Onions Grown in South Texas; Increased Assessment Rate, 11060-11062 [08-898]
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11060
Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Proposed Rules
(6) Earthquake;
(7) Volcanic eruption; or
(8) Failure of irrigation water supply,
if caused by an insured peril that occurs
during the insurance period.
(b) In addition to the causes of loss
excluded in section 12 of the Basic
Provisions, we will not insure against
damage or loss of production due to:
(1) Phylloxera, regardless of cause; or
(2) Inability to market the table grapes
for any reason other than the actual
physical damage from an insurable
cause specified in this section. For
example, we will not pay you an
indemnity if you are unable to market
due to quarantine, boycott, or refusal of
any person to accept production.
11. Duties in the Event of Damage or
Loss.
In addition to the requirements of
section 14 of the Basic Provisions, the
following will apply:
*
*
*
*
*
12. Settlement of Claim.
*
*
*
*
*
(b) * * *
(2) Multiplying the result in section
12(b)(1) by the respective price election
for the variety or type;
*
*
*
*
*
(4) Multiplying the total production to
be counted of the variety or type (see
section 12(c)) by the respective price
election;
*
*
*
*
*
(c) * * *
(1) * * *
(iii) Unharvested production that
meets, or would meet if properly
handled, the state quality standards or
the appropriate USDA grade standard (if
no state standard is applicable); and
*
*
*
*
*
Signed in Washington, DC, on February 21,
2008.
Eldon Gould,
Manager, Federal Crop Insurance
Corporation.
[FR Doc. E8–3850 Filed 2–28–08; 8:45 am]
BILLING CODE 3410–08–P
DEPARTMENT OF AGRICULTURE
7 CFR Part 959
rfrederick on PROD1PC67 with PROPOSALS
[Docket No. AMS–FV–07–0151; FV08–959–
1 PR]
Onions Grown in South Texas;
Increased Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
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This rule
is issued under Marketing Order No.
959, as amended (7 CFR part 959),
regulating the handling of onions grown
in South Texas, 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.
SUPPLEMENTARY INFORMATION:
Agricultural Marketing Service
AGENCY:
SUMMARY: This rule would increase the
assessment rate established for the
South Texas Onion Committee
(Committee) for the 2007–08 and
subsequent fiscal periods from $0.02 to
$0.03 per 50-pound equivalent of onions
handled. The Committee locally
administers the marketing order which
regulates the handling of onions grown
in South Texas. Assessments upon
onion handlers are used by the
Committee to fund reasonable and
necessary expenses of the program. The
fiscal period begins August 1 and ends
July 31. The assessment rate would
remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by
March 17, 2008.
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. 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:
Belinda G. Garza, Regional Manager,
Texas Marketing Field Office, Fruit and
Vegetable Programs, AMS, USDA;
Telephone: (956) 682–2833, Fax: (956)
682–5942, or E-mail:
Belinda.Garza@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.
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This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the marketing order now
in effect, South Texas onion handlers
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
onions beginning on August 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 2007–08 and
subsequent fiscal periods from $0.02 to
$0.03 per 50-pound equivalent of
onions.
The South Texas onion marketing
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 South Texas
onions. They are familiar with the
Committee’s needs and with the costs
for goods and services in their local area
and are thus in a position to formulate
an appropriate budget and assessment
rate. The assessment rate is formulated
and discussed in a public meeting.
Thus, all directly affected persons have
an opportunity to participate and
provide input.
For the 2004–05 and subsequent fiscal
periods, the Committee recommended,
and USDA approved, an assessment rate
that would continue in effect from fiscal
period to fiscal period unless modified,
suspended, or terminated by USDA
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Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Proposed Rules
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on November 16,
2007, and unanimously recommended
2007–08 expenditures of $202,315 and
an assessment rate of $0.03 per 50pound equivalent of onions. In
comparison, last year’s budgeted
expenditures were $193,315. The
assessment rate of $0.03 is $0.01 higher
than the rate currently in effect. The
Committee recommended the increased
rate to continue to support the increased
budget for research started last season,
while reducing the amount of funds
drawn from the Committee’s authorized
reserve. Without the increase, the
Committee’s reserve funds would drop
to $114,728. The Committee believes a
reserve that low is not adequate for its
operations.
