[Federal Register: August 14, 2003 (Volume 68, Number 157)]
[Rules and Regulations]
[Page 48529-48531]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14au03-1]
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Rules and Regulations
Federal Register
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[[Page 48529]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[Docket No. FV03-958-01 FR]
Onions Grown in Certain Designated Counties in Idaho, and Malheur
County, Oregon; Increased Assessment Rate and Defined Fiscal Period
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule increases the assessment rate established for
the Idaho-Eastern Oregon Onion Committee (Committee) for the 2003-2004
and subsequent fiscal periods from $0.08 to $0.095 per hundredweight of
onions handled, and establishes, in the regulatory text, the
Committee's fiscal period beginning July 1 of each year and ending June
30 of the following year. The Committee locally administers the
marketing order that regulates the handling of onions grown in
designated counties in Idaho, and Malheur County, Oregon. Authorization
to assess onion handlers enables the Committee to incur expenses that
are reasonable and necessary to administer the program. The assessment
rate will remain in effect indefinitely unless modified, suspended, or
terminated.
EFFECTIVE DATE: August 15, 2003.
FOR FURTHER INFORMATION CONTACT: Susan M. Hiller, Northwest Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1220 SW. Third Ave., suite 385,
Portland, OR 97204; Phone: (503) 326-2724; Fax: (503) 326-7440; or
George Kelhart, Technical Advisor, 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.
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 No. 130 and Marketing Order No. 958, both as amended (7 CFR
part 958), regulating the handling of onions grown in certain
designated counties in Idaho, and Malheur County, Oregon, 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, Idaho-Eastern
Oregon onion 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
onions beginning on July 1, 2003, 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 increases the assessment rate established for the
Committee for the 2003-2004 and subsequent fiscal periods from $0.08 to
$0.095 per hundredweight of onions handled, and establishes, in the
regulatory text, the Committee's fiscal period. The fiscal period
begins July 1 of each year and ends June 30 of the following year.
The order provides authority for the Committee, with the approval
of USDA, to establish a fiscal period. The Committee has operated under
a fiscal period of July 1 through June 30 since its inception in the
late 1950's, but this period has never been specified in the regulatory
text. This rule adds to the order's rules and regulations a definition
of the Committee's fiscal period. The fiscal period will be defined to
be the 12-month period beginning July 1 and ending June 30 of the
following year, both dates inclusive.
The order also 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 Committee
consists of six producer members, four handler members and one public
member. 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 2000-2001 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 April 3, 2003, and in a vote of seven in
favor, one against, and one abstention, recommended an assessment rate
of $0.095 per hundredweight of onions handled. The assessment rate of
$0.095 is $0.015 higher than the rate currently
[[Page 48530]]
in effect. The order authorizes the Committee to establish an operating
reserve of up to one fiscal period's operational expense. However, the
Committee has maintained the operating reserve at a level of
approximately one-half of one fiscal period's operational expenses. The
Committee, over the last four fiscal periods, has reduced its operating
reserve to this level. The Committee recommended the $0.015 increase so
the total of assessment income ($870,200), contributions ($79,800),
interest income ($6,000), and other income ($1,000) will equal the
recommended expenses for 2003-2004 of $957,000. With these revenue
sources, the Committee will not need to access its operating reserve
and will maintain the reserve at the current level.
The Committee met on June 12, 2003, and unanimously recommended
2003-2004 expenditures of $957,000. In comparison, last year's budgeted
expenditures were $1,044,824. The major expenditures for the 2003-2004
fiscal period include $10,000 for committee expenses, $148,353 for
salary expenses, $72,610 for travel/office expenses, $59,170 for
research expenses, $27,250 for export expenses, $589,617 for promotion
expenses, and $50,000 for unforeseen marketing order contingencies.
Budgeted expenses for these items in 2002-2003 were $10,000, $143,814,
$77,460, $59,550, $54,000, $675,000, and $25,000, respectively.
The Committee estimates that onion shipments for the 2003-2004
fiscal period will be approximately 9,160,000 hundredweight, which
should provide $870,200 in assessment income. Income derived from
handler assessments, along with contributions ($79,800), interest
income ($6,000), and other income ($1,000) will equal expenses. The
Committee estimates that its operating reserve will be approximately
$434,303 at the beginning of the 2003-2004 fiscal period. Funds in the
reserve will be kept within the maximum permitted by the order of
approximately one fiscal year's operational expenses (Sec. 958.44).
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 will be in effect 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 2003-2004 budget and those
for subsequent fiscal periods would be reviewed and, as appropriate,
approved by USDA.
Final 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 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 37 handlers of Idaho-Eastern Oregon onions
who are subject to regulation under the order and approximately 250
onion producers in the regulated production area. Small agricultural
service firms are defined by the Small Business Administration (SBA)(13
CFR 121.201) as those having annual receipts less than $5,000,000, and
small agricultural producers are defined as those having annual
receipts less than $750,000.
