the burden
on handlers, and may reduce the burden on producers. In addition, the
Committee's meeting was widely publicized throughout the Idaho-Eastern
Oregon onion industry and all interested persons were invited to attend
the meeting and participate in Committee deliberations on all issues.
Like all Committee meetings, the April 14, 2005, meeting was a public
meeting and all entities, both large and small, were able to express
views on this issue.
This action 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.
An interim final rule concerning this action was published in the
Federal Register on June 3, 2005 (70 FR 32481). Copies of that rule
were made available by the Committee's staff to all producers,
handlers, and interested persons. In addition, the rule was made
available through the internet by USDA and the Office of the Federal
Register. A 60-day comment period was provided for interested persons
to respond to the interim final rule. The comment period ended on
August 2, 2005. One response was received, but it was not relevant to
the assessment rate decrease.
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
[[Page 51581]]
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.
List of Subjects in 7 CFR Part 958
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
0
Accordingly, the interim final rule amending 7 CFR part 958 which was
published at 70 FR 32481 on June 3, 2005, is adopted as a final rule
without change.
Dated: August 25, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-17269 Filed 8-30-05; 8:45 am]
BILLING CODE 3410-02-P