[Federal Register: June 27, 2005 (Volume 70, Number 122)]
[Rules and Regulations]
[Page 36812-36814]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27jn05-3]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Docket No. FV05-922-1 IFR]
Apricots Grown in Designated Counties in Washington; Decreased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule decreases the assessment rate established for the
Washington Apricot Marketing Committee (Committee) for the 2005-2006
and subsequent fiscal periods from $2.50 per ton to $1.00 per ton of
fresh apricots handled. The Committee locally administers the marketing
order which regulates the handling of apricots grown in designated
counties in Washington. Authorization to assess apricot handlers
enables the Committee to incur expenses that are reasonable and
necessary to administer the program. The fiscal period begins April 1
and ends March 31. The assessment rate will remain in effect
indefinitely unless modified, suspended or terminated.
DATES: Effective June 28, 2005. Comments received by August 26, 2005,
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; E-mail: moab.docketclerk@usda.gov; 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.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT: Robert J. Curry, 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
George J. 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 and Order No. 922 (7 CFR 922) 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, 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 issued herein will be applicable to all
assessable Washington apricots beginning April 1, 2005, 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 decreases the assessment rate established for the
Committee for the 2005-2006 and subsequent fiscal periods from $2.50
per ton to $1.00 per ton of fresh 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 Washington apricots. 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 2004-2005 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $2.50 per ton of
apricots handled. This assessment rate would continue in effect from
fiscal period to fiscal period unless modified,
[[Page 36813]]
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on May 10, 2005, and unanimously recommended
2005-2006 expenditures of $10,594--the same as last year's approved
expenditures--and a decreased assessment rate of $1.00 per ton of
apricots handled. The $1.00 assessment rate is $1.50 lower than the
rate approved for the 2004-2005 and subsequent fiscal periods. Based on
the Committee's 2005-2006 crop estimate of 3,800 tons, assessment
income should approximate $3,800. The Committee recommended the lower
assessment rate taking into account the anticipated crop shortfall on
the industry, while also reducing the Committee's authorized monetary
reserve to a level commensurate with program requirements. The
anticipated $3,800 assessment revenue, when combined with $6,794 from
the monetary reserves, is adequate to cover budgeted expenses for the
2005-2006 fiscal period. By drawing funds from the reserve (currently
$13,962), the Committee estimates that by the end of the current fiscal
period the reserve will approximate $7,168. This amount is within the
maximum permitted by the order of approximately one fiscal period's
operational expenses (Sec. 922.42).
The major expenditures recommended by the Committee for the 2005-
2006 fiscal period include staff salaries ($5,892), rent and
maintenance ($864), compliance ($100), and Committee travel and
compensation ($1,000). These budgeted expenses are the same as those
approved for the 2004-2005 fiscal period.
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 Committees 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 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 will evaluate
the Committee's 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
2005-2006 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), 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 272 apricot producers within the regulated
production area and approximately 28 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 $6,000,000.
For the 2004 apricot season, Washington Agricultural Statistics
Service reported that the total 6,400 ton apricot utilization sold for
an average of $973 per ton. Based on the number of producers in the
production area (272), the average annual producer revenue from the
sale of apricots in 2004 can thus be estimated at approximately
$22,894. In addition, based on information from the Committee and
USDA's Market News Service, 2004 f.o.b. prices ranged from $14.50 to
$18.50 per 24-pound loose-pack container, and from $18.00 to $24.00 for
2-layer tray pack containers. With about half of the 2004 season fresh
apricot pack-out of 4,911 tons in loose-pack containers and about half
in tray-pack containers (weighing an average of about 20 pounds each),
each of the industry's 28 handlers would have averaged less than
$225,000 from the sale of fresh apricots. Thus, the majority of
producers and handlers of Washington apricots may be classified as
small entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2005-2006 and subsequent
fiscal periods from $2.50 to $1.00 per ton of fresh apricots handled.
The Committee unanimously recommended 2005-2006 expenditures of
$10,594. With the 2005-2006 crop estimate of 3,800 tons, the Committee
anticipates assessment income of $3,800, which, when combined with
$6,794 from the monetary reserves, will be adequate to cover budgeted
expenses for the 2005-2006 fiscal period. At this assessment rate and
expense level, the Committee's reserve fund will approximate $7,168 by
March 30, 2006. This amount is within the maximum permitted by the
order of approximately one fiscal period's operational expenses (Sec.
922.42).
The Committee 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.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the producer price
for the 2005-2006 season could range from about $973 per ton to about
$1,100 per ton for Washington apricots. Therefore, the estimated
assessment revenue for the 2005-2006 fiscal period as a percentage of
total producer revenue could range between 0.09 and 0.10 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 apricot industries and all
interested persons were invited to attend and participate in the
Committee's deliberations on all issues. Like all marketing order
committee meetings, the May 10, 2005, meeting was a public meeting and
all entities, both large and small, were able to express views on the
issues. Finally, interested persons are invited to submit information
on the regulatory and informational impacts of this action on small
businesses.
This action imposes 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
[[Page 36814]]
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ama.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 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 2005-2006 fiscal period began on April 1,
2005, and the order requires that the rate of assessment apply to all
assessable Washington apricots handled during such fiscal period; (2)
this action reduces the assessment rate; (3) handlers are aware of this
action which was unanimously recommended at a public meeting and is
similar to other assessment rate actions issued in past years; and (4)
this interim final 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 922
Apricots, Marketing agreements, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 922 is amended as
follows:
PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON
0
1. The authority citation for 7 CFR part 922 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 922.235 is revised to read as follows:
Sec. 922.235 Assessment rate.
On or after April 1, 2005, an assessment rate of $1.00 per ton is
established for the Washington Apricot Marketing Committee.
Dated: June 20, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-12620 Filed 6-24-05; 8:45 am]
BILLING CODE 3410-02-P