Apricots Grown in Designated Counties in Washington; Increased Assessment Rate, 38496-38498 [E7-13581]
Download as PDF
<![CDATA[
38496
Proposed Rules
Federal Register
Vol. 72, No. 134
Friday, July 13, 2007
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.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Docket No. AMS–FV–07–0085; FV07–922–
2 PR]
Apricots Grown in Designated
Counties in Washington; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
jlentini on PROD1PC65 with PROPOSALS
AGENCY:
SUMMARY: This rule would increase the
assessment rate established for the
Washington Apricot Marketing
Committee (Committee) for the 2007–
2008 and subsequent fiscal periods from
$1.00 to $1.50 per ton for Washington
apricots. The Committee is responsible
for local administration of the marketing
order regulating the handling of apricots
grown in designated counties in
Washington. Assessments upon
handlers of apricots 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 23, 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.
VerDate Aug<31>2005
16:43 Jul 12, 2007
Jkt 211001
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, 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.
922 (7 CFR 922), as amended, 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. Under the marketing order now
in effect, apricot 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 proposed herein
would be applicable to all assessable
Washington apricots 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
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
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 increase the
assessment rate established for the
Committee for the 2007–2008 and
subsequent fiscal periods from $1.00 to
$1.50 per ton for Washington apricots
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 apricots 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 2005–2006 and subsequent
fiscal periods, the Committee
recommended, and the USDA approved,
an assessment rate of $1.00 per ton of
apricots 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 24, 2007,
and unanimously recommended 2007–
2008 expenditures of $6,743. In
comparison, last year’s budgeted
expenditures were $6,400. In addition,
the Committee recommended that the
current $1.00 per ton assessment rate be
increased by $0.50 to $1.50 per ton of
apricots handled. The Committee
recommended the higher assessment
rate to cover budgeted expenses while
increasing its monetary reserve to a
level commensurate with program
objectives and requirements.
E:\FR\FM\13JYP1.SGM
13JYP1
Federal Register / Vol. 72, No. 134 / Friday, July 13, 2007 / Proposed Rules
jlentini on PROD1PC65 with PROPOSALS
The major expenditures
recommended by the Committee for the
2007–2008 fiscal period include $4,800
for management fees, $1,000 for
Committee travel, $500 for the annual
financial audit, and $100 for
compliance. Budgeted expenses for
these items in 2006–2007 were $4,800,
$1,000, $600, and $100, respectively.
The Committee added $343 to its
budgeted expenses this year for
equipment maintenance, insurance,
bonds, and miscellaneous expenses.
The assessment rate recommended by
the Committee was derived by dividing
its anticipated expenses of $6,743 by the
projected apricot crop of 5,400 tons.
Applying the $1.50 per ton assessment
rate to the Committee’s 5,400 ton crop
estimate should provide $8,100 in
assessment income. Income derived
from handler assessments would not
only adequately cover budgeted
expenses, but would also add
approximately $1,357 to the current
$3,980 reserve fund. As a consequence,
the projected fiscal year-end reserve
balance of $5,337 would be within the
maximum permitted by the order of
approximately one fiscal period’s
operational expenses.
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,
VerDate Aug<31>2005
16:43 Jul 12, 2007
Jkt 211001
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.
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 (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 report
showing that the total 5,400 ton apricot
utilization sold for an average of $1,150
per ton in 2006 with a total value of
approximately $6,200,000. Based on the
number of producers in the production
area (300), the average annual producer
revenue from the sale of apricots in
2006 can thus be estimated at
approximately $20,700. In addition,
based on information from the
Committee and USDA’s Market News
Service, 2006 f.o.b. prices ranged from
$15.00 to $20.00 per 24-pound loosepack container, and from $16.00 to
$18.00 for 2-layer tray pack containers.
Of the approximate 3,728 tons of the
2006 season fresh apricots packed-out,
about 1,569 tons were packed in loosepack containers and about 2,159 tons in
tray-pack containers (weighing an
average of about 20 pounds each). The
total receipts for 2006 were less than
$6,500,000. Thus, the majority of
producers and handlers of Washington
apricots may be classified as small
entities.
