[Federal Register Volume 79, Number 42 (Tuesday, March 4, 2014)]
[Rules and Regulations]
[Pages 12037-12040]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04690]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1220
[Docket No. AMS-LPS-13-0066]
Soybean Promotion, Research, and Consumer Information Program:
Amendment of Procedures and Notification of Request for Referendum
AGENCY: Agricultural Marketing Service (AMS); U.S. Department of
Agriculture (USDA).
ACTION: Interim final rule with opportunity for comments.
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SUMMARY: This interim final rule would amend the procedures to Request
a Referendum by removing the specific number of soybean producers
eligible to request a referendum under the Soybean Promotion, Research,
and Consumer Information program, commonly known as the Soybean
Checkoff Program. The number of soybean producers will be replaced with
language that allows the Secretary of Agriculture (Secretary) to update
this number based on information provided by USDA. Additionally, this
action would remove specific USDA and Farm Service Agency (FSA) Web
site and office addresses and replace them with more flexible language.
These changes will enable AMS to announce future Requests for
Referendum without engaging in additional notice-and-comment
rulemaking. This rule also serves as AMS' official notice that soybean
producers may request a referendum to determine if producers want a
referendum on the Soybean Promotion and Research Order (Order), as
authorized under the Soybean Promotion, Research, and Consumer
Information Act (Act). If at least 10 percent (not in excess of one-
fifth of which may be producers in any one State) of eligible
producers, as determined by USDA, participate in the Request for
Referendum, a referendum will be held within 1 year from that
determination. If results of the Request for Referendum indicate that a
referendum is not supported, a referendum would not be conducted. The
results of the Request for Referendum will be published in the Federal
Register.
DATES: Effective March 5, 2014. Comments must be received by April 3,
2014.
ADDRESSES: Comments may be posted online at www.regulations.gov, or
sent to James R. Brow, Agricultural Marketing Specialist, Research and
Promotion Division, Livestock, Poultry and Seed Program, AMS, USDA,
Room 2610-S, STOP 0251, 1400 Independence Avenue SW., Washington, DC,
20250-0251; or via Fax to (202) 720-1125. Comments will be made
available for public inspection at the above address during regular
business hours or via the Internet at www.regulations.gov. Comments
received will be posted without change, including any personal
information provided. All comments should reference the document
number, Document No. AMS-LPS-13-0066; the date of submission; and the
page number of this issue in the Federal Register.
AMS also announces that soybean producers may request a referendum
during a 4-week period beginning on May 5, 2014, and ending May 30,
2014. To be eligible to participate in the Request for Referendum,
producers must certify that they or the producer entity they are
authorized to represent paid an assessment at any time between January
1, 2012, and December 31, 2013.
Form LS-51-1, Soybean Promotion and Research Order Request for
Referendum, may be obtained by mail, fax, or in person from FSA county
offices from May 5, 2014, to May 30, 2014. Form LS-51-1 may also be
obtained via the internet at http://www.ams.usda.gov/AMSv1.0/SoybeanInformationontheSoybeanRequestforReferendum during the same time
period. Completed forms and supporting documentation must be returned
to the appropriate county FSA office by fax or in person no later than
close of business May 30, 2014; or if returned by mail, must be
postmarked by midnight May 30, 2014, and received in the county FSA
office by close of business on June 6, 2014.
FOR FURTHER INFORMATION CONTACT: James Brow, Agricultural Marketing
Specialist, Research and Promotion Division, Livestock, Poultry and
Seed Program, AMS, USDA, Room 2092-S, STOP 0251, 1400 Independence
Avenue SW., Washington, DC, 20250-0251; Telephone 202/720-0633; Fax
202/720-1125; email to [email protected] or Rick Pinkston, Field
Operations Staff, FSA, USDA, at Telephone 202/720-1857, Fax 202/720-
1096, or by email at [email protected].
SUPPLEMENTARY INFORMATION:
Executive Order 12866 and Executive Order 13563
Executive Orders 12866 and 13563 direct agencies to assess all
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health, and safety effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the importance of quantifying both
costs and benefits, reducing costs, harmonizing rules, and promoting
flexibility. This action has been designated as a ``non-significant
regulatory action'' under Sec. 3(f) of Executive Order 12866.
Accordingly, the Office of Management and Budget (OMB) has waived the
review process.
Executive Order 13175
This interim final rule has been reviewed in accordance with the
requirements of Executive Order 13175, Consultation and Coordination
with Indian Tribal Governments. The review reveals that this interim
final rule would not have substantial and direct effects on Tribal
Governments and would not have significant tribal implications.
