[Federal Register Volume 62, Number 216 (Friday, November 7, 1997)]
[Rules and Regulations]
[Pages 60158-60160]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29478]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 922, 923, and 924
[Docket No. FV97-922-2 FIR]
Reduced Assessment Rates for Specified Marketing Orders
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule
which decreased the assessment rates established for the Washington
Apricot Marketing Committee, Washington Cherry Marketing Committee, and
Washington-Oregon Fresh Prune Committee (Committees) under Marketing
Orders Nos. 922, 923, and 924 for the 1997-98, and subsequent fiscal
periods. Authorization to assess apricot, cherry, and prune handlers
enables the Committees to incur expenses that are reasonable and
necessary to administer the program. The 1997-98 fiscal periods for
these marketing orders began April 1 and end March 31. The assessment
rates will continue in effect indefinitely unless modified, suspended,
or terminated.
EFFECTIVE DATE: December 8, 1997.
FOR FURTHER INFORMATION CONTACT: Jadean L. Williams, Northwest
Marketing Field Office, Fruit and Vegetable Programs, AMS, USDA, 1220
SW Third Avenue, Room 369, Portland, OR 97204; telephone: (503) 326-
2724, Fax: (503) 326-7440 or George J. Kelhart, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, Room
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202)
720-2491, Fax: (202) 720-5698. Small businesses may request information
on compliance with this regulation by contacting Jay Guerber, Marketing
Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA,
Room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone:
(202) 720-2491, Fax: (202) 720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreements and Order No. 922 (7 CFR part 922), regulating the handling
of apricots grown in designated counties in Washington; Marketing Order
No. 923 (7 CFR part 923) regulating the handling of sweet cherries
grown in designated counties in Washington; and Marketing Order No. 924
(7 CFR part 924) regulating the handling of fresh prunes grown in
designated counties in Washington and Umatilla County, Oregon,
hereinafter referred to as the ``orders.'' The marketing agreements and
orders are 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 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 orders now in effect, handlers in
the designated areas are subject to assessments. Funds to administer
the orders are derived from such assessments. It is intended that the
assessment rates as issued herein will be applicable to all assessable
Washington apricots, Washington sweet cherries, and Washington-Oregon
fresh prunes beginning April 1, 1997, and continuing 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 the Secretary 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 the Secretary 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 the
Secretary's ruling on the
[[Page 60159]]
petition, provided an action is filed not later than 20 days after the
date of the entry of the ruling.
This rule continues in effect the assessment rates established for
the Committees for the 1997-98 and subsequent fiscal periods of $2.00
per ton for Washington apricots, and $0.75 per ton for Washington sweet
cherries and Washington-Oregon fresh prunes.
The orders provide authority for each of the Committees, with the
approval of the Department, to formulate an annual budget of expenses
and collect assessments from handlers to administer the programs. The
members of the Committees are producers and handlers in designated
counties in Washington and in Umatilla County, Oregon. They are
familiar with the Committees' needs and with the costs for goods and
services in their local area and are thus in a position to formulate
appropriate budgets and assessment rates. The assessment rates are
formulated and discussed in public meetings. Thus, all directly
affected persons have an opportunity to participate and provide input.
For the 1996-97 and subsequent fiscal periods, the Committees
recommended, and the Department approved, assessment rates that would
continue in effect from fiscal period to fiscal period indefinitely
unless modified, suspended, or terminated by the Secretary upon
recommendation and information submitted by the Committees or other
information available to the Secretary.
The Washington Apricot Marketing Committee met on May 13, 1997, and
unanimously recommended 1997-98 expenditures of $9,917 and an
assessment rate of $2.00 per ton of apricots. In comparison, last
year's budgeted expenditures were $9,385. The assessment rate of $2.00
is $1.00 less than the rate previously in effect. At the former rate of
$3.00 per ton and an estimated 1997 fresh apricot production of 5,300
tons, the projected reserve on March 31, 1998, would exceed the maximum
level authorized by the order of one fiscal period's operational
expenses. The Committee discussed assessment rates of $1.00 and $1.50,
but decided that an assessment rate of less than $2.00 would not
generate the income necessary to administer the program with an
adequate reserve.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of apricots grown
in designated counties in Washington. Applying the $2.00 per ton rate
of assessment to the Committee's 5,300 ton shipment estimate should
provide $10,600 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. Funds
in the reserve will be kept within the maximum permitted by the order.