The Committee estimates that 32 of the 37 handlers of Idaho-Eastern
Oregon onions ship under $5,000,000 worth of onions on an annual basis.
According to the ``Vegetables 2002 Summary'' reported by the National
Agricultural Statistics Service, the total farm gate value of onions in
the regulated production area for 2002 was $93,807,000. Therefore, the
2002 average gross revenue for an onion producer in the regulated
production area was $375,228. Based on this information, it can be
concluded that the majority of handlers and producers of Idaho-Eastern
Oregon onions may be classified as small entities.
This rule establishes, in the regulatory text, the Committee's
fiscal period beginning July 1 of each year and ending June 30 of the
following year, and increases the assessment rate established for the
Committee for the 2003-2004 and subsequent fiscal periods from $0.08 to
$0.095 per hundredweight of onions handled. The Committee recommended
an assessment rate of $0.095 per hundredweight, which is $0.015 higher
than the rate currently in effect. The quantity of assessable onions
for the 2003-2004 fiscal period is estimated at 9,160,000
hundredweight. Thus, the $0.095 rate should provide $870,200 in
assessment income, which along with anticipated contributions, interest
income, and other income will cover budgeted expenses expected to total
about $957,000.
The major expenditures recommended by the Committee for the 2003-
2004 fiscal period include $10,000 for committee expenses, $148,353 for
salary expenses, $72,610 for travel/office expenses, $59,170 for
research expenses, $27,250 for export expenses, $589,617 for promotion
expenses, and $50,000 for unforeseen marketing order contingencies.
Budgeted expenses for these items in 2002-2003 were $10,000, $143,814,
$77,460, $59,550, $54,000, $675,000, and $25,000, respectively.
The Committee reviewed and unanimously recommended 2003-2004
expenditures of $957,000. This budget increases the budget line items
for salary expenses and marketing order contingencies, and decreases
the budget line items for travel and office expenses, research
expenses, export expenses, and promotion expenses. Prior to arriving at
this budget, the Committee considered information from various sources,
including the Idaho-Eastern Oregon Onion Executive, Research, Export,
and Promotion Committees. These subcommittees discussed alternative
expenditure levels, based upon the relative value of various research
and promotion projects to the Idaho-Eastern Oregon onion industry. The
assessment rate of $0.095 per hundredweight of assessable onions was
then determined by taking into consideration the estimated level of
assessable shipments, other revenue sources, and the Committee's goal
of not having to use reserve funds during 2003-2004.
A review of historical information and preliminary information
pertaining to the upcoming shipping season indicates that the producer
price for the 2003-2004 season could be about $5.00 per hundredweight.
Therefore, the estimated assessment revenue for the 2003-2004 fiscal
period as a percentage of total producer revenue could be about 1.9
percent.
This rule increases the assessment obligation imposed on handlers.
While assessments impose some additional costs on handlers, the costs
are minimal
[[Page 48531]]
and uniform on all handlers. Some of the additional costs may be passed
on to producers. However, these costs are offset by the benefits
derived by the operation of the marketing order. In addition, the
Committee's meetings were widely publicized throughout the Idaho-
Eastern Oregon onion industry and all interested persons were invited
to attend the meetings and participate in Committee deliberations on
all issues. Like all Committee meetings, the April 3, and the June 12,
2003, meetings were open to the public and all entities, both large and
small, were able to express views on this issue.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large Idaho-Eastern Oregon 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on July 9, 2003 (68 FR 40815). A copy of the rule was provided
to Committee staff, who in turn made it available to onion producers,
handlers, and other interested persons. Finally, the rule was made
available through the Internet by the Office of the Federal Register
and USDA. A 15-day comment period ending July 24, 2003, was provided to
allow interested persons to respond to the proposal. No comments were
received.
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.
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 that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because the 2003-2004
fiscal period began on July 1, 2003, and the order requires that the
rate of assessment for each fiscal period apply to all assessable
onions handled during such fiscal period. In addition, the Committee
needs sufficient funds to pay its expenses which are incurred on a
continuous basis. Further, 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. Also, a 15-day
comment period was provided for in the proposed rule and no comments
were received.
List of Subjects in 7 CFR Part 958
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 958 is amended as
follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
0
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. A new Sec. 958.112 is added to read as follows:
Sec. 958.112 Fiscal period.
The fiscal period shall begin July 1 of each year and end June 30
of the following year, both dates inclusive.
0
3. Section 958.240 is revised to read as follows:
Sec. 958.240 Assessment rate.
On and after July 1, 2003, an assessment rate of $0.095 per
hundredweight is established for Idaho-Eastern Oregon onions.
Dated: August 8, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-20691 Filed 8-13-03; 8:45 am]
BILLING CODE 3410-02-P