Cranberries Grown in the States of Massachusetts, et al.; Section 610 Review, 1677-1678 [E7-424]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 72, Number 9 (Tuesday, January 16, 2007)]
[Proposed Rules]
[Pages 1677-1678]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-424]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 72, No. 9 / Tuesday, January 16, 2007 / 
Proposed Rules

[[Page 1677]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 929

[Docket No. AMS-FV-06-0172; FV06-929-610 Review]


Cranberries Grown in the States of Massachusetts, et al.; Section 
610 Review

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Confirmation of regulations.

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SUMMARY: This action summarizes the results under the criteria 
contained in section 610 of the Regulatory Flexibility Act (RFA), of an 
Agricultural Marketing Service (AMS) review of Marketing Order No. 929 
regulating the handling of cranberries grown in Massachusetts, Rhode 
Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, 
Oregon, Washington, and Long Island in the State of New York.

ADDRESSES: Interested persons may obtain a copy of the review. Requests 
for copies should 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.

FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella or Kenneth G. 
Johnson, Marketing Order Administration Branch, Fruit and Vegetable 
Programs, AMS, USDA, Unit 155, 4700 River Road, Riverdale, MD 20737; 
Telephone: (301) 734-5243, Fax: (301) 734-5275, or E-mail: 
Patricia.Petrella@usda.gov or Kenneth.Johnson@usda.gov.

SUPPLEMENTARY INFORMATION: Marketing Order 929, as amended (7 CFR part 
929), regulates the handling of cranberries grown in Massachusetts, 
Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, 
Oregon, Washington, and Long Island in the State of New York. The 
marketing order is effective under the Agricultural Marketing Agreement 
Act of 1937 (Act), as amended (7 U.S.C. 601-674).
    The Cranberry Marketing Committee (Committee) is established under 
the marketing order and works with AMS in overseeing program 
operations. The Committee consists of 13 grower members and 9 grower 
alternate members representing four districts. Membership is allocated 
among producers representing the cooperative marketing association and 
independent producers (those not affiliated with the cooperative 
marketing association). The cooperative marketing association nominates 
its representatives, while independent member representatives are 
nominated and elected through a mail balloting process.
    Currently, there are approximately 1,250 cranberry growers and 
approximately 50 handlers. The majority of the growers and handlers may 
be classified as small entities. The regulations implemented under the 
orders are applied uniformly to all size entities, and are designed to 
benefit all entities, regardless of size.
    AMS published in the Federal Register (64 FR 8014; February 18, 
1999), its plan to review certain regulations, including Marketing 
Order 929, under criteria contained in section 610 of the RFA (5 U.S.C. 
601-612). An updated plan was published in the Federal Register on 
January 4, 2002 (67 FR 525), and again on August 14, 2003 (68 FR 
48574). Accordingly, AMS published a notice of review and request for 
written comments on the cranberry marketing order in the July 12, 2005, 
issue of the Federal Register (70 FR 39987). The deadline for comments 
ended September 12, 2005. Numerous comments were received and they are 
discussed later in this document.
    The review was undertaken to determine whether the cranberry 
marketing order should be continued without change, amended, or 
rescinded to minimize the impacts of small entities. In conducting this 
review, AMS considered the following factors: (1) The continued need 
for the marketing order; (2) the nature of complaints or comments 
received from the public concerning the marketing order; (3) the 
complexity of the marketing order; (4) the extent to which the 
marketing order overlaps, duplicates, or conflicts with other Federal 
rules, and, to the extent feasible, with State and local governmental 
rules; and (5) the length of time since the marketing order has been 
evaluated or the degree to which technology, economic conditions, or 
other factors have changed in the area affected by the marketing order.
    The marketing order authorizes the following activities: Volume 
control to help stabilize cranberry supplies and prices, and strengthen 
market conditions; generic promotion programs to increase demand in 
domestic and foreign markets; and reporting requirements used by the 
Committee to obtain production, shipment, and other marketing 
information used by the industry in making sound marketing decisions, 
and in furthering marketing order goals. Funds to administer the 
marketing order are obtained from handler assessments.
    Based on the potential benefits of the marketing order to 
producers, handlers, and consumers, AMS has determined that the order 
should continue without change.
    In regard to complaints or comments received from the public 
concerning the marketing order, USDA has received 23 comments from 
cranberry growers and other interested parties.
    Six comments were in favor of the continuation of the marketing 
order. Several made suggestions for changes to the order or its 
operations, and others considered the marketing order to be a very 
valuable tool. The commenters suggested the following changes to the 
order. The suggestions include: (1) Enlarging the production area by 
adding the States of Maine and Delaware, and the entire State of New 
York. This issue was considered during the most recent amendment 
proceeding. It was not supported by the evidence of record and was not 
adopted by USDA; (2) Support for the redistricting and reallocation of 
members on the Committee and appointment of a subcommittee to 
investigate this issue. The order authorizes redistricting and 
reallocation of members. A subcommittee on this issue was appointed in 
2005. At this time, no recommendations have been made or approved by 
the Committee to redistrict or reallocate membership; and (3) Urging 
USDA to make more timely decisions on volume control recommendations 
made by the Committee to help growers and handlers