The Washington Cherry Marketing Committee met on May 12, 1997, and
unanimously recommended 1997-98 expenditures of $57,545 and an
assessment rate of $0.75 per ton of cherries. In comparison, last
year's budgeted expenditures were $56,665. The assessment rate of $0.75
is $0.25 less than the rate previously in effect. At the former rate of
$1.00 per ton and an estimated 1997 sweet cherry production of 54,000
tons, the projected reserve on March 31, 1998, would exceed the maximum
level authorized by the order of one fiscal period's operational
expenses. The Committee discussed an assessment rate of $0.50, but
decided that an assessment rate of less than $0.75 would not generate
the income necessary to administer the program with an adequate
reserve.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of sweet cherries
grown in designated counties in Washington. With cherry shipments for
the year estimated at 54,000 tons, the assessment rate of $0.75 should
provide $40,500 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. Funds
in the reserve will be kept within the maximum permitted by the order.
The Oregon-Washington Fresh Prune Marketing Committee met on May
28, 1997, and unanimously recommended 1997-98 expenditures of $7,233
and an assessment rate of $0.75 per ton of prunes. In comparison, last
year's budgeted expenditures were $6,645. The assessment rate of $0.75
is $0.25 less than the rate previously in effect. At the former rate of
$1.00 per ton and an estimated 1997 fresh prune production of 6,000
tons, the projected reserve on March 31, 1998, would exceed the maximum
level authorized by the order of one fiscal period's operational
expenses. The Committee discussed an assessment rate of $0.50, but
decided that an assessment rate of less than $0.75 would not generate
the income necessary to administer the program with an adequate
reserve.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of fresh prunes
grown in designated counties in Washington, and Umatilla County,
Oregon. With fresh prune shipments for the year estimated at 6,000
tons, the $0.75 per ton assessment rate should provide $4,500 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. Funds in the reserve will be
kept within the maximum permitted by the order.
Major expenses recommended by the Committees for the 1997-98 year
include manager's salary, office rent and maintenance, Committee
travel, and compliance officer.
The assessment rates established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by the
Secretary upon recommendation and information submitted by the
Committees or other available information.
Although these assessment rates are effective for an indefinite
period, the Committees 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 rates. The dates and
times of Committee meetings are available from the Committees or the
Department. Committee meetings are open to the public and interested
persons may express their views at these meetings. The Department will
evaluate Committee recommendations and other available information to
determine whether modification of the assessment rates is needed.
Further rulemaking will be undertaken as necessary. The Committees'
1997-98 budgets and those for subsequent fiscal periods will be
reviewed and, as appropriate, approved by the Department.
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 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 190 Washington apricot producers, 1,100
Washington sweet cherry producers,
[[Page 60160]]
and 350 Washington-Oregon fresh prune producers in the respective
production areas. In addition, there are approximately 55 Washington
apricot handlers, 55 Washington sweet cherry handlers, and 30
Washington-Oregon fresh prune handlers subject to regulation under the
respective marketing orders. Small agricultural producers have been
defined by the Small Business Administration (13 CFR 121.601) as those
having annual receipts less than $500,000, and small agricultural
service firms are defined as those whose annual receipts are less than
$5,000,000. The majority of Washington apricot, Washington sweet
cherry, and Washington-Oregon fresh prune producers and handlers may be
classified as small entities.
This rule continues in effect decreased assessment rates
established for the Committees and collected from handlers for the
1997-98 and subsequent fiscal periods. The Committees unanimously
recommended 1997-98 expenditures of $9,917 for apricots, $57,545 for
cherries, and $7,233 for prunes and an assessment rate of $2.00 per ton
for apricots, $0.75 per ton for cherries, and $0.75 per ton for prunes.
