Sweet Cherries Grown in Designated Counties in Washington; Decreased Assessment Rate, 33922-33924 [E7-11820]
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rwilkins on PROD1PC63 with PROPOSALS
33922
Federal Register / Vol. 72, No. 118 / Wednesday, June 20, 2007 / Proposed Rules
assessment rates to $0.06 per 25-pound
container or container equivalent. This
would allow them to meet their 2007–
08 fiscal period expenses and carry over
necessary reserves to finance operations
before 2008–09 fiscal period
assessments are collected.
A review of historical and preliminary
information pertaining to the upcoming
fiscal period indicates that the grower
price for nectarines and peaches for the
2007–08 season could range between
$6.00 and $8.00 per 25-pound container
or container equivalent. Therefore, the
estimated assessment revenue for the
2007–08 fiscal period as a percentage of
total grower revenue could range
between .75 and 1 percent.
This action would decrease 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, decreasing the
assessment rate would reduce the
burden on handlers, and may reduce the
burden on producers. In addition, the
committees’ meetings were widely
publicized throughout the California
nectarine and peach industries and all
interested persons were invited to
attend the meetings and were
encouraged to participate in the
committees’ deliberations on all issues.
Like all committee meetings, the May 1,
2007, meetings were public meetings
and entities of all sizes were able to
express views on this issue. Finally,
interested persons are invited to submit
information on the regulatory and
informational impacts of this action on
small businesses.
This proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
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 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
VerDate Aug<31>2005
17:23 Jun 19, 2007
Jkt 211001
address in the FOR FURTHER INFORMATION
section.
A 10-day comment period is provided
to allow interested persons to respond
to this proposed rule. Ten days is
deemed appropriate because: (1) The
2007–08 fiscal period began on March 1,
2007, and the marketing orders require
that the rates of assessment for each
fiscal period apply to all assessable
nectarines and peaches handled during
such fiscal period; (2) the proposed rule
would decrease the assessment rates for
assessable nectarines and peaches
beginning with the 2007–08 fiscal
period; and (3) handlers are aware of
this action, which was discussed by the
committees at public meetings and
recommended at their meetings on May
1, 2007, and is similar to other
assessment rate actions issued in past
years.
CONTACT
List of Subjects
7 CFR Part 916
Marketing agreements, Nectarines,
Reporting and recordkeeping
requirements.
7 CFR Part 917
Marketing agreements, Peaches, Pears,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR parts 916 and 917 are
proposed to be amended as follows:
1. The authority citation for 7 CFR
parts 916 and 917 continues to read as
follows:
Authority: 7 U.S.C. 601–674.
PART 916—NECTARINES GROWN IN
CALIFORNIA
2. Section 916.234 is revised to read
as follows:
§ 916.234
Assessment rate.
On and after March 1, 2007, an
assessment rate of $0.06 per 25-pound
container or container equivalent of
nectarines is established for California
nectarines.
PART 917—PEACHES GROWN IN
CALIFORNIA
3. Section 917.258 is revised to read
as follows:
§ 917.258
Assessment rate.
On and after March 1, 2007, an
assessment rate of $0.06 per 25-pound
container or container equivalent of
peaches is established for California
peaches.
PO 00000
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Dated: June 13, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–11822 Filed 6–19–07; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 923
[Docket No. AMS–FV–07–0073; FV07–923–
1 PR]
Sweet Cherries Grown in Designated
Counties in Washington; Decreased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
SUMMARY: This rule would decrease the
assessment rate established for the
Washington Cherry Marketing
Committee (Committee) for the 2007–
2008 and subsequent fiscal periods from
$0.50 to $0.40 per ton for Washington
sweet cherries handled. The Committee
is responsible for local administration of
the marketing order regulating the
handling of sweet cherries grown in
designated counties in Washington.
Assessments upon handlers of sweet
cherries are used by the Committee to
fund reasonable and necessary expenses
of the program. The fiscal period for the
marketing order begins April 1 and ends
March 31. The assessment rate would
remain in effect indefinitely unless
modified, suspended or terminated.
