[Federal Register Volume 67, Number 164 (Friday, August 23, 2002)]
[Rules and Regulations]
[Pages 54565-54567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-21538]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 67, No. 164 / Friday, August 23, 2002 / Rules
and Regulations
[[Page 54565]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Docket No. FV02-922-1 FR]
Apricots Grown in Designated Counties in Washington; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule increases the assessment rate established for the
Washington Apricot Marketing Committee (Committee) for the 2002-03 and
subsequent fiscal periods from $2.00 to $2.50 per ton of apricots
handled. The Committee locally administers the marketing order which
regulates the handling of apricots grown in designated counties in
Washington. Authorization to assess apricot handlers enables the
Committee to incur expenses that are reasonable and necessary to
administer the program. The fiscal period began April 1 and ends March
31. The assessment rate will remain in effect indefinitely unless
modified, suspended, or terminated.
EFFECTIVE DATE: August 26, 2002.
FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson, Northwest Marketing
Field Office, Fruit and Vegetable Programs, AMS, USDA, 1220 SW Third
Avenue, suite 385, Portland, OR 97204; telephone: (503) 326-2724, Fax:
(503) 326-7440; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237;
telephone: (202) 720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or e-mail: [email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 132 and Marketing 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.''
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, Washington
apricot handlers are subject to assessments. Funds to administer the
order are derived from such assessments. It is intended that the
assessment rate as proposed herein will be applicable to all assessable
apricots beginning on April 1, 2002, and continue until amended,
suspended, or terminated. 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 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 increases the assessment rate established for the
Committee for the 2002-03 and subsequent fiscal periods from $2.00 to
$2.50 per ton of apricots handled.
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 growers and handlers of
Washington apricots. 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 1997-98 and subsequent fiscal periods, the Committee
recommended, and 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 15, 2002, and unanimously recommended
2002-03 expenditures of $11,685 and an assessment rate of $2.50 per ton
of apricots. In comparison, last year's budgeted expenditures were
$11,230. The recommended rate is $.50 higher than the rate currently in
effect. The increase is necessary to offset an increase in salaries and
operating expenses, and an anticipated decrease in production due to
the adverse effect of cooler temperatures on the size and quality of
the 2002 apricot crop.
The major expenditures recommended by the Committee for the 2002-03
fiscal period include $5,892 for salaries, $1,000 for travel, $816 for
rent and maintenance, and $540 for office equipment and repair.
Budgeted expenses for these items in 2001-2002 were $5,731, $1,000,
$792, and $264, respectively.
Washington apricot shipments for 2002 are estimated at 3,650 tons
which should provide $9,125 in assessment income. This income, along
with approximately $2,540 from the Committee's authorized reserve,
should be adequate to cover budgeted expenses. Funds in the reserve
(currently $8,257) would be kept within the maximum
[[Page 54566]]
permitted by the order. The order permits an operating reserve in an
amount not to exceed approximately one fiscal period's operational
expenses (Sec. 922.42).
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 will be in effect 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 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 2002-03 budget and those
for subsequent fiscal periods will be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this rule 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
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 statutes have small
entity orientation and compatibility.
There are approximately 200 producers of apricots in the production
area and approximately 30 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (13 CFR 121.201) as those having annual
receipts of less than $750,000, and small agricultural service firms
are defined as those whose annual receipts are less than $5,000,000.
Based on a three-year average fresh apricot production of 4,406
tons (Committee records), a three-year average of producer prices of
$832 per ton reported by the National Agricultural Statistics Service,
and 200 Washington apricot producers, the average annual producer
revenue is approximately $18,329. In addition, based on Committee
records and 2001 F.O.B. prices ranging from $14.50 to $22.50 per 24-
pound container reported by USDA's Market News Service, all of the
Washington apricot handlers ship under $5,000,000 worth of apricots. In
view of the foregoing, it can be concluded that all of the Washington
apricot producers and handlers may be classified as small entities.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2002-03 and subsequent
fiscal periods from $2.00 to $2.50 per ton of apricots. The Committee
unanimously recommended 2002-03 expenditures of $11,685 and an
assessment rate of $2.50 per ton. The increased assessment rate is $.50
higher than the 2001-02 rate. The quantity of assessable apricots for
the 2002-03 fiscal period is estimated at 3,650 tons. Income derived
from handler assessments (approximately $9,125), along with funds from
the Committee's authorized reserve, should be adequate to cover
budgeted expenses.
The major expenditures recommended by the Committee for the 2002-03
fiscal period include $5,892 for salaries, $1,000 for travel, $816 for
rent and maintenance, and $540 for office equipment and repair.
Budgeted expenses for these items in 2001-02 were $5,731, $1,000, $792,
and $264, respectively.
The assessment rate increase is necessary to offset increases in
salaries and operating expenses, and an anticipated decrease in
production due to the adverse effect of cooler temperatures on the size
and quality of the 2002 apricot crop. As of March 31, 2002, the
Committee's reserve was $8,257. At the previous assessment rate of
$2.00 per ton and an estimated 2002 apricot production of 3,650 tons,
the projected reserve on March 31, 2003, would have been $3,872. The
Committee believed that such a level of reserve would not have been
adequate should there have been another reduced crop. At the rate of
$2.50 per ton (assessment income of $9,125) and expenditures of
$11,685, the Committee may need to draw up to $2,540 from its reserve.
If reserve funds in this amount are needed, the projected reserve will
be approximately $5,697 on March 31, 2003, which the Committee
determined to be acceptable.
The Committee considered alternate levels of assessment but
determined that increasing the assessment rate to $2.50 per ton is
adequate to maintain the reserve at an acceptable level. The Committee
decided that an assessment rate between $2.00 per ton and $2.50 per ton
would not have maintained the reserve at an adequate level. Prior to
arriving at this rate of assessment, the Committee considered
information from various sources, such as the Committee's Finance and
Executive Committees.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the producer
price for the 2002-03 fiscal period could range between $800 and $850
per ton of apricots. Therefore, the estimated assessment revenue for
the 2002-03 as a percentage of total producer revenue could range
between 0.31 and 0.29 percent.
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
are offset by the benefits derived by the operation of the order. 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 15, 2002, meeting was a
public meeting and all entities, both large and small, were able to
express views on this issue.
This rule 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on July 1, 2002 (67 FR 44095). Washington apricot handlers
were also notified of the increased assessment rate. Finally, the
proposal was made available through the Internet by the Office of the
Federal Register and USDA. A 30-day comment period ending July 31,
2002, was provided for interested persons to respond to the proposal.
No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop
[[Page 54567]]
marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about the compliance guide
should be sent to Jay Guerber 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 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
2002-03 fiscal period began on April 1, 2002, and the order requires
that the rate of assessment for each fiscal period apply to all
assessable apricots handled during such fiscal period; (2) the
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis; and (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.
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
1. The authority citation for 7 CFR part 922 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 922.235 is revised to read as follows:
Sec. 922.235 Assessment rate.
On and after April 1, 2002, an assessment rate of $2.50 per ton is
established for the Washington Apricot Marketing Committee.
Dated: August 19, 2002.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 02-21538 Filed 8-22-02; 8:45 am]
BILLING CODE 3410-02-P