[Federal Register: September 7, 2007 (Volume 72, Number 173)]
[Proposed Rules]
[Page 51381-51384]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07se07-21]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. AMS-FV-07-0103; FV07-993-1 PR]
Dried Prunes Produced in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
[[Page 51382]]
ACTION: Proposed rule.
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SUMMARY: This rule would increase the assessment rate established for
the Prune Marketing Committee (committee) for the 2007-08 and
subsequent crop years from $0.40 to $0.60 per ton of salable dried
prunes. The committee locally administers the marketing order that
regulates the handling of dried prunes in California. Assessments upon
dried prune handlers are used by the committee to fund reasonable and
necessary expenses of the program. The higher assessment rate is needed
to offset an anticipated decrease in dried prune production this year.
The crop year begins August 1 and ends July 31. The assessment rate
would remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Comments must be received by September 27, 2007.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov.
Comments should reference the docket number and
the date and page number of this issue of the Federal Register and will
be made available for public inspection in the Office of the Docket
Clerk during regular business hours, or can be viewed at: http://www.regulations.gov
.
FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior Marketing
Specialist, or Kurt Kimmel, Regional Manager, California Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA; Telephone: (559) 487-5901, Fax: (559)
487-5906; or E-mail: Terry.Vawter@usda.gov or Kurt.Kimmel@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: (202)
720-2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 110 and Marketing Order No. 993, both as amended (7 CFR
part 993), regulating the handling of dried prunes grown in California,
hereinafter referred to as the ``order.'' The marketing agreement and
order are 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, California
dried prune handlers are subject to assessments. Funds to administer
the order are derived from such assessments. It is intended that the
assessment rate as proposed herein would be applicable to all
assessable dried prunes beginning on August 1, 2007, 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 would increase the assessment rate established for the
committee for the 2007-08 and subsequent crop years from $0.40 to $0.60
per ton of salable dried prunes handled.
The California dried prune 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 of California dried
prunes. 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. Thus, all
directly affected persons have an opportunity to participate and
provide input.
For the 2006-07 and subsequent crop years, the committee
recommended, and USDA approved, an assessment rate that would continue
in effect from crop year to crop year 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 June 28, 2007, and unanimously recommended an
increased assessment rate of $0.60 per ton of salable dried prunes and
expenditures totaling $102,523 for the 2007-08 crop year. In
comparison, last year's approved expenses as amended in April 2007 were
$104,973. The proposed assessment rate of $0.60 per ton of salable
dried prunes is $0.20 higher than the rate currently in effect.
The committee recommended a higher assessment rate based on a
production estimate of 95,000 tons of salable dried prunes for this
year, which is substantially less than the 187,737 tons produced last
year. At the proposed assessment rate the assessment income for the
2007-08 crop year would be $57,000. The committee's proposed budget of
expenses of $102,523 includes a five percent increase in personnel
expenses, and a two percent increase in operating expenses. Combined
salaries and expenses are about four percent higher than last year, or
about $65,580. The committee also included $36,943 for contingencies.
Most of the committee's expenses reflect its portion of the joint
administrative costs of the committee and the California Dried Plum
Board. Based on the committee's reduced activities in recent years, it
is funding only ten percent of the shared expenses of the two programs.
This funding level is similar to that of last year. The committee
believes carryover funds, plus assessment and interest income, would be
adequate to cover its estimated expenses of $102,523.
The major expenditures recommended by the committee for the 2007-08
crop year include $50,505 for salaries and benefits, $15,075 for
operating expenses, and $36,943 for contingencies. For the 2006-07 crop
year, the committee's budgeted expenses were $48,405 for salaries and
benefits, $15,645 for operating expenses, and $44,326 for
contingencies.
The assessment rate recommended by the committee was derived by
dividing anticipated expenses by the estimated salable tons of
California dried prunes. Dried prune production for the year is
estimated to be 95,000 salable tons, which should provide $57,000 in
assessment income at the proposed
[[Page 51383]]
$0.60 per ton of salable dried prunes. Income derived from handler
assessments, plus excess funds from the 2006-07 crop year should be
adequate to cover budgeted expenses.
The committee is authorized under Sec. 993.81(c) of the order to
use excess assessment funds from the 2006-07 crop year (currently
estimated at $45,423) for up to 5 months beyond the end of the crop
year to meet 2007-08 crop year expenses. At the end of the 5 months,
the committee either refunds or credits excess funds to handlers.
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by USDA upon recommendation
and information submitted by the committees or other available
information.
Although this assessment rate would be in effect for an indefinite
period, the committee would continue to meet prior to or during each
crop year 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 would evaluate the
committee's recommendations and other available information to
determine whether modification of the assessment rate is needed.
Further rulemaking would be undertaken as necessary. The committees'
2007-08 budget and those for subsequent crop years would be reviewed
and, as appropriate, approved by USDA.
Initial 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 initial 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.
