Tart Cherries Grown in the States of Michigan, et al.; Increased Assessment Rate, 35562-35564 [E6-9727]
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35562
Federal Register / Vol. 71, No. 119 / Wednesday, June 21, 2006 / Proposed Rules
awards may be paid to SES members
only under § 534.405 of this chapter and
not on the basis of this subpart.
*
*
*
*
*
(h) Programs for granting
performance-based cash awards on the
basis of a rating of record at the fully
successful level (or equivalent) or above,
as designed and applied, must make
meaningful distinctions based on levels
of performance.
[FR Doc. E6–9797 Filed 6–20–06; 8:45 am]
BILLING CODE 6325–39–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Docket No. FV06–930–2 PR]
Tart Cherries Grown in the States of
Michigan, et al.; Increased Assessment
Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
rwilkins on PROD1PC63 with PROPOSAL
AGENCY:
SUMMARY: This rule would increase the
assessment rate established for the
Cherry Industry Administrative Board
(Board) for the 2006–2007 fiscal year
and subsequent fiscal years from
$0.0021 to $0.0066 per pound to fund
the Board’s administrative expenses and
its new research and promotion
program. Authorization to assess tart
cherry handlers enables the Board to
incur expenses that are reasonable and
necessary to administer the program.
The Board locally administers the
marketing order which regulates the
handling of tart cherries grown in the
States of Michigan, New York,
Pennsylvania, Oregon, Utah,
Washington, and Wisconsin. The fiscal
year begins July 1, 2006 and ends June
30, 2007. The assessment rate will
remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by
July 11, 2006.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this action. Comments must
be sent to the Docket Clerk, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP
0237, Washington, DC 20250–0237; Fax:
(202) 720–8938, or E-mail:
moabdocket.clerk@usda.gov. All
comments should reference the docket
number and the date and page number
of this issue of the Federal Register and
will be made available for public
inspection in the Office of the Docket
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16:40 Jun 20, 2006
Jkt 208001
Clerk during regular business hours or
can be viewed at: https://www.ams/
usda.gov/fv/moab/html.
FOR FURTHER INFORMATION CONTACT:
Dawana J. Clark or Kenneth G. Johnson,
DC Marketing Field Office, Fruit and
Vegetable Programs, AMS, USDA, Unit
155, 4700 River Road, Riverdale,
Maryland 20737; telephone: (301) 734–
5243, Fax: (301) 734–5275.
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:
Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
and Order No. 930, as amended (7 CFR
part 930), regulating the handling of tart
cherries produced in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and
Wisconsin, 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, tart cherries are subject to
assessments. Funds to administer the
order are derived from such
assessments. It is intended that the
assessment rate as issued herein will be
applicable to all assessable tart cherries
beginning July 1, 2006, 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 the 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 the 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
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Fmt 4702
Sfmt 4702
inhabitant, or has his or her principal
place of business, has jurisdiction to
review the 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
Board for the 2006–2007 and
subsequent fiscal years for tart cherries
from $0.0021 to $0.0066 per pound of
tart cherries to fund the Board’s
administrative expenses and its new
research and promotion program.
The tart cherry marketing order
provides authority for the Board, with
approval of USDA, to formulate an
annual budget of expenses and collect
assessments from handlers to administer
the program. The members of the Board
are producers and handlers of tart
cherries. They are familiar with the
Board’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.
Authority to fix the rate of assessment
to be paid by each handler and to collect
such assessment appears in § 930.41 of
the order. In addition, § 930.48 of the
order provides that the Board, with the
approval of the USDA, may establish or
provide for the establishment of
production research, marketing
research, and market development
projects designed to assist, improve, or
promote the marketing, distribution,
consumption, or efficient production of
cherries. The expense of such projects is
paid from funds collected pursuant to
§ 930.41 (Assessments), or from such
other funds as approved by the USDA.
For the 2003–2004 fiscal year, the
Board recommended, and USDA
approved, an assessment rate of $0.0021
per pound of tart cherries handled 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 Board or other
information available to USDA.