DATES: Comments must be received by
July 2, 2007.
ADDRESSES: Interested persons are
invited to submit written comments
regarding 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. 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.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,
E:\FR\FM\20JNP1.SGM
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Federal Register / Vol. 72, No. 118 / Wednesday, June 20, 2007 / Proposed Rules
Suite 385, Portland, OR 97204;
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 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 Order No.
923 (7 CFR part 923), as amended,
regulating the handling of sweet
cherries 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. Under the marketing order now
in effect, cherry handlers in designated
counties in Washington are subject to
assessments. Funds to administer the
order are derived from such
assessments. It is intended that the
assessment rate as issued herein will be
applicable to all assessable Washington
sweet cherries beginning April 1, 2007,
and continue until amended,
suspended, or terminated. This rule will
not preempt any State or local laws,
regulations, or policies, unless they
present an irreconcilable conflict with
this rule.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with 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
rwilkins on PROD1PC63 with PROPOSALS
SUPPLEMENTARY INFORMATION:
VerDate Aug<31>2005
19:17 Jun 19, 2007
Jkt 211001
20 days after the date of the entry of the
ruling.
This rule would decrease the
assessment rate established for the
Committee for the 2007–2008 and
subsequent fiscal periods from $0.50 to
$0.40 per ton for Washington sweet
cherries handled under the order.
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. The
members of the Committee are
producers and handlers of sweet
cherries in designated counties in
Washington. 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 at a public meeting.
Thus, all directly affected persons have
an opportunity to participate and
provide input.
For the 2006–2007 and subsequent
fiscal periods, the Committee
recommended, and the USDA approved,
an assessment rate of $0.50 per ton of
sweet cherries handled. This 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 2, 2007,
and unanimously recommended 2007–
2008 expenditures of $71,600. In
comparison, last year’s budgeted
expenditures were $49,800. In addition,
the Committee recommended that the
current $0.50 per ton assessment rate be
decreased by $0.10 to $0.40 per ton of
sweet cherries handled. The Committee
recommended the lower assessment rate
for the purpose of decreasing the
monetary reserve, which is
approximately $83,792. Funds in the
reserve must be kept within the
maximum permitted by the order of
approximately one fiscal period’s
operational expenses (7 CFR 923.42).
The major expenditures
recommended by the Committee for the
2007–2008 fiscal period include $22,500
for administration and data management
fees, $36,500 for Committee expenses
such as travel, accounting and
compliance, and $7,600 for office
expenses—including bonds, insurance,
telephone, office equipment and
supplies. Budgeted expenses for these
items in 2006–2007 were $25,000,
$16,200, and $7,100, respectively.
Higher expenses are anticipated this
season due to a producer survey and
other regulatory research expenses
PO 00000
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33923
requested by the Committee, as well as
the associated increase in staff costs.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses by expected
shipments of Washington sweet
cherries. Applying the $0.40 per ton rate
of assessment to the Committee’s
120,000 ton crop estimate should
provide $48,000 in assessment income.
Income derived from handler
assessments, along with interest income
and approximately $23,600 from the
Committee’s reserve, would be adequate
to cover budgeted expenses. While there
is currently about $83,792 in the
monetary reserve, the Committee
estimates that with the adoption of this
proposed rule this fund will have
approximately $60,267 in it on March
31, 2008.
The proposed assessment rate would
continue in effect indefinitely unless
modified, suspended, or terminated by
USDA upon recommendation and
information submitted by the
Committee or other available
information.
Although this assessment rate would
be effective for an indefinite period, the
Committee would continue to meet
prior to or during each fiscal period to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of the Committee’s
meetings are available from the
Committee or USDA. The Committee’s
meetings are open to the public and
interested persons may express their
views at these meetings. USDA will
evaluate the Committee’s
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
Committee’s 2007–2008 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
E:\FR\FM\20JNP1.SGM
20JNP1
rwilkins on PROD1PC63 with PROPOSALS
33924
Federal Register / Vol. 72, No. 118 / Wednesday, June 20, 2007 / Proposed Rules
small entities acting on their own
behalf.
