Apricots Grown in Designated Counties in Washington; Suspension of Container Regulations, 16263-16265 [E7-6224]
Download as PDF
Federal Register / Vol. 72, No. 64 / Wednesday, April 4, 2007 / Rules and Regulations
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
Further, the Committee’s meeting was
widely publicized throughout the
avocado industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations. Like all Committee
meetings, the April 19, 2006, meeting
was a public meeting and all entities,
both large and small, were able to
express their views on this issue.
An interim final rule concerning this
action was published in the Federal
Register on December 22, 2006. Copies
of the rule were mailed by the
Committee’s staff to all Committee
members and avocado handlers. In
addition, the rule was made available
through the Internet by USDA and the
Office of the Federal Register. That rule
provided for a 60-day comment period
which ended February 20, 2007. 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
finalizing the interim final rule, without
change, as published in the Federal
Register (71 FR 76897, December 22,
2006) will tend to effectuate the
declared policy of the Act.
List of Subjects in 7 CFR Part 915
Avocados, Marketing agreements,
Reporting and recordkeeping
requirements.
PART 915—AVOCADOS GROWN IN
SOUTH FLORIDA
Accordingly, the interim final rule
amending 7 CFR part 915 which was
published at 71 FR 76897 on December
22, 2006, is adopted as a final rule
without change.
cprice-sewell on PROD1PC61 with RULES
I
Dated: March 29, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–6243 Filed 4–3–07; 8:45 am]
BILLING CODE 3410–02–P
VerDate Aug<31>2005
15:40 Apr 03, 2007
Jkt 211001
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Docket No. AMS–FV–07–0031; FV07–922–
1 IFR]
Apricots Grown in Designated
Counties in Washington; Suspension
of Container Regulations
Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
AGENCY:
SUMMARY: This rule suspends the
container regulations prescribed under
the Washington apricot marketing order
by extending the temporary 2006 season
suspension indefinitely. The marketing
order regulates the handling of fresh
apricots grown in designated counties in
the State of Washington, and is
administered locally by the Washington
Apricot Marketing Committee
(Committee). This indefinite suspension
of the container regulations will
continue to provide the apricot industry
with increased marketing flexibility by
allowing handlers to pack and ship
apricots in any size, shape, or type of
container. After evaluating the impact
the temporary 2006 season container
regulation suspension has had on the
industry, the Committee determined
that container regulations no longer
contribute to the orderly marketing of
the fresh apricot crop.
DATES: Effective April 1, 2007.
Comments received by June 4, 2007 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; or Internet: https://
www.regulations.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.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Robert J. Curry 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, Oregon 97204–
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
16263
2807; Telephone: (503) 326–2724; Fax:
(503) 326–7440; or E-mail:
Robert.Curry@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
and Order No. 922 (7 CFR part 922)
regulating the handling of apricots
grown in designated counties in
Washington, hereinafter referred to as
the ‘‘order.’’ The order is effective under
the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601–
674), hereinafter referred to as the
‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule is not intended to
have retroactive effect. This rule will
not preempt any State of 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 indefinitely extends the
temporary 2006 season container
regulation suspension (§ 922.306),
which ends on March 31, 2007. As it
effectively did during the 2006 shipping
season, this regulatory suspension will
provide additional flexibility to the
apricot industry by allowing handlers to
SUPPLEMENTARY INFORMATION:
E:\FR\FM\04APR1.SGM
04APR1
cprice-sewell on PROD1PC61 with RULES
16264
Federal Register / Vol. 72, No. 64 / Wednesday, April 4, 2007 / Rules and Regulations
pack apricots in any type, shape, or size
container. The container regulations
prescribed under § 922.306 will remain
suspended for the 2007 and future
seasons unless the Committee
recommends, and USDA approves,
action to reinstate the regulations. For
the 2006 season, the Committee
recommended a temporary suspension
of the regulations rather than an openended suspension to help ensure that a
thorough analysis of the 2006 shipping
season would be completed prior to any
potential future action regarding the
issue of container regulation
suspension. The Committee has
reviewed the 2006 shipping season and
determined that the industry can
successfully market its fresh apricot
crop without the container regulations
in place. Consequently, the Committee
has concluded that the Washington
apricot industry is now best served by
an open-ended suspension of § 922.306.
To facilitate prompt reinstatement of the
container regulations in the future
should market conditions warrant such,
the Committee recommended that the
2006 temporary regulation suspension
be extended rather than replaced by a
permanent removal of the regulations
from the order.
