[Federal Register Volume 75, Number 125 (Wednesday, June 30, 2010)]
[Proposed Rules]
[Pages 37740-37742]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-15941]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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Federal Register / Vol. 75, No. 125 / Wednesday, June 30, 2010 /
Proposed Rules
[[Page 37740]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Doc. No. AMS-FV-10-0050; FV10-922-1 PR]
Apricots Grown in Designated Counties in Washington; 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 Washington Apricot Marketing Committee (Committee) for the 2010-11
and subsequent fiscal periods from $1.00 to $1.50 per ton for
Washington apricots. The Committee is responsible for local
administration of the marketing order regulating the handling of
apricots grown in designated counties in Washington. Assessments upon
handlers of apricots are used by the Committee to fund reasonable and
necessary expenses of the program. The fiscal period for the marketing
order begins April 1 and ends March 31. The assessment rate would
remain in effect indefinitely unless modified, suspended or terminated.
DATES: Comments must be received by July 15, 2010.
ADDRESSES: Interested persons are invited to submit written comments
regarding 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. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting the comments will be made public on the Internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Robert Curry or Gary 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: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 690-3919; Fax: (202) 720-8938; or E-mail:
[email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 922 (7 CFR part 922), as amended, regulating the handling of
apricots grown in designated counties in Washington, 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, apricot
handlers in designated counties in Washington 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 Washington apricots beginning
April 1, 2010, and continue until amended, suspended, or terminated.
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 2010-11 and subsequent fiscal periods from $1.00 to
$1.50 per ton for Washington apricots handled under the order.
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 of apricots in designated counties
in Washington. 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 2009-10 and subsequent fiscal periods, the Committee
recommended, and the USDA approved, an assessment rate of $1.00 per ton
of apricots handled. This 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 19, 2010, and unanimously recommended
2010-11 expenditures of $8,145. In comparison, last year's budgeted
expenditures were $7,843. In addition, the Committee recommended that
the $1.00 per ton assessment rate be increased by $0.50 to $1.50 per
ton of apricots handled. Committee members reported that apricot
production this season may be lower than that of last season since
portions of the Washington apricot production area experienced
[[Page 37741]]
freezing weather in October 2009, and high winds in April of this year.
As a result, the Committee has estimated that shipments of fresh
apricots will approximate 5,550 tons this season--somewhat less than
the 6,860 tons of fresh apricots reported last season. The Committee
thus recommended that the assessment rate be increased by $0.50 to help
ensure that budgeted expenses are adequately covered.
The major expenditures recommended by the Committee for the 2010-11
fiscal period include $4,800 for the management fee, $1,300 for
Committee travel, $100 for compliance, $750 for the annual audit
review, and $1,195 for equipment maintenance, insurance, bonds, and
miscellaneous expenses. In comparison, major expenditures for the 2009-
10 fiscal period included $4,800 for the management service fee, $1,000
for travel, $100 for compliance, and $1,943 for audits, insurance and
bonds, equipment maintenance and miscellaneous expenses.
The assessment rate recommended by the Committee was derived by
dividing the anticipated expenses of $8,145 by the projected 2010
apricot production of 5,550 tons. Applying the $1.50 per ton
recommended assessment rate to this crop estimate should provide $8,325
in assessment income. Funds in the Committee's monetary reserve are
projected to be $7,854 on March 31, 2011. This is within the order's
limit of approximately one fiscal period's operational 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 effective 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 the Committee's meetings are available from the Committee or
USDA. The Committee's 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 Committee's
2010-11 budget and those for subsequent fiscal periods 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 94 apricot producers within the regulated
production area and approximately 22 regulated handlers. 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 $7,000,000.
