[Federal Register: August 28, 2007 (Volume 72, Number 166)]
[Rules and Regulations]
[Page 49134-49136]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28au07-3]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Docket No. AMS-FV-07-0085; FV07-922-2 PR]
Apricots Grown in Designated Counties in Washington; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule increases the assessment rate established for the
Washington Apricot Marketing Committee (Committee) for the 2007-2008
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 began April 1 and ends March 31. The assessment rate will remain
in effect indefinitely unless modified, suspended or terminated.
EFFECTIVE DATE: August 29, 2007.
FOR FURTHER INFORMATION CONTACT: Robert J. Curry or Gary D. 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: Robert.Curry@usda.gov or GaryD.Olson@usda.gov.
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,
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 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 issued herein
will be applicable to all assessable Washington apricots beginning
April 1, 2007, and will 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 2007-2008 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 2005-2006 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 24, 2007, and unanimously recommended
2007-2008 expenditures of $6,743. In comparison, the budgeted
expenditures
[[Page 49135]]
for 2006-2007 were $6,400. In addition to the budget, the Committee
recommended that the $1.00 per ton assessment rate approved for the
2005-2006 and subsequent fiscal periods be increased by $0.50 to $1.50
per ton of apricots handled. The Committee recommended the higher
assessment rate to cover budgeted expenses while increasing its
monetary reserve to a level commensurate with program objectives and
requirements.
The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $4,800 for management fees, $1,000 for
Committee travel, $500 for the annual financial audit, and $100 for
compliance. Budgeted expenses for these items in 2006-2007 were $4,800,
$1,000, $600, and $100, respectively. The Committee added $343 to its
budgeted expenses this year for equipment maintenance, insurance,
bonds, and miscellaneous expenses.
The assessment rate recommended by the Committee was derived by
dividing its anticipated expenses of $6,743 by the projected apricot
crop of 5,400 tons. Applying the $1.50 per ton assessment rate to the
Committee's 5,400 ton crop estimate should provide $8,100 in assessment
income. Income derived from handler assessments should adequately cover
budgeted expenses while adding approximately $1,357 to the $3,980 2006-
2007 fiscal year-end reserve fund. As a consequence, the projected
2007-2008 fiscal year-end reserve balance of $5,337 should be within
the maximum permitted by the order of approximately one fiscal period's
operational expenses.
The assessment rate 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 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
2007-2008 budget and those for subsequent fiscal periods will 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.
There are approximately 300 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 $6,500,000.
The Washington Agricultural Statistics Service has prepared a
report showing that the total 5,400 ton apricot utilization sold for an
average of $1,150 per ton in 2006 with a total value of approximately
$6,200,000. Based on the number of producers in the production area
(300), the average annual producer revenue from the sale of apricots in
2006 can thus be estimated at approximately $20,700. In addition, based
on information from the Committee and USDA's Market News Service, 2006
f.o.b. prices ranged from $15.00 to $20.00 per 24-pound loose-pack
container, and from $16.00 to $18.00 for 2-layer tray-pack containers.
During the 2006 season, approximately 3,728 tons of fresh apricots were
packed. Of this total, about 1,569 tons were packed in loose-pack
containers and about 2,159 tons were packed in tray-pack containers
(weighing an average of about 20 pounds each). The total receipts for
2006 were less than $6,500,000. Thus, the majority of producers and
handlers of Washington apricots may be classified as small entities.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2007-2008 and subsequent
fiscal periods from $1.00 to $1.50 per ton for apricots handled under
authority of the order. The Committee also unanimously recommended
2007-2008 expenditures of $6,743. With the 2007-2008 Washington apricot
crop estimate of 5,400 tons, the Committee anticipates assessment
income of $8,100. The Committee recommended the assessment rate
increase to cover budgeted expenses and to increase the monetary
reserve. With the $1.50 per ton assessment rate and the $6,743 budget
of expenditures, the Committee should add about $1,357 to its monetary
reserve. Thus, the Committee projects a reserve balance of
approximately $5,337 on March 31, 2008. This amount is within the
maximum permitted by the order of approximately one fiscal period's
operational expenses.
The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $4,800 for management fees, $1,000 for
Committee travel, $500 for the annual financial audit, and $100 for
compliance. Budgeted expenses for these items in 2006-2007 were $4,800,
$1,000, $600, and $100, respectively. The Committee added $343 to its
budgeted expenses this year for equipment maintenance, insurance,
bonds, and miscellaneous expenses.
The Committee discussed alternatives to this assessment rate
increase. Leaving the assessment at the $1.00 per ton rate was
discussed, but not seriously considered since such a rate would have
further eroded the Committee's reserves. Higher and lower rates were
also considered but not recommended because the $1.50 rate not only
meets the Committee's objectives for the 2007-2008 season, but also
increases the reserve to a level commensurate with order provisions.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the producer price
for the 2007-2008 season could average about $1,000 per ton for fresh
Washington apricots. Therefore, the estimated assessment revenue for
the 2007-2008 fiscal period as a percentage of total producer revenue
is 0.15 percent for Washington apricots.
This action increases 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
are 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
[[Page 49136]]
participate in Committee deliberations on all issues. Like all
Committee meetings, the May 24, 2007, meeting was a public meeting and
all entities, both large and small, were able to express views on the
budget and assessment rate issues.
This rule 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. Furthermore, 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 proposed rule regarding this action was published in the Federal
Register on July 13, 2007 (72 FR 38496). Copies of the proposed rule
were made available to industry members by the Committee, and by the
USDA and the Office of the Federal Register through the Internet. A 10-
day comment period ending July 23, 2007, was provided for 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: (1) The
2007-2008 fiscal period began on April 1, 2007, 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 currently under way; (3) the Committee
needs to have sufficient funds to pay its expenses, which are incurred
on a continuous basis; (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; and (5) a 10-day
comment period was provided for in the proposed 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, 2007, an assessment rate of $1.50 per ton is
established for the Washington Apricot Marketing Committee.
Dated: August 22, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-16971 Filed 8-27-07; 8:45 am]
BILLING CODE 3410-02-P