Executive Order 12988
This interim final rule has been reviewed under Executive Order
12988, Civil Justice Reform. This action is not intended to have a
retroactive effect.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 1971 of the Act, a
person subject
[[Page 12038]]
to the Order may file a petition with USDA stating that the Order, any
provision of the Order, or any obligation imposed in connection with
the Order, is not in accordance with the law and request a modification
of the Order or an exemption from the Order. The petitioner is afforded
the opportunity for a hearing on the petition. After a hearing, USDA
would rule on the petition. The Act provides that district courts of
the United States in any district in which such person is an
inhabitant, or has their principal place of business, has jurisdiction
to review USDA's ruling on the petition, if a complaint for this
purpose is filed within 20 days after the date of the entry of the
ruling.
Further, section 1974 of the Act provides, with certain exceptions,
that nothing in the Act may be construed to preempt or supersede any
other program relating to soybean promotion, research, consumer
information, or industry information organized under the laws of the
United States or any State. One exception in the Act concerns
assessments collected by Qualified State Soybean Boards (QSSBs). The
exception provides that to ensure adequate funding of the operations of
QSSBs under the Act, no State law or regulation may limit or have the
effect of limiting the full amount of assessments that a QSSB in that
State may collect, and which is authorized to be credited under the
Act. Another exception concerns certain referenda conducted during
specified periods by a State relating to the continuation of a QSSB or
State soybean assessment.
Regulatory Flexibility Act
In accordance with the Regulatory Flexibility Act (RFA) (5 U.S.C.
601-612), USDA is required to examine the impact of the interim final
rule on small entities. 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.
For the purpose of the Request for Referendum, the Secretary would
use the most recent number of soybean producers identified by FSA. The
latest number of soybean producers identified by FSA is 569,998 and was
obtained using information from 2011 and 2012 acreage reports. The data
were sorted in such a manner as to include all producers that were
engaged in the production of soybeans in at least one of the 2 years
and exclude counting a producer more than once if that producer engaged
in production during both years. The majority of producers subject to
the Order are small businesses under the criteria established by the
Small Business Administration (SBA) [13 CFR 121.201]. SBA defines small
agricultural producers as those having annual receipts of less than
$750,000.
This interim final rule would amend the procedures to request a
referendum by removing the specific number of soybean producers
eligible to request a referendum under the Soybean Promotion, Research,
and Consumer Information program, commonly known as the Soybean
Checkoff Program. The number of soybean producers will be replaced with
language that allows the Secretary to update this number based on
information provided by USDA. Additionally, this action would remove
specific USDA and FSA Web site and office addresses in Sec. Sec.
1220.619, 1220.622, 1220.628, and replace them with more flexible
language. Further, the information collection requirements are minimal.
Requesting form LS-51-1 to participate in a Request for Referendum may
be done by mail, in-person, by facsimile, or via the Internet and would
not impose a significant economic burden on participants.
Accordingly, the Administrator of AMS has determined that this
interim final rule will not have a significant economic impact on a
substantial number of small business entities.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the reporting and recordkeeping requirements included in 7
CFR part 1220 were previously approved by OMB and were assigned control
number 0581-0093.
Background
The Act (7 U.S.C. 6301-6311) provides for the establishment of a
coordinated program of promotion and research designed to strengthen
the soybean industry's position in the marketplace, and to maintain and
expand domestic and foreign markets and uses for soybeans and soybean
products. The program is financed by an assessment of 0.5 of 1 percent
of the net market price of soybeans sold by producers. The final rule
establishing a Soybean Promotion, Research, and Consumer Information
program was published in the July 9, 1991, issue of the Federal
Register (56 FR 31043), and assessments began on September 1, 1991.
The Act required that an initial referendum be conducted no earlier
than 18 months and not later than 36 months after the issuance of the
Order to determine whether the Order should be continued. The initial
referendum was conducted on February 9, 1994. On April 1, 1994, the
Secretary announced that of the 85,606 valid ballots cast, 46,060 (53.8
percent) were in favor of continuing the Order and the remaining 39,546
votes (46.2 percent) were against continuing the Order. The Act
required approval by a simple majority for the Order to continue.
The Act also required that within 18 months after the Secretary
announced the results of the initial referendum, the Secretary would
conduct a poll among producers to determine if producers favored a
referendum on the continuance of the payment of refunds under the
Order.
A July 25, 1995, nationwide poll of soybean producers did not
generate sufficient support for a refund referendum to be held. A
refund referendum would have been held if at least 20 percent (not in
excess of one-fifth of which may be producers in any one State) of the
381,000 producers (76,200) nationwide requested it. Only 48,782 soybean
producers participated in the poll. Consequently, refunds were
discontinued on October 1, 1995.
The Act also specifies that the Secretary shall, 5 years after the
conduct of the initial referendum and every 5 years thereafter, provide
soybean producers an opportunity to request a referendum on the Order.
Additionally, the Act specifies that these subsequent polls require
that at least 10 percent (not in excess of one-fifth in any one State)
of all producers must request a referendum in order to trigger the
conduct of a referendum. If a referendum is requested, it will be held
within 1 year of that determination.
From October 1 to November 16, 1999, a nationwide Request for
Referendum was conducted to determine if there was sufficient interest
among soybean producers to vote on whether to continue the soybean
checkoff program. Ten percent of the eligible 600,813 soybean producers
nationwide (not in excess of one-fifth of which may be producers in any
one State) were needed to participate in the Request for Referendum to
trigger a referendum. Only 17,970 eligible soybean producers completed
valid requests.
Five years later, another Request for Referendum was conducted May
1, 2004, through May 28, 2004. As in the prior Request for Referendum,
the purpose was to determine if there was sufficient interest among
soybean producers to vote on whether to continue the soybean checkoff
program. To be eligible to participate in the Request for Referendum,
producers or the producer entity that they are
[[Page 12039]]
authorized to represent had to certify and provide supporting
documentation showing that they or the producer entity they represent
paid an assessment sometime during the representative period between
January 1, 2002, and December 31, 2003. Ten percent of the total
eligible 663,880 soybean producers nationwide (not in excess of one-
fifth of which may be producers in any one State) were needed to
participate in the Request for Referendum to trigger a referendum. Only
3,206 eligible soybean producers completed valid Requests for
Referendum. This number did not meet the requisite number of 66,388;
therefore, a referendum was not conducted.
The most recent Request for Referendum was conducted from May 4,
2009, to May 29, 2009, at FSA county offices. To trigger the
referendum, ten percent of the total eligible 589,180 soybean producers
(not in excess of one-fifth of which may be producers in any one State)
needed to complete the Request for Referendum. A total of 759 valid
Requests for Referendum were completed. This number did not meet the
requisite number of 58,918. Therefore, a referendum was not conducted.
Changes to the Regulations
AMS is amending the language in Sec. 1220.616 to remove the
specific number of soybean procedures from the regulatory language.
Data provided by FSA has been used to amend the number of soybean
procedures prior to any Request for Referendum. The data were sorted in
such a manner as to include all producers that were engaged in the
production of soybeans in at least one of the 2 years and exclude
counting a producer more than once if that producer engaged in
production during both years. Using the last two crop year acreage
reports for which complete data is available ensures that all eligible
producers are counted, as some producers use soybeans in rotation with
other crops and do not plant soybeans every year or the market for some
producers in a particular crop year may not have been conducive to
growing soybeans. This methodology is consistent with that used during
the last amendment to Sec. 1220.616 in 2009.
Further, this change will enable AMS to announce future requests
for referendum without engaging in additional notice-and-comment
rulemaking.
In addition to the changes relating to the number of eligible
soybean producers, AMS also will amend Sec. Sec. 1220.619, 1220.622,
and 1220.628 regarding Web site addresses and office locations as a
result of internal changes within USDA, including AMS and FSA.
This interim final rule also provides official notice for the
upcoming Request for Referendum.
Notice of Request for Referendum
Soybean producers may request a referendum to determine if they
want a referendum on the Order, as authorized under the Act. To be
eligible to participate, producers must certify that they or the entity
they are authorized to represent paid an assessment at sometime between
January 1, 2012, and December 31, 2013. They must complete form LS 51-
1, Soybean Promotion and Research Order, Request for Referendum, in its
entirety in person, by mail, or by facsimile from May 5, 2014, through
May 30, 2014. Individual producers and other producer entities would
request a referendum at the county FSA office where FSA maintains and
processes the producer's, corporation's, or other entity's
administrative farm records. For the producer, corporation, or other
entity not participating in FSA programs, the opportunity to request a
referendum would be provided at the county FSA office serving the
county where the producer, corporation, or other entity owns or rents
land. Form LS 51-1 may also be obtained via the Internet at http://www.ams.usda.gov/AMSv1.0/SoybeanInformationontheSoybeanRequestforReferendum. If obtained by the
Internet, Form LS 51-1 must be completed in its entirety and returned
with the supporting documentation to the county FSA office where FSA
maintains and processes the producer's, corporation's, or other
entity's administrative farm records. For the producer, corporation, or
other entity not participating in FSA programs, the opportunity to
request a referendum would be provided at the county FSA office serving
the county where the producer, corporation, or other entity owns or
rents land.
