[Federal Register Volume 59, Number 156 (Monday, August 15, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-19893] [[Page Unknown]] [Federal Register: August 15, 1994] ----------------------------------------------------------------------- DEPARTMENT OF AGRICULTURE 7 CFR Parts 958 and 982 [Docket Nos. FV94-958-1FIR, FV94-982-2FIR] Expenses and Assessment Rates for Specified Marketing Orders (Idaho-Eastern Oregon Onions and Oregon and Washington Filberts/ Hazelnuts) AGENCY: Agricultural Marketing Service, USDA. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Department of Agriculture (Department) is adopting as a final rule, without change, the provisions of two interim final rules that authorized expenditures and established assessment rates under Marketing Orders 958 and 982 for the 1994-95 fiscal period. Authorization of these budgets enables the Idaho-Eastern Oregon Onion Committee and the Filbert/Hazelnut Marketing Board (Committee and Board) to incur expenses that are reasonable and necessary to administer the programs. Funds to administer these programs are derived from assessments on handlers. EFFECTIVE DATE: Sections 958.238 and 982.338 are effective July 1, 1994, through June 30, 1995. FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Marketing Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720- 9918; Robert J. Curry (M.O. 958) or Teresa L. Hutchinson (M.O. 982), Northwest Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, Green-Wyatt Federal Building, room 369, 1220 Southwest Third Avenue, Portland, OR 97204, telephone 503-326-2724. SUPPLEMENTARY INFORMATION: This rule is effective under Marketing Agreement No. 130 and Order No. 958, both as amended (7 CFR part 958), regulating the handling of onions grown in designated counties in Idaho, and Malheur County, Oregon; and Marketing Agreement and Order No. 982, both as amended (7 CFR part 982), regulating the handling of filberts/hazelnuts grown in Oregon and Washington. The marketing agreements and orders are 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 (Department) is issuing this rule in conformance with Executive Order 12866. This rule has been reviewed under Executive Order 12778, Civil Justice Reform. Under the marketing order provisions now in effect, Idaho-Eastern Oregon onions and Oregon-Washington filberts/hazelnuts are subject to assessments. It is intended that the assessment rates as issued herein will be applicable to all assessable onions and filberts/ hazelnuts handled during the 1994-95 fiscal period, which began July 1, 1994, and ends June 30, 1995. 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 the Secretary 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 requesting a modification of the order or to be exempted therefrom. A handler is afforded the opportunity for a hearing on the petition. After the hearing the Secretary 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 in equity to review the Secretary's ruling on the petition, provided a bill in equity is filed not later than 20 days after the date of the entry of the ruling. Pursuant to requirements set forth in the Regulatory Flexibility Act (RFA), the Administrator of the Agricultural Marketing Service (AMS), has considered the economic impact of this rule on small entities. 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. Thus, both statues have small entity orientation and compatibility. There are approximately 450 producers of Idaho-Eastern Oregon onions under Marketing Order 958, and approximately 35 handlers. Also, there are approximately 950 producers of Oregon and Washington filberts/hazelnuts under Marketing Order 982, and approximately 21 handlers. Small agricultural producers have been defined by the Small Business Administration (13 CFR 121.601) as those having annual receipts of less than $500,000, and small agricultural service firms are defined as those whose annual receipts are less than $5,000,000. The majority of the producers and handlers covered under these orders may be classified as small entities. The budgets of expenses for the 1994-95 fiscal period were prepared by the Committee and the Board, the agencies responsible for local administration of their respective orders, and submitted to the Department for approval. The members of this Committee and the Board are producers and handlers of Idaho-Eastern Oregon onions and Oregon and Washington filberts/hazelnuts. They are familiar with the Committee's and Board's needs and with the costs for goods and services in their local areas and are thus in a position to formulate appropriate budgets. The budgets were formulated and discussed by the Committee and Board. Thus, directly affected persons have had an opportunity to participate and provide input. The recommended assessment rates were derived by dividing anticipated Committee and Board expenses by expected respective shipments of Idaho-Eastern Oregon onions and assessable Oregon and Washington filberts/hazelnuts handled. Because these rates will be applied to actual shipments of onions