[Federal Register: March 18, 2008 (Volume 73, Number 53)]
[Proposed Rules]
[Page 14400-14403]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18mr08-17]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 955
[Docket No. AMS-FV-07-0159; FV08-955-1 PR]
Vidalia Onions Grown in Georgia; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This rule would increase the assessment rate established for
the Vidalia Onion Committee (Committee) for the 2008 and subsequent
fiscal periods from $0.10 to $0.13 per 40-pound container of Vidalia
onions handled. The Committee locally administers the marketing order
which regulates the handling of Vidalia onions
[[Page 14401]]
grown in Georgia. Assessments upon Vidalia onion handlers are used by
the Committee to fund reasonable and necessary expenses of the program.
The fiscal period begins January 1 and ends December 31. The assessment
rate would remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Comments must be received by April 17, 2008.
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 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: Doris Jamieson, Marketing Specialist,
or Christian D. Nissen, Regional Manager, Southeast Marketing Field
Office, Fruit and Vegetable Programs, AMS, USDA; Telephone: (863) 324-
3375, Fax: (863) 325-8793, or E-mail: Doris.Jamieson@usda.gov, or
Christian.Nissen@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. 955, both as amended (7 CFR part 955),
regulating the handling of Vidalia onions grown in Georgia, 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.''
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, Vidalia onion
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 Vidalia onions
beginning on January 1, 2008, 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 2008 and subsequent fiscal periods from $0.10 to
$0.13 per 40-pound container of Vidalia onions.
The Vidalia onion 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 and handlers of
Vidalia onions. 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 2005 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 December 13, 2007, and unanimously recommended
2008 expenditures of $712,000 and an assessment rate of $0.13 per 40-
pound container of Vidalia onions. In comparison, last year's budgeted
expenditures were $835,200. The assessment rate of $0.13 is $0.03
higher than the rate currently in effect.
Over the past few years, the Committee has been using funds from
reserves rather than increasing assessments to cover their expanded
marketing program. This has reduced the reserve fund. The increase in
the assessment rate would allow the Committee to fund its recommended
level of promotion, while reducing the amount drawn from its authorized
reserve fund.
The major expenditures recommended by the Committee for the 2008
fiscal year include $410,000 for marketing, $86,350 for salaries,
$42,800 for compliance, and $37,200 for research. Budgeted expenses for
these items in 2007 were $505,000, $82,000, $20,000, and $65,500,
respectively.
The assessment rate recommended by the Committee was derived by
considering available reserves, and dividing anticipated expenses by
expected shipments of Vidalia onions. Vidalia onion shipments for the
year are estimated at 4,300,000 40-pound containers, which should
provide $559,000 in assessment income. Income derived from handler
assessments, along with interest income and funds from the Committee's
authorized reserve, would be adequate to cover budgeted expenses. Funds
in the reserve (currently $204,000) would be kept within the maximum
permitted by the order (according to Sec. 955.44, approximately three
fiscal periods' expenses).
The proposed assessment rate would 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 would be in effect for an indefinite
period, the Committee would 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 Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2008 budget and those for
subsequent fiscal periods would be
[[Page 14402]]
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 86 producers of Vidalia onions in the
production area and approximately 65 handlers subject to regulation
under the marketing order. Small agricultural producers are defined by
the Small Business Administration (SBA) as those having annual receipts
less than $750,000, and small agricultural service firms, which include
handlers, are defined as those whose annual receipts are less than
$6,500,000 (13 CFR 121.201).
Based on the Georgia Agricultural Statistical Service and Committee
data, the average annual grower price for fresh Vidalia onions during
the 2007 season was around $15 per 40-pound container. Total Vidalia
onions shipments for the 2007 season were around 4,868,000 40-pound
containers. Using available data, more than 90 percent of Vidalia onion
handlers could be considered small businesses under the SBA definition.
In addition, based on information from the Georgia Department of
Agriculture, Committee data, and the National Agricultural Statistics
Service, the majority of producers could be considered small entities.
Thus, the majority of handlers and producers of Vidalia onions may be
classified as small entitles.
This rule would increase the assessment rate established for the
Committee and collected from handlers for the 2008 and subsequent
fiscal periods from $0.10 to $0.13 per 40-pound container of Vidalia
onions. The Committee unanimously recommended 2008 expenditures of
$712,000 and an assessment rate of $0.13 per 40-pound container. The
proposed assessment rate of $0.13 is $0.03 higher than the 2007 rate.
The quantity of assessable Vidalia onions for the 2008 fiscal year is
estimated at 4,300,000. Thus, the $0.13 rate should provide $559,000 in
assessment income. Income derived from handler assessments, along with
interest income and funds from the Committee's authorized reserve,
would be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2008
fiscal year include $410,000 for marketing, $86,350 for salaries,
$42,800 for compliance, and $37,200 for research. Budgeted expenses for
these items in 2007 were $505,000, $82,000, $20,000, and $65,500,
respectively.
Over the past few years, the Committee has been using funds from
reserves rather than increasing assessments to cover their expanded
marketing program. This has reduced the reserve fund. The increase in
the assessment rate would allow the Committee to fund its recommended
level of promotion, while reducing the amount drawn from its authorized
reserve fund. Funds in the reserve (currently $204,000) would be kept
within the maximum permitted by the order.
The Committee reviewed and unanimously recommended 2008
expenditures of $712,000 which included increases in administrative
expenses, and compliance programs. Prior to arriving at this budget,
the Committee considered information from various sources, including
the Executive Committee and the Research Subcommittee. Alternative
expenditure levels were discussed by the Committee based upon the
relative value of various research and promotion projects to the
Vidalia onion industry. The Committee also discussed keeping the
current $0.10 per 40-pound bag or equivalent assessment rate. However,
keeping the assessment rate at $0.10 per 40-pound bag would not allow
the Committee to fund many of the proposed promotional projects. The
assessment rate of $0.13 per 40-pound container of assessable Vidalia
onions was then determined by considering available reserves, and
dividing the total recommended budget by the quantity of assessable
Vidalia onions, estimated at 4,300,000 40-pound containers for the 2008
fiscal year. This is approximately $138,000 below the anticipated
expenses, which the Committee determined to be acceptable.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the grower
price for the 2008 season could range between $10.00 and $34.00 per 40-
pound container of Vidalia onions. Therefore, the estimated assessment
revenue for the 2008 fiscal period as a percentage of total grower
revenue could range between .4 and 1 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 Vidalia onion industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the December
13, 2007, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons are 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 Vidalia onion
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.
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 30-day comment period is provided to allow interested persons to
respond to this proposed rule. Thirty days is deemed appropriate
because: (1) The 2008 fiscal period began on January 1, 2008, and the
marketing order requires that the rate of assessment for each fiscal
period apply to all assessable Vidalia onions handled during such
fiscal period; (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
[[Page 14403]]
assessment rate actions issued in past years.
List of Subjects in 7 CFR Part 955
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 955 is
proposed to be amended as follows:
PART 955--VIDALIA ONIONS GROWN IN GEORGIA
1. The authority citation for 7 CFR part 955 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 955.209 is revised to read as follows:
Sec. 955.209 Assessment rate.
On and after January 1, 2008, an assessment rate of $0.13 per 40-
pound carton or equivalent is established for Vidalia onions.
Dated: March 12, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-5358 Filed 3-17-08; 8:45 am]
BILLING CODE 3410-02-P