Section 922.52 of the order authorizes
the issuance of regulations for grade,
size, quality, maturity, pack, and
container for any variety of apricots
grown in the production area. Section
922.52(a)(3) specifically authorizes the
establishment of the container
regulations found in § 922.306. Section
922.53 authorizes the modification,
suspension, or termination of
regulations issued pursuant to § 922.52.
Authority to regulate the size, weight,
dimension and pack of containers used
in the marketing of fresh apricots was
included in the order when
promulgated in 1957. Container
regulatory authority was included in the
order to provide container
standardization, to enhance orderly
marketing conditions, and to provide for
increased producer returns.
The Committee meets prior to each
season to consider recommendations for
modification, suspension, or
termination of any regulatory
requirements for Washington apricots
that are issued on a continuing basis.
Committee meetings are open to the
public and interested persons may
express their views at these meetings.
The USDA reviews the Committee
recommendations along with any
supportive information submitted by the
Committee, as well as information from
other available resources, and
determines whether modification,
suspension, or termination of the
VerDate Aug<31>2005
15:40 Apr 03, 2007
Jkt 211001
regulatory requirements would tend to
effectuate the declared policy of the Act.
During such a review at its February
15, 2007, meeting, the Committee
determined, and unanimously
recommended, that the 2006 season
container regulation suspension—
effective from April 1, 2006, through
March 31, 2007—be extended
indefinitely. For a seamless extension of
the suspension, the Committee
recommended that this rule be effective
by April 1, 2007.
When effective, § 922.306 provides
that apricots must be handled
domestically in (1) open containers or
telescopic fiberboard cartons weighing
28 pounds or greater; (2) closed
containers with 14 pounds or more of
apricots packed in a row-faced or traypack configuration; (3) closed containers
with 12 pounds (or more) of random
sized, non row-faced apricots; or (4)
closed containers with 24 pounds or
more of loose-packed apricots.
In reaching a consensus to extend the
2006 regulatory suspension, Committee
members found that arguments made in
favor of the suspension at the meeting
a year ago are still appropriate. They
noted that container standardization
had contributed to orderly marketing in
the past, but buyers today are
increasingly interested in nontraditional packaging options designed
for better handling and greater
consumer acceptance. Furthermore,
handler members stated that they now
enjoy a greater latitude in choosing the
optimum container weight for a
particular pack or customer. Committee
members were unanimous in the
opinion that this indefinite extension of
the container regulation suspension will
continue to provide the industry with
the flexibility needed to meet the
challenges of marketing fresh apricots.
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.
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
There are approximately 300 apricot
producers within the regulated
production area and approximately 22
regulated handlers. Small agricultural
producers are defined by the Small
Business Administration (SBA)(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.
Data from the Washington
Agricultural Statistics Service shows
that the total 5,900 ton Washington
apricot utilization sold for an average of
$969 per ton in 2005 with a total value
of $5,715,000. Based on the number of
producers in the production area (300),
the average annual producer revenue
from the sale of apricots in 2005 can
thus be estimated at approximately
$19,050. In addition, based on
information from the Committee and
USDA’s Market News Service, 2005
f.o.b. prices ranged from $15.00 to
$20.00 per 24-pound loose-pack
container, and from $14.00 to $24.00 for
2-layer tray pack containers. Assuming
that equal quantities of the 2005 season
fresh apricot pack-out of 4,471 tons
went into loose-pack (24-pound)
containers and tray-pack containers
(weighing an average of about 20
pounds each), average gross receipts per
handler from the sale of fresh apricots
would have been approximately one
half of the annual sales figure that the
SBA uses to define the minimum size of
a large agricultural service business
($750,000). Thus, the majority of
producers and handlers of Washington
apricots may be classified as small
entities.
At its February 15, 2007, meeting the
Committee recommended that the
temporary suspension of the order’s
container regulations (§ 922.306)—
effective from April 1, 2006, through
March 31, 2007—be indefinitely
extended to cover the 2007 shipping
season as well as all future seasons.
Section 922.52(a)(3) of the order
specifically authorizes the
establishment of container regulations.
Further, § 922.53 authorizes the
modification, suspension, or
termination of regulations issued
pursuant to § 922.52. This indefinite
extension of the container regulation
suspension is expected to continue to
provide the apricot industry with
increased marketing flexibility by
allowing handlers to pack and ship
apricots in any size, shape, or type of
container. Container regulations have
been utilized in past seasons to provide
a degree of standardization and thus
have helped in providing the industry
with orderly marketing conditions.