There are approximately 1,500 cherry
producers within the regulated
production area and approximately 53
regulated handlers. 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.
The Washington Agricultural
Statistics Service has prepared a
preliminary report for the 2006 shipping
season showing that the sweet cherry
fresh market utilization of 136,000 tons
sold for an average of $2,000 per ton.
Based on the number of producers in
the production area (1,500), the average
producer revenue from the sale of sweet
cherries in 2006 can therefore be
estimated at approximately $181,333
per year. In addition, the Committee
reports that most of the industry’s 53
handlers would have each averaged
gross receipts of less than $6,500,000
from the sale of fresh sweet cherries last
season. Thus, the majority of producers
and handlers of Washington sweet
cherries may be classified as small
entities.
This rule would decrease the
assessment rate established for the
Committee and collected from handlers
for the 2007–2008 and subsequent fiscal
periods from $0.50 to $0.40 per ton for
sweet cherries. The Committee also
unanimously recommended 2007–2008
expenditures of $71,600. With the 2007–
2008 Washington sweet cherry crop
estimate of 120,000 tons, the Committee
anticipates assessment income of
$48,000. The Committee recommended
the assessment rate decrease for the
purpose of decreasing the monetary
reserve, which is approximately
$83,792. With this proposed assessment
rate and budget, the Committee may
need to draw up to $23,600 from its
monetary reserve, thus helping to
decrease the reserve to a level that is
less than approximately one fiscal
period’s operating expenses, the
maximum permitted by the order.
The major expenditures
recommended by the Committee for the
2007–2008 fiscal period include $22,500
for administration and data management
fees, $36,500 for Committee expenses,
and $7,600 for office expenses.
Budgeted expenses for these items in
2006–2007 were $25,000, $16,200, and
$7,100, respectively.
The Committee discussed alternatives
to this rule. Leaving the assessment rate
at the current $0.50 per ton was initially
considered, but not recommended
VerDate Aug<31>2005
17:23 Jun 19, 2007
Jkt 211001
because of the Committee’s desire to
decrease the level of the monetary
reserve so that it is not more than
approximately one fiscal period’s
operational expenses.
A review of historical information and
preliminary information pertaining to
the upcoming crop year indicates that
the producer price for the 2007–2008
season could average about $2,000 per
ton for fresh Washington sweet cherries.
Therefore, the estimated assessment
revenue for the 2007–2008 fiscal period
as a percentage of total producer
revenue is 0.02 percent for Washington
sweet cherries.
This action would decrease 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, decreasing 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
Washington sweet cherry industry and
all interested persons were invited to
attend and participate in Committee
deliberations on all issues. Like all
Committee meetings, the May 2, 2007,
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
comments on this proposed rule,
including the regulatory and
informational impacts of this action on
small businesses.
This proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
Washington sweet 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. Furthermore, USDA has
not identified any relevant Federal rules
that duplicate, overlap, or conflict with
this rule.
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.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and order 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.
PO 00000
Frm 00008
Fmt 4702
Sfmt 4702
A 10-day comment period is provided
to allow interested persons to respond
to this proposed rule. Ten days is
deemed appropriate because: (1) This
rule would decrease the assessment rate,
and thus also would decrease the
burden on handlers; (2) the 2007–2008
fiscal period began on April 1, 2007,
and the order requires that the rate
assessment for each fiscal period apply
to all assessable sweet cherries handled
during such fiscal period; (3) the
Washington sweet cherry harvest and
shipping season is expected to begin as
early as the last week of May; (4) the
Committee needs to have sufficient
funds to pay its expenses which are
incurred on a continuous basis; and (5)
handlers are aware of this action which
was recommended by the Committee at
a public meeting and is similar to other
assessment rate actions issued in past
years.
List of Subjects in 7 CFR Part 923
Cherries, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 923 is proposed to
be amended as follows:
PART 923—SWEET CHERRIES
GROWN IN DESIGNATED COUNTIES
IN WASHINGTON
1. The authority citation for 7 CFR
part 923 continues to read as follows:
Authority: 7 U.S.C. 601–674.
