Irish Potatoes Grown in Colorado; Suspension of Continuing Assessment Rate, 66835-66837 [E6-19464]
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Federal Register / Vol. 71, No. 222 / Friday, November 17, 2006 / Rules and Regulations
regulatory and informational impacts of
this action on small businesses.
This rule will 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.
The AMS is committed to complying
with the E-Government Act to promote
the use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to government information and
services and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A proposed rule was published in the
Federal Register on June 21, 2006 (71
FR 35562). Copies of the proposed rule
were mailed or sent via facsimile to all
Board members and cherry handlers.
Finally, the proposed rule was made
available through the Internet USDA
and the Office of the Federal Register. A
20-day comment period ending July 11,
2006, was provided to allow interested
persons to respond to the proposal. One
comment was received.
The commenter opposed the proposal
on the basis that the increased
assessment rate is indefinite and that
Congress should vote on it. The
commenter also stated that the
recommended assessment rate
represents a large increase and that we
are, in essence, raising taxes on people
who have no representation that is
directly accountable to those people.
Finally, the commenter was of the view
that federalism issues and Executive
Order 13132 applies. In response to the
commenter, and as previously stated in
this action, the tart cherry marketing
order, as issued in accordance with the
Agriculture Marketing Act of 1937,
provides the authority for the Board,
with USDA approval, to formulate a
budget and collect assessments from
handlers to administer the program. The
members of the Board are producers and
handlers who are nominated and
elected by their peers to represent their
respective production areas/districts to
address issues that come before the
Board. The assessment rate is
formulated and discussed in a public
meeting. All directly affected persons
have an opportunity to participate and
provide input. Finally, this rule does
not have sufficient Federalism
implications to warrant an assessment
under Executive Order 13132.
VerDate Aug<31>2005
16:36 Nov 16, 2006
Jkt 211001
Accordingly, no changes will be made
to this rule based on the comment
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
information and recommendation
submitted by the Board and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because the 2006–2007 fiscal period
began on July 1, 2006, and the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable tart cherries handled
during such fiscal period. Further,
handlers are aware of this action which
was unanimously recommended by the
Board at a public meeting. Also, a 20day comment period was provided for
in the proposed rule.
List of Subjects in 7 CFR Part 930
Marketing agreements, Reporting and
recordkeeping requirements, Tart
cherries.
I For the reasons set forth in the
preamble, 7 CFR part 930 is 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:
I
Authority: 7 U.S.C. 601–674.
2. Section 930.200 is revised to read
as follows:
I
§ 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
$0.005 per pound of cherries to cover
the costs of the new research and
promotion program and $0.0016 per
pound of cherries to cover
administrative expenses.
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66835
Dated: November 14, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E6–19460 Filed 11–16–06; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Docket No. FV06–948–1 FIR]
Irish Potatoes Grown in Colorado;
Suspension of Continuing Assessment
Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: The Department of
Agriculture (USDA) is adopting, as a
final rule, without change, an interim
final rule which suspended 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: December 18,
2006.
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; telephone: (503) 326–
2724; Fax: (503) 326–7440 or E-mail:
Teresa.Hutchinson@usda.gov or
GaryD.Olson@usda.gov.
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.
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
SUPPLEMENTARY INFORMATION:
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66836
Federal Register / Vol. 71, No. 222 / Friday, November 17, 2006 / Rules and Regulations
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.’’
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 began
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 continues in effect the
action that suspended § 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 continues in effect the
action that suspended 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.
VerDate Aug<31>2005
16:36 Nov 16, 2006
Jkt 211001
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.
Thus, all directly affected persons have
an opportunity to participate and
provide input.
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
PO 00000
Frm 00010
Fmt 4700
Sfmt 4700
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.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA), the
Agricultural Marketing Service (AMS)
has considered the economic impact of
this rule on small entities. Accordingly,
AMS has prepared this final regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf. Thus, both statutes have small
entity orientation and compatibility.