and of assessable filberts/ hazelnuts, the assessment rates must be established at levels that will provide sufficient income to pay the Committee's and Board's expenses. The Idaho-Eastern Oregon Onion Committee met on March 22, 1994, and unanimously recommended a 1994-95 budget of $1,020,039, $10,161 less than the previous year. Increases in expenditures, which include $154 for research and $18,500 for promotion and advertising, will be offset by decreases of $18,495 for salary expenses and $10,320 for travel and office expenses. Major expenses items include $113,785 for salary expenses, $57,600 for travel and office expenses, $60,154 for research, $668,500 for promotion and advertising, $60,000 for export, and $50,000 for contingencies. The Committee also unanimously recommended an assessment rate of $0.10 per hundredweight, the same as last season. This rate, when applied to anticipated shipments of 8,000,000 hundredweight, will yield $800,000 in assessment income. This, along with $30,000 in interest income and $190,039 from the Committee's authorized reserve, will be adequate to cover budgeted expenses. Funds in the reserve at the beginning of the 1994-95 fiscal period, estimated at $898,928, were within the maximum permitted by the order of one fiscal period's expenses. In a mail vote conducted the week of March 28, 1994, the Filbert/ Hazelnut Marketing Board unanimously recommended a 1994-95 budget of $507,010, $97,215 more than the previous year. The major budget item is $250,000 for the Board's promotion program to maintain and expand markets for filberts/hazelnuts. This is $30,000 more than budgeted last year for promotion. Other increases include $2,865 for general and administrative expenses, $1,350 for furniture, $1,000 for a crop survey, $20,000 for research, and $42,000 for the emergency reserve fund. The Board also unanimously recommended an assessment rate of $0.007 per pound, the same as last year. This rate, when applied to anticipated shipments of 56,000,000 pounds, will yield $392,000 in assessment income. This, along with $28,000 from previously unassessed 1993 crop filberts, $6,000 in interest income, and $81,010 from the Board's authorized reserve, will be adequate to cover budgeted expenses. Funds in the reserve at the beginning of the 1994-95 marketing year, estimated at $453,673, were within the maximum permitted by the order of one marketing year's expenses. Interim final rules were published in the Federal Register on May 12, 1994, for 7 CFR part 958 (59 FR 24631) and 7 CFR part 982 (59 FR 24632). Those rules added Sec. 958.238 and Sec. 982.338 which authorized expenses, and established assessment rates for the Committee and Board. Those rules provided that interested persons could file comments through June 13, 1994. No comments were received. While this action will impose some additional costs on handlers, the costs are in the form of uniform assessments on handlers. Some of the additional costs may be passed on to producers. However, these costs will be offset by the benefits derived by the operation of the marketing orders. Therefore, the Administrator of the AMS has determined that this action will not have a significant economic impact on a substantial number of small entities. It is found that the specified expenses for the marketing orders covered in this rulemaking are reasonable and likely to be incurred and that such expenses and the specified assessment rates to cover such expenses will tend to effectuate the declared policy of the Act. It is further found that good cause exists for not postponing the effective date of this action until 30 days after publication in the Federal Register (5 U.S.C. 553) because the Committee and Board need to have sufficient funds to pay their expenses which are incurred on a continuous basis. The 1994-95 fiscal periods for the programs began on July 1, 1994. The marketing orders require that the rates of assessment for the fiscal periods apply to all assessable onions and filberts/ hazelnuts handled during the fiscal periods. In addition, handlers are aware of these actions which were recommended by the Committee and Board and published in the Federal Register as interim final rules. List of Subjects 7 CFR part 958 Marketing agreements, Onions, Reporting and recordkeeping requirements. 7 CFR part 982 Filberts, Hazelnuts, Marketing agreements, Nuts, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR parts 958 and 982 are amended as follows: PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND MALHEUR COUNTY, OREGON Accordingly, the interim rule amending 7 CFR part 958 which was published at 59 FR 24631 on May 12, 1994, is adopted as a final rule without change. PART 982--FILBERTS/HAZELNUTS GROWN IN OREGON AND WASHINGTON Accordingly, the interim rule amending 7 CFR part 982 which was published at 59 FR 24632 on May 12, 1994, is adopted as a final rule without change. Dated: August 8, 1994. Robert C. Keeney, Deputy Director, Fruit and Vegetable Division. [FR Doc. 94-19893 Filed 8-12-94; 8:45 am] BILLING CODE 3410-02-P