The major expenditures
recommended by the Committee for the
2007–08 fiscal period include $64,315
for personnel and office expenses,
$45,000 for compliance, $25,000 for
promotion, and $30,000 for research.
Budgeted expenses for these items in
2006–07 were $62,315, $43,000,
$25,000, and $25,000, respectively.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses by expected
shipments of South Texas onions.
Onion shipments for the fiscal period
are estimated at 5,775,000 fifty-pound
equivalents, which should provide
$173,250 in assessment income. Income
derived from handler assessments, along
with interest income and funds from the
Committee’s authorized reserve, would
be adequate to cover budgeted expenses.
Funds in the reserve (currently
$196,543) would be kept within the
maximum permitted by the order
(approximately two fiscal periods’
expenses, § 959.43).
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 in effect 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 Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA would evaluate Committee
recommendations and other available
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15:34 Feb 28, 2008
Jkt 214001
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The
Committee’s 2007–08 budget and those
for subsequent fiscal periods would 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 118
producers of onions in the production
area and approximately 34 handlers
subject to regulation under the
marketing order. Small agricultural
producers are defined by the Small
Business Administration (SBA) (13 CFR
121.201) as those having annual receipts
less than $750,000, and small
agricultural service firms are defined as
those whose annual receipts are less
than $6,500,000.
Most of the handlers are vertically
integrated corporations involved in
producing, shipping, and marketing
onions. For the 2006–07 marketing year,
the industry’s 34 handlers shipped
onions produced on 12,460 acres with
the average and median volume handled
being 179,457 and 171,537 fifty-pound
equivalents, respectively. In terms of
production value, total revenues for the
34 handlers were estimated to be $86.7
million, with average and median
revenues being $2.55 million and $2.35
million, respectively.
The South Texas onion industry is
characterized by producers and
handlers whose farming operations
generally involve more than one
commodity, and whose income from
farming operations is not exclusively
dependent on the production of onions.
Alternative crops provide an
opportunity to utilize many of the same
facilities and equipment not in use
when the onion production season is
complete. For this reason, typical onion
producers and handlers either produce
multiple crops or alternate crops within
a single year.
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11061
Based on the SBA’s definition of
small entities, the Committee estimates
that 32 of the 34 (94 percent) handlers
regulated by the order would be
considered small entities if only their
spring onion revenues are considered.
However, revenues from other
productive enterprises would likely
push a large number of these handlers
above the $6,500,000 annual receipt
threshold. All of the 118 producers may
be classified as small entities based on
the SBA definition if only their revenue
from spring onions is considered. When
revenues from all sources are
considered, a majority of the producers
would not be considered small entities
because receipts would exceed
$750,000.
This rule would increase the
assessment rate established for the
Committee and collected from handlers
for the 2007–08 and subsequent fiscal
periods from $0.02 to $0.03 per 50pound equivalent. The Committee
unanimously recommended 2007–08
expenditures of $202,315 and an
assessment rate of $0.03 per 50-pound
equivalent. The proposed assessment
rate of $0.03 is $0.01 higher than the
current rate. The quantity of assessable
onions for the 2007–08 fiscal period is
estimated at 5,775,000 fifty-pound
equivalents. Thus, the $0.03 rate should
provide $173,250 in assessment income.
Income derived from handler
assessments, along with interest income
and funds from the Committee’s
authorized reserve, would be more than
adequate to cover budgeted expenses.
The major expenditures
recommended by the Committee for the
2007–08 fiscal period include $64,315
for personnel and office expenses,
$45,000 for compliance, $25,000 for
promotion, and $30,000 for research.
Budgeted expenses for these items in
2006–07 were $62,315, $43,000,
$25,000, and $25,000, respectively.
The Committee recommended the
increased rate to continue funding a
research project begun last year without
having to draw a large amount from
reserves. Without the increase, the
Committee’s reserve funds would drop
to $114,728. The Committee believes a
reserve that low is not adequate for its
operations.