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
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Federal Register / Vol. 71, No. 222 / Friday, November 17, 2006 / Rules and Regulations
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 continues in effect the
action that suspended 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 continuing
assessment rate.
This action continues in effect the
action that suspended the assessment
obligation imposed on handlers.
VerDate Aug<31>2005
16:36 Nov 16, 2006
Jkt 211001
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
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.
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 complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
An interim final rule concerning this
action was published in the Federal
Register on July 18, 2006 (71 FR 40639).
Copies of that rule were also mailed or
sent via facsimile to all Area No. 3
Colorado potato handlers. Finally, the
interim final rule was made available
through the Internet by USDA and the
Office of the Federal Register. A 60-day
comment period was provided for
interested persons to respond to the
interim final rule. The comment period
ended on September 18, 2006, and 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.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.
PO 00000
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Fmt 4700
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66837
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
PART 948—IRISH POTATOES GROWN
IN COLORADO
Accordingly, the interim final rule
amending 7 CFR part 948 which was
published at 71 FR 40639 on July 18,
2006, is adopted as a final rule without
change.
I
Dated: November 14, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E6–19464 Filed 11–16–06; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. FV06–993–1 FR]
Dried Prunes Produced in California;
Decreased Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: This rule decreases the
assessment rate established for the
Prune Marketing Committee
(committee) under Marketing Order No.
993 for the 2006–07 and subsequent
crop years from $0.65 to $0.40 per ton
of salable dried prunes. The committee
locally administers the marketing order
which regulates the handling of dried
prunes produced in California.
Assessments upon dried prune handlers
are used by the committee to fund
reasonable and necessary expenses of
the program. The crop year begins
August 1 and ends July 31. The
assessment rate will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective Date: November 20,
2006.
Toni
Sasselli, Program Analyst, Terry Vawter,
Marketing Specialist, or Kurt Kimmel,
Regional Manager, California Marketing
Field Office, Fruit and Vegetable
Programs, AMS, USDA; Telephone:
(559) 487–5901; Fax (559) 487–5906, or
E-mail: Toni.Sasselli@usda.gov,
Terry.Vawter@usda.gov, or
Kurt.Kimmel@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
FOR FURTHER INFORMATION CONTACT:
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]]>Agencies
[Federal Register Volume 71, Number 222 (Friday, November 17, 2006)]
[Rules and Regulations]
[Pages 66835-66837]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19464]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Docket No. FV06-948-1 FIR]
Irish Potatoes Grown in Colorado; Suspension of Continuing
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule which suspended 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: December 18, 2006.
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; telephone: (503) 326-
2724; Fax: (503) 326-7440 or E-mail: Teresa.Hutchinson@usda.gov or
GaryD.Olson@usda.gov.
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 No. 97 and Marketing Order No. 948, both as amended (7 CFR
part 948), regulating the handling of potatoes
[[Page 66836]]
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.''
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 began 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 continues in effect the action that suspended 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 continues in effect the action that suspended 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. Thus, all directly affected persons have an opportunity
to participate and provide input.
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.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this rule on small entities. Accordingly, AMS has
prepared this final regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
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
[[Page 66837]]
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 continues in effect the action that suspended 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 continuing assessment rate.
This action continues in effect the action that suspended 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
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.
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 complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
An interim final rule concerning this action was published in the
Federal Register on July 18, 2006 (71 FR 40639). Copies of that rule
were also mailed or sent via facsimile to all Area No. 3 Colorado
potato handlers. Finally, the interim final rule was made available
through the Internet by USDA and the Office of the Federal Register. A
60-day comment period was provided for interested persons to respond to
the interim final rule. The comment period ended on September 18, 2006,
and no comments were received.
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.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
PART 948--IRISH POTATOES GROWN IN COLORADO
0
Accordingly, the interim final rule amending 7 CFR part 948 which was
published at 71 FR 40639 on July 18, 2006, is adopted as a final rule
without change.
Dated: November 14, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E6-19464 Filed 11-16-06; 8:45 am]
BILLING CODE 3410-02-P
