Irish Potatoes Grown in Colorado; Suspension of Continuing Assessment Rate, 40639-40641 [E6-11303]
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Federal Register / Vol. 71, No. 137 / Tuesday, July 18, 2006 / Rules and Regulations
which ended June 5, 2006. No
comments were received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: 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.
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that
finalization of the interim final rule,
without change, as published in the
Federal Register (71 FR 16982, April 5,
2006) will tend to effectuate the
declared policy of the Act.
List of Subjects in 7 CFR Part 922
Apricots, Marketing agreements,
Reporting and recordkeeping
requirements.
PART 922—APRICOTS GROWN IN
DESIGNATED COUNTIES IN
WASHINGTON
Accordingly, the interim final rule
amending 7 CFR part 922 which was
published at 71 FR 16982 on April 5,
2006, is adopted as a final rule without
change.
I
Dated: July 12, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E6–11302 Filed 7–17–06; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Docket No. FV06–948–1 IFR]
Irish Potatoes Grown in Colorado;
Suspension of Continuing Assessment
Rate
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
mstockstill on PROD1PC68 with RULES
AGENCY:
SUMMARY: This rule suspends the
continuing assessment rate established
for the Area No. 3 Colorado Potato
Administrative Committee (Committee)
for the 2006–2007 and subsequent fiscal
periods. The Committee, which locally
administers the marketing order
regulating the handling of potatoes
grown in Northern Colorado, made this
recommendation for the purpose of
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15:08 Jul 17, 2006
Jkt 208001
lowering the monetary reserve to a level
consistent with program requirements.
The fiscal period begins July 1 and ends
June 30. The assessment rate will
remain suspended until an appropriate
rate is reinstated.
DATES: Effective Date: July 19, 2006.
Comments received by September 18,
2006, will be considered prior to
issuance of a final rule.
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 or Gary D. Olson,
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.
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, or E-mail:
Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
No. 97 and Marketing Order No. 948,
both as amended (7 CFR part 948),
regulating the handling of potatoes
grown in Colorado, 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 order now in effect,
Colorado potato handlers are subject to
assessments. Funds to administer the
order are derived from such
PO 00000
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Fmt 4700
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40639
assessments. For the 2005–2006 fiscal
period, an assessment rate of $0.02 per
hundredweight of potatoes handled was
approved by USDA to continue in effect
indefinitely unless modified,
suspended, or terminated. This action
suspends the assessment rate for the
2006–2007 fiscal period, which begins
July 1, 2006, and will continue in effect
until reinstated. 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 suspends § 948.215 of the
order’s rules and regulations. Section
948.215 established an assessment rate
of $0.02 per hundredweight of Colorado
potatoes handled for 2005–2006 and
subsequent fiscal periods. Continuous
assessment rates remain in effect from
fiscal period to fiscal period unless
modified, suspended, or terminated by
USDA. This rule suspends the $0.02
assessment rate for 2006–2007 and will
remain in effect during subsequent
fiscal periods until reinstated by USDA
upon recommendation of the
Committee.
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. In
addition, the order authorizes the use of
monetary reserve funds to cover
program expenses (§ 948.78). The
members of the Committee are
producers and handlers of Colorado
potatoes. 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.
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18JYR1
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40640
Federal Register / Vol. 71, No. 137 / Tuesday, July 18, 2006 / Rules and Regulations
Thus, all directly affected persons have
an opportunity to participate and
provide input.
For the 2005–2006 and subsequent
fiscal periods, the Committee
recommended, and USDA approved, an
assessment rate of $0.02 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 May 11, 2006,
and unanimously recommended 2006–
2007 expenditures of $20,268 and
suspension of the continuing
assessment rate. In comparison, last
year’s budgeted expenditures were
$20,368. The suspension of the
assessment rate will allow the
Committee to draw from the reserve to
cover 2006–2007 expenditures. This
action should effectively lower the
reserve to within the program limit of
approximately two fiscal periods’
operational expenses (§ 948.78).
The major expenditures
recommended by the Committee for the
2006–2007 fiscal period include $8,610
for salary, $3,000 for office rent, $1,750
for office expenses, and $1,000 for
utilities. These budgeted expenses are
the same as those approved for the
2005–2006 fiscal period.