E:\FR\FM\04APR1.SGM
04APR1
cprice-sewell on PROD1PC61 with RULES
Federal Register / Vol. 72, No. 64 / Wednesday, April 4, 2007 / Rules and Regulations
However, changing market dynamics
and the experience gained through the
2006 suspension have convinced the
Committee that container
standardization is no longer necessary
to ensure orderly marketing. Last year,
rather than seeking an indefinite
suspension of the regulations, the
Committee recommended a temporary
suspension so that it could conduct a
thorough evaluation of the impact the
relaxation would have on the industry
during the 2006 shipping season prior to
taking any further action for subsequent
seasons. In reviewing the 2006 season at
the February 15, 2007, meeting, the
Committee easily reached a consensus
that an indefinite continuation of the
container regulation suspension would
best fit the industry’s marketing needs.
The Committee anticipates that this
rule will not negatively impact small
businesses. This rule extends the
suspension of the container
requirements found under § 922.306 of
the order’s rules and regulations and
should continue to provide enhanced
marketing opportunities.
The Committee discussed—and
subsequently rejected—alternatives to
its recommendation to extend the
container regulation suspension. These
included allowing the reinstatement of
the regulations (by not taking any
action) and continuing with annual and
temporary regulatory suspensions such
as recommended for the 2006 season.
With a successful season behind them,
Committee members were unanimous in
their decision to recommend to USDA
an extension of the container
regulations suspension for an indefinite
period.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
apricot 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. In addition, USDA has
not identified any relevant Federal rules
that duplicate, overlap or conflict with
this rule.
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.
The Committee’s meeting was widely
publicized throughout the Washington
apricot industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations. Like all Committee
meetings, the February 15, 2007,
VerDate Aug<31>2005
15:40 Apr 03, 2007
Jkt 211001
meeting was a public meeting and all
entities, both large and small, were able
to express their views on this issue.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.am.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.
This rule invites comments on an
indefinite extension of the suspension
of the container regulations under the
Washington apricot marketing order.
Any comments received will be
considered prior to finalization of this
rule.
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that the
suspension of the order’s container
regulations should be indefinitely
extended in order 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) This rule extends the 2006
season container regulation suspension
for Washington apricots to include the
2007 and future shipping seasons; (2)
the indefinite extension of the container
regulation suspension was unanimously
recommended by the Committee at a
public meeting and all interested
persons had an opportunity to express
their views and provide input; (3)
Washington apricot handlers are aware
of this recommendation, are currently
operating under relaxed regulatory
conditions, and need no additional time
to comply with the continued relaxed
requirements; (4) this rule should be in
effect by April 1, 2007, to ensure a
seamless continuation of the current
container regulation suspension; and (5)
this rule provides a 60-day comment
period, and any comments received will
be considered prior to finalization of
this rule.
List of Subjects in 7 CFR Part 922
Apricots, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 922 is amended as
follows:
I
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
16265
PART 922—APRICOTS GROWN IN
DESIGNATED COUNTIES IN
WASHINGTON
1. The authority citation for 7 CFR
part 922 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
§ 922.306
[Suspended]
2. In part 922, § 922.306 is suspended
indefinitely.
I
Dated: March 29, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–6224 Filed 4–3–07; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 926
[Docket No. AMS–FV–06–0173; FV06–926–
1 FIR]
Data Collection, Reporting and
Recordkeeping Requirements
Applicable to Cranberries Not Subject
to the Cranberry Marketing Order;
Suspension of Provisions Under 7 CFR
Part 926
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: The U.S. Department of
Agriculture (USDA) is adopting, as a
final rule, without change, an interim
final rule suspending Part 926 in the
Code of Federal Regulations, which
requires persons engaged in the
handling or importation of fresh
cranberries or cranberry products, but
not subject to the reporting
requirements of the Federal cranberry
marketing order (7 CFR part 929), to
report sales, acquisition, and inventory
information to the Cranberry Marketing
Committee (Committee), and to
maintain adequate records of such
activities. The establishment of these
requirements is authorized under
section 8(d) of the Agricultural
Marketing Agreement Act of 1937 (Act).
The Committee, which administers
marketing order 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, has been delegated
by USDA to collect such information
authorized under Part 926. Based on
information provided by the Committee,
USDA has determined that the
E:\FR\FM\04APR1.SGM
04APR1
Agencies
[Federal Register Volume 72, Number 64 (Wednesday, April 4, 2007)]
[Rules and Regulations]
[Pages 16263-16265]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-6224]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Docket No. AMS-FV-07-0031; FV07-922-1 IFR]
Apricots Grown in Designated Counties in Washington; Suspension
of Container Regulations
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule suspends the container regulations prescribed under
the Washington apricot marketing order by extending the temporary 2006
season suspension indefinitely. The marketing order regulates the
handling of fresh apricots grown in designated counties in the State of
Washington, and is administered locally by the Washington Apricot
Marketing Committee (Committee). This indefinite suspension of the
container regulations will continue to provide the apricot industry
with increased marketing flexibility by allowing handlers to pack and
ship apricots in any size, shape, or type of container. After
evaluating the impact the temporary 2006 season container regulation
suspension has had on the industry, the Committee determined that
container regulations no longer contribute to the orderly marketing of
the fresh apricot crop.