Form LS 51-1 and accompanying supporting documentation may be
returned in person, by mail, or facsimile to the appropriate county FSA
office. Forms and supporting documentation returned in person or by
facsimile must be received in the appropriate county office prior to
the close of business of May 30, 2014. If returned by mail, Form LS 51-
1 and accompanying documentation must be postmarked no later than
midnight of May 30, 2014, and received in the county FSA office by
close of business on June 6, 2014. Supporting documentation could
include proof that an assessment was paid between January 1, 2012,
through December 31, 2013, sales receipt, etc.
Pursuant to 5 U.S.C. 553, it is 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 the rule until 30 days after publication in the Federal Register in
order to conduct the Request for Referendum in a timely manner,
consistent with the provisions of the Act and regulations.
A 30-day comment period is provided for interested persons to
comment on the changes to Sec. 1220.616. For the same reasons, this
comment period is deemed appropriate.
List of Subjects in 7 CFR Part 1220
Administrative practice and procedure, Advertising, Agricultural
research, Marketing agreements, Reporting and recordkeeping
requirements, Soybeans and soybean products.
For the reasons set forth in the preamble, 7 CFR Part 1220 is
amended as follows:
PART 1220--SOYBEAN PROMOTION, RESEARCH, AND CONSUMER INFORMATION
0
1. The authority citation for part 1220 continues to read as follows:
Authority: 7 U.S.C. 6301-6311 and 7 U.S.C. 7401.
Subpart F--Procedures to Request a Referendum
0
2. In Sec. 1220.616, paragraph (d) is revised to read as follows:
Sec. 1220.616 General.
* * * * *
(d) For purposes of paragraphs (b) and (c) of this section, the
number of soybean producers in the United States will be determined by
the Secretary using data provided by USDA.
0
3. In Sec. 1220.619, paragraph (b) is revised to read as follows:
Sec. 1220.619 Time and place for requesting a referendum.
* * * * *
(b) Producers can determine the location of county FSA offices by
contacting the nearest county FSA office in their State or by an online
search of FSA Web sites.
* * * * *
0
4. In Sec. 1220.622, paragraph (b) is revised as follows:
[[Page 12040]]
Sec. 1220.622 Certification and request procedures.
* * * * *
(b) To request a referendum, eligible producers may obtain form LS-
51-1 in person, by mail, or by facsimile during the request for
referendum period from the county FSA office where FSA maintains and
processes the producer's, corporation's, or other entity's
administrative farm records. For the producer, corporation, or other
entity not participating in FSA programs, the opportunity to request a
referendum would be provided at the county FSA office serving the
county where the producer, corporation, or other entity owns or rents
land. Eligible producers may also obtain form LS-51-1 via the Internet
at a Web site provided by the Secretary. For those persons who chose to
obtain form LS-51-1 via the Internet, the completed form and required
documentation must be submitted to the county FSA office where FSA
maintains and processes the producer's, corporation's, or other
entity's administrative farm records. For producers, corporations, or
other entities not participating in FSA programs, the opportunity to
request a referendum would be provided at the county FSA office serving
the county where the producer, corporation, or other entity owns or
rents land.
* * * * *
0
5. In Sec. 1220.628, paragraph (a) is revised as follows:
Sec. 1220.628 Results of the request for referendum.
(a) The Administrator, FSA, shall submit to the Administrator, AMS,
the reports from all State FSA offices. The Administrator, AMS, shall
tabulate the results of the Request for Referendum. USDA will issue an
official press release announcing the results of the Request for
Referendum and publish the same results in the Federal Register. In
addition, USDA will post the official results at a Web site address
provided by the Secretary. Subsequently, State reports and related
papers shall be available for public inspection upon request during
normal business hours at an address provided by the Secretary.
* * * * *
Dated: February 25, 2014.
Rex A. Barnes,
Associate Administrator.
[FR Doc. 2014-04690 Filed 3-3-14; 8:45 am]
BILLING CODE 3410-02-P