[Federal Register Volume 77, Number 235 (Thursday, December 6, 2012)]
[Rules and Regulations]
[Pages 72681-72683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29435]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 /
Rules and Regulations
[[Page 72681]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Doc. No. AMS-FV-12-0027; FV12-922-1 IR]
Apricots Grown in Designated Counties 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
Washington Apricot Marketing Committee (Committee) for the 2012-13 and
subsequent fiscal periods from $1.50 to $0.50 per ton of Washington
apricots handled. The Committee locally administers the marketing order
which regulates the handling of apricots grown in designated counties
in Washington. Assessments upon apricot handlers are used by the
Committee to fund reasonable and necessary expenses of 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 December 7, 2012. Comments received by February 4,
2013, 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 and Agreement Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: 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: 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: Manuel Michel, Marketing Specialist,
or Gary Olson, Regional Director, Northwest Marketing Field Office,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA, 805 SW. Broadway, Suite 930, Portland, OR 97205; Telephone:
(503) 326-2724; Fax: (503) 326-7440; or Email:
[email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Laurel May, Marketing Order and Agreement
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491;
Fax: (202) 720-8938; or Email: [email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 922 (7 CFR 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, 2012, 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 2012-13 and subsequent fiscal periods from $1.50 to
$0.50 per ton of Washington apricots handled under the order.
The Washington apricot 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
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 in a public meeting. Thus, all directly affected persons have
an opportunity to participate and provide input.
For the 2010-11 and subsequent fiscal periods, the Committee
recommended, and the 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 May 24, 2012, and unanimously recommended
expenditures of $4,695 for the 2012-13 fiscal period. In comparison,
the
[[Page 72682]]
previous fiscal period's budgeted expenditures were $8,145. The
Committee also unanimously recommended an assessment rate of $0.50 per
ton of apricots. The recommended assessment rate of $0.50 is $1.00
lower than the rate currently in effect.
The Committee's decision to lower expenditures and its
recommendation to decrease the assessment rate were a direct result of
discussions regarding the future of the marketing order. Committee
members discussed reasons for and against regulatory suspension, order
suspension, and termination of the order. After much consideration, the
Committee unanimously recommended a temporary suspension of the order's
handling regulations, lower expenditures, and a decrease in the
assessment rate. The Committee believes that decreasing the assessment
rate will allow the Committee to fund its financial obligations and
reduce its current monetary reserve of $3,968.
The major expenditures recommended by the Committee for the 2012-13
fiscal period include $2,400 for the management fee, $1,300 for
Committee travel, $750 for the annual audit review, and $245 for
insurance, bonds, and miscellaneous expenses. In comparison, major
expenditures for the 2011-12 fiscal period included $4,800 for the
management service fee, $1,300 for travel, $100 for compliance, and
$1,945 for audits, insurance and bonds, equipment maintenance and
miscellaneous expenses.
Committee members estimated the 2012 fresh apricot production to be
approximately 6,600 tons, which exceeds the 2011 production of 2,758
tons by 3,840 tons. The Committee's recommended assessment rate was
then derived by dividing the 2012-13 anticipated expenses by the
expected shipments of Washington apricots, while also taking into
account the Committee's monetary reserve. The recommended assessment
rate of $0.50 per ton of apricots multiplied by the 6,600 tons of
estimated 2012 Washington apricot shipments would generate $3,300 in
handler assessments. The projected revenue from handler assessments,
along with funds from the Committee's monetary reserve of $3,968, will
be adequate to cover the 2012-13 budgeted expenses of $4,695. The
Committee's monetary reserve is expected to be approximately $2,573 at
the end of the 2012-13 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 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 the 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 2012-13 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. 601-602), 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 approximately 94 producers of apricots in the production
area and approximately 20 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (SBA)(13 CFR 121.201) as those having annual
receipts of less than $750,000, and small agricultural service firms
are defined as those having annual receipts of less than $7,000,000.
The National Agricultural Statistics Service reported that in 2011
the Washington apricot total utilization (including both fresh and
processed markets) of 3,900 tons sold for an average of $1,830 per ton.
Consequently, the total farm-gate value in 2011 was approximately
$7,132,000. Based on the number of producers in the production area
(94), the 2011 average revenue from the sale of apricots is estimated
at approximately $75,925 per producer. In addition, based on
information from the USDA's Market News Service, 2011 f.o.b. prices for
WA No. 1 apricots ranged from $20.00 to $26.00 per 24-pound loose-pack
container, and from $22.00 to $30.00 for 2-layer tray-pack containers.
Using average price and shipment information provided by the Committee,
it is determined that each of the Washington apricot handlers currently
ship less than $7,000,000 worth of apricots on an annual basis. In view
of the foregoing, it can be concluded that 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 2012-13 and subsequent
fiscal periods from $1.50 to $0.50 per ton of apricots handled under
the order's authority. The Committee also unanimously recommended 2012-
13 expenditures of $4,695. With a 2012-13 Washington apricot crop
estimate of 6,600 fresh market tons, the Committee anticipates
assessment income of approximately $3,300. Income derived from handler
assessments, along with funds from the Committee's monetary reserve,
will be adequate to cover budgeted expenses for the 2012-13 fiscal
period. At this assessment rate and expense level, the Committee's
monetary reserve will approximate $2,573 by March 30, 2013, which 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 2012-13
fiscal period include $2,400 for the management fee; $1,300 for
Committee travel; $750 for the annual audit review; and $245 for
insurance, bonds, and miscellaneous expenses. In comparison, major
expenditures for the 2011-12 fiscal period included $4,800 for the
management service fee; $1,300 for travel; $100 for compliance; and
$1,945 for audits, insurance and bonds, equipment maintenance, and
miscellaneous expenses. Funds in the Committee's monetary reserve were
$3,968 on March 31, 2012, and were within the order's limit of
approximately one fiscal period's operational expenses.
The Committee discussed alternatives to this rule, including
alternative expenditure levels. Although lower assessment rates were
considered, none were selected because they would not generate
sufficient income to administer the order. Committee members also
discussed reasons for and against regulatory suspension, order
suspension, and termination of the
[[Page 72683]]
order. The result of these discussions was the Committee's
recommendation to decrease the assessment rate. The Committee also
recommended suspension of the handling regulations, and that
recommendation is being reviewed separately by USDA.
A review of historical crop and price information, as well as
preliminary information pertaining to the 2012-13 fiscal period,
indicates that the producer price could average approximately $1,000
per ton for fresh Washington apricots. Therefore, the estimated
assessment revenue for the 2012-13 fiscal period as a percentage of
total producer revenue is 0.05 percent for Washington apricots.
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 industry, and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the May 24, 2012, 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.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0189. No changes in those requirements as a
result of this action are necessary. Should any changes become
necessary, they would be submitted to OMB for approval.
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.
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:
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about
the compliance guide should be sent to Laurel May 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 2012-13 fiscal period began on April 1, 2012,
and the marketing order requires that the rate of assessment for each
fiscal period apply to all assessable apricots handled during such
fiscal period; (2) the action decreases the assessment rate for
assessable apricots beginning with the 2012-13 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 922
Apricots, Marketing agreements, Reporting and recordkeeping
requirements.
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, 2012, an assessment rate of $0.50 per ton is
established for the Washington Apricot Marketing Committee.
Dated: November 30, 2012.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2012-29435 Filed 12-5-12; 8:45 am]
BILLING CODE 3410-02-P