Irish Potatoes Grown in Washington; Increased Assessment Rate, 16759-16761 [05-6417]
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16759
Proposed Rules
Federal Register
Vol. 70, No. 62
Friday, April 1, 2005
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Docket No. FV05–946–1 PR]
Irish Potatoes Grown in Washington;
Increased Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
SUMMARY: This rule would increase the
assessment rate established for the State
of Washington Potato Committee
(Committee) for the 2005–2006 and
subsequent fiscal periods from $0.002 to
$0.0035 per hundredweight of potatoes
handled. The Committee locally
administers the marketing order which
regulates the handling of Irish potatoes
grown in Washington. Authorization to
assess potato handlers enables the
Committee to incur expenses that are
reasonable and necessary to administer
the program. The fiscal period begins
July 1 and ends June 30. The assessment
rate would remain in effect indefinitely
unless modified, suspended, or
terminated.
DATES: Comments must be received by
May 2, 2005.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. Comments must be
sent to the Docket Clerk, Marketing
Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue SW., STOP 0237,
Washington, DC 20250–0237; Fax: (202)
720–8938; E-mail:
moab.docketclerk@usda.gov; or Internet:
https://www.regulations.gov. Comments
should reference the docket number and
the date and page number of this issue
of the Federal Register and will be
available for public inspection in the
Office of the Docket Clerk during regular
business hours, or can be viewed at:
https://www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT:
Teresa L. Hutchinson, Marketing
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16:35 Mar 31, 2005
Jkt 205001
Specialist, Northwest Marketing Field
Office, Marketing Order Administration
Branch, 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 J. 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 SW.,
STOP 0237, Washington, DC 20250–
0237; Telephone: (202) 720–2491, Fax:
(202) 720–8938.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
No. 113 and Marketing Order No. 946,
both as amended (7 CFR part 946),
regulating the handling of Irish potatoes
grown 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 potato 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
would be applicable to all assessable
potatoes beginning July 1, 2005, and
continue until amended, suspended, or
terminated. This rule would 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
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Fmt 4702
Sfmt 4702
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 would increase the
assessment rate established for the
Committee for the 2005–2006 and
subsequent fiscal periods from $0.002 to
$0.0035 per hundredweight of potatoes
handled.
The 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
producers and handlers in Washington.
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 was formulated and
discussed at a public meeting, thus all
directly affected persons had an
opportunity to participate and provide
input.
For the 1997–98 and subsequent fiscal
periods, the Committee recommended,
and USDA approved, an assessment rate
of $0.002 per hundredweight of potatoes
handled. This assessment rate continues
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 February 3,
2005, and unanimously recommended
2005–2006 expenditures of $36,750 and
an increased assessment rate of $0.0035
per ton of potatoes. In comparison, last
year’s budgeted expenditures were
$38,500. The recommended assessment
rate is $0.0015 higher than the rate
currently in effect. The Committee
recommended the higher assessment
rate to maintain its monetary reserve at
a satisfactory level.
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Federal Register / Vol. 70, No. 62 / Friday, April 1, 2005 / Proposed Rules
The major expenditures
recommended by the Committee for the
2005–2006 fiscal period include $18,000
for surveillance inspections, $4,800 for
Washington State Potato Commission
(Commission) expenses, $3,000 for
office supplies, $3,000 for Committee
expense, $1,500 for Committee member
compensation, and $1,500 for the
financial audit. The Committee operates
under an agreement with the
Commission. The Commission provides
the Committee office space and
administrative services. Budgeted
expenses for these items in 2004–05
were $20,000, $4,800, $3,000, $1,500,
$1,500, and $2,000, respectively.
The assessment rate recommended by
the Committee was derived by
multiplying anticipated shipments of
Washington potatoes by various
assessment rates. Applying the $0.0035
per hundredweight assessment rate to
the Committee’s 10,000,000
hundredweight crop estimate should
provide $35,000 in assessment income.
Thus, income derived from handler
assessments and interest ($800) plus
$950 from the Committee’s monetary
reserve would be adequate to cover the
recommended $36,750 budget for 2005–
2006. Funds in the reserve were $50,277
as of January 31, 2005. The Committee
estimates that $17,700 will be deducted
from the reserve to cover budgeted
expenses for 2004–2005. Thus, the
Committee estimates a reserve of
$32,577 on June 30, 2005, which would
be within the maximum permitted by
the order of approximately two fiscal
period’s operational expenses (§ 946.42).
