[Federal Register: September 22, 2006 (Volume 71, Number 184)]
[Rules and Regulations]
[Page 55281-55283]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22se06-1]
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Rules and Regulations
Federal Register
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[[Page 55281]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 923
[Docket No. FV06-923-2 FIR]
Sweet Cherries Grown in Designated Counties in Washington;
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 Washington Cherry Marketing
Committee (Committee) for the 2006-2007 and subsequent fiscal periods
from $0.75 to $0.50 per ton for Washington sweet cherries handled. The
Committee locally administers the marketing order regulating the
handling of sweet cherries grown in designated counties in Washington.
Assessments upon sweet cherry handlers are used by the Committee to
fund reasonable and necessary expenses of the program. The fiscal
period begins April 1 and ends March 31. The assessment rate will
remain in effect indefinitely unless modified, suspended or terminated.
DATES: Effective Date: October 23, 2006.
FOR FURTHER INFORMATION CONTACT: Robert J. Curry or Gary D. Olson,
Northwest Marketing Field Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1220 SW Third Avenue,
Suite 385, Portland, OR 97204; telephone number (503) 326-2724, fax
number (503) 326-7440, or e-mail address
Robert.Curry@usda.gov or GaryD.Olson@usda.gov.
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 number
(202) 720-2491, fax number (202) 720-8938, or e-mail:
Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 923 (7 CFR part 923), as amended, regulating the handling of sweet
cherries grown in designated counties 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.''
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, cherry
handlers in designated counties in Washington 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 Washington sweet cherries
beginning April 1, 2006, 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 2006-2007 and
subsequent fiscal periods from $0.75 to $0.50 per ton for Washington
sweet cherries handled under the order.
The order provides authority for the Committee, with the approval
of USDA, to formulate an annual budget of expense and collect
assessments from handlers to administer the program. The members of the
Committee are producers and handlers of sweet cherries in designated
counties 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 is formulated and discussed at a public
meeting. All directly affected persons have an opportunity to
participate and provide input.
For the 2004-2005 and subsequent fiscal periods, the Committee
recommended, and the USDA approved, an assessment rate of $0.75 per ton
of sweet cherries handled. This rate continued in effect until modified
herein based on the recommendation and supporting information submitted
by the Committee.
The Committee met on May 3, 2006, and unanimously recommended 2006-
2007 expenditures of $49,800 and a decreased assessment rate of $0.50
per ton of cherries. In comparison, last year's budgeted expenditures
were $72,297. The assessment rate of $0.50 is $0.25 lower than the rate
previously in effect. Due to an anticipated decrease in operating
expenses this year, the Committee recommended the assessment rate
decrease to maintain the level of income near the level of expenses.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Washington sweet
cherries. Applying the $0.50 per ton rate of assessment to the
Committee's 110,000 ton crop estimate should provide $55,000 in
assessment income. Thus, income derived from handler assessments will
be adequate to cover the recommended 2006-2007 budget of $49,800.
The Committee's budget of expenditures for the 2006-2007 period
[[Page 55282]]
reflect a significant reduction in overall cost from previous years.
This occurred, in part, because the Committee hired an outside
management services agency to more efficiently handle the Committee's
administrative matters. Major expenses recommended by the Committee for
the 2006-2007 year include administration and data management fees
totaling $25,000, Committee expenses of $16,200 (which includes travel,
accounting and compliance), and office expenses--including bonds,
insurance, telephone, office equipment and supplies--of $7,100.
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 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 the Committee's meetings are available from the Committee or
USDA. The Committee's meetings are open to the public and interested
persons may express their views at these meetings. USDA will evaluate
the Committee's 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
2006-2007 budget has been reviewed and approved by USDA; those for
subsequent fiscal periods will also 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 1,500 cherry producers within the regulated
production area and approximately 53 regulated handlers. 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 $6,500,000.
The Washington Agricultural Statistics Service prepared a
preliminary report for the 2005 shipping season showing that the total
113,000 ton fresh market sweet cherry utilization sold for an average
of $2,830 per ton. Based on 1,500 producers in the production area, the
average producer revenue from the sale of sweet cherries in 2005 is
estimated at approximately $213,200 per year. In addition, the
Committee reports that most of the industry's 53 handlers would have
each averaged gross receipts of less than $6,500,000 from the sale of
fresh sweet cherries last season. Thus, the majority of producers and
handlers of Washington sweet cherries 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 2006-2007 and subsequent fiscal periods from $0.75 to
$0.50 per ton for sweet cherries. The Committee unanimously recommended
2006-2007 expenditures of $49,800. With the 2006-2007 crop estimate of
110,000 tons for fresh sweet cherries, the Committee anticipates
assessment income of $55,000.
The Committee discussed alternatives to this rule, including
alternative expenditure levels. Lower assessment rates were considered,
but not recommended because of the uncertainty of the crop size
estimate.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the producer price
for the 2006-2007 season could average about $2,830 per ton for fresh
Washington sweet cherries. Therefore, the estimated assessment revenue
for the 2006-2007 fiscal period as a percentage of total producer
revenue is 0.018 percent for Washington sweet cherries.
This rule 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 Washington sweet cherry industry and all interested
persons were invited to attend and participate in Committee
deliberations on all issues. Like all Committee meetings, the May 3,
2006, meeting was a public meeting and all entities, both large and
small, were able to express views on the issues.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Washington sweet cherry 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.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
An interim final rule regarding this action was published in the
Federal Register on June 19, 2006 (71 FR 35145). Copies of that rule
were made available to handlers and other interested parties by the
Committee. The interim final rule was also 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 18, 2006, 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.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.
List of Subjects in 7 CFR Part 923
Cherries, Marketing agreements, Reporting and recordkeeping
requirements.
PART 923--SWEET CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON
0
Accordingly, the interim final rule amending 7 CFR part 923 which was
[[Page 55283]]
published at 71 FR 35145 on June 19, 2006, is adopted as a final rule
without change.
Dated: September 15, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-7866 Filed 9-21-06; 8:45 am]
BILLING CODE 3410-02-P