This rule would increase the
assessment rate established for the
Committee and collected from handlers
for the 2007–2008 and subsequent fiscal
periods from $1.00 to $1.50 per ton for
apricots handled under authority of the
order. The Committee also unanimously
recommended 2007–2008 expenditures
of $6,743. With the 2007–2008
Washington apricot crop estimate of
5,400 tons, the Committee anticipates
assessment income of $8,100. The
Committee recommended the
assessment rate increase to cover
budgeted expenses and to increase the
monetary reserve. With this proposed
assessment rate and budget, the
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
38497
Committee would be in a position to
add about $1,357 to its monetary
reserve, with a projected balance on
March 31, 2008, of approximately
$5,337—an amount within the
maximum permitted by the order of
approximately one fiscal period’s
operational expenses.
The major expenditures
recommended by the Committee for the
2007–2008 fiscal period include $4,800
for management fees, $1,000 for
Committee travel, $500 for the annual
financial audit, and $100 for
compliance. Budgeted expenses for
these items in 2006–2007 were $4,800,
$1,000, $600, and $100, respectively.
The Committee added $343 to its
budgeted expenses this year for
equipment maintenance, insurance,
bonds, and miscellaneous expenses.
The Committee discussed alternatives
to this recommended assessment
increase. Leaving the assessment rate at
the current $1.00 per ton was discussed,
but not seriously considered since such
a rate would have further eroded the
Committee’s reserves. Higher and lower
rates were also considered but not
recommended because the $1.50 rate
would not only meet the Committee’s
objectives for the 2007–2008 season, but
also increase the reserve to a level
commensurate with order provisions.
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 $1,000 per
ton for fresh Washington apricots.
Therefore, the estimated assessment
revenue for the 2007–2008 fiscal period
as a percentage of total producer
revenue is 0.15 percent for Washington
apricots.
This action would increase the
assessment obligation imposed on
handlers. While assessments impose
some additional costs on handlers, the
costs are minimal and uniform on all
handlers. Some of the additional costs
may be passed on to producers.
However, these costs would be offset by
the benefits derived by the operation of
the order.
In addition, the Committee’s meeting
was widely publicized throughout the
Washington apricot industry and all
interested persons were invited to
attend and participate in Committee
deliberations on all issues. Like all
Committee meetings, the May 24, 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
information on the regulatory and
informational impacts of this action on
small businesses.
E:\FR\FM\13JYP1.SGM
13JYP1
38498
Federal Register / Vol. 72, No. 134 / Friday, July 13, 2007 / Proposed Rules
This proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
Washington 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.
Furthermore, 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.
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) The
2007–2008 fiscal period began on April
1, 2007, and the order requires that the
assessment rate for each fiscal period
apply to all assessable apricots handled
during such fiscal period; (2) the
Washington apricot harvest and
shipping season is expected to begin as
early as the last week of June; (3) the
Committee needs to have sufficient
funds to pay its expenses, which are
incurred on a continuous basis; and (4)
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 922
Apricots, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 922 is proposed to
be amended as follows:
jlentini on PROD1PC65 with PROPOSALS
PART 922—APRICOTS GROWN IN
DESIGNATED COUNTIES IN
WASHINGTON
1. The authority citation for 7 CFR
part 922 continues to read as follows:
Authority: 7 U.S.C. 601–674.
2. Section 922.235 is revised to read
as follows:
VerDate Aug<31>2005
16:43 Jul 12, 2007
Jkt 211001
§ 922.235
Assessment rate.
On or after April 1, 2007, an
assessment rate of $1.50 per ton is
established for the Washington Apricot
Marketing Committee.
Dated: July 9, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E7–13581 Filed 7–12–07; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 984
[Docket No. AMS–FV–07–0004; AO–192–A7;
FV06–984–1]
Walnuts Grown in California;
Secretary’s Decision and Referendum
Order on Proposed Amendment of
Marketing Agreement and Order No.
984
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule and referendum
order.
AGENCY:
SUMMARY: This decision proposes
amendments to Marketing Order No.
984, which regulates the handling of
walnuts grown in California (order), and
provides growers with the opportunity
to vote in a referendum to determine if
they favor the changes. The
amendments were proposed by the
Walnut Marketing Board (Board), which
is responsible for local administration of
the order. The amendments would:
change the marketing year; include
‘‘pack’’ as a handler function;
restructure the Board and revise
nomination procedures; rename the
Board and add authority to change
Board composition; modify Board
meeting and voting procedures; add
authority for marketing promotion and
paid advertising; add authority to accept
voluntary financial contributions and to
carry over excess assessment funds;
broaden the scope of the quality control
provisions and add the authority to
recommend different regulations for
different market destinations; add
authority for the Board to appoint more
than one inspection service; replace
outdated order language with current
industry terminology; and other related
amendments.