The Washington Agricultural Statistics Service reported that the
total 8,500 ton Washington apricot utilization (including both fresh
and processed markets) in 2009 sold for an average of $888 per ton. The
total 2009 farm-gate value was approximately $7,551,000. Based on the
number of producers in the production area (94), the average annual
producer revenue from the sale of apricots in 2009 can thus be
estimated at approximately $80,330. In addition, based on information
from the Committee and USDA's Market News Service, 2009 f.o.b. prices
for WA No. 1 apricots ranged from $14.00 to $24.00 per 24-pound loose-
pack container, and from $12.00 to $22.00 for 2-layer tray pack
containers. The average 2009 price across all sizes and packs was
$17.50, with an estimated industry gross intake of approximately
$10,913,636 in f.o.b. receipts for the 2009 crop--leaving average
receipts for each of the 22 handlers well below the SBA's $7,000,000
threshold for small businesses. Therefore, the majority of producers
and handlers of Washington apricots may be classified as small
entities.
This rule would increase the assessment rate established for the
Committee and collected from handlers for the 2010-11 and subsequent
fiscal periods from $1.00 to $1.50 per ton for apricots handled under
the order's authority. The Committee also unanimously recommended 2010-
11 expenditures of $8,145. With a 2010-11 Washington apricot crop
estimate of 5,550 fresh market tons, the Committee anticipates
assessment income of about $8,325. The Committee recommended the
assessment rate increase to help ensure that budgeted expenses are
adequately covered.
The major expenditures recommended by the Committee for the 2010-11
fiscal period include $4,800 for the management fee, $1,300 for
Committee travel, $100 for compliance, $750 for the annual audit
review, and $1,195 for equipment maintenance, insurance, bonds, and
miscellaneous expenses. In comparison, major expenditures for the 2009-
10 fiscal period included $4,800 for the management service fee, $1,000
for travel, $100 for compliance, and $1,943 for audits, insurance and
bonds, equipment maintenance and miscellaneous expenses. Funds in the
Committee's monetary reserve are projected to be $7,854 on March 31,
2011. This is within the order's limit of approximately one fiscal
period's operational expenses.
The Committee discussed alternatives to this recommended assessment
increase. Leaving the assessment rate at the current $1.00 per ton
would earn the Committee $5,550, an amount considerably less than the
2010 budgeted expenditures of $8,145. This would have significantly
depleted the Committee's reserves, and thus was not seriously
considered. The Committee did not consider an assessment rate greater
than $1.50.
A review of historical crop and price information, as well as
preliminary information pertaining to the upcoming crop year indicates
that the producer price for the 2010-11 season could average about
$1,000 per ton for fresh Washington apricots. Therefore, the estimated
assessment revenue for the 2010-11 fiscal period as a percentage of
total producer revenue is 0.15 percent for Washington apricots.
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 order.
The Committee's meeting was widely publicized throughout the
Washington apricot industry and all interested persons were invited to
attend and participate in Committee deliberations
[[Page 37742]]
on all issues. Like all Committee meetings, the May 19, 2010, meeting
was a public meeting and all entities, both large and small, were able
to express views on the issues. Additionally, interested persons are
invited to submit information on 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 Washington apricot
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. Additionally, 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.
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/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide. Any questions about the compliance guide should be sent to
Antoinette Carter at the previously mentioned address in the FOR
FURTHER INFORMATION CONTACT section.
A 15-day comment period is provided to allow interested persons to
respond to this proposed rule. Fifteen days is deemed appropriate
because: (1) The 2010-11 fiscal period began on April 1, 2010, and the
order requires that the assessment rate for each fiscal period apply to
all assessable apricots handled during such fiscal period; (2) the
Washington apricot harvest and shipping season is expected to begin as
early as the last week of June; (3) the Committee needs to have
sufficient funds to pay its expenses, which are incurred on a
continuous basis; and (4) handlers are aware of this action, which was
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 922
Apricots, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 922 is
proposed to be amended as follows:
PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON
1. The authority citation for 7 CFR part 922 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 922.235 is revised to read as follows:
Sec. 922.235 Assessment rate.
On or after April 1, 2010, an assessment rate of $1.50 per ton is
established for the Washington Apricot Marketing Committee.
Dated: June 25, 2010.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. 2010-15941 Filed 6-29-10; 8:45 am]
BILLING CODE 3410-02-P