[Federal Register Volume 70, Number 184 (Friday, September 23, 2005)]
[Rules and Regulations]
[Pages 55711-55713]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-18990]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Docket No. FV05-948-2 FIR]
Irish Potatoes Grown in Colorado; 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 Area No. 3 Colorado Potato
Administrative Committee (Committee) for the 2005-2006 and subsequent
fiscal periods from $0.03 to $0.02 per hundredweight of potatoes
handled. The Committee locally administers the marketing order which
regulates the handling of potatoes grown in Colorado. Assessments upon
Colorado potato handlers are used by the Committee to fund reasonable
and necessary expenses of 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: October 24, 2005.
[[Page 55712]]
FOR FURTHER INFORMATION CONTACT: Teresa L. Hutchinson, Marketing
Specialist, Northwest Marketing Field Office, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA;
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 SW.,
STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax:
(202) 720-8938, or E-mail: [email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 97 and Marketing Order No. 948, both as amended (7 CFR
part 948), regulating the handling of potatoes grown in Colorado,
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, Colorado
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
Colorado 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 continues in effect the action that decreased the
assessment rate established for the Committee for the 2005-2006 and
subsequent fiscal periods from $0.03 to $0.02 per hundredweight of
Colorado 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 of Colorado potatoes. 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 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 May 12, 2005, and unanimously recommended
2005-2006 expenditures of $20,368 and an assessment rate of $0.02 per
hundredweight of assessable potatoes handled. In comparison, last
year's budgeted expenditures were $20,668. The assessment rate of $0.02
is $0.01 lower than the rate in effect since the 2003-2004 fiscal
period. Due to increased potato yields and a reduction in expenses, the
Committee's reserve has increased more than anticipated. The decreased
assessment rate will allow the Committee to draw from the reserve to
help cover 2005-2006 expenditures. This action should effectively lower
the reserve to within the program limit of approximately two fiscal
periods' operational expenses.
The major expenditures recommended by the Committee for the 2005-
2006 fiscal period include $8,610 for salary, $3,000 for office rent,
$1,750 for office expenses, and $1,000 for utilities. These budgeted
expenses are the same as those approved for the 2004-2005 fiscal
period.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Colorado
potatoes. Applying the $0.02 per hundredweight rate of assessment to
the Committee's 585,475 hundredweight crop estimate should provide
$11,709 in assessment income. Income derived from handler assessments,
along with interest income and funds from the Committee's authorized
reserve, will be adequate to cover budgeted expenses. Funds in the
reserve ($42,701 as of July 1, 2005) will be kept within the maximum of
approximately two fiscal periods' operational expenses as authorized by
the order (Sec. 948.78).
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 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.
[[Page 55713]]
Based on Committee data, there are 8 producers and 8 handlers in
the production area subject to regulation under the 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 $6,000,000.
Based on the total number of Colorado Area No. 3 potato producers
(8), 2003 fresh potato production of 1,041,958 hundredweight (Committee
records), and the average 2003 producer price of $5.05 per
hundredweight as reported by National Agricultural Statistics Service
(NASS), average annual revenue per producer from the sale of potatoes
can be estimated at approximately $657,736. In addition, based on
Committee records and an estimated average 2003 f.o.b. price of $7.15
per hundredweight ($5.05 per hundredweight NASS producer price plus
Committee estimated packing and handling costs of $2.10 per
hundredweight), all of the Colorado Area No. 3 potato handlers ship
under $6,000,000 worth of potatoes. In view of the foregoing, it can be
concluded that the majority of the Colorado Area No. 3 potato producers
and handlers 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 $0.03 to
$0.02 per hundredweight of potatoes. The assessment rate of $0.02 is
$0.01 less than the 2004-2005 rate. The quantity of assessable potatoes
for the 2005-2006 fiscal period is estimated at 585,475 hundredweight.
Income derived from handler assessments, along with interest income and
funds from the Committee's authorized reserve, will be adequate to
cover budgeted expenses. Funds in the reserve ($42,701 as of July 1,
2005) will be kept within the maximum of approximately two fiscal
periods' operational expenses as authorized by the order (Sec.
948.78).
The major expenditures recommended by the Committee for the 2005-
2006 fiscal period include $8,610 for salary, $3,000 for office rent,
$1,750 for office expenses, and $1,000 for utilities. These budgeted
expenses are the same as those approved for the 2004-2005 fiscal
period.
Due to increased potato yields and a reduction in expenses, the
Committee's reserve has increased more than anticipated. Therefore, the
Committee recommended a decreased assessment rate to enable an
increased draw on the reserve, thus maintaining the level of the
reserve within program limits of approximately two fiscal periods'
operational expenses.
The Committee discussed alternatives to this rule, including
alternative expenditure levels, but determined that the recommended
expenses were reasonable and necessary to adequately cover program
operations. Lower assessment rates were considered, but not recommended
because they would not generate the income necessary to administer the
program.
A review of historical information and preliminary information
pertaining to the current crop year indicates that the producer price
for the 2005-2006 season could range between $5.05 and $7.75 per
hundredweight. Therefore, the estimated assessment revenue for the
2005-2006 fiscal period as a percentage of total producer revenue could
range between 0.40 and 0.26 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 Colorado
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 May 12, 2005, meeting was a public meeting and
all entities, both large and small, were able to express views on these
issues.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Colorado 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.
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 27, 2005 (70 FR 36814). Copies of that rule
were also mailed or sent via facsimile to all Area No. 3 Colorado
potato handlers. Finally, the interim final 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 August 26, 2005, and
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.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
PART 948--IRISH POTATOES GROWN IN COLORADO
0
Accordingly, the interim final rule amending 7 CFR part 948 which was
published at 70 FR 36814 on June 27, 2005, is adopted as a final rule
without change.
Dated: September 19, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-18990 Filed 9-22-05; 8:45 am]
BILLING CODE 3410-02-P