2. Section 923.236 is revised to read
as follows:
§ 923.236
Assessment rate.
On and after April 1, 2007, an
assessment rate of $0.40 per ton is
established for the Washington Cherry
Marketing Committee.
Dated: June 13, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–11820 Filed 6–19–07; 8:45 am]
BILLING CODE 3410–02–P
E:\FR\FM\20JNP1.SGM
20JNP1
]]>Agencies
[Federal Register Volume 72, Number 118 (Wednesday, June 20, 2007)]
[Proposed Rules]
[Pages 33922-33924]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-11820]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 923
[Docket No. AMS-FV-07-0073; FV07-923-1 PR]
Sweet Cherries Grown in Designated Counties in Washington;
Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule would decrease the assessment rate established for
the Washington Cherry Marketing Committee (Committee) for the 2007-2008
and subsequent fiscal periods from $0.50 to $0.40 per ton for
Washington sweet cherries handled. The Committee is responsible for
local administration of the marketing order regulating the handling of
sweet cherries grown in designated counties in Washington. Assessments
upon handlers of sweet cherries are used by the Committee to fund
reasonable and necessary expenses of the program. The fiscal period for
the marketing order begins April 1 and ends March 31. The assessment
rate would remain in effect indefinitely unless modified, suspended or
terminated.
DATES: Comments must be received by July 2, 2007.
ADDRESSES: Interested persons are invited to submit written comments
regarding 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. 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.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,
[[Page 33923]]
Suite 385, Portland, OR 97204; 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 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 Order
No. 923 (7 CFR part 923), as amended, regulating the handling of sweet
cherries 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. Under the marketing order now in effect, cherry
handlers in designated counties in Washington are subject to
assessments. Funds to administer the order are derived from such
assessments. It is intended that the assessment rate as issued herein
will be applicable to all assessable Washington sweet cherries
beginning April 1, 2007, and continue until amended, suspended, or
terminated. This rule will not preempt any State or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with 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 would decrease the assessment rate established for the
Committee for the 2007-2008 and subsequent fiscal periods from $0.50 to
$0.40 per ton for Washington sweet cherries handled under the order.
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. The members of the
Committee are producers and handlers of sweet cherries in designated
counties in Washington. 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 at a public
meeting. Thus, all directly affected persons have an opportunity to
participate and provide input.
For the 2006-2007 and subsequent fiscal periods, the Committee
recommended, and the USDA approved, an assessment rate of $0.50 per ton
of sweet cherries handled. This 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 2, 2007, and unanimously recommended 2007-
2008 expenditures of $71,600. In comparison, last year's budgeted
expenditures were $49,800. In addition, the Committee recommended that
the current $0.50 per ton assessment rate be decreased by $0.10 to
$0.40 per ton of sweet cherries handled. The Committee recommended the
lower assessment rate for the purpose of decreasing the monetary
reserve, which is approximately $83,792. Funds in the reserve must be
kept within the maximum permitted by the order of approximately one
fiscal period's operational expenses (7 CFR 923.42).
The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $22,500 for administration and data
management fees, $36,500 for Committee expenses such as travel,
accounting and compliance, and $7,600 for office expenses--including
bonds, insurance, telephone, office equipment and supplies. Budgeted
expenses for these items in 2006-2007 were $25,000, $16,200, and
$7,100, respectively. Higher expenses are anticipated this season due
to a producer survey and other regulatory research expenses requested
by the Committee, as well as the associated increase in staff costs.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Washington sweet
cherries. Applying the $0.40 per ton rate of assessment to the
Committee's 120,000 ton crop estimate should provide $48,000 in
assessment income. Income derived from handler assessments, along with
interest income and approximately $23,600 from the Committee's reserve,
would be adequate to cover budgeted expenses. While there is currently
about $83,792 in the monetary reserve, the Committee estimates that
with the adoption of this proposed rule this fund will have
approximately $60,267 in it on March 31, 2008.
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by USDA upon recommendation
and information submitted by the Committee or other available
information.