The Board met on March 16, 2006,
and recommended 2006–2007
expenditures of $1,523,000 and an
assessment rate of $0.0066 per pound of
tart cherries. Eighteen of the nineteen
Board members voted in support of the
assessment rate increase. One Board seat
is vacant. In comparison, last year’s
budgeted expenses were $488,000. The
assessment rate of $0.0066 is $0.0045
higher than the rate currently in effect.
The Board recommended that the
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21JNP1
rwilkins on PROD1PC63 with PROPOSAL
Federal Register / Vol. 71, No. 119 / Wednesday, June 21, 2006 / Proposed Rules
assessment rate be increased to cover its
administrative expenses and fund a new
research and promotion program which
will commence in Fall 2006. The
proposed $0.0066 assessment rate
would cover the costs of the research
and promotion program which would be
assessed at $.005 per pound (or $10 per
ton) of cherries for processing and
$.0016 per pound for administrative
expenses. The $0.0016 per pound for
administrative expenses would be a
reduction from the 2005–2006
assessment rate of $0.0021 per pound.
The Board believes that its new research
and promotion program is the best way
for the industry to develop both stronger
demand for tart cherries and tart cherry
products and increase sales
opportunities.
According to a recent Board survey,
both growers and handlers believe a
research and promotion program would
benefit the industry. This program
would be directed primarily at
consumers and retail nutrition advisors,
and employ promotional strategies, such
as print advertising. All tart cherry
handlers regulated under the marketing
order would pay the proposed
assessment rate to fund the new
research and promotion program.
However, certain organic handlers may
be exempt from paying assessments for
market promotion activities pursuant to
7 CFR 900.700.
The major expenditures
recommended by the Board for the
2006–2007 year include $1,150,000 for
promotion, $169,000 for personnel,
$82,000 for meetings, $77,000 for office
expenses, $20,000 for compliance, and
$5,000 for industry educational efforts.
Budgeted expenses for major items in
2005–2006 were $159,000 for personnel,
$150,000 for compliance, $81,000 for
meetings, $93,000 for office expenses,
and $5,000 for industry educational
efforts. The Board recommended an
increased assessment rate to generate
larger revenue to meet its expenses and
keep its reserves at an acceptable level.
In deriving the recommended
assessment rate, the Board determined
assessable tart cherry production for the
fiscal period at 230 million pounds.
Therefore, total assessment income for
2006–2007 is estimated at $1,518,000
(230 million pounds × $0.0066). This
amount plus adequate funds in the
reserve and interest income would be
adequate to cover budgeted expenses.
Funds in the reserve (approximately
$411,000) would be kept within the
approximately six months’ operating
expenses as recommended by the Board
consistent with § 930.42(a).
The assessment rate established in
this rule would continue in effect
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16:40 Jun 20, 2006
Jkt 208001
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and other
information submitted by the Board or
other available information.
Although the assessment rate would
be effective for an indefinite period, the
Board 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 Board meetings are
available from the Board or the USDA.
Board meetings are open to the public
and interested persons may express
their views at these meetings. USDA
will evaluate Board recommendations
and other available information to
determine whether modification of the
assessment rate is needed. Further
rulemaking would be undertaken as
necessary. The Board’s 2006–2007
budget and those for subsequent fiscal
periods would be reviewed and, as
appropriate, approved by the 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 action 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 rules 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 40 handlers
of tart cherries who are subject to
regulation under the tart cherry
marketing order and approximately 900
producers of tart cherries in the
regulated area. Small agricultural
service firms, which includes handlers,
are defined by the Small Business
Administration (13 CFR 121.201) as
those having annual receipts of less than
$6,500,000, and small agricultural
producers are defined as those having
annual receipts of less than $750,000.
The majority of producers and handlers
of tart cherries under the order are
considered small entities under SBA’s
standards.
The principal demand for tart cherries
is in the form of processed products.