The Department of Agriculture
(USDA) proposed three additional
amendments: To establish tenure
limitations for Board members, to
require that continuance referenda be
conducted on a periodic basis to
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
ascertain producer support for the order,
and to make any necessary conforming
changes.
The proposed amendments are
intended to improve the operation and
functioning of the marketing order
program.
The referendum will be
conducted from August 1 to 17, 2007.
The representative period for the
purpose of the referendum is August 1,
2006, through July 31, 2007.
FOR FURTHER INFORMATION CONTACT:
Melissa Schmaedick, 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:
Melissa.Schmaedick@usda.gov.
Small businesses may request
information on this proceeding 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.
DATES:
Prior
documents in this proceeding: Notice of
Hearing issued on April 18, 2006, and
published in the April 24, 2006, issue of
the Federal Register (71 FR 20902) and
a Recommended Decision issued on
March 19, 2007, and published in the
March 27, 2007, issue of the Federal
Register (72 FR 14368).
This action is governed by the
provisions of sections 556 and 557 of
Title 5 of the United States Code and,
therefore, is excluded from the
requirements of Executive Order 12866.
SUPPLEMENTARY INFORMATION:
Preliminary Statement
The proposed amendments are based
on the record of a public hearing held
on May 17 and 18, 2006, in Modesto,
California. The hearing was held to
consider the proposed amendment of
the order. The hearing was held
pursuant to the provisions of the
Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601 et
seq.) hereinafter referred to as the ‘‘Act,’’
and the applicable rules of practice and
procedure governing the formulation of
marketing agreements and marketing
orders (7 CFR Part 900).
Notice of this hearing was published
in the Federal Register on April 24,
2006 (71 FR 20902). The notice of
hearing contained proposals submitted
by the Walnut Marketing Board (Board),
which is responsible for local
E:\FR\FM\13JYP1.SGM
13JYP1
]]>Agencies
[Federal Register Volume 72, Number 134 (Friday, July 13, 2007)]
[Proposed Rules]
[Pages 38496-38498]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-13581]
========================================================================
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.
========================================================================
Federal Register / Vol. 72, No. 134 / Friday, July 13, 2007 /
Proposed Rules
[[Page 38496]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 922
[Docket No. AMS-FV-07-0085; FV07-922-2 PR]
Apricots Grown in Designated Counties in Washington; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule would increase the assessment rate established for
the Washington Apricot Marketing Committee (Committee) for the 2007-
2008 and subsequent fiscal periods from $1.00 to $1.50 per ton for
Washington apricots. The Committee is responsible for local
administration of the marketing order regulating the handling of
apricots grown in designated counties in Washington. Assessments upon
handlers of apricots 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 23, 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, 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. 922 (7 CFR 922), as amended, 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. Under the marketing order now in effect, apricot
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 proposed herein
would be applicable to all assessable Washington apricots 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 increase the assessment rate established for the
Committee for the 2007-2008 and subsequent fiscal periods from $1.00 to
$1.50 per ton for Washington apricots 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 apricots 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 2005-2006 and subsequent fiscal periods, the Committee
recommended, and the USDA approved, an assessment rate of $1.00 per ton
of apricots 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 24, 2007, and unanimously recommended
2007-2008 expenditures of $6,743. In comparison, last year's budgeted
expenditures were $6,400. In addition, the Committee recommended that
the current $1.00 per ton assessment rate be increased by $0.50 to
$1.50 per ton of apricots handled. The Committee recommended the higher
assessment rate to cover budgeted expenses while increasing its
monetary reserve to a level commensurate with program objectives and
requirements.
[[Page 38497]]
The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $4,800 for management fees, $1,000 for
Committee travel, $500 for the annual financial audit, and $100 for
compliance. Budgeted expenses for these items in 2006-2007 were $4,800,
$1,000, $600, and $100, respectively. The Committee added $343 to its
budgeted expenses this year for equipment maintenance, insurance,
bonds, and miscellaneous expenses.