The Committee reviewed and
unanimously recommended 2007–08
expenditures of $202,315, which
included increases in the management
fee, compliance, and research.
Numerous alternative expenditure
levels were discussed based upon the
relative value of the research project to
the onion industry. The assessment rate
of $0.03 per 50-pound equivalent of
assessable onions was then determined
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Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Proposed Rules
by dividing the total recommended
budget by the quantity of assessable
onions, estimated at 5,775,000 fiftypound equivalents for the 2007–08
fiscal period. The assessment rate
should generate $173,250 in income.
Considering income from interest and
assessments, total income should be
approximately $24,065 below the
anticipated expenses, which the
Committee determined to be acceptable.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal period indicates
that the grower price for the 2007–08
fiscal period could range between
$10.00 and $28.00 per 50-pound
equivalent of onions. Therefore, the
estimated assessment revenue for the
2007–08 fiscal period as a percentage of
total grower revenue could range
between .11 and .30 percent.
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 marketing order. In addition, the
Committee’s meeting was widely
publicized throughout the South Texas
onion industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations on all issues. Like all
Committee meetings, the November 16,
2007, meeting was a public meeting and
all entities, both large and small, were
able to express views on this issue.
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
South Texas onion handlers. As with all
Federal marketing order programs,
reports and forms are periodically
reviewed to reduce information
requirements and duplication by
industry and public sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
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15:34 Feb 28, 2008
Jkt 214001
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 15-day comment period is provided
to allow interested persons to respond
to this proposed rule. Fifteen days is
deemed appropriate because: (1) The
2007–08 fiscal period began on August
1, 2007, and the marketing order
requires that the rate of assessment for
each fiscal period apply to all assessable
onions handled during such fiscal
period; (2) the Committee needs to have
sufficient funds to pay its expenses
which are incurred on a continuous
basis; and (3) handlers are aware of this
action which was unanimously
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 959
Marketing agreements, Onions,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 959 is proposed to
be amended as follows:
PART 959—ONIONS GROWN IN
SOUTH TEXAS
1. The authority citation for 7 CFR
part 959 continues to read as follows:
Authority: 7 U.S.C. 601–674.
2. Section 959.237 is revised to read
as follows:
§ 959.237
Assessment rate.
On and after August 1, 2007, an
assessment rate of $0.03 per 50-pound
equivalent is established for South
Texas onions.
Dated: February 26, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 08–898 Filed 2–26–08; 3:31 pm]
BILLING CODE 3410–02–P
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1005, 1006 and 1007
[AMS–DA–07–0059; AO–388–A22, AO–356–
A43 and AO–366–A51; Docket No. DA–07–
03–B]
Milk in the Appalachian, Florida and
Southeast Marketing Areas; Partial
Recommended Decision and
Opportunity To File Written Exceptions
on Proposed Amendments to Tentative
Marketing Agreements and Orders
7 CFR part
Marketing
area
1005 ........
1006 ........
1007 ........
Appalachian ..
Florida ...........
Southeast ......
AO No.
AO–388–A22
AO–356–A43
AO–366–A51
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule, Partial
recommended decision.
AGENCY:
SUMMARY: This decision recommends
adoption of proposals that would
increase the maximum administrative
assessment rate in the Appalachian,
Florida and Southeast Federal milk
marketing orders.
DATES: Comments must be submitted on
or before April 29, 2008.
ADDRESSES: Comments (six copies)
should be filed with the Hearing Clerk,
United States Department of
Agriculture, STOP 9200–Room 1031,
1400 Independence Avenue, SW.,
Washington, DC 20250–1031. You may
send your comments by the electronic
process available at the Federal
eRulemaking portal: https://
www.regulations.gov or by submitting
comments to
amsdairycomments@usda.gov.
Reference should be made to the title of
the action and docket number.
FOR FURRTHER INFORMATION CONTACT:
Gino M. Tosi, Associate Deputy
Administrator, Order formulation and
Enforcement Branch, USDA/AMS/Dairy
Programs, STOP 0231–Room 2971, 1400
Independence Ave., SW., Washington,
DC 20250–0231, (202) 690–1366, e-mail
address: gino.tosi@usda.gov.
