Vidalia Onions Grown in Georgia; Increased Assessment Rate, 31605-31607 [E8-12318]
Download as PDF
31605
Rules and Regulations
Federal Register
Vol. 73, No. 107
Tuesday, June 3, 2008
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 955
[Docket No. AMS–FV–07–0159; FV08–955–
1 FR]
Vidalia Onions Grown in Georgia;
Increased Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
ebenthall on PRODPC60 with RULES
AGENCY:
SUMMARY: This rule increases the
assessment rate established for the
Vidalia Onion Committee (Committee)
for the 2008 and subsequent fiscal
periods from $0.10 to $0.13 per 40pound container of Vidalia onions
handled. The Committee locally
administers the marketing order which
regulates the handling of Vidalia onions
grown in Georgia. Assessments upon
Vidalia onion handlers are used by the
Committee to fund reasonable and
necessary expenses of the program. The
fiscal period begins January 1 and ends
December 31. The assessment rate will
remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Effective Date: June 4, 2008.
FOR FURTHER INFORMATION CONTACT:
Doris Jamieson, Marketing Specialist, or
Christian D. Nissen, Regional Manager,
Southeast Marketing Field Office, Fruit
and Vegetable Programs, AMS, USDA;
Telephone: (863) 324–3375, Fax: (863)
325–8793, or E-mail:
Doris.Jamieson@usda.gov, or
Christian.Nissen@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–
VerDate Aug<31>2005
14:50 Jun 02, 2008
Jkt 214001
2491, Fax: (202) 720–8938, or E-mail:
Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
and Order No. 955, both as amended (7
CFR part 955), regulating the handling
of Vidalia onions grown in Georgia,
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, Vidalia onion handlers 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 Vidalia
onions beginning on January 1, 2008,
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 increases the assessment
rate established for the Committee for
the 2008 and subsequent fiscal periods
from $0.10 to $0.13 per 40-pound
container of Vidalia onions.
The Vidalia onion marketing order
provides authority for the Committee,
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
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 Vidalia 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 2005 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
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on December 13,
2007, and unanimously recommended
2008 expenditures of $712,000 and an
assessment rate of $0.13 per 40-pound
container of Vidalia onions. In
comparison, last year’s budgeted
expenditures were $835,200. The
assessment rate of $0.13 is $0.03 higher
than the rate currently in effect.
Over the past few years, the
Committee has been using funds from
reserves rather than increasing
assessments to cover their expanded
marketing program. This has reduced
the reserve fund. The increase in the
assessment rate allows the Committee to
fund its recommended level of
promotion, while reducing the amount
drawn from its authorized reserve fund.
The major expenditures
recommended by the Committee for the
2008 fiscal year include $410,000 for
marketing, $86,350 for salaries, $42,800
for compliance, and $37,200 for
research. Budgeted expenses for these
items in 2007 were $505,000, $82,000,
$20,000, and $65,500, respectively.
The assessment rate recommended by
the Committee was derived by
considering available reserves, and
dividing anticipated expenses by
expected shipments of Vidalia onions.
Vidalia onion shipments for the year are
estimated at 4,300,000 40-pound
containers, which should provide
$559,000 in assessment income. Income
derived from handler assessments, along
E:\FR\FM\03JNR1.SGM
03JNR1
31606
Federal Register / Vol. 73, No. 107 / Tuesday, June 3, 2008 / Rules and Regulations
ebenthall on PRODPC60 with RULES
with interest income and funds from the
Committee’s authorized reserve, should
be adequate to cover budgeted expenses.
Funds in the reserve (currently
$204,000) will be kept within the
maximum permitted by the order
(according to § 955.44, approximately
three fiscal periods’ expenses).
The assessment rate established in
this rule will 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 will be
in effect for an indefinite period, the
Committee will 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 will evaluate Committee
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 2008 budget and those for
subsequent fiscal periods will be
reviewed and, as appropriate, approved
by USDA.
Final 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 final 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 86 producers
of Vidalia onions in the production area
and approximately 65 handlers subject
to regulation under the marketing order.
Small agricultural producers are defined
by the Small Business Administration
(SBA) as those having annual receipts
less than $750,000, and small
agricultural service firms, which
include handlers, are defined as those
whose annual receipts are less than
$6,500,000 (13 CFR 121.201).
VerDate Aug<31>2005
14:50 Jun 02, 2008
Jkt 214001
Based on the Georgia Agricultural
Statistical Service and Committee data,
the average annual grower price for
fresh Vidalia onions during the 2007
season was around $15 per 40-pound
container. Total Vidalia onion
shipments for the 2007 season were
around 4,868,000 40-pound containers.
Using available data, more than 90
percent of Vidalia onion handlers could
be considered small businesses under
the SBA definition. In addition, based
on information from the Georgia
Department of Agriculture, Committee
data, and the National Agricultural
Statistics Service, the majority of
producers could be considered small
entities. Thus, the majority of handlers
and producers of Vidalia onions may be
classified as small entitles.
This rule increases the assessment
rate established for the Committee and
collected from handlers for the 2008 and
subsequent fiscal periods from $0.10 to
$0.13 per 40-pound container of Vidalia
onions. The Committee unanimously
recommended 2008 expenditures of
$712,000 and an assessment rate of
$0.13 per 40-pound container. The
assessment rate of $0.13 is $0.03 higher
than the 2007 rate. The quantity of
assessable Vidalia onions for the 2008
fiscal year is estimated at 4,300,000.
Thus, the $0.13 rate should provide
$559,000 in assessment income. Income
derived from handler assessments, along
with interest income and funds from the
Committee’s authorized reserve, should
be adequate to cover budgeted expenses.
