[Federal Register: August 3, 2009 (Volume 74, Number 147)]
[Rules and Regulations]
[Page 38324-38326]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03au09-2]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Doc. No. AMS-FV-08-0105; FV09-932-1 FIR]
Olives Grown in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Affirmation of interim final rule as final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule that changed the assessment
rate established under the marketing order (order) for olives grown in
California for the 2009 and subsequent fiscal years. The interim final
rule increased the assessment rate from $15.60 to $28.63 per assessable
ton of olives handled. The interim final rule was necessary to provide
adequate operating funds for the California Olive Committee
(committee), which administers the order locally.
DATES: Effective Date: Effective August 4, 2009.
FOR FURTHER INFORMATION CONTACT: Jennifer Robinson, Marketing
Specialist, or Kurt J. 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:
[[Page 38325]]
Jen. Robinson@ams.usda.gov or Kurt.Kimmel@ams.usda.gov.
Small businesses may obtain information on complying with this and
other marketing order regulations by viewing a guide at the following
Web site: http://www.ams.usda.gov/AMSv1.0/
ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide; or 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@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 148 and Order No. 932, both as amended (7 CFR part 932),
regulating the handling of olives grown in California, 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.
The handling of olives grown in California is regulated under 7 CFR
part 932. Under the order, California olive handlers are subject to
assessments, which provide funds to administer the order. Assessment
rates issued under the order are intended to be applicable to all
assessable olives for the entire fiscal year, and continue indefinitely
until amended, suspended, or terminated. The committee's fiscal year
begins on January 1, and ends on December 31.
In an interim final rule published in the Federal Register on
February 20, 2009, and effective on February 21, 2009 (74 FR 7782, Doc.
No. AMS-FV-08-0105; FV09-932-1 IFR), Sec. 932.230 was amended by
increasing the assessment rate established for the committee for the
2009 and subsequent fiscal years from $15.60 to $28.63 per ton of
assessable olives from the applicable crop years. The increase in the
per ton assessment rate was deemed necessary because the 2008-2009
olive crop was significantly smaller than the previous year's crop and
would not have generated adequate assessment revenues to meet the
committee's budgeted program needs.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), 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 1,000 producers of olives in the production
area and 2 handlers subject to regulation under the marketing order.
Small agricultural producers are defined by the Small Business
Administration (13 CFR 121.201) as those having annual receipts less
than $750,000, and small agricultural service firms are defined as
those whose annual receipts are less than $7,000,000.
Based upon information from the committee, the majority of olive
producers may be classified as small entities. Both of the handlers may
be classified as large entities.
This rule continues in effect the action that increased the
assessment rate established for the committee and collected from
handlers for the 2009 and subsequent fiscal years from $15.60 to $28.63
per ton of assessable olives. The committee unanimously recommended
2009 expenditures of $1,482,349 and an assessment rate of $28.63 per
ton. The assessment rate of $28.63 is $13.03 higher than the 2008 rate.
The higher assessment rate is necessary because assessable olive
receipts for the 2008-09 crop year were reported by the CASS to be
49,067 tons, compared to 108,059 tons for the 2007-08 crop year. Actual
assessable tonnage for the 2009 fiscal year is expected to be lower
because some of the receipts may be diverted by handlers to exempt
outlets on which assessments are not paid.
Income generated from the $28.63 per ton assessment rate should be
adequate to meet this year's expenses when combined with funds from the
authorized reserve and interest income. Funds in the reserve would be
kept within the maximum permitted by the order of about one fiscal
year's expenses (Sec. 932.40).
Expenditures recommended by the committee for the 2009 fiscal year
include $495,000 for research, $627,800 for marketing activities, and
$359,549 for administration. Budgeted expenditures for these items in
2008 were $500,000, $750,000, and $288,552, respectively. The 2009
marketing and research programs will be scaled back.
Prior to arriving at this budget, the committee considered
information from various sources, such as the committee's Executive,
Market Development, and Research Subcommittees. Alternate spending
levels were discussed by these groups, based upon the relative value of
various research and marketing projects to the olive industry and the
reduced olive production. The assessment rate of $28.63 per ton of
assessable olives was derived by considering anticipated expenses, the
volume of assessable olives and additional pertinent factors.
A review of historical information indicates that the grower price
for the 2008-09 crop year was approximately $1,109.47 per ton for
canning fruit and $380.71 per ton for limited-use sizes, leaving the
balance as unusable cull fruit. Approximately 84 percent of the total
tonnage of olives received is canning fruit sizes and 11 percent is
limited use sizes, leaving the balance as unusable cull fruit. Grower
revenue on 49,067 total tons of canning and limited-use sizes would be
$49,283,177 given the current grower prices for those sizes. Therefore,
with an assessment rate increased from $15.60 to $28.63, the estimated
assessment revenue is expected to be almost 3 percent of grower
revenue.
This action increases 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
will 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 olive 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
10, 2008, 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 California olive 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
Comments on the interim final rule were required to be received on
or
[[Page 38326]]
before April 21, 2009. No comments were received. Therefore, for the
reasons given in the interim final rule, we are adopting the interim
final rule as a final rule, without change.
To view the interim final rule, go to http://www.regulations.gov/
fdmspublic/component/main?main=DocketDetail&d=AMS-FV-08-0105.
This action also affirms information contained in the interim final
rule concerning Executive Orders 12866 and 12988, the Paperwork
Reduction Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C.
101).
After consideration of all relevant material presented, it is found
that finalizing the interim final rule, without change, as published in
the Federal Register (74 FR 7782, February 20, 2009) will tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives, Reporting and recordkeeping
requirements.
PART 932--OLIVES GROWN IN CALIFORNIA--[AMENDED]
0
Accordingly, the interim final rule that amended 7 CFR part 932 and
that was published at 74 FR 7782 on February 20, 2009, is adopted as
final rule, without change.
Dated: July 28, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-18415 Filed 7-31-09; 8:45 am]