SUPPLEMENTARY INFORMATION: This
decision recommends adoption of
amendments that would allow the
market administrator in the
Appalachian, Florida and Southeast
marketing areas to increase the
maximum administrative assessment
rate up to 8 cents per cwt on all pooled
milk, if necessary, to maintain the
mandated reserve fund level.
E:\FR\FM\29FEP1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 41 (Friday, February 29, 2008)]
[Proposed Rules]
[Pages 11060-11062]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 08-898]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[Docket No. AMS-FV-07-0151; FV08-959-1 PR]
Onions Grown in South Texas; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule would increase the assessment rate established for
the South Texas Onion Committee (Committee) for the 2007-08 and
subsequent fiscal periods from $0.02 to $0.03 per 50-pound equivalent
of onions handled. The Committee locally administers the marketing
order which regulates the handling of onions grown in South Texas.
Assessments upon onion handlers are used by the Committee to fund
reasonable and necessary expenses of the program. The fiscal period
begins August 1 and ends July 31. The assessment rate would remain in
effect indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by March 17, 2008.
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. 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: Belinda G. Garza, Regional Manager,
Texas Marketing Field Office, Fruit and Vegetable Programs, AMS, USDA;
Telephone: (956) 682-2833, Fax: (956) 682-5942, or E-mail:
Belinda.Garza@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 Order
No. 959, as amended (7 CFR part 959), regulating the handling of onions
grown in South Texas, 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, South Texas
onion handlers 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 onions beginning on August 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 2007-08 and subsequent fiscal periods from $0.02 to
$0.03 per 50-pound equivalent of onions.
The South Texas onion marketing 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
South Texas onions. They are familiar with the Committee's needs and
with the costs for goods and services in their local area and are thus
in a position to formulate an appropriate budget and assessment rate.
The assessment rate is formulated and discussed in a public meeting.
Thus, all directly affected persons have an opportunity to participate
and provide input.
For the 2004-05 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA
[[Page 11061]]
upon recommendation and information submitted by the Committee or other
information available to USDA.
The Committee met on November 16, 2007, and unanimously recommended
2007-08 expenditures of $202,315 and an assessment rate of $0.03 per
50-pound equivalent of onions. In comparison, last year's budgeted
expenditures were $193,315. The assessment rate of $0.03 is $0.01
higher than the rate currently in effect. The Committee recommended the
increased rate to continue to support the increased budget for research
started last season, while reducing the amount of funds drawn from the
Committee's authorized reserve. Without the increase, the Committee's
reserve funds would drop to $114,728. The Committee believes a reserve
that low is not adequate for its operations.
The major expenditures recommended by the Committee for the 2007-08
fiscal period include $64,315 for personnel and office expenses,
$45,000 for compliance, $25,000 for promotion, and $30,000 for
research. Budgeted expenses for these items in 2006-07 were $62,315,
$43,000, $25,000, and $25,000, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of South Texas
onions. Onion shipments for the fiscal period are estimated at
5,775,000 fifty-pound equivalents, which should provide $173,250 in
assessment income. Income derived from handler assessments, along with
interest income and funds from the Committee's authorized reserve,
would be adequate to cover budgeted expenses. Funds in the reserve
(currently $196,543) would be kept within the maximum permitted by the
order (approximately two fiscal periods' expenses, Sec. 959.43).
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 in effect 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 Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA would evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2007-08 budget and those
for subsequent fiscal periods would 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 118 producers of onions in the production
area and approximately 34 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (SBA) (13 CFR 121.201) as those having annual
receipts less than $750,000, and small agricultural service firms are
defined as those whose annual receipts are less than $6,500,000.
Most of the handlers are vertically integrated corporations
involved in producing, shipping, and marketing onions. For the 2006-07
marketing year, the industry's 34 handlers shipped onions produced on
12,460 acres with the average and median volume handled being 179,457
and 171,537 fifty-pound equivalents, respectively. In terms of
production value, total revenues for the 34 handlers were estimated to
be $86.7 million, with average and median revenues being $2.55 million
and $2.35 million, respectively.