The assessment rate of $2.00 for apricots is $1.00 less than the rate
previously in effect. The assessment rates of $0.75 for cherries and
prunes are $0.25 less than the rates previously in effect. At the
former assessment rates, the Committees' reserves were projected to
exceed the amount authorized in the orders of approximately one fiscal
period's operational expenses. Therefore, the Committees voted to lower
their respective assessment rates and use more of their reserves to
cover expenses.
The Committees discussed alternatives to this rule, including
alternative expenditure levels. Lower assessment rates were considered,
but not recommended because they would not generate the income
necessary to administer the programs with adequate reserves. Major
expenses recommended by the Committees for the 1997-98 year include
manager's salary, office rent and maintenance, Committee travel, and
compliance officer.
Apricot shipments for 1997 are estimated at 5,300 tons, which
should provide $10,600 in assessment income. Income derived from
handler assessments, along with funds from the authorized reserve will
be adequate to cover budgeted expenses. Funds in the reserve will be
kept within the maximum permitted by the order.
Sweet cherry shipments for 1997 are estimated at 54,000 tons, which
should provide $40,500 in assessment income. Income derived from
handler assessments, along with funds from the authorized reserve will
be adequate to cover budgeted expenses. Funds in the reserve will be
kept within the maximum permitted by the order.
Fresh prune shipments for 1997 are estimated at 6,000 tons, which
should provide $4,500 in assessment income. Income derived from handler
assessments, along with funds from the authorized reserve will be
adequate to cover budgeted expenses. Funds in the reserve will be kept
within the maximum permitted by the order.
Recent price information indicates that the producer price for the
1997-98 season will range between $600 and $1,400 per ton for
Washington apricots, between $1,500 and $2,200 per ton for Washington
sweet cherries, and between $200 and $500 per ton for Washington-Oregon
fresh prunes. Therefore, the estimated assessment revenue for the 1997-
98 fiscal period as a percentage of total grower revenue will range
between 0.14 and 0.33 percent for Washington apricots, between 0.03 and
0.05 percent for Washington sweet cherries, and between 0.15 and 0.38
for Washington-Oregon fresh prunes.
This action will reduce the assessment obligation imposed on
handlers. While this rule will impose some additional costs on
handlers, the costs are minimal and in the form of uniform assessments
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 orders. In addition, the Committees'
meetings were widely publicized throughout the Washington apricot,
Washington sweet cherry, and Washington-Oregon fresh prune industries
and all interested persons were invited to attend and participate in
the Committees' deliberations on all issues. Like all meetings of these
Committees, the May 12, 13, and 28 meetings were public meetings and
all entities, both large and small, were able to express views on the
issues.
This action will not impose any additional reporting or
recordkeeping requirements on either small or large Washington apricot,
Washington sweet cherry, or Washington-Oregon fresh prune 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.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this final rule.
The interim final rule published in the Federal Register (62 FR
41805) on August 4, 1997, requested comments to be received by
September 3, 1997. A copy of the interim final rule was also made
available on the Internet by the U.S. Government Printing Office. No
comments were received.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committees 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.
List of Subjects
7 CFR Part 922
Apricots, Marketing agreements, Reporting and recordkeeping
requirements.
7 CFR Part 923
Cherries, Marketing agreements, Reporting and recordkeeping
requirements.
7 CFR Part 924
Plums, Prunes, Marketing agreements, Reporting and recordkeeping
requirements.
PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON
PART 923--SWEET CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON
PART 924--FRESH PRUNES GROWN IN DESIGNATED COUNTIES IN WASHINGTON
AND IN UMATILLA COUNTY, OREGON
Accordingly, the interim final rule amending 7 CFR parts 922, 923,
and 924 which was published at 62 FR 41805 on August 4, 1997, is
adopted as a final rule without change.
Dated: November 3, 1997.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 97-29478 Filed 11-6-97; 8:45 am]
BILLING CODE 3410-02-P