As of July 1, 2005, the Committee had
$49,237 in its reserve fund. With the
2006–2007 budget set at $20,268, the
current maximum reserve permitted by
the order is approximately $40,536
(approximately two fiscal periods’
expenses (§ 948.78)). To meet 2006–
2007 expenses the Committee plans on
drawing approximately $15,814 from its
reserve, and may additionally earn
approximately $4,454 from interest and
other income. Thus, with a suspended
assessment rate, the Committee’s reserve
at the end of the 2006–2007 fiscal
period could be reduced to
approximately $33,423. This amount
would be consistent with the order’s
requirements.
The assessment rate suspension will
continue in effect indefinitely until
reinstated by USDA upon
recommendation and information
submitted by the Committee or other
available information.
Although this suspension of the
continuing assessment rate is effective
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 reinstatement of
the assessment rate. The dates and times
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15:08 Jul 17, 2006
Jkt 208001
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 such as the level of the
budget and the monetary reserve to
determine whether assessment rate
reinstatement is needed and at what
level. Further rulemaking will be
undertaken as necessary. The
Committee’s 2006–2007 budget and
those for subsequent fiscal periods will
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.
Based on Committee data, there are 8
producers and 8 handlers in the
production area subject to regulation
under the 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 $6,500,000.
Based on the total number of Colorado
Area No. 3 potato producers (8), 2004
fresh potato production of 557,826
hundredweight (Committee records),
and the average 2004 producer price of
$6.30 per hundredweight as reported by
National Agricultural Statistics Service
(NASS), average annual revenue per
producer from the sale of potatoes can
be estimated at approximately $439,288.
In addition, based on Committee records
and an estimated average 2004 f.o.b.
price of $8.40 per hundredweight ($6.30
per hundredweight NASS producer
price plus Committee estimated packing
and handling costs of $2.10 per
hundredweight), all of the Colorado
Area No. 3 potato handlers ship under
$6,500,000 worth of potatoes. In view of
the foregoing, it can be concluded that
PO 00000
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Fmt 4700
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the majority of the Colorado Area No. 3
potato producers and handlers may be
classified as small entities.
This rule suspends the continuing
assessment rate established for the
Committee and collected from handlers
for the 2006–2007 and subsequent fiscal
periods. Funds from the Committee’s
authorized reserve, along with interest
and other income, will be adequate to
cover budgeted expenses.
As of July 1, 2005, the Committee had
$49,237 in its reserve fund. With the
2006–2007 budget set at $20,268, the
current maximum reserve permitted by
the order is approximately $40,536
(approximately two fiscal periods’
expenses (§ 948.78)). To meet 2006–
2007 expenses the Committee plans on
drawing approximately $15,814 from its
reserve, and may additionally earn
approximately $4,454 from interest and
other income. Thus, with a suspended
assessment rate, the Committee’s reserve
at the end of the 2006–2007 fiscal
period could be reduced to
approximately $33,423. This amount
would be consistent with the order’s
requirements.
The major expenditures
recommended by the Committee for the
2006–2007 fiscal period include $8,610
for salary, $3,000 for office rent, $1,750
for office expenses, and $1,000 for
utilities. These budgeted expenses are
the same as those approved for the
2005–2006 fiscal period.
For the 2005–2006 fiscal period, the
Committee recommended a decrease in
the assessment rate. However, the
decreased assessment rate did not
reduce the Committee’s reserve as
anticipated. Therefore, the Committee
recommended suspending the
continuing assessment rate to enable an
increased draw on the reserve, thus
maintaining the level of the reserve
within program limits of approximately
two fiscal periods’ operational expenses.
The Committee discussed alternatives
to this rule, including alternative
expenditure levels, but determined that
the recommended expenses were
reasonable and necessary to adequately
cover program operations. Other
assessment rates were considered, but
not recommended because they would
not reduce the reserve as quickly as
suspension of the assessment rate.
This action suspends the assessment
obligation imposed on handlers.