The South Texas onion industry is characterized by producers and
handlers whose farming operations generally involve more than one
commodity, and whose income from farming operations is not exclusively
dependent on the production of onions. Alternative crops provide an
opportunity to utilize many of the same facilities and equipment not in
use when the onion production season is complete. For this reason,
typical onion producers and handlers either produce multiple crops or
alternate crops within a single year.
Based on the SBA's definition of small entities, the Committee
estimates that 32 of the 34 (94 percent) handlers regulated by the
order would be considered small entities if only their spring onion
revenues are considered. However, revenues from other productive
enterprises would likely push a large number of these handlers above
the $6,500,000 annual receipt threshold. All of the 118 producers may
be classified as small entities based on the SBA definition if only
their revenue from spring onions is considered. When revenues from all
sources are considered, a majority of the producers would not be
considered small entities because receipts would exceed $750,000.
This rule would increase the assessment rate established for the
Committee and collected from handlers for the 2007-08 and subsequent
fiscal periods from $0.02 to $0.03 per 50-pound equivalent. The
Committee unanimously recommended 2007-08 expenditures of $202,315 and
an assessment rate of $0.03 per 50-pound equivalent. The proposed
assessment rate of $0.03 is $0.01 higher than the current rate. The
quantity of assessable onions for the 2007-08 fiscal period is
estimated at 5,775,000 fifty-pound equivalents. Thus, the $0.03 rate
should provide $173,250 in assessment income. Income derived from
handler assessments, along with interest income and funds from the
Committee's authorized reserve, would be more than adequate to cover
budgeted expenses.
The major expenditures recommended by the Committee for the 2007-08
fiscal period include $64,315 for personnel and office expenses,
$45,000 for compliance, $25,000 for promotion, and $30,000 for
research. Budgeted expenses for these items in 2006-07 were $62,315,
$43,000, $25,000, and $25,000, respectively.
The Committee recommended the increased rate to continue funding a
research project begun last year without having to draw a large amount
from reserves. Without the increase, the Committee's reserve funds
would drop to $114,728. The Committee believes a reserve that low is
not adequate for its operations.
The Committee reviewed and unanimously recommended 2007-08
expenditures of $202,315, which included increases in the management
fee, compliance, and research. Numerous alternative expenditure levels
were discussed based upon the relative value of the research project to
the onion industry. The assessment rate of $0.03 per 50-pound
equivalent of assessable onions was then determined
[[Page 11062]]
by dividing the total recommended budget by the quantity of assessable
onions, estimated at 5,775,000 fifty-pound equivalents for the 2007-08
fiscal period. The assessment rate should generate $173,250 in income.
Considering income from interest and assessments, total income should
be approximately $24,065 below the anticipated expenses, which the
Committee determined to be acceptable.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the grower
price for the 2007-08 fiscal period could range between $10.00 and
$28.00 per 50-pound equivalent of onions. Therefore, the estimated
assessment revenue for the 2007-08 fiscal period as a percentage of
total grower revenue could range between .11 and .30 percent.
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
marketing order. In addition, the Committee's meeting was widely
publicized throughout the South Texas onion industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the November
16, 2007, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. 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 South Texas onion
handlers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/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 15-day comment period is provided to allow interested persons to
respond to this proposed rule. Fifteen days is deemed appropriate
because: (1) The 2007-08 fiscal period began on August 1, 2007, and the
marketing order requires that the rate of assessment for each fiscal
period apply to all assessable onions handled during such fiscal
period; (2) the Committee needs to have sufficient funds to pay its
expenses which are incurred on a continuous basis; and (3) handlers are
aware of this action which was unanimously 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 959
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 959 is
proposed to be amended as follows:
PART 959--ONIONS GROWN IN SOUTH TEXAS
1. The authority citation for 7 CFR part 959 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 959.237 is revised to read as follows:
Sec. 959.237 Assessment rate.
On and after August 1, 2007, an assessment rate of $0.03 per 50-
pound equivalent is established for South Texas onions.
Dated: February 26, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 08-898 Filed 2-26-08; 3:31 pm]
BILLING CODE 3410-02-P