The assessment rate recommended by the Committee was derived by
dividing its anticipated expenses of $6,743 by the projected apricot
crop of 5,400 tons. Applying the $1.50 per ton assessment rate to the
Committee's 5,400 ton crop estimate should provide $8,100 in assessment
income. Income derived from handler assessments would not only
adequately cover budgeted expenses, but would also add approximately
$1,357 to the current $3,980 reserve fund. As a consequence, the
projected fiscal year-end reserve balance of $5,337 would be within the
maximum permitted by the order of approximately one fiscal period's
operational expenses.
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 small
entities acting on their own behalf.
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
(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
report showing that the total 5,400 ton apricot utilization sold for an
average of $1,150 per ton in 2006 with a total value of approximately
$6,200,000. Based on the number of producers in the production area
(300), the average annual producer revenue from the sale of apricots in
2006 can thus be estimated at approximately $20,700. In addition, based
on information from the Committee and USDA's Market News Service, 2006
f.o.b. prices ranged from $15.00 to $20.00 per 24-pound loose-pack
container, and from $16.00 to $18.00 for 2-layer tray pack containers.
Of the approximate 3,728 tons of the 2006 season fresh apricots packed-
out, about 1,569 tons were packed in loose-pack containers and about
2,159 tons in tray-pack containers (weighing an average of about 20
pounds each). The total receipts for 2006 were less than $6,500,000.
Thus, the majority of producers and handlers of Washington apricots may
be classified as small entities.
This rule would increase the assessment rate established for the
Committee and collected from handlers for the 2007-2008 and subsequent
fiscal periods from $1.00 to $1.50 per ton for apricots handled under
authority of the order. The Committee also unanimously recommended
2007-2008 expenditures of $6,743. With the 2007-2008 Washington apricot
crop estimate of 5,400 tons, the Committee anticipates assessment
income of $8,100. The Committee recommended the assessment rate
increase to cover budgeted expenses and to increase the monetary
reserve. With this proposed assessment rate and budget, the Committee
would be in a position to add about $1,357 to its monetary reserve,
with a projected balance on March 31, 2008, of approximately $5,337--an
amount within the maximum permitted by the order of approximately one
fiscal period's operational expenses.
The major expenditures recommended by the Committee for the 2007-
2008 fiscal period include $4,800 for management fees, $1,000 for
Committee travel, $500 for the annual financial audit, and $100 for
compliance. Budgeted expenses for these items in 2006-2007 were $4,800,
$1,000, $600, and $100, respectively. The Committee added $343 to its
budgeted expenses this year for equipment maintenance, insurance,
bonds, and miscellaneous expenses.
The Committee discussed alternatives to this recommended assessment
increase. Leaving the assessment rate at the current $1.00 per ton was
discussed, but not seriously considered since such a rate would have
further eroded the Committee's reserves. Higher and lower rates were
also considered but not recommended because the $1.50 rate would not
only meet the Committee's objectives for the 2007-2008 season, but also
increase the reserve to a level commensurate with order provisions.
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 $1,000 per ton for fresh
Washington apricots. Therefore, the estimated assessment revenue for
the 2007-2008 fiscal period as a percentage of total producer revenue
is 0.15 percent for Washington apricots.
This action would increase the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
would be offset by the benefits derived by the operation of the order.
In addition, the Committee's meeting was widely publicized
throughout the Washington apricot industry and all interested persons
were invited to attend and participate in Committee deliberations on
all issues. Like all Committee meetings, the May 24, 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 information on the regulatory and informational impacts of this
action on small businesses.
[[Page 38498]]
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large Washington 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. Furthermore, 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.
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) The 2007-2008 fiscal period began on April 1, 2007, and the order
requires that the assessment rate for each fiscal period apply to all
assessable apricots handled during such fiscal period; (2) the
Washington apricot harvest and shipping season is expected to begin as
early as the last week of June; (3) the Committee needs to have
sufficient funds to pay its expenses, which are incurred on a
continuous basis; and (4) 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 922
Apricots, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 922 is
proposed to be amended as follows:
PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON
1. The authority citation for 7 CFR part 922 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 922.235 is revised to read as follows:
Sec. 922.235 Assessment rate.
On or after April 1, 2007, an assessment rate of $1.50 per ton is
established for the Washington Apricot Marketing Committee.
Dated: July 9, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-13581 Filed 7-12-07; 8:45 am]
BILLING CODE 3410-02-P