The major expenditures
recommended by the Committee for the
2008 fiscal year include $410,000 for
marketing, $86,350 for salaries, $42,800
for compliance, and $37,200 for
research. Budgeted expenses for these
items in 2007 were $505,000, $82,000,
$20,000, and $65,500, respectively.
Over the past few years, the
Committee has been using funds from
reserves rather than increasing
assessments to cover their expanded
marketing program. This has reduced
the reserve fund. The increase in the
assessment rate allows the Committee to
fund its recommended level of
promotion, while reducing the amount
drawn from its authorized reserve fund.
Funds in the reserve (currently
$204,000) will be kept within the
maximum permitted by the order.
The Committee reviewed and
unanimously recommended 2008
expenditures of $712,000 which
included increases in administrative
expenses, and compliance programs.
Prior to arriving at this budget, the
Committee considered information from
various sources, including the Executive
Committee and the Research
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
Subcommittee. Alternative expenditure
levels were discussed by the Committee
based upon the relative value of various
research and promotion projects to the
Vidalia onion industry. The Committee
also discussed keeping the current $0.10
per 40-pound bag or equivalent
assessment rate. However, keeping the
assessment rate at $0.10 per 40-pound
bag would not allow the Committee to
fund many of the proposed promotional
projects. The assessment rate of $0.13
per 40-pound container of assessable
Vidalia onions was then determined by
considering available reserves, and
dividing the total recommended budget
by the quantity of assessable Vidalia
onions, estimated at 4,300,000 40-pound
containers for the 2008 fiscal year. This
is approximately $138,000 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 2008 season
could range between $10.00 and $34.00
per 40-pound container of Vidalia
onions. Therefore, the estimated
assessment revenue for the 2008 fiscal
period as a percentage of total grower
revenue could range between .4 and 1
percent.
This action increases 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 are
offset by the benefits derived by the
operation of the marketing order. In
addition, the Committee’s meeting was
widely publicized throughout the
Vidalia 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
December 13, 2007, meeting was a
public meeting and all entities, both
large and small, were able to express
views on this issue.
This rule imposes no additional
reporting or recordkeeping requirements
on either small or large Vidalia 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.
E:\FR\FM\03JNR1.SGM
03JNR1
Federal Register / Vol. 73, No. 107 / Tuesday, June 3, 2008 / Rules and Regulations
As noted in the initial regulatory
flexibility analysis, USDA has not
identified any relevant Federal rules
that duplicate, overlap, or conflict with
this final rule.
A proposed rule concerning this
action was published in the Federal
Register on March 18, 2008 (73 FR
14400). Copies of the proposed rule
were also mailed or sent via facsimile to
all Vidalia onion handlers. Finally, the
proposal was made available through
the Internet by USDA and the Office of
the Federal Register. A 30-day comment
period ending April 17, 2008, was
provided for interested persons to
respond to the proposal. No comments
were received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
fv/moab.html. Any questions about the
compliance guide should be sent to Jay
Guerber at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it also found
and determined that good cause exists
for not postponing the effective date of
this rule until 30 days after publication
in the Federal Register because
handlers are already receiving 2008 crop
Vidalia onions from growers. In
addition, the fiscal year began on
January 1, 2008, and the marketing
order requires that the rate of
assessment for each fiscal period apply
to all assessable Vidalia onions handled
during such fiscal period. The
Committee also needs to have sufficient
funds to pay its expenses which are
incurred on a continuous basis. Further,
handlers are aware of this rule which
was recommended at a public meeting.
Also, a 30-day comment period was
provided for in the proposed rule.
List of Subjects in 7 CFR Part 955
ebenthall on PRODPC60 with RULES
Onions, Marketing agreements,
Reporting and recordkeeping
requirements.
I For the reasons set forth in the
preamble, 7 CFR part 955 is amended as
follows:
PART 955—VIDALIA ONIONS GROWN
IN GEORGIA
1. The authority citation for 7 CFR
part 955 continues to read as follows:
I
VerDate Aug<31>2005
14:50 Jun 02, 2008
Jkt 214001
Authority: 7 U.S.C. 601–674.
2. Section 955.209 is revised to read
as follows:
I
§ 955.209
Assessment rate.
On and after January 1, 2008, an
assessment rate of $0.13 per 40-pound
carton or equivalent is established for
Vidalia onions.
Dated: May 29, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E8–12318 Filed 6–2–08; 8:45 am]
BILLING CODE 3410–02–P
NUCLEAR REGULATORY
COMMISSION
10 CFR Part 50
[NRC–2001–0010]
RIN 3150–AG24
Licenses, Certifications, and
Approvals for Nuclear Power Plants;
Correction
Nuclear Regulatory
Commission.
ACTION: Final rule: correcting
amendment.
AGENCY:
SUMMARY: On August 28, 2007 (72 FR
49352), the Nuclear Regulatory
Commission (NRC) published a final
rule revising the provisions applicable
to the licensing and approval processes
for nuclear power plants (i.e., early site
permit, standard design approval,
standard design certification, combined
license, and manufacturing license).
These amendments clarify the
applicability of various requirements to
each of the licensing processes by
making necessary conforming
amendments throughout the NRC’s
regulations to enhance the NRC’s
regulatory effectiveness and efficiency
in implementing its licensing and
approval processes. This document is
necessary to include a paragraph that
was inadvertently omitted in that final
rule.
DATES: The correction is effective June
3, 2008, and is applicable to September
27, 2007.
FOR FURTHER INFORMATION CONTACT:
