[Federal Register Volume 79, Number 54 (Thursday, March 20, 2014)]
[Rules and Regulations]
[Pages 15539-15540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-06084]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 79, No. 54 / Thursday, March 20, 2014 / Rules
and Regulations
[[Page 15539]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Doc. No. AMS-FV-13-0040; FV13-922-1 FIR]
Apricots Grown in Designated Counties in Washington; Suspension
of Handling Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Affirmation of interim rule as final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim rule that suspended the handling
regulations and inspection requirements prescribed under the marketing
order for apricots grown in designated Counties in Washington (order).
The interim rule suspended the minimum grade, size, quality, maturity,
and inspection requirements of the order for the remainder of the 2013-
2014 fiscal period and subsequent fiscal periods. This rule is expected
to reduce overall industry expenses and increase net returns to growers
and handlers.
DATES: Effective March 21, 2014.
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; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email:
[email protected] or [email protected].
Small businesses may obtain information on complying with this and
other marketing order and agreement regulations by viewing a guide at
the following Web site: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide; or by contacting Jeffrey Smutny,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence Avenue 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 No. 132 and Order No. 922, both as amended (7 CFR Part 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.''
USDA is issuing this rule in conformance with Executive Orders
12866, 13175, and 13563.
The handling of apricots grown in designated Counties in Washington
is regulated by 7 CFR part 922. The order's handling regulation
contains minimum grade, size, quality, maturity, pack, and container
requirements of apricots handled under the order. The objective of the
handling regulation has been to ensure that only acceptable quality
apricots enter fresh market channels to foster consumer satisfaction,
increase sales, and improve returns to producers.
Due to the evolving nature of fresh fruit marketing, many wholesale
and retail apricot buyers have developed their own specific criteria
that their suppliers are required to meet to ensure a high quality
product. Many of these buyer standards are higher than those in effect
under the order. For this reason, the Committee believes that buyer
standards now override the minimum standards of the order and that the
order's regulations are no longer necessary.
In addition, the Committee believes that the cost of complying with
the order's handling regulations, when such regulations are in effect,
may exceed the benefits. Because handlers must comply with both their
buyer's requirements and the order regulations, two sets of compliance
expenses are incurred. Because the buyer requirements are more
stringent than the order's, the Committee believes that the cost of
complying with them does not result in any additional benefit to
producers or handlers.
Therefore, this rule continues in effect the interim rule that
suspended the handling regulations prescribed in Sec. 922.321 for the
remainder of the 2013-2014 fiscal period and subsequent fiscal periods.
The order contains provisions for handlers to apply for waivers
from mandatory inspection when such inspection is not readily available
from the Inspection Service. With the suspension of the regulation,
such waivers are no longer necessary. Therefore, consistent with the
suspension of Sec. 922.321, this rule also continues in effect the
action that suspended Sec. 922.111 for the remainder of the 2013-2014
fiscal period and subsequent fiscal periods.
In an interim rule published in the Federal Register on October 23,
2013, and effective on October 24, 2013, (78 FR 62963, Doc. No. AMS-FV-
13-0040, FV13-922-1 IR), Sec. Sec. 922.111 and 922.321 were
indefinitely suspended in their entirety, beginning on October 24,
2013.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this action 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
businesses 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 growers of Washington 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) as those having annual receipts
of less than $750,000, and small agricultural service firms as those
having annual receipts of less than $7,000,000. (13 CFR 121.201)
The National Agricultural Statistics Service (NASS) reports that
the 2012 total production and utilization (including both fresh and
processed
[[Page 15540]]
markets) of Washington apricots was approximately 6,700 tons, the
average price was $1,250 per ton, and the total farm-gate value was
approximately $8,371,000. Based on these reports and the number of
apricot growers within the production area, it is estimated that the
2012 average revenue from the sale of apricots was approximately
$89,000. In addition, based on information from the USDA's Market News
Service, 2012 f.o.b. prices for WA No. 1 apricots ranged from $16.00 to
$24.00 per 24-pound loose-pack container, and from $18.00 to $27.00 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 is
concluded that the majority of growers and handlers of Washington
apricots may be classified as small entities.
This rule continues in effect the action that suspended the
handling regulations specified in Sec. Sec. 922.111 and 922.321 for
the remainder of the 2013-2014 fiscal period and subsequent fiscal
periods. The suspension of these handling regulations allows the
Washington apricot industry to market apricots without regard to the
minimum grade, size, quality, maturity, and inspection requirements
prescribed under the order. Authority for this action is provided in
Sec. 922.53.
This action is not expected to increase the costs associated with
the order requirements. Rather, this action allows handlers to decrease
their costs during the 2013-2014 fiscal period and subsequent fiscal
periods by eliminating the expense associated with mandatory
inspection. However, this rule does not impede handlers from seeking
inspection on a voluntary basis if they find inspection desirable. The
opportunities and benefits of this rule are equally available to all
Washington apricot handlers and producers, regardless of their size.
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 rule will not impose any additional reporting or recordkeeping
requirements on either small or large 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. In addition, USDA has not identified any
relevant Federal rules that duplicate, overlap or conflict with this
rule.
Further, 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 the Committee's deliberations.
Like all Committee meetings, the May 13, 2013, meeting was a public
meeting. All entities, both large and small, were able to express their
views on this issue.
Comments on the interim rule were required to be received on or
before December 23, 2013. No comments were received. Therefore, for the
reasons given in the interim rule, we are adopting the interim rule as
a final rule, without change.
To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-13-0040-0001.
This action also affirms information contained in the interim rule
concerning Executive Orders 12866, 12988, and 13563; the Paperwork
Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 U.S.C.
101), as well as the findings in the interim rule that the regulatory
requirements no longer tend to effectuate the declared policy of the
Act.
After consideration of all relevant material presented, it is found
that finalizing the interim rule, without change, as published in the
Federal Register (78 FR 62963, October 23, 2013) will tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 922
Apricots, Marketing agreements, Reporting and recordkeeping
requirements.
PART 922--[AMENDED]
0
Accordingly, the interim rule that amended 7 CFR part 922 and was
published at 78 FR 62963 on October 23, 2013, is adopted as a final
rule, without change.
Dated: February 26, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-06084 Filed 3-19-14; 8:45 am]
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