Assessments are applied uniformly on
all handlers, and some of the costs may
be passed on to producers. However,
suspending the assessment rate reduces
the burden on handlers, and may reduce
the burden on producers. In addition,
the Committee’s meeting was widely
publicized throughout the Colorado
E:\FR\FM\18JYR1.SGM
18JYR1
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Federal Register / Vol. 71, No. 137 / Tuesday, July 18, 2006 / Rules and Regulations
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 May 11, 2006,
meeting was a public meeting and all
entities, both large and small, were able
to express views on the issues. Finally,
interested persons are invited to submit
information on the regulatory and
informational impacts of this action on
small businesses.
This action imposes no additional
reporting or recordkeeping requirements
on either small or large Colorado 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.
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
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: 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.
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 upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect, and 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 2006–2007 fiscal
period begins on July 1, 2006, and the
order requires that the assessment rate
suspension apply to all assessable
Colorado potatoes handled during such
fiscal period; (2) this action relieves
restrictions on handlers by suspending
the assessment rate beginning with the
2006–2007 fiscal period; (3) handlers
are aware of this action which was
unanimously recommended by the
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15:08 Jul 17, 2006
Jkt 208001
Committee at a public meeting and is
similar to other assessment rate actions
issued in past years; and (4) this interim
final rule provides a 60-day comment
period, and all comments timely
received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 948 is amended as
follows:
I
PART 948—IRISH POTATOES GROWN
IN COLORADO
1. The authority citation for 7 CFR
part 948 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
§ 948.215
[Suspended]
2. In part 948, § 948.215 is suspended
in its entirety.
I
Dated: July 11, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E6–11303 Filed 7–17–06; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Part 1402
RIN 0560–AH22
Policy for Certain Commodities
Available for Sale
Commodity Credit Corporation,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: This rule amends regulations
of the Commodity Credit Corporation
(CCC) relating to marketing procedures
for commodities in CCC inventory to
update agency provisions and provide
for commodity sales through Internetbased marketing systems. This rule is
intended to modernize and streamline
CCC commodity marketing procedures.
DATES: Effective August 17, 2006.
FOR FURTHER INFORMATION CONTACT:
Mark Overbo, Warehouse and Inventory
Division, Farm Service Agency (FSA),
United States Department of Agriculture
(USDA), STOP 0553, 1400
Independence Avenue, SW.,
Washington, DC 20250–0553, telephone
(202) 720–4647 or send e-mail to:
Mark.Overbo@wdc.usda.gov. Persons
with disabilities who require alternative
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40641
means of communication (braille, large
print, audiotape, etc.) should contact
USDA’s TARGET Center at (202) 720–
2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Discussion of Final Rule
Since the enactment of the
Agricultural Act of 1949, CCC’s major
activity has been the administration and
implementation of nonrecourse loans to
producers of major agricultural
commodities. Generally, Congress
establishes loan rates for certain
commodities on a per-unit basis. Under
the program’s ‘‘nonrecourse’’
provisions, the producer may satisfy the
loan obligation through forfeiture to
CCC of the commodity pledged as
collateral for the loan. As a result, CCC
acquires commodities that are forfeited
or delivered under these nonrecourse
loans. The accumulation of stocks of
these forfeited commodities requires
CCC to maintain provisions for their
eventual disposal. The acquisition,
procurement, storage, distribution, and
disposal of commodities are handled by
the Farm Service Agency under the
administration of the Deputy
Administrator for Commodity
Opeartions. The regulations at 7 CFR
part 1402 contain CCC policy for certain
commodities available for sale by CCC.
This rule updates the regulations
regarding the dissemination of general
sales offering information to reflect
current CCC policies. Current
regulations at 7 CFR part 1402 provide
that CCC will disseminate general sales
information through a ‘‘CCC Sales List,’’
published in press release or similar
form, and revised and republished
periodically as necessary. Methods of
providing commodity sales and CCC
inventory listings have improved
considerably since the regulations were
last updated. Currently, sales offerings
are being made electronically via several
sources such as CCC’s Commodity
Operations Web site at https://
www.fsa.usda.gov/daco/catalogs and
through other privately-maintained,
fully interactive on-line sales systems.
This rule replaces the provisions
dealing with the publication of the CCC
Sales List with the current policies and
procedures for Internet posting of
commodity inventories offered for sale.