DATES: Effective April 1, 2007. Comments received by June 4, 2007 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; or Internet: https://
www.regulations.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.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Robert J. Curry 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, Oregon 97204-2807; Telephone: (503) 326-
2724; Fax: (503) 326-7440; or E-mail: Robert.Curry@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 and Order No. 922 (7 CFR part 922) regulating the handling of
apricots grown in designated counties in Washington, hereinafter
referred to as the ``order.'' The order is effective under the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any State of 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 indefinitely extends the temporary 2006 season container
regulation suspension (Sec. 922.306), which ends on March 31, 2007. As
it effectively did during the 2006 shipping season, this regulatory
suspension will provide additional flexibility to the apricot industry
by allowing handlers to
[[Page 16264]]
pack apricots in any type, shape, or size container. The container
regulations prescribed under Sec. 922.306 will remain suspended for
the 2007 and future seasons unless the Committee recommends, and USDA
approves, action to reinstate the regulations. For the 2006 season, the
Committee recommended a temporary suspension of the regulations rather
than an open-ended suspension to help ensure that a thorough analysis
of the 2006 shipping season would be completed prior to any potential
future action regarding the issue of container regulation suspension.
The Committee has reviewed the 2006 shipping season and determined that
the industry can successfully market its fresh apricot crop without the
container regulations in place. Consequently, the Committee has
concluded that the Washington apricot industry is now best served by an
open-ended suspension of Sec. 922.306. To facilitate prompt
reinstatement of the container regulations in the future should market
conditions warrant such, the Committee recommended that the 2006
temporary regulation suspension be extended rather than replaced by a
permanent removal of the regulations from the order.
Section 922.52 of the order authorizes the issuance of regulations
for grade, size, quality, maturity, pack, and container for any variety
of apricots grown in the production area. Section 922.52(a)(3)
specifically authorizes the establishment of the container regulations
found in Sec. 922.306. Section 922.53 authorizes the modification,
suspension, or termination of regulations issued pursuant to Sec.
922.52.
Authority to regulate the size, weight, dimension and pack of
containers used in the marketing of fresh apricots was included in the
order when promulgated in 1957. Container regulatory authority was
included in the order to provide container standardization, to enhance
orderly marketing conditions, and to provide for increased producer
returns.
The Committee meets prior to each season to consider
recommendations for modification, suspension, or termination of any
regulatory requirements for Washington apricots that are issued on a
continuing basis. Committee meetings are open to the public and
interested persons may express their views at these meetings. The USDA
reviews the Committee recommendations along with any supportive
information submitted by the Committee, as well as information from
other available resources, and determines whether modification,
suspension, or termination of the regulatory requirements would tend to
effectuate the declared policy of the Act.
During such a review at its February 15, 2007, meeting, the
Committee determined, and unanimously recommended, that the 2006 season
container regulation suspension--effective from April 1, 2006, through
March 31, 2007--be extended indefinitely. For a seamless extension of
the suspension, the Committee recommended that this rule be effective
by April 1, 2007.
When effective, Sec. 922.306 provides that apricots must be
handled domestically in (1) open containers or telescopic fiberboard
cartons weighing 28 pounds or greater; (2) closed containers with 14
pounds or more of apricots packed in a row-faced or tray-pack
configuration; (3) closed containers with 12 pounds (or more) of random
sized, non row-faced apricots; or (4) closed containers with 24 pounds
or more of loose-packed apricots.
In reaching a consensus to extend the 2006 regulatory suspension,
Committee members found that arguments made in favor of the suspension
at the meeting a year ago are still appropriate. They noted that
container standardization had contributed to orderly marketing in the
past, but buyers today are increasingly interested in non-traditional
packaging options designed for better handling and greater consumer
acceptance. Furthermore, handler members stated that they now enjoy a
greater latitude in choosing the optimum container weight for a
particular pack or customer. Committee members were unanimous in the
opinion that this indefinite extension of the container regulation
suspension will continue to provide the industry with the flexibility
needed to meet the challenges of marketing fresh apricots.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this rule on small entities. Accordingly, AMS has
prepared this initial regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 300 apricot producers within the regulated
production area and approximately 22 regulated handlers. Small
agricultural producers are defined by the Small Business Administration
(SBA)(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.