Tart cherries are dried, frozen, canned,
juiced, and pureed. During the period
2001/2002 through 2005/2006,
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35563
approximately 93.8 percent of the U.S.
tart cherry crop, or 214.3 million
pounds, was processed annually. Of the
214.3 million pounds of tart cherries
processed, 62 percent was frozen, 26
percent was canned, and 12 percent was
utilized for juice and other products.
Based on National Agricultural
Statistics Service data, acreage in the
United States devoted to tart cherry
production has been trending
downward. Bearing acreage has
declined from a high of 50,050 acres in
1987/99 to 37,100 acres in 2005/2006.
This represents a 26 percent decrease in
total bearing acres. Michigan leads the
nation in tart cherry acreage with 74
percent of the total and produces about
72 percent of the U.S. tart cherry crop
each year.
This rule would increase the
assessment rate established for the
Board and collected from handlers for
the 2006–2007 and subsequent fiscal
periods from $.0021 to $.0066 per
pound of tart cherries.
The Board discussed continuing the
existing assessment rate, but concluded
that it needed the additional funds to
devote to its research and promotion
program which would be funded
through assessments.
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 will be offset by
the benefits derived by the operation of
the marketing order. In addition, the
Board’s meeting was widely publicized
throughout the tart cherry industry and
all interested persons were invited to
attend the meeting and participate in
Board deliberations on all issues. Like
all Board meetings, 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
tart cherry 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.
AMS is committed to compliance
with the Government Paperwork
Elimination Act (GPEA), which requires
Government agencies in general to
provide the public the option of
submitting information or transacting
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35564
Federal Register / Vol. 71, No. 119 / Wednesday, June 21, 2006 / Proposed Rules
business electronically to the maximum
extent possible.
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 the following Web site:
https://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
Dated: June 15, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E6–9727 Filed 6–20–06; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF THE TREASURY
31 CFR Part 103
RIN 1506–AA86
FEDERAL RESERVE SYSTEM
FOR FURTHER INFORMATION CONTACT
section.
A 20-day comment period is provided
to allow interested persons to respond
to this proposed rule. Twenty days is
deemed appropriate because: (1) The
2006–2007 fiscal period begins July 1,
2006, and the marketing order requires
that the rate of assessment for each
fiscal year apply to all assessable tart
cherries handled during such period; (2)
the Board 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
recommended by the Board at a public
meeting.
List of Subjects in 7 CFR Part 930
Marketing agreements, Reporting and
recordkeeping requirements, Tart
cherries.
For the reasons set forth in the
preamble, 7 CFR part 930 is proposed to
be amended as follows:
PART 930—TART CHERRIES GROWN
IN THE STATES OF MICHIGAN, NEW
YORK, PENNSYLVANIA, OREGON,
UTAH, WASHINGTON, AND
WISCONSIN
1. The authority citation for 7 CFR
part 930 continues to read as follows:
Authority: 7 U.S.C. 601–674.
2. Section 930.200 is revised to read
as follows:
rwilkins on PROD1PC63 with PROPOSAL
§ 930.200
Assessment rate.
On and after July 1, 2006, the
assessment rate imposed on handlers
shall be $0.0066 per pound of tart
cherries grown in the production area
and utilized in the production of tart
cherry products. Included in this rate is
$.005 per pound of cherries to cover the
costs of the new research and promotion
program and $.0016 per pound of
cherries to cover administrative
expenses.
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18:27 Jun 20, 2006
Jkt 208001
12 CFR Part 219
[Regulation S, Docket No. R–1258]
Threshold for the Requirement To
Collect, Retain, and Transmit
Information on Funds Transfers and
Transmittals of Funds
AGENCIES: Financial Crimes
Enforcement Network, Department of
the Treasury; Board of Governors of the
Federal Reserve System.
ACTION: Joint advance notice of
proposed rulemaking (Advance Notice).