Notice and Comment
The changes made in this rule are a
general edit and reorganization of part
1402 as a whole, which provides how
CCC will disseminate information.
Thus, this rule is exempt from the
requirements of the Administrative
Procedure Act (5 U.S.C. 553) for
publication of a proposed rule for public
E:\FR\FM\18JYR1.SGM
18JYR1
]]>Agencies
[Federal Register Volume 71, Number 137 (Tuesday, July 18, 2006)]
[Rules and Regulations]
[Pages 40639-40641]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-11303]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Docket No. FV06-948-1 IFR]
Irish Potatoes Grown in Colorado; Suspension of Continuing
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule suspends the continuing assessment rate established
for the Area No. 3 Colorado Potato Administrative Committee (Committee)
for the 2006-2007 and subsequent fiscal periods. The Committee, which
locally administers the marketing order regulating the handling of
potatoes grown in Northern Colorado, made this recommendation for the
purpose of lowering the monetary reserve to a level consistent with
program requirements. The fiscal period begins July 1 and ends June 30.
The assessment rate will remain suspended until an appropriate rate is
reinstated.
DATES: Effective Date: July 19, 2006. Comments received by September
18, 2006, will be considered prior to issuance of a final rule.
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 or Gary D. Olson,
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.
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, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 97 and Marketing Order No. 948, both as amended (7 CFR
part 948), regulating the handling of potatoes grown in Colorado,
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 order now in effect, Colorado potato handlers
are subject to assessments. Funds to administer the order are derived
from such assessments. For the 2005-2006 fiscal period, an assessment
rate of $0.02 per hundredweight of potatoes handled was approved by
USDA to continue in effect indefinitely unless modified, suspended, or
terminated. This action suspends the assessment rate for the 2006-2007
fiscal period, which begins July 1, 2006, and will continue in effect
until reinstated. 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 suspends Sec. 948.215 of the order's rules and
regulations. Section 948.215 established an assessment rate of $0.02
per hundredweight of Colorado potatoes handled for 2005-2006 and
subsequent fiscal periods. Continuous assessment rates remain in effect
from fiscal period to fiscal period unless modified, suspended, or
terminated by USDA. This rule suspends the $0.02 assessment rate for
2006-2007 and will remain in effect during subsequent fiscal periods
until reinstated by USDA upon recommendation of the Committee.
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. In addition, the
order authorizes the use of monetary reserve funds to cover program
expenses (Sec. 948.78). The members of the Committee are producers and
handlers of Colorado potatoes. 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.
[[Page 40640]]
Thus, all directly affected persons have an opportunity to participate
and provide input.
For the 2005-2006 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $0.02 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 May 11, 2006, and unanimously recommended
2006-2007 expenditures of $20,268 and suspension of the continuing
assessment rate. In comparison, last year's budgeted expenditures were
$20,368. The suspension of the assessment rate will allow the Committee
to draw from the reserve to cover 2006-2007 expenditures. This action
should effectively lower the reserve to within the program limit of
approximately two fiscal periods' operational expenses (Sec. 948.78).
The major expenditures recommended by the Committee for the 2006-
2007 fiscal period include $8,610 for salary, $3,000 for office rent,
$1,750 for office expenses, and $1,000 for utilities. These budgeted
expenses are the same as those approved for the 2005-2006 fiscal
period.
As of July 1, 2005, the Committee had $49,237 in its reserve fund.
With the 2006-2007 budget set at $20,268, the current maximum reserve
permitted by the order is approximately $40,536 (approximately two
fiscal periods' expenses (Sec. 948.78)). To meet 2006-2007 expenses
the Committee plans on drawing approximately $15,814 from its reserve,
and may additionally earn approximately $4,454 from interest and other
income. Thus, with a suspended assessment rate, the Committee's reserve
at the end of the 2006-2007 fiscal period could be reduced to
approximately $33,423. This amount would be consistent with the order's
requirements.
The assessment rate suspension will continue in effect indefinitely
until reinstated by USDA upon recommendation and information submitted
by the Committee or other available information.
Although this suspension of the continuing assessment rate is
effective 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 reinstatement 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 such
as the level of the budget and the monetary reserve to determine
whether assessment rate reinstatement is needed and at what level.