Data from the Washington Agricultural Statistics Service shows that
the total 5,900 ton Washington apricot utilization sold for an average
of $969 per ton in 2005 with a total value of $5,715,000. Based on the
number of producers in the production area (300), the average annual
producer revenue from the sale of apricots in 2005 can thus be
estimated at approximately $19,050. In addition, based on information
from the Committee and USDA's Market News Service, 2005 f.o.b. prices
ranged from $15.00 to $20.00 per 24-pound loose-pack container, and
from $14.00 to $24.00 for 2-layer tray pack containers. Assuming that
equal quantities of the 2005 season fresh apricot pack-out of 4,471
tons went into loose-pack (24-pound) containers and tray-pack
containers (weighing an average of about 20 pounds each), average gross
receipts per handler from the sale of fresh apricots would have been
approximately one half of the annual sales figure that the SBA uses to
define the minimum size of a large agricultural service business
($750,000). Thus, the majority of producers and handlers of Washington
apricots may be classified as small entities.
At its February 15, 2007, meeting the Committee recommended that
the temporary suspension of the order's container regulations (Sec.
922.306)--effective from April 1, 2006, through March 31, 2007--be
indefinitely extended to cover the 2007 shipping season as well as all
future seasons. Section 922.52(a)(3) of the order specifically
authorizes the establishment of container regulations. Further, Sec.
922.53 authorizes the modification, suspension, or termination of
regulations issued pursuant to Sec. 922.52. This indefinite extension
of the container regulation suspension is expected to continue to
provide the apricot industry with increased marketing flexibility by
allowing handlers to pack and ship apricots in any size, shape, or type
of container. Container regulations have been utilized in past seasons
to provide a degree of standardization and thus have helped in
providing the industry with orderly marketing conditions.
[[Page 16265]]
However, changing market dynamics and the experience gained through the
2006 suspension have convinced the Committee that container
standardization is no longer necessary to ensure orderly marketing.
Last year, rather than seeking an indefinite suspension of the
regulations, the Committee recommended a temporary suspension so that
it could conduct a thorough evaluation of the impact the relaxation
would have on the industry during the 2006 shipping season prior to
taking any further action for subsequent seasons. In reviewing the 2006
season at the February 15, 2007, meeting, the Committee easily reached
a consensus that an indefinite continuation of the container regulation
suspension would best fit the industry's marketing needs.
The Committee anticipates that this rule will not negatively impact
small businesses. This rule extends the suspension of the container
requirements found under Sec. 922.306 of the order's rules and
regulations and should continue to provide enhanced marketing
opportunities.
The Committee discussed--and subsequently rejected--alternatives to
its recommendation to extend the container regulation suspension. These
included allowing the reinstatement of the regulations (by not taking
any action) and continuing with annual and temporary regulatory
suspensions such as recommended for the 2006 season. With a successful
season behind them, Committee members were unanimous in their decision
to recommend to USDA an extension of the container regulations
suspension for an indefinite period.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large apricot 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. In addition, USDA has not identified any
relevant Federal rules that duplicate, overlap or conflict with this
rule.
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.
The Committee's meeting was widely publicized throughout the
Washington apricot industry and all interested persons were invited to
attend the meeting and participate in Committee deliberations. Like all
Committee meetings, the February 15, 2007, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.am.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.
This rule invites comments on an indefinite extension of the
suspension of the container regulations under the Washington apricot
marketing order. Any comments received will be considered prior to
finalization of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
the suspension of the order's container regulations should be
indefinitely extended in order 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) This rule extends the 2006 season container regulation
suspension for Washington apricots to include the 2007 and future
shipping seasons; (2) the indefinite extension of the container
regulation suspension was unanimously recommended by the Committee at a
public meeting and all interested persons had an opportunity to express
their views and provide input; (3) Washington apricot handlers are
aware of this recommendation, are currently operating under relaxed
regulatory conditions, and need no additional time to comply with the
continued relaxed requirements; (4) this rule should be in effect by
April 1, 2007, to ensure a seamless continuation of the current
container regulation suspension; and (5) this rule provides a 60-day
comment period, and any comments received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 922
Apricots, Marketing agreements, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 922 is amended as
follows:
PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON
0
1. The authority citation for 7 CFR part 922 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Sec. 922.306 [Suspended]
0
2. In part 922, Sec. 922.306 is suspended indefinitely.
Dated: March 29, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-6224 Filed 4-3-07; 8:45 am]
BILLING CODE 3410-02-P