SUMMARY: The Financial Crimes
Enforcement Network (FinCEN) of the
Department of the Treasury (Treasury)
and the Board of Governors of the
Federal Reserve System (Board) are
reviewing the threshold in the rule
requiring banks and nonbank financial
institutions to collect and retain
information on funds transfers and
transmittals of funds. FinCEN is
reviewing the threshold in the rule
requiring banks and nonbank financial
institutions to transmit information on
funds transfers and transmittals of
funds. The requirement to collect,
retain, and transmit information on
funds transfers and transmittals of funds
applies only to funds transfers and
transmittals of funds in amounts of
$3,000 or more. FinCEN and the Board
(collectively, the Agencies) request
comment from the public, including law
enforcement and financial institutions,
to assess whether the potential benefit
to law enforcement of a lower threshold
outweighs the potential burden to
financial institutions.
DATES: Written comments on this
Advance Notice may be submitted on or
before August 21, 2006.
ADDRESSES: FinCEN: You may submit
comments, identified by Regulatory
Identification Number (RIN) 1506–
AA86, by any of the following methods:
• Federal E-rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Include 1506–AA86 in the submission.
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Frm 00004
Fmt 4702
Sfmt 4702
• E-mail:
regcomments@fincen.treas.gov. Include
1506-AA86 in the subject line of the
message.
• Mail: FinCEN, P.O. Box 39, Vienna,
VA 22183. Include 1506–AA86 in the
body of the text.
All comments received will be posted
without change to https://
www.fincen.gov. Your comments will
not be edited to remove identifying,
contact, or other personal information.
Comments may be inspected in the
FinCEN reading room between 10 a.m.
and 4 p.m. in Washington, DC. Persons
wishing to inspect comments must
request an appointment by telephone at
(202) 354–6400 (not a toll-free number).
Board: You may submit comments,
identified by Docket No. R–1258, by any
of the following methods:
• Agency Web site: https://
www.federalreserve.gov. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
• Federal E-Rulemaking Portal:
https://www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail:
regs.comments@federalreserve.gov.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551.
All public comments are available
from the Board’s Web site at https://
www.federalreserve.gov/generalinfo/
foia/ProposedRegs.cfm, as submitted,
unless modified for technical reasons.
Accordingly, your comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper in Room MP–500 of the Board’s
Martin Building (20th and C Streets,
NW.) between 9 a.m. and 5 p.m. on
weekdays.
FOR FURTHER INFORMATION CONTACT:
FinCEN: Regulatory Policy and
Programs Division, Financial Crimes
Enforcement Network, (800) 949–2732.
Board: James K. Owens, Manager,
(202) 728–5848, Division of Reserve
Bank Operations and Payment Systems,
Suzanne L. Williams, Manager, (202)
452–3513, Division of Banking
Supervision and Regulation, or
Christopher W. Clubb, Senior Counsel,
(202) 452–3904, Legal Division. For the
hearing impaired only:
Telecommunications Device for the
Deaf, (202) 263–4869.
SUPPLEMENTARY INFORMATION:
E:\FR\FM\21JNP1.SGM
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Agencies
[Federal Register Volume 71, Number 119 (Wednesday, June 21, 2006)]
[Proposed Rules]
[Pages 35562-35564]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-9727]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Docket No. FV06-930-2 PR]
Tart Cherries Grown in the States of Michigan, et al.; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule would increase the assessment rate established for
the Cherry Industry Administrative Board (Board) for the 2006-2007
fiscal year and subsequent fiscal years from $0.0021 to $0.0066 per
pound to fund the Board's administrative expenses and its new research
and promotion program. Authorization to assess tart cherry handlers
enables the Board to incur expenses that are reasonable and necessary
to administer the program. The Board locally administers the marketing
order which regulates the handling of tart cherries grown in the States
of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and
Wisconsin. The fiscal year begins July 1, 2006 and ends June 30, 2007.
The assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by July 11, 2006.
ADDRESSES: Interested persons are invited to submit written comments
concerning this action. Comments must be sent to the Docket Clerk,
Fruit and Vegetable Programs, AMS, USDA, 1400 Independence Avenue, SW.,
STOP 0237, Washington, DC 20250-0237; Fax: (202) 720-8938, or E-mail:
moabdocket.clerk@usda.gov. All comments should reference the docket
number and the date and page number of this issue of the Federal
Register and will be made 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: Dawana J. Clark or Kenneth G. Johnson,
DC Marketing Field Office, Fruit and Vegetable Programs, AMS, USDA,
Unit 155, 4700 River Road, Riverdale, Maryland 20737; telephone: (301)
734-5243, Fax: (301) 734-5275.
