[Federal Register Volume 78, Number 103 (Wednesday, May 29, 2013)]
[Rules and Regulations]
[Pages 32067-32068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-12651]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
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Federal Register / Vol. 78, No. 103 / Wednesday, May 29, 2013 / Rules
and Regulations
[[Page 32067]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 28
[AMS-CN-12-0074]
RIN 0581-AD30
User Fees for 2013 Crop Cotton Classification Services to Growers
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Agricultural Marketing Service (AMS) will maintain user
fees for cotton producers for 2013 crop cotton classification services
at $2.20 per bale--the same level as in 2012. Revenues resulting from
this cotton classing fee and existing reserves are sufficient to cover
the costs of providing classification services for the 2013 crop,
including costs for administration and supervision.
DATES: Effective Date: July 1, 2013.
FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Programs, AMS, USDA, 3275 Appling Road, Room 11,
Memphis, TN 38133. Telephone (901) 384-3060, facsimile (901) 384-3021,
or email [email protected].
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be not significant for
purposes of Executive Order 12866; and, therefore has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
There are no administrative procedures that must be exhausted prior to
any judicial challenge to the provisions of this rule.
Regulatory Flexibility Act and Paperwork Reduction Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this action on small entities and has determined that its
implementation will not have a significant economic impact on a
substantial number of small businesses.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. There are an estimated 25,000 cotton
growers in the U.S. who voluntarily use the AMS cotton classing
services annually, and the majority of these cotton growers are small
businesses under the criteria established by the Small Business
Administration (13 CFR 121.201). Maintaining the user fee at the 2012
crop level as stated will not significantly affect small businesses as
defined in the RFA because:
(1) The fee represents a very small portion of the cost per-unit
currently borne by those entities utilizing the services. (According to
USDA's Economic Research Service, the U.S. average total cost of
production in 2011 was $755 per bale. The user fee for classification
services of $2.20 per bale represents less the one third percent of
this average U.S. per-bale cost of production.);
(2) The fee for services will not affect competition in the
marketplace;
(3) The use of classification services is voluntary. For the 2012
crop, 16,800,600 bales were produced; and, almost all of these bales
were voluntarily submitted by growers for the classification service;
and
(4) Based on the average price paid to growers for cotton from the
2012 crop of 0.7162 cents per pound, 500 pound bales of cotton are
worth an average of $358.10 each. The user fee for classification
services, $2.20 per bale, is less than one percent of the value of an
average bale of cotton.
In compliance with OMB regulations (5 CFR part 1320), which
implement the Paperwork Reduction Act (PRA) (44 U.S.C. 3501), the
information collection requirements contained in the provisions to be
amended by this rule have been previously approved by OMB and were
assigned OMB control number 0581-0008, Cotton Classing, Testing, and
Standards.
Fees for Classification Under the Cotton Statistics and Estimates Act
of 1927
This final rule establishes a 2013 user fee of $2.20 per bale
charged to producers for cotton classification--the same level as the
2012 user fee. The 2013 user fee was set in accordance to section 14201
of the Food, Conservation, and Energy Act of 2008 (Pub. L. 110-234)
(2008 Farm Bill). Section 14201 of the 2008 Farm Bill provides that:
(1) the Secretary shall make available cotton classification services
to producers of cotton, and provide for the collection of
classification fees from participating producers or agents that
voluntarily agree to collect and remit the fees on behalf of the
producers; (2) classification fees collected and the proceeds from the
sales of samples submitted for classification shall, to the extent
practicable, be used to pay the cost of the services provided,
including administrative and supervisory costs; (3) the Secretary shall
announce a uniform classification fee and any applicable surcharge for
classification services not later than June 1 of the year in which the
fee applies; and (4) in establishing the amount of fees under this
section, the Secretary shall consult with representatives of the United
States cotton industry. At pages 313-314, the Joint Explanatory
Statement of the committee of conference for section 14201 stated the
expectation that the cotton classification fee would be established in
the same manner as was applied during the 1992 through 2007 fiscal
years. Specifically, it states that the classification fee should
continue to be a basic, uniform fee per bale fee as determined
necessary to maintain cost-effective cotton classification service.