Although this assessment rate would be effective for an indefinite
period, the Committee would continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of the Committee's meetings are available from the Committee or
USDA. The Committee's meetings are open to the public and interested
persons may express their views at these meetings. USDA will evaluate
the Committee's recommendations and other available information to
determine whether modification of the assessment rate is needed.
Further rulemaking will be undertaken as necessary. The Committee's
2007-2008 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
[[Page 33924]]
small entities acting on their own behalf.
There are approximately 1,500 cherry producers within the regulated
production area and approximately 53 regulated handlers. 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.
The Washington Agricultural Statistics Service has prepared a
preliminary report for the 2006 shipping season showing that the sweet
cherry fresh market utilization of 136,000 tons sold for an average of
$2,000 per ton. Based on the number of producers in the production area
(1,500), the average producer revenue from the sale of sweet cherries
in 2006 can therefore be estimated at approximately $181,333 per year.
In addition, the Committee reports that most of the industry's 53
handlers would have each averaged gross receipts of less than
$6,500,000 from the sale of fresh sweet cherries last season. Thus, the
majority of producers and handlers of Washington sweet cherries may be
classified as small entities.
This rule would decrease the assessment rate established for the
Committee and collected from handlers for the 2007-2008 and subsequent
fiscal periods from $0.50 to $0.40 per ton for sweet cherries. The
Committee also unanimously recommended 2007-2008 expenditures of
$71,600. With the 2007-2008 Washington sweet cherry crop estimate of
120,000 tons, the Committee anticipates assessment income of $48,000.
The Committee recommended the assessment rate decrease for the purpose
of decreasing the monetary reserve, which is approximately $83,792.
With this proposed assessment rate and budget, the Committee may need
to draw up to $23,600 from its monetary reserve, thus helping to
decrease the reserve to a level that is less than approximately one
fiscal period's operating expenses, the maximum permitted by the order.
The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $22,500 for administration and data
management fees, $36,500 for Committee expenses, and $7,600 for office
expenses. Budgeted expenses for these items in 2006-2007 were $25,000,
$16,200, and $7,100, respectively.
The Committee discussed alternatives to this rule. Leaving the
assessment rate at the current $0.50 per ton was initially considered,
but not recommended because of the Committee's desire to decrease the
level of the monetary reserve so that it is not more than approximately
one fiscal period's operational expenses.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the producer price
for the 2007-2008 season could average about $2,000 per ton for fresh
Washington sweet cherries. Therefore, the estimated assessment revenue
for the 2007-2008 fiscal period as a percentage of total producer
revenue is 0.02 percent for Washington sweet cherries.
This action would decrease 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, decreasing 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 Washington sweet cherry industry and all interested
persons were invited to attend and participate in Committee
deliberations on all issues. Like all Committee meetings, the May 2,
2007, 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 comments on this proposed rule, including
the regulatory and informational impacts of this action on small
businesses.
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large Washington sweet
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. Furthermore,
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
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.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and order 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.
A 10-day comment period is provided to allow interested persons to
respond to this proposed rule. Ten days is deemed appropriate because:
(1) This rule would decrease the assessment rate, and thus also would
decrease the burden on handlers; (2) the 2007-2008 fiscal period began
on April 1, 2007, and the order requires that the rate assessment for
each fiscal period apply to all assessable sweet cherries handled
during such fiscal period; (3) the Washington sweet cherry harvest and
shipping season is expected to begin as early as the last week of May;
(4) the Committee needs to have sufficient funds to pay its expenses
which are incurred on a continuous basis; and (5) handlers are aware of
this action which was recommended by the Committee at a public meeting
and is similar to other assessment rate actions issued in past years.
List of Subjects in 7 CFR Part 923
Cherries, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 923 is
proposed to be amended as follows:
PART 923--SWEET CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON
1. The authority citation for 7 CFR part 923 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 923.236 is revised to read as follows:
Sec. 923.236 Assessment rate.
On and after April 1, 2007, an assessment rate of $0.40 per ton is
established for the Washington Cherry Marketing Committee.
Dated: June 13, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-11820 Filed 6-19-07; 8:45 am]
BILLING CODE 3410-02-P