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: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 930, as amended (7 CFR part 930), regulating
the handling of tart cherries produced in the States of Michigan, New
York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin,
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, tart cherries
are subject to assessments. Funds to administer the order are derived
from such assessments. It is intended that the assessment rate as
issued herein will be applicable to all assessable tart cherries
beginning July 1, 2006, 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 the 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 the 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 the 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
Board for the 2006-2007 and subsequent fiscal years for tart cherries
from $0.0021 to $0.0066 per pound of tart cherries to fund the Board's
administrative expenses and its new research and promotion program.
The tart cherry marketing order provides authority for the Board,
with approval of USDA, to formulate an annual budget of expenses and
collect assessments from handlers to administer the program. The
members of the Board are producers and handlers of tart cherries. They
are familiar with the Board'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.
Authority to fix the rate of assessment to be paid by each handler
and to collect such assessment appears in Sec. 930.41 of the order. In
addition, Sec. 930.48 of the order provides that the Board, with the
approval of the USDA, may establish or provide for the establishment of
production research, marketing research, and market development
projects designed to assist, improve, or promote the marketing,
distribution, consumption, or efficient production of cherries. The
expense of such projects is paid from funds collected pursuant to Sec.
930.41 (Assessments), or from such other funds as approved by the USDA.
For the 2003-2004 fiscal year, the Board recommended, and USDA
approved, an assessment rate of $0.0021 per pound of tart cherries
handled 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 Board or other
information available to USDA.
The Board met on March 16, 2006, and recommended 2006-2007
expenditures of $1,523,000 and an assessment rate of $0.0066 per pound
of tart cherries. Eighteen of the nineteen Board members voted in
support of the assessment rate increase. One Board seat is vacant. In
comparison, last year's budgeted expenses were $488,000. The assessment
rate of $0.0066 is $0.0045 higher than the rate currently in effect.
The Board recommended that the
[[Page 35563]]
assessment rate be increased to cover its administrative expenses and
fund a new research and promotion program which will commence in Fall
2006. The proposed $0.0066 assessment rate would cover the costs of the
research and promotion program which would be assessed at $.005 per
pound (or $10 per ton) of cherries for processing and $.0016 per pound
for administrative expenses. The $0.0016 per pound for administrative
expenses would be a reduction from the 2005-2006 assessment rate of
$0.0021 per pound. The Board believes that its new research and
promotion program is the best way for the industry to develop both
stronger demand for tart cherries and tart cherry products and increase
sales opportunities.
According to a recent Board survey, both growers and handlers
believe a research and promotion program would benefit the industry.
This program would be directed primarily at consumers and retail
nutrition advisors, and employ promotional strategies, such as print
advertising. All tart cherry handlers regulated under the marketing
order would pay the proposed assessment rate to fund the new research
and promotion program. However, certain organic handlers may be exempt
from paying assessments for market promotion activities pursuant to 7
CFR 900.700.
The major expenditures recommended by the Board for the 2006-2007
year include $1,150,000 for promotion, $169,000 for personnel, $82,000
for meetings, $77,000 for office expenses, $20,000 for compliance, and
$5,000 for industry educational efforts. Budgeted expenses for major
items in 2005-2006 were $159,000 for personnel, $150,000 for
compliance, $81,000 for meetings, $93,000 for office expenses, and
$5,000 for industry educational efforts. The Board recommended an
increased assessment rate to generate larger revenue to meet its
expenses and keep its reserves at an acceptable level.
In deriving the recommended assessment rate, the Board determined
assessable tart cherry production for the fiscal period at 230 million
pounds. Therefore, total assessment income for 2006-2007 is estimated
at $1,518,000 (230 million pounds x $0.0066). This amount plus adequate
funds in the reserve and interest income would be adequate to cover
budgeted expenses. Funds in the reserve (approximately $411,000) would
be kept within the approximately six months' operating expenses as
recommended by the Board consistent with Sec. 930.42(a).
