[Federal Register: December 15, 2008 (Volume 73, Number 241)]
[Rules and Regulations]
[Page 75927-75929]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15de08-1]
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Rules and Regulations
Federal Register
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[[Page 75927]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Docket No. AMS-FV-08-0066; FV08-930-2 IFR]
Tart Cherries Grown in the States of Michigan, et al.; Change to
Fiscal Period
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule changes the fiscal period prescribed under the tart
cherry marketing order (order). The order regulates the handling of
tart cherries grown in Michigan, New York, Pennsylvania, Oregon, Utah,
Washington and Wisconsin and is administered locally by the Cherry
Industry Administrative Board (Board). The fiscal period is changed
from July 1 through June 30 to October 1 through September 30. This
will improve the administration and the fiscal operation of the Board.
DATES: Effective date December 16, 2008. Comments received by February
13, 2009 will be considered prior to issuance of a final rule.
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. All comments should reference the docket number
and the date and page number of this issue of the Federal Register and
will be 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: Patricia A. Petrella or Kenneth G.
Johnson, Marketing Order Administration Branch, F&V, AMS, USDA, Unit
155, 4700 River Road, Riverdale, Maryland 20737, telephone: (301) 734-
5243; Fax: (301) 734-5275 or E-mail at Patricia.Petrella@usda.gov or
Kenneth.Johnson@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 Order
No. 930 (7 CFR part 930) (order) regulating the handling of tart
cherries grown in the States of Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and Wisconsin. 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.''
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. This rule is not
intended to have retroactive effect. 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. A
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 action changes the fiscal period from July 1 through June 30
to October 1 through September 30. This action was unanimously
recommended by the Cherry Industry Administrative Board (Board) at its
June 19, 2008 meeting.
Section 930.7 of the order currently defines fiscal period as the
12-month period beginning on July 1 of any year and ending on June 30
of the following year or such other period as the Board, with approval
of the Secretary, may establish.
According to the Board, the July through June fiscal period is
inconsistent with needs of the industry, the Board's changed
activities, and its cash flow.
The Board's and industry's activities have changed since the
order's inception. Initially, Board's activities consisted primarily of
the administrative duties associated with the marketing order, and
relatively moderate expenditures were incurred for that purpose. The
Board and industry's focus has recently changed to include promotional
activities, and annual expenditures have increased significantly. The
majority of the Board's expenditures are now used on promotional
activities. Changing the Board's fiscal period allows the Board to
better coordinate with its promotion activites and to make its fiscal
cycle consistent with its major program expenditures.
In addition, changing the fiscal period brings the Board's
collection of assessment revenues into line with program expenses.
Handler assessments, which fund program expenses, are collected in
October. This changed fiscal period thus enables the Board to receive
its funding at the beginning of its fiscal period so the revenue to
fund program expenses is available when needed. The Board believes it
can increase its operational efficiency by making its fiscal period
consistent with its promotional activities. An October through
September fiscal period also brings revenue collection in line with
funding needs of the program. Therefore, changing the fiscal period
from July through June to October through September will improve the
administration and fiscal operation of the Board.
[[Page 75928]]
The Regulatory Flexibility Act and Effects on Small Businesses
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action 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 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 40 handlers of tart cherries who are
subject to regulation under the tart cherry marketing order and
approximately 900 producers of tart cherries in the regulated area.
Small agricultural service firms are defined by the Small Business
Administration (SBA) (13 CFR 121.201) as those having annual receipts
of less than $7,000,000, and small agricultural producers are defined
as those having annual receipts of less than $750,000.
A majority of the producers and handlers are considered small
entities under SBA's standards. There were 37 handlers operating during
the 2007-2008 season, the last completed crop year. Eight of these
handlers, representing 20.5 percent of all handlers and 69.3 percent of
production, processed more than 10 million pounds of cherries. Six
handlers, representing 15.4 percent of all handlers and 16.9 percent of
production, processed more than 5 million pounds and less than 10
million pounds of cherries. Seven handlers, representing 17.9 percent
of all handlers and 9.6 percent of production, processed between 2.1
and 5 million pounds of cherries. The 16 remaining handlers,
representing 43.2 percent of all handlers and 4.1 percent of
production, processed less than 2 million pounds of cherries. Handlers
accounting for 10 million pounds or more cherries would be classified
as large businesses. Thus, a majority of tart cherry handlers (79.5
percent by number) could be classified as small entities.
During the 3-year period 2005-2007, production of tart cherries
averaged 259 million pounds. Dividing the total production by the
average number of growers, the average grower produces about 386,000
pounds of tart cherries annually. With grower returns of about 25 cents
per pound, average annual revenues would be $96,497. At 25 cents per
pound, a grower would have to produce 3 million pounds of tart cherries
to reach the $750,000 receipt threshold to be classified as a large
entity using the SBA definition for agricultural producers. According
to Cherry Industry Administrative Board data, not more than 9 growers
(1 percent of the average number of growers) produced 3 million pounds
or more of tart cherries during the 2005-2007 crop years, and those
growers would be classified as large. The remaining 99 percent of
growers would be classified as small entities.
This action changes the fiscal period from July 1 through June 30
to October 1 to through September 30. This action is administrative in
nature and will have little impact on producers or handlers. It will
allow the Board to increase its operational efficiency by making its
fiscal period consistent with its promotional activities. It will also
bring revenue collection in line with funding needs of the program.
Changing the fiscal period from July through June to October through
September will improve the administration and fiscal operation of the
Board.
One alternative to this action would be to continue the status quo.
However, this would not improve program administration inconsistencies
in the Board's fiscal operations.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large tart 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.
In addition, USDA has not identified any relevant Federal rules
that duplicate, overlap or conflict with this rule.
Further, the Board's meeting was widely publicized and all Board
members and alternate Board members, representing both large and small
entities, were invited to attend the meeting and participate in Board
deliberations. The Board itself is composed of 19 members, of which 18
members are growers and handlers and one represents the public. Also,
the Board has a number of appointed committees to review certain issues
and make recommendations. Finally, interested persons are invited to
submit comments on this interim final rule, including the regulatory
and informational impacts of this action on small businesses.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at the
following Web site: http://www.ams.usda.gov/AMSv1.0/
ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide. Any questions about the compliance guide should be sent to
Jay Guerber at the previously mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
This rule invites comments on changing the fiscal period prescribed
under the tart cherry marketing order. Any comments received will be
considered prior to finalization of this rule.
After consideration of all relevant matter presented, including the
information and recommendation submitted by the Board, and other
available information, it is hereby found that this interim final rule,
as hereinafter set forth, will tend to effectuate the declared policy
of the Act.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this rule until 30 days after publication in the Federal Register
because: (1) This rule has little or no effect on industry operations;
(2) this rule improves program administration and fiscal operations of
the Board; (3) the Board unanimously recommended the change at a public
meeting and interested parties had an opportunity to provide input; and
(4) this rule provides a 60-day comment period and any comments will be
considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 930
Tart cherries, Marketing agreements, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 930 is amended as
follows:
[[Page 75929]]
PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK,
PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN
0
1. The authority citation for 7 CFR part 930 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 930.107 is added to read as follows:
Sec. 930.107 Fiscal period.
Pursuant to Sec. 930.7, fiscal period shall mean the period
beginning October 1 and ending September 30 of each year.
Dated: December 9, 2008.
James E. Link,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-29599 Filed 12-12-08; 8:45 am]
BILLING CODE 3410-02-P