Further, in consulting with the cotton industry, the Secretary should
demonstrate the level of fees necessary to maintain effective cotton
classification services and provide the Department of Agriculture with
an adequate operating reserve, while also working to limit adjustments
in the year-to-year fee.
Under the provisions of section 14201, a user fee (dollar amount
per bale classed) is established for the 2013 cotton crop that, when
combined with
[[Page 32068]]
other sources of revenue, will result in projected revenues sufficient
to reasonably cover budgeted costs--adjusted for inflation--and allow
for adequate operating reserves to be maintained. Costs considered in
this method include salaries, costs of equipment and supplies, and
other overhead costs, such as facility costs and costs for
administration and supervision. In addition to covering expected costs,
the user fee is set such that projected revenues will generate an
operating reserve adequate to effectively manage uncertainties related
to crop size and cash-flow timing. Furthermore, the operating reserve
is expected to meet minimum reserve requirements set by the
Agricultural Marketing Service, which require maintenance of a reserve
fund amount equal to at least four months of projected operating costs.
The user fee charged cotton producers for cotton classification in
2013 is $2.20 per bale, which is the same fee charged for the 2012
crop. This fee is based on the preseason projection that 13,250,000
bales will be classed by the United States Department of Agriculture
during the 2013 crop year.
Accordingly, Sec. 28.909, paragraph (b) reflects the continuation
of the cotton classification fee at $2.20 per bale.
As provided for in the 1987 Act, a 5 cent per bale discount
continues to be applied to voluntary centralized billing and collecting
agents as specified in Sec. 28.909(c).
Growers or their designated agents receiving classification data
continue to incur no additional fees if classification data is
requested only once. The fee for each additional retrieval of
classification data in Sec. 28.910 remains at 5 cents per bale. The
fee in Sec. 28.910 (b) for an owner receiving classification data from
the National Database remains at 5 cents per bale, and the minimum
charge of $5.00 for services provided per monthly billing period
remains the same. The provisions of Sec. 28.910 (c) concerning the fee
for new classification memoranda issued from the National Database for
the business convenience of an owner without reclassification of the
cotton remains the same at 15 cents per bale or a minimum of $5.00 per
sheet.
The fee for review classification in Sec. 28.911 is maintained at
$2.20 per bale.
The fee for returning samples after classification in Sec. 28.911
remains at 50 cents per sample.
Summary of Comments
A proposed rule was published in the Federal Register on March 28,
2013, with a comment period of March 28, 2013 through April 12, 2013
(78 FR 18898). AMS received two comments: one from a national trade
organization that represents approximately 80 percent of the US cotton
industry, including cotton producers, ginners, warehousemen, merchants,
cooperatives, cottonseed processors, and textile manufacturers from
Virginia to California; and one from a national trade organization
comprised of eight state and regional membership organizations that
represent approximately 680 individual cotton ginning operations in 17
cotton-producing states. Comments from these national trade
organizations expressed support for the decision to maintain the fee at
the level established for the 2012 crop. Comments may be viewed at
www.regulations.gov.
List of Subjects in 7 CFR Part 28
Administrative practice and procedure, Cotton, Reporting and
recordkeeping requirements, Warehouses.
For the reasons set forth in the preamble, 7 CFR part 28 is amended
to read as follows:
PART 28--[Amended]
0
1. The authority citation for 7 CFR part 28, Subpart D, continues to
read as follows:
Authority: 7 U.S.C. 51-65; 471-476.
0
2. In Sec. 28.909, paragraph (b) is revised to read as follows:
Sec. 28.909 Costs.
* * * * *
(b) The cost of High Volume Instrument (HVI) cotton classification
service to producers is $2.20 per bale.
* * * * *
0
3. In Sec. 28.911, the last sentence of paragraph (a) is revised to
read as follows:
Sec. 28.911 Review classification.
(a) * * * The fee for review classification is $2.20 per bale.
* * * * *
Dated: May 21, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-12651 Filed 5-28-13; 8:45 am]
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