[Federal Register Volume 76, Number 63 (Friday, April 1, 2011)]
[Rules and Regulations]
[Pages 18001-18003]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7753]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 76, No. 63 / Friday, April 1, 2011 / Rules
and Regulations
[[Page 18001]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Doc. No. AMS-FV-11-0012; FV11-946-2 IR]
Irish Potatoes Grown in Washington; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule decreases the assessment rate established for the
State of Washington Potato Committee (Committee) for the 2011-2012 and
subsequent fiscal periods from $0.0035 to $0.003 per hundredweight of
potatoes handled. The Committee locally administers the marketing order
which regulates the handling of Irish potatoes grown in Washington.
Assessments upon Washington potato handlers are used by the Committee
to fund reasonable and necessary expenses of the program. The fiscal
period begins July 1 and ends June 30. The assessment rate will remain
in effect indefinitely unless modified, suspended, or terminated.
DATES: Effective April 2, 2011. Comments received by May 31, 2011, 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. Comments should reference the document 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: Teresa Hutchinson or Gary D. Olson,
Northwest Marketing Field Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA; 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) 720-2491, Fax: (202) 720-8938, or E-mail:
[email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 946, as amended (7 CFR part 946), regulating the handling of Irish
potatoes grown 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, Washington
potato 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
potatoes beginning July 1, 2011, 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 decreases the assessment rate established for the
Committee for the 2011-2012 and subsequent fiscal periods from $0.0035
to $0.003 per hundredweight of potatoes handled.
The Washington potato 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
Washington potatoes. 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 2005-2006 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 January 26, 2011, and unanimously recommended
2011-2012 expenditures of $40,050 and an assessment rate of $0.003 per
hundredweight of potatoes. In comparison, last year's budgeted
expenditures were $39,950. The assessment rate of $0.003 is $0.0005
lower than the rate currently in effect. This action will allow the
Committee to reduce its financial reserve while still
[[Page 18002]]
providing adequate funding to meet program expenses.
The major expenditures recommended by the Committee for the 2011-
2012 fiscal period include $20,000 for surveillance inspection
(compliance activity), $4,800 for a management agreement with the
Washington State Potato Commission, $3,000 for committee expenses, and
$3,000 for office expenses. These budgeted expenses are the same as
those approved for the 2010-2011 fiscal period.
The assessment rate recommended by the Committee was derived by
multiplying anticipated shipments of Washington potatoes by various
assessment rates. Applying the $0.003 per hundredweight assessment rate
to the Committee's 10,000,000 hundredweight crop estimate should
provide $30,000 in assessment income. Thus, income derived from handler
assessments and interest ($500) plus $9,550 from the Committee's
monetary reserve would be adequate to cover the recommended $40,050
budget for 2011-2012. Funds in the reserve were $68,213 as of June 30,
2010. The Committee estimates that $4,450 will be deducted from the
reserve to cover budgeted expenses for 2010-2011. Thus, the Committee
estimates a reserve of $63,763 on June 30, 2011, which would be within
the maximum permitted by the order of approximately two fiscal period's
operational expenses (Sec. 946.42).
The assessment rate established in 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 this 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 will evaluate 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 2011-2012 budget and those
for subsequent fiscal periods will be reviewed and, as appropriate,
approved by USDA.
Initial 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 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 43 handlers of Washington potatoes subject to regulation
under the order and approximately 267 producers in the regulated
production area. Small agricultural service firms are defined by the
Small Business Administration (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.
During the 2009-2010 marketing year, the Committee reports that
9,765,131 hundredweight of Washington potatoes were shipped into the
fresh market. Based on average f.o.b. prices estimated by the USDA's
Economic Research Service and Committee data on individual handler
shipments, the Committee estimates that 42, or approximately 98 percent
of the handlers, had annual receipts of less than $7,000,000.
In addition, based on information provided by the National
Agricultural Statistics Service, the average producer price for
Washington potatoes for 2010 was $7.55 per hundredweight. The average
gross annual revenue for the 267 Washington potato producers is
therefore calculated to be approximately $276,130. In view of the
foregoing, the majority of Washington potato producers and handlers may
be classified as small entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2011-2012 and subsequent
fiscal periods from $0.0035 to $0.003 per hundredweight of potatoes.
The Committee unanimously recommended 2011-2012 expenditures of $40,050
and an assessment rate of $0.003 per hundredweight. The assessment rate
of $0.003 is $0.0005 lower than the previous rate. This action will
allow the Committee to reduce its financial reserve while still
providing adequate funding to meet program expenses.
The quantity of assessable potatoes for the 2011-2012 fiscal period
is estimated at 10,000,000 hundredweight. Thus, the $0.003 rate should
provide $30,000 in assessment income. Income derived from handler
assessments, along with interest income and funds from the Committee's
authorized reserve, will be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2011-
2012 year include $20,000 for surveillance inspection (compliance
activity), $4,800 for a management agreement with the Washington State
Potato Commission, $3,000 for committee expense, and $3,000 for office
expense. These budgeted expenses are the same as those approved for the
2010-2011 fiscal period.
The Committee discussed alternatives to this rule, including
alternative expenditure levels, but determined that the recommended
expenses were reasonable and necessary to adequately cover program
operations. Lower assessment rates were considered, but not recommended
because they would reduce the financial reserve more than desired.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the grower
price for the 2011-2012 fiscal period could range between $7.40 and
$7.55 per hundredweight of potatoes. Therefore, the estimated
assessment revenue for the 2011-2012 fiscal period as a percentage of
total grower revenue could range between 0.0405 and 0.0397 percent.
This action decreases 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 potato industry and all interested persons
were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the January
26, 2011, 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 interim rule, including
the regulatory and informational impacts of this action on small
businesses.
This action imposes no additional reporting or recordkeeping
requirements
[[Page 18003]]
on either small or large Washington potato 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/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.
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.
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) The 2011-2012 fiscal period begins on July 1,
2011, and the marketing order requires that the rate of assessment for
each fiscal period apply to all assessable potatoes handled during such
fiscal period; (2) this action decreases the assessment rate for
assessable potatoes beginning with the 2011-2012 fiscal period; (3)
handlers are aware of this action which was unanimously recommended by
the Committee at a public meeting and is similar to other assessment
rate actions issued in past years; and (4) this interim rule provides a
60-day comment period, and all comments timely received will be
considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 946
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 946 is
amended as follows:
PART 946--IRISH POTATOES GROWN IN WASHINGTON
0
1. The authority citation for 7 CFR part 946 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 946.248 is revised to read as follows:
Sec. 946.248 Assessment rate.
On and after July 1, 2011, an assessment rate of $0.003 per
hundredweight is established for Washington potatoes.
Dated: March 28, 2011.
David R. Shipman,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2011-7753 Filed 3-31-11; 8:45 am]
BILLING CODE 3410-02-P