[[Page 1678]]

plan accordingly. The rulemaking process requires USDA to provide 
adequate notice to interested parties and opportunity for comment. 
Steps are taken to complete this process efficiently.
    Seventeen comments were received in opposition. Some of the 
commenters expressed the belief that the portions of the production 
area where cranberry production has not dramatically changed over the 
past ten years should not be subject to volume controls, when 
implemented. Also, they believe that handlers who can sell all of the 
fruit they acquire should be exempted from volume controls. The 
commenters believe that only handlers with an oversupply of cranberries 
should be regulated. Similar opposing comments were from growers in the 
State of Oregon. Most urged that volume regulation not be invoked and, 
if it is, producers in Oregon should be exempt. The commenters believe 
that Oregon growers suffered financially when volume regulations were 
implemented in 2000-01 and 2001-02 because Oregon cranberry farms are 
small and do not significantly impact the overall supply. In addition, 
they would like the marketing order rescinded to end the negative 
impacts on production for small producers in small production areas.
    Modifications to the volume regulation provisions were considered 
during the most recent cranberry amendment proceeding. Many changes 
were made to improve the process to the benefit of producers and 
handlers and were supported in a producer referendum. Any additional 
modifications, including providing exemptions, would require further 
amendment to the order.
    Marketing order issues and programs are discussed at public 
meetings, and all interested persons are allowed to express their 
views. All comments are considered in the decision making process by 
the Committee and USDA before any program changes are implemented.
    In considering the order's complexity, AMS has determined that the 
marketing order is not unduly complex.
    During the review, the order was also checked for duplication and 
overlap with other regulations. AMS did not identify any relevant 
Federal rules, or State and local regulations that duplicate, overlap, 
or conflict with the marketing order for cranberries.
    As stated previously, the order was established in 1962. During 
this time, AMS and the cranberry industry have continuously monitored 
marketing operations. Changes in regulations have been implemented to 
reflect current industry operating practices, and to solve marketing 
problems as they occur. The goal of these evaluations is to assure that 
the marketing order and the regulations implemented under it fit the 
needs of the industry and are consistent with the Act.
    The Committee meets whenever needed, but at least bi-annually, to 
discuss the marketing order and the various regulations issued 
thereunder, and to determine if, or what, changes may be necessary to 
reflect current industry practices. As a result, regulatory changes 
have been made numerous times over the years to address industry 
operation changes and to improve program administration. In 2002, the 
Committee made several recommendations to improve the order's volume 
control provisions. Amendment hearings were held in several parts of 
the cranberry production area to receive evidence regarding the 
Committee's recommendations. A referendum was held in December 2004 to 
determine producer and processor support for the proposed amendments. 
The proposed amendments were favored by both producers and processors 
voting in the referendum.
    Accordingly, AMS has determined that the cranberry marketing order 
should be continued. The marketing order was established to help the 
cranberry industry work with USDA to solve marketing problems. The 
marketing order regulations on volume control, research and promotional 
activities, and reporting requirements continue to be beneficial to 
producers, handlers, and consumers. AMS will continue to work with the 
cranberry industry in maintaining an effective program.

    Dated: January 9, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
 [FR Doc. E7-424 Filed 1-12-07; 8:45 am]
BILLING CODE 3410-02-P