The assessment rate established in this rule would continue in
effect indefinitely unless modified, suspended, or terminated by USDA
upon recommendation and other information submitted by the Board or
other available information.
Although the assessment rate would be effective for an indefinite
period, the Board 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 Board
meetings are available from the Board or the USDA. Board meetings are
open to the public and interested persons may express their views at
these meetings. USDA will evaluate Board recommendations and other
available information to determine whether modification of the
assessment rate is needed. Further rulemaking would be undertaken as
necessary. The Board's 2006-2007 budget and those for subsequent fiscal
periods would be reviewed and, as appropriate, approved by the 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 action 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 rules 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 40 handlers of tart cherries who are
subject to regulation under the tart cherry marketing order and
approximately 900 producers of tart cherries in the regulated area.
Small agricultural service firms, which includes handlers, are defined
by the Small Business Administration (13 CFR 121.201) as those having
annual receipts of less than $6,500,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000. The majority of producers and handlers of tart cherries under
the order are considered small entities under SBA's standards.
The principal demand for tart cherries is in the form of processed
products. Tart cherries are dried, frozen, canned, juiced, and pureed.
During the period 2001/2002 through 2005/2006, approximately 93.8
percent of the U.S. tart cherry crop, or 214.3 million pounds, was
processed annually. Of the 214.3 million pounds of tart cherries
processed, 62 percent was frozen, 26 percent was canned, and 12 percent
was utilized for juice and other products.
Based on National Agricultural Statistics Service data, acreage in
the United States devoted to tart cherry production has been trending
downward. Bearing acreage has declined from a high of 50,050 acres in
1987/99 to 37,100 acres in 2005/2006. This represents a 26 percent
decrease in total bearing acres. Michigan leads the nation in tart
cherry acreage with 74 percent of the total and produces about 72
percent of the U.S. tart cherry crop each year.
This rule would increase the assessment rate established for the
Board and collected from handlers for the 2006-2007 and subsequent
fiscal periods from $.0021 to $.0066 per pound of tart cherries.
The Board discussed continuing the existing assessment rate, but
concluded that it needed the additional funds to devote to its research
and promotion program which would be funded through assessments.
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
will be offset by the benefits derived by the operation of the
marketing order. In addition, the Board's meeting was widely publicized
throughout the tart cherry industry and all interested persons were
invited to attend the meeting and participate in Board deliberations on
all issues. Like all Board meetings, 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 tart cherry
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.
AMS is committed to compliance with the Government Paperwork
Elimination Act (GPEA), which requires Government agencies in general
to provide the public the option of submitting information or
transacting
[[Page 35564]]
business electronically to the maximum extent possible.
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 the
following Web site: https://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.
A 20-day comment period is provided to allow interested persons to
respond to this proposed rule. Twenty days is deemed appropriate
because: (1) The 2006-2007 fiscal period begins July 1, 2006, and the
marketing order requires that the rate of assessment for each fiscal
year apply to all assessable tart cherries handled during such period;
(2) the Board 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 recommended by the Board at a public meeting.
List of Subjects in 7 CFR Part 930
Marketing agreements, Reporting and recordkeeping requirements,
Tart cherries.
For the reasons set forth in the preamble, 7 CFR part 930 is
proposed to be amended as follows:
PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK,
PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN
1. The authority citation for 7 CFR part 930 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 930.200 is revised to read as follows:
Sec. 930.200 Assessment rate.
On and after July 1, 2006, the assessment rate imposed on handlers
shall be $0.0066 per pound of tart cherries grown in the production
area and utilized in the production of tart cherry products. Included
in this rate is $.005 per pound of cherries to cover the costs of the
new research and promotion program and $.0016 per pound of cherries to
cover administrative expenses.
Dated: June 15, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E6-9727 Filed 6-20-06; 8:45 am]
BILLING CODE 3410-02-P