There are approximately 1,100 producers of dried prunes in the
production area and approximately 22 handlers subject to regulation
under the marketing order. The Small Business Administration (13 CFR
121.201) defines small agricultural producers as those whose annual
receipts are less than $750,000, and small agricultural service firms
as those whose annual receipts are less than $6,500,000.
An estimated 1,068 of the 1,100 producers (97.1 percent) have
incomes of less than $750,000 and would be considered small producers.
Fourteen of the 22 handlers (63.6 percent) have incomes from handling
prunes of less than $6,500,000 and could be considered small handlers.
Therefore, the majority of handlers and producers of California dried
prunes may be classified as small entities.
This rule would increase the assessment rate established for the
committee and collected from handlers for the 2007-08 and subsequent
crop years from $0.40 to $0.60 per ton of salable dried prunes.
The committee met on June 28, 2007, and unanimously recommended
estimated expenses for 2007-08 of $102,523 and an increased assessment
rate of $0.60 per ton of salable dried prunes. The committee's
recommended budget was based on a five percent increase in personnel
expenses and a two percent increase in operating expenses. Combined
salaries and expenses are about four percent higher than last year, or
about $65,580. The committee also included $36,943 for contingencies.
Most of the committee's expenses reflect its portion of the joint
administrative costs of the committee and the California Dried Plum
Board. Based on the committee's reduced activities in recent years, it
is funding only ten percent of the shared expenses of the two programs.
This funding level is similar to that of last year. The committee
believes carryover funds, plus assessment and interest income, would be
adequate to cover its estimated expenses of $102,523.
The proposed assessment rate of $0.60 per ton of salable dried
prunes is $0.20 higher than the rate currently in effect. The quantity
of salable dried prunes for the 2007-08 crop year is currently
estimated at 95,000 tons of salable dried prunes, compared to 187,737
tons of salable dried prunes for the 2006-07 crop year.
The major expenditures recommended by the committee for the 2007-08
crop year include $50,505 for salaries and benefits, $15,075 for
operating expenses, and $36,943 for contingencies. Budgeted expenses
for these items in 2006-07 were $48,405 for salaries and benefits,
$15,645 for operating expenses, and $44,326 for contingencies.
The 2007-08 crop year assessment rate was derived after considering
anticipated crop year expenses; estimated production of salable dried
prunes; and the estimated income from other sources, such as interest.
Therefore, the committee recommended an assessment rate of $0.60 per
ton of salable dried prunes.
Prior to arriving at its budget of $102,523, the committee
considered information from various sources, including the committee's
Executive Subcommittee. Alternative assessment rates, including the
rate currently in effect, and different expenditure levels were
discussed by the subcommittee and the committee. An alternative to this
action would be to continue with the $0.40 per ton assessment rate.
However, an assessment rate of $0.60 per ton of salable dried prunes,
along with excess funds from the 2006-07 crop year, is needed to
provide enough income to fund the committee's operations.
Therefore, the committee agreed that $0.60 per ton of salable dried
prunes is an acceptable assessment rate. Section 993.81(c) of the order
provides the committee the authority to use excess assessment funds
from the 2006-07 crop year (currently estimated at $45,423) for up to 5
months beyond the end of the crop year to meet 2007-08 crop year
expenses. At the end of the 5 months, the committee either refunds or
credits excess funds to handlers.
A review of historical information and preliminary data pertaining
to the upcoming crop year indicates that the producer price for the
2007-08 crop year is expected to average between $1,500 and $1,600 per
ton of salable dried prunes. Based on an estimated 95,000 salable tons
of dried prunes, assessment revenue as a percentage of producer prices
during the 2006-07 crop year is expected to be between .038 and .040
percent.
This action would increase 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
would be offset by the benefits derived by the operation of the
marketing order. In addition, the committee's meeting was widely
publicized throughout the California dried prune industry and all
interested persons were invited to attend the meeting and participate
in committee deliberations on all issues. Like all committee meetings,
the June 28, 2007, meeting was a public meeting and all entities, both
large and small, were encouraged to express views on this issue.
Finally, interested persons are
[[Page 51384]]
invited to submit comments on this proposed rule, including the
regulatory and informational impacts of this action on small
businesses.
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large California dried
prune 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.
The 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.
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.
A 20-day comment period is provided to allow interested persons to
respond to this proposed rule. Twenty days is deemed appropriate
because: (1) The 2007-08 crop year will begin on August 1, 2007, and
the marketing order requires that the rate of assessment for each crop
year apply to all assessable prunes handled during such crop year; (2)
the committee needs to have sufficient funds to pay its 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.
List of Subjects in 7 CFR Part 993
Marketing agreements, Plums, Prunes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 993 is
proposed to be amended as follows:
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
1. The authority citation for 7 CFR part 993 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 993.347 is revised to read as follows:
Sec. 993.347 Assessment rate.
On and after August 1, 2007, an assessment rate of $0.60 per ton of
salable dried prunes is established for California dried prunes.
Dated: August 30, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 07-4369 Filed 9-6-07; 8:45 am]
BILLING CODE 3410-02-M