Further rulemaking will be undertaken as necessary. The Committee's
2006-2007 budget and those for subsequent fiscal periods will 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.
Based on Committee data, there are 8 producers and 8 handlers in
the production area subject to regulation under the 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 $6,500,000.
Based on the total number of Colorado Area No. 3 potato producers
(8), 2004 fresh potato production of 557,826 hundredweight (Committee
records), and the average 2004 producer price of $6.30 per
hundredweight as reported by National Agricultural Statistics Service
(NASS), average annual revenue per producer from the sale of potatoes
can be estimated at approximately $439,288. In addition, based on
Committee records and an estimated average 2004 f.o.b. price of $8.40
per hundredweight ($6.30 per hundredweight NASS producer price plus
Committee estimated packing and handling costs of $2.10 per
hundredweight), all of the Colorado Area No. 3 potato handlers ship
under $6,500,000 worth of potatoes. In view of the foregoing, it can be
concluded that the majority of the Colorado Area No. 3 potato producers
and handlers may be classified as small entities.
This rule suspends the continuing assessment rate established for
the Committee and collected from handlers for the 2006-2007 and
subsequent fiscal periods. Funds from the Committee's authorized
reserve, along with interest and other income, will be adequate to
cover budgeted expenses.
As of July 1, 2005, the Committee had $49,237 in its reserve fund.
With the 2006-2007 budget set at $20,268, the current maximum reserve
permitted by the order is approximately $40,536 (approximately two
fiscal periods' expenses (Sec. 948.78)). To meet 2006-2007 expenses
the Committee plans on drawing approximately $15,814 from its reserve,
and may additionally earn approximately $4,454 from interest and other
income. Thus, with a suspended assessment rate, the Committee's reserve
at the end of the 2006-2007 fiscal period could be reduced to
approximately $33,423. This amount would be consistent with the order's
requirements.
The major expenditures recommended by the Committee for the 2006-
2007 fiscal period include $8,610 for salary, $3,000 for office rent,
$1,750 for office expenses, and $1,000 for utilities. These budgeted
expenses are the same as those approved for the 2005-2006 fiscal
period.
For the 2005-2006 fiscal period, the Committee recommended a
decrease in the assessment rate. However, the decreased assessment rate
did not reduce the Committee's reserve as anticipated. Therefore, the
Committee recommended suspending the continuing assessment rate to
enable an increased draw on the reserve, thus maintaining the level of
the reserve within program limits of approximately two fiscal periods'
operational expenses.
The Committee discussed alternatives to this rule, including
alternative expenditure levels, but determined that the recommended
expenses were reasonable and necessary to adequately cover program
operations. Other assessment rates were considered, but not recommended
because they would not reduce the reserve as quickly as suspension of
the assessment rate.
This action suspends the assessment obligation imposed on handlers.
Assessments are applied uniformly on all handlers, and some of the
costs may be passed on to producers. However, suspending the assessment
rate reduces the burden on handlers, and may reduce the burden on
producers. In addition, the Committee's meeting was widely publicized
throughout the Colorado
[[Page 40641]]
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 May 11, 2006, meeting was a public meeting and
all entities, both large and small, were able to express views on the
issues. Finally, interested persons are invited to submit information
on the regulatory and informational impacts of this action on small
businesses.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Colorado 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.
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 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: 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.
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 upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and 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 2006-2007 fiscal period begins on July 1,
2006, and the order requires that the assessment rate suspension apply
to all assessable Colorado potatoes handled during such fiscal period;
(2) this action relieves restrictions on handlers by suspending the
assessment rate beginning with the 2006-2007 fiscal period; (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; and (4) this interim final rule
provides a 60-day comment period, and all comments timely received will
be considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 948 is amended as
follows:
PART 948--IRISH POTATOES GROWN IN COLORADO
0
1. The authority citation for 7 CFR part 948 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Sec. 948.215 [Suspended]
0
2. In part 948, Sec. 948.215 is suspended in its entirety.
Dated: July 11, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E6-11303 Filed 7-17-06; 8:45 am]
BILLING CODE 3410-02-P
