[Federal Register: October 12, 2007 (Volume 72, Number 197)]
[Rules and Regulations]
[Page 58003-58005]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12oc07-1]
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Rules and Regulations
Federal Register
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[[Page 58003]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 924
[Docket No. AMS-FV-07-0087; FV07-924-1 FIR]
Fresh Prunes Grown in Designated Counties in Washington and in
Umatilla 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 Washington-Oregon Fresh Prune
Marketing Committee (Committee) for the 2007-2008 and subsequent fiscal
periods from $1.75 to $1.00 per ton of prunes handled. The Committee
locally administers the marketing order, which regulates the handling
of fresh prunes grown in designated counties in Washington and in
Umatilla County, Oregon. Assessments upon fresh prune 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.
EFFECTIVE DATE: November 13, 2007.
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: (503) 326-2724; Fax: (503)
326-7440; or E-mail: 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: (202)
720-2491; Fax: (202) 720-8938; or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 924 (7 CFR 924), regulating the handling of
fresh prunes grown in designated counties in Washington and in Umatilla
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, Washington-
Oregon prune 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
prunes beginning April 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 continues in effect the action that decreased the
assessment rate established for the Committee for the 2007-2008 and
subsequent fiscal periods from $1.75 to $1.00 per ton of prunes
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 designated counties in
Washington and in Umatilla County, Oregon. 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 2004-2005 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $1.75 per ton of
fresh prunes handled. This assessment rate continues 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 29, 2007, and unanimously recommended
2007-2008 expenditures of $9,043 and a decreased assessment rate of
$1.00 per ton. In comparison, last year's budgeted expenditures were
$5,600, and the assessment rate of $1.00 is $0.75 lower than the rate
that had been in effect since the 2004-2005 fiscal period. The
Committee recommended the assessment rate change for the purpose of
reducing its monetary reserve to a level commensurate with the maximum
permitted by the order of approximately one fiscal period's operational
expenses (7 CFR 924.42).
The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $4,800 for the management fee, $1,000 for
Committee travel expenses, $3,000 for the annual financial audit, and
$100 for compliance. In comparison, budgeted expenses for the 2006-2007
season were $4,200, $800, $500, and $100,
[[Page 58004]]
respectively. In addition, the Committee also budgeted an additional
$343 this fiscal period to cover the cost of insurance, bonds,
equipment maintenance, and other possible miscellaneous expenses.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Washington-
Oregon prunes. Applying the $1.00 per ton assessment rate to the
Committee's 4,400-ton crop estimate should provide $4,400 in assessment
income. This assessment income in addition to approximately $4,643 from
the Committee's reserve would be adequate to cover the recommended
$9,043 budget for the 2007-2008 fiscal period. As of March 31, 2007,
there was $8,815 in the Committee's reserve. The assessment rate
established with 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 the 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 would 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 2007-2008 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.
There are approximately 215 producers of fresh prunes in the
regulated production area and approximately 10 handlers 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
$6,500,000.
Based on information compiled by both the Committee and the
National Agricultural Statistics Service, the average annual revenue
from the sale of fresh prunes was approximately $8,440 per producer in
2006. This estimate is based on 215 producers with a total utilized
production of 5,200 tons selling for an average of $349 per ton. In
addition, based on Committee records and 2006 f.o.b. prices ranging
from $14.00 to $16.50 per 30-pound container as reported by AMS Market
News Service, the entire Washington-Oregon fresh prune industry handled
less than $6,500,000 worth of prunes last season. In view of the
foregoing, the majority of Washington-Oregon fresh prune 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 2007-2008 and subsequent fiscal periods from $1.75 to
$1.00 per ton. The Committee unanimously recommended 2007-2008
expenditures of $9,043 and the $1.00 per ton assessment rate at the May
29, 2007, meeting. The assessment rate of $1.00 is $0.75 lower than the
rate that had been in effect since the 2004-2005 fiscal period. With an
estimated 2007-2008 prune crop of 4,400 tons, income from the $1.00
assessment combined with funds from the Committee's monetary reserve
should be adequate to cover budgeted expenses. The Committee
recommended the lower assessment rate to help decrease the monetary
reserve. Funds in the reserve ($8,815 as of March 31, 2007) will be
kept within the maximum permitted by the order of approximately one
fiscal period's operational expenses (Sec. 924.42).
The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $4,800 for the management fee, $1,000 for
Committee travel expenses, $3,000 for the annual financial audit, and
$100 for compliance.
The Committee discussed alternatives to this rule, including
alternative expenditure levels. Higher assessment rates were
considered, but not recommended because of the potential of generating
too much income and thus maintaining the reserve fund at an amount
higher than program requirements allow.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the producer price
for the 2007-2008 season could average about $325 per ton. Therefore,
the estimated assessment revenue for the 2007-2008 fiscal period as a
percentage of total producer revenue could approximate 0.31 percent.
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-
Oregon fresh prune 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 29, 2007, 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 Washington-Oregon fresh 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. Furthermore, USDA
has not identified any relevant Federal rules that duplicate, overlap,
or conflict with this rule.
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.
An interim final rule concerning this action was published in the
Federal Register on July 13, 2007 (72 FR 38463). Copies of that rule
were also made available to Committee members and other industry
members by Committee staff and 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 September 11, 2007, and no comments were
received.
[[Page 58005]]
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 924
Plums, Prunes, Marketing agreements, Reporting and recordkeeping
requirements.
PART 924--FRESH PRUNES GROWN IN DESIGNATED COUNTIES IN WASHINGTON
AND IN UMATILLA COUNTY, OREGON
0
Accordingly, the interim final rule amending 7 CFR part 924 which was
published at 72 FR 38463 on July 13, 2007, is adopted as a final rule
without change.
Dated: October 9, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-20145 Filed 10-11-07; 8:45 am]
BILLING CODE 3410-02-P