The proposed assessment rate would
continue in effect indefinitely unless
modified, suspended, or terminated by
USDA upon recommendation and
information submitted by the
Committee or other available
information.
Although the assessment rate would
be in effect for an indefinite period, the
Committee would 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 would evaluate the Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The
Committee’s 2005–2006 budget and
those for subsequent fiscal periods
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16:35 Mar 31, 2005
Jkt 205001
would be reviewed and, as appropriate,
approved by USDA.
Initial 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 initial 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 51 handlers
of Washington potatoes subject to
regulation under the order and
approximately 272 producers in the
regulated production area. Small
agricultural service firms are defined by
the Small Business Administration
(SBA) (13 CFR 121.201) as those having
annual receipts of less than $5,000,000,
and small agricultural producers are
defined as those having annual receipts
of less than $750,000.
During the 2003–2004 marketing year,
10,652,495 hundredweight of
Washington potatoes were inspected
under the order and sold into the fresh
market. Based on an estimated average
f.o.b. price of $7.45 per hundredweight,
the Committee estimates that 48
handlers, or about 94 percent, had
annual receipts of less than $5,000,000.
In addition, based on information
provided by the National Agricultural
Statistics Service, the average producer
price for Washington potatoes for the
2003 marketing year was $5.25 per
hundredweight. The average annual
producer revenue for the 272
Washington potato producers is
therefore calculated to be approximately
$205,609. In view of the foregoing, the
majority of the Washington potato
producers and handlers may be
classified as small entities.
This rule would increase the
assessment rate established for the
Committee and collected from handlers
for the 2005–2006 and subsequent fiscal
periods from $0.002 to $0.0035 per
hundredweight for potatoes. The
Committee unanimously recommended
2005–2006 expenditures of $36,750 and
the $0.0035 per hundredweight
assessment rate. The proposed
assessment rate of $0.0035 is $0.0015
higher than the 2003–2004 rate. With an
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Sfmt 4702
estimated 2005–2006 potato crop of
10,000,000 hundredweight, the $0.0035
rate should provide the Committee with
$35,000 in assessment income which
combined with interest income and
funds from the monetary reserve would
be adequate to cover budgeted expenses.
The Committee recommended the
higher assessment rate to help ensure
that its monetary reserve is maintained
at a satisfactory level. Funds in the
reserve were $50,277 as of January 31,
2005. The Committee estimates that
$17,700 will be deducted from the
reserve to cover budgeted expenses for
2004–2005. Thus, the Committee
estimates a reserve of $32,577 on June
30, 2005, which would be within the
maximum permitted by the order of
approximately two fiscal period’s
operational expenses (§ 946.42).
The major expenditures
recommended by the Committee for the
2005–2006 fiscal period include $18,000
for surveillance inspections, $4,800 for
Washington State Potato Commission
(Commission) expenses, $3,000 for
office supplies, and $3,000 for
Committee expense, $1,500 for
Committee member compensation, and
$1,500 for the financial audit. The
Committee operates under an agreement
with the Commission. The Commission
provides the Committee office space and
administrative services. Budgeted
expenses for these items in 2004–05
were $20,000, $4,800, $3,000, $1,500,
$1,500, and $2,000, respectively.
The Committee discussed alternatives
to this rule, including alternative
expenditure levels. The Committee
ultimately determined that the
recommended expenses were
reasonable. Lower assessment rates were
considered, but not recommended
because they would not generate the
income necessary to administer the
program with an adequate reserve.
A review of historical information and
preliminary information pertaining to
the upcoming crop year indicates that
the producer price for the 2005–2006
season could range from about $5.25 per
hundredweight and about $5.85 per
hundredweight. Therefore, the
estimated assessment revenue for the
2005–2006 fiscal period as a percentage
of total producer revenue could range
between 0.060 and 0.067 percent.
This action would increase 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 would be offset by
the benefits derived by the operation of
the order. In addition, the Committee’s
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Federal Register / Vol. 70, No. 62 / Friday, April 1, 2005 / Proposed Rules
meeting was widely publicized
throughout the Washington potato
industry and all interested persons were
invited to attend and participate in the
Committee’s deliberations on all issues.
Like all Committee meetings, the
February 3, 2005, meeting was a public
meeting and all entities, both large and
small, were able to express views on
this issue. Finally, interested persons
are invited to submit information on the
regulatory and informational impacts of
this action on small businesses.
This proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
Washington potato 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 small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ama.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.
A 30-day comment period is provided
to allow interested persons to respond
to this proposed rule. Thirty days is
deemed appropriate because: (1) The
2005–2006 fiscal period begins on July
1, and the marketing order requires that
the rate of assessment for each fiscal
period apply to all assessable
Washington potatoes handled during
such fiscal period; (2) the Committee
needs to have sufficient funds to pay for
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 946
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 946 is proposed to
be amended as follows:
PART 946—IRISH POTATOES GROWN
IN WASHINGTON
1. The authority citation for 7 CFR
part 946 continues to read as follows:
Authority: 7 U.S.C. 601–674.
2. Section 946.248 is revised to read
as follows:
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16:35 Mar 31, 2005
Jkt 205001
§ 946.248
Assessment rate.
On and after July 1, 2005, an
assessment rate of $0.0035 per
hundredweight is established for
Washington potatoes.
Dated: March 28, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 05–6417 Filed 3–31–05; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. 2002–NM–289–AD]
RIN 2120–AA64
Airworthiness Directives; Boeing
Model 737–100, –200, and –200C Series
Airplanes
Federal Aviation
Administration, DOT.
ACTION: Supplemental notice of
proposed rulemaking (NPRM);
reopening of comment period.
AGENCY:
This document revises an
earlier NPRM, applicable to all Boeing
Model 737–100, –200, and –200C series
airplanes. The original NPRM would
have required repetitive inspections to
detect discrepancies of certain fuselage
skin panels located just aft of the wheel
well, and repair if necessary. The
original NPRM was prompted by reports
of fatigue cracking of the skins and
doublers located aft of the wing,
between body station (BS) 727 and BS
1016, and between body stringers 14
and 25. This supplemental NPRM
revises the original NPRM by adding
requirements for certain airplanes,
revising the compliance time for
inspection of modified skin areas, and
allowing alternative service information
for certain actions. The actions specified
by this new supplemental NPRM are
intended to detect and correct fatigue
cracking of the skin panels, which could
cause rapid decompression of the
airplane. This action is intended to
address the identified unsafe condition.
DATES: Comments must be received by
April 26, 2005.
ADDRESSES: Submit comments in
triplicate to the Federal Aviation
Administration (FAA), Transport
Airplane Directorate, ANM–114,
Attention: Rules Docket No. 2002–NM–
289–AD, 1601 Lind Avenue, SW.,
Renton, Washington 98055–4056.
Comments may be inspected at this
SUMMARY:
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Fmt 4702
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16761
location between 9 a.m. and 3 p.m.,
Monday through Friday, except Federal
holidays. Comments may be submitted
via fax to (425) 227–1232. Comments
may also be sent via the Internet using
the following address: 9-anmnprmcomment@faa.gov. Comments sent
via fax or the Internet must contain
‘‘Docket No. 2002–NM–289–AD’’ in the
subject line and need not be submitted
in triplicate. Comments sent via the
Internet as attached electronic files must
be formatted in Microsoft Word 97 for
Windows or ASCII text.
For the service information referenced
in the proposed rule, contact Boeing
Commercial Airplane Group, P.O. Box
3707, Seattle, Washington 98124–2207.
This information may be examined at
the FAA, Transport Airplane
Directorate, 1601 Lind Avenue, SW.,
Renton, Washington.
FOR FURTHER INFORMATION CONTACT:
Suzanne Lucier, Aerospace Engineer,
Airframe Branch, ANM–120S, FAA,
Seattle Aircraft Certification Office,
1601 Lind Avenue, SW., Renton,
Washington 98055–4056; telephone
(425) 917–6438; fax (425) 917–6590.
SUPPLEMENTARY INFORMATION:
Comments Invited
Interested persons are invited to
participate in the making of the
proposed rule by submitting such
written data, views, or arguments as
they may desire. Communications shall
identify the Rules Docket number and
be submitted in triplicate to the address
specified above. All communications
received on or before the closing date
for comments, specified above, will be
considered before taking action on the
proposed rule. The proposals contained
in this action may be changed in light
of the comments received.
Submit comments using the following
format:
• Organize comments issue-by-issue.
For example, discuss a request to
change the compliance time and a
request to change the service bulletin
reference as two separate issues.
• For each issue, state what specific
change to the proposed AD is being
requested.
• Include justification (e.g., reasons or
data) for each request.
Comments are specifically invited on
the overall regulatory, economic,
environmental, and energy aspects of
the proposed rule. All comments
submitted will be available, both before
and after the closing date for comments,
in the Rules Docket for examination by
interested persons. A report
summarizing each FAA-public contact
concerned with the substance of this
E:\FR\FM\01APP1.SGM
01APP1
]]>Agencies
[Federal Register Volume 70, Number 62 (Friday, April 1, 2005)]
[Proposed Rules]
[Pages 16759-16761]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-6417]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 70, No. 62 / Friday, April 1, 2005 / Proposed
Rules
[[Page 16759]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Docket No. FV05-946-1 PR]
Irish Potatoes Grown in Washington; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule would increase the assessment rate established for
the State of Washington Potato Committee (Committee) for the 2005-2006
and subsequent fiscal periods from $0.002 to $0.0035 per hundredweight
of potatoes handled. The Committee locally administers the marketing
order which regulates the handling of Irish potatoes grown in
Washington. Authorization to assess potato handlers enables the
Committee to incur expenses that are reasonable and necessary to
administer the program. The fiscal period begins July 1 and ends June
30. The assessment rate would remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by May 2, 2005.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; E-mail: moab.docketclerk@usda.gov; or
Internet: https://www.regulations.gov. Comments should reference the
docket number and the date and page number of this issue of the Federal
Register and will be available for public inspection in the Office of
the Docket Clerk during regular business hours, or can be viewed at:
https://www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT: Teresa L. Hutchinson, Marketing
Specialist, Northwest Marketing Field Office, Marketing Order
Administration Branch, 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 J. 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 SW.,
STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, Fax:
(202) 720-8938.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 113 and Marketing Order No. 946, both as amended (7 CFR
part 946), regulating the handling of Irish potatoes grown 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
potato 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 would be applicable to all
assessable potatoes beginning July 1, 2005, and continue until amended,
suspended, or terminated. This rule would 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 would increase the assessment rate established for the
Committee for the 2005-2006 and subsequent fiscal periods from $0.002
to $0.0035 per hundredweight of potatoes handled.
The 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 producers and handlers in Washington. 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 was formulated and
discussed at a public meeting, thus all directly affected persons had
an opportunity to participate and provide input.
For the 1997-98 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $0.002 per
hundredweight of potatoes handled. This assessment rate continues 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 February 3, 2005, and unanimously recommended
2005-2006 expenditures of $36,750 and an increased assessment rate of
$0.0035 per ton of potatoes. In comparison, last year's budgeted
expenditures were $38,500. The recommended assessment rate is $0.0015
higher than the rate currently in effect. The Committee recommended the
higher assessment rate to maintain its monetary reserve at a
satisfactory level.
[[Page 16760]]
The major expenditures recommended by the Committee for the 2005-
2006 fiscal period include $18,000 for surveillance inspections, $4,800
for Washington State Potato Commission (Commission) expenses, $3,000
for office supplies, $3,000 for Committee expense, $1,500 for Committee
member compensation, and $1,500 for the financial audit. The Committee
operates under an agreement with the Commission. The Commission
provides the Committee office space and administrative services.
Budgeted expenses for these items in 2004-05 were $20,000, $4,800,
$3,000, $1,500, $1,500, and $2,000, respectively.
The assessment rate recommended by the Committee was derived by
multiplying anticipated shipments of Washington potatoes by various
assessment rates. Applying the $0.0035 per hundredweight assessment
rate to the Committee's 10,000,000 hundredweight crop estimate should
provide $35,000 in assessment income. Thus, income derived from handler
assessments and interest ($800) plus $950 from the Committee's monetary
reserve would be adequate to cover the recommended $36,750 budget for
2005-2006. Funds in the reserve were $50,277 as of January 31, 2005.
The Committee estimates that $17,700 will be deducted from the reserve
to cover budgeted expenses for 2004-2005. Thus, the Committee estimates
a reserve of $32,577 on June 30, 2005, which would be within the
maximum permitted by the order of approximately two fiscal period's
operational expenses (Sec. 946.42).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by USDA upon recommendation
and information submitted by the Committee or other available
information.
Although the assessment rate would be in effect for an indefinite
period, the Committee would 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 would evaluate the
Committee recommendations and other available information to determine
whether modification of the assessment rate is needed. Further
rulemaking would be undertaken as necessary. The Committee's 2005-2006
budget and those for subsequent fiscal periods would be reviewed and,
as appropriate, approved by USDA.
Initial 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 initial 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 51 handlers of Washington potatoes subject
to regulation under the order and approximately 272 producers in the
regulated production area. Small agricultural service firms are defined
by the Small Business Administration (SBA) (13 CFR 121.201) as those
having annual receipts of less than $5,000,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000.
During the 2003-2004 marketing year, 10,652,495 hundredweight of
Washington potatoes were inspected under the order and sold into the
fresh market. Based on an estimated average f.o.b. price of $7.45 per
hundredweight, the Committee estimates that 48 handlers, or about 94
percent, had annual receipts of less than $5,000,000.
In addition, based on information provided by the National
Agricultural Statistics Service, the average producer price for
Washington potatoes for the 2003 marketing year was $5.25 per
hundredweight. The average annual producer revenue for the 272
Washington potato producers is therefore calculated to be approximately
$205,609. In view of the foregoing, the majority of the Washington
potato producers and handlers may be classified as small entities.
This rule would increase the assessment rate established for the
Committee and collected from handlers for the 2005-2006 and subsequent
fiscal periods from $0.002 to $0.0035 per hundredweight for potatoes.
The Committee unanimously recommended 2005-2006 expenditures of $36,750
and the $0.0035 per hundredweight assessment rate. The proposed
assessment rate of $0.0035 is $0.0015 higher than the 2003-2004 rate.
With an estimated 2005-2006 potato crop of 10,000,000 hundredweight,
the $0.0035 rate should provide the Committee with $35,000 in
assessment income which combined with interest income and funds from
the monetary reserve would be adequate to cover budgeted expenses. The
Committee recommended the higher assessment rate to help ensure that
its monetary reserve is maintained at a satisfactory level. Funds in
the reserve were $50,277 as of January 31, 2005. The Committee
estimates that $17,700 will be deducted from the reserve to cover
budgeted expenses for 2004-2005. Thus, the Committee estimates a
reserve of $32,577 on June 30, 2005, which would be within the maximum
permitted by the order of approximately two fiscal period's operational
expenses (Sec. 946.42).
The major expenditures recommended by the Committee for the 2005-
2006 fiscal period include $18,000 for surveillance inspections, $4,800
for Washington State Potato Commission (Commission) expenses, $3,000
for office supplies, and $3,000 for Committee expense, $1,500 for
Committee member compensation, and $1,500 for the financial audit. The
Committee operates under an agreement with the Commission. The
Commission provides the Committee office space and administrative
services. Budgeted expenses for these items in 2004-05 were $20,000,
$4,800, $3,000, $1,500, $1,500, and $2,000, respectively.
The Committee discussed alternatives to this rule, including
alternative expenditure levels. The Committee ultimately determined
that the recommended expenses were reasonable. Lower assessment rates
were considered, but not recommended because they would not generate
the income necessary to administer the program with an adequate
reserve.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the producer price
for the 2005-2006 season could range from about $5.25 per hundredweight
and about $5.85 per hundredweight. Therefore, the estimated assessment
revenue for the 2005-2006 fiscal period as a percentage of total
producer revenue could range between 0.060 and 0.067 percent.
This action would increase 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
would be offset by the benefits derived by the operation of the order.
In addition, the Committee's
[[Page 16761]]
meeting was widely publicized throughout the Washington potato industry
and all interested persons were invited to attend and participate in
the Committee's deliberations on all issues. Like all Committee
meetings, the February 3, 2005, meeting was a public meeting and all
entities, both large and small, were able to express views on this
issue. Finally, interested persons are invited to submit information on
the regulatory and informational impacts of this action on small
businesses.
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large Washington potato
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 small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ama.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.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. Thirty days is deemed appropriate
because: (1) The 2005-2006 fiscal period begins on July 1, and the
marketing order requires that the rate of assessment for each fiscal
period apply to all assessable Washington potatoes handled during such
fiscal period; (2) the Committee needs to have sufficient funds to pay
for 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 946
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 946 is
proposed to be amended as follows:
PART 946--IRISH POTATOES GROWN IN WASHINGTON
1. The authority citation for 7 CFR part 946 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 946.248 is revised to read as follows:
Sec. 946.248 Assessment rate.
On and after July 1, 2005, an assessment rate of $0.0035 per
hundredweight is established for Washington potatoes.
Dated: March 28, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-6417 Filed 3-31-05; 8:45 am]
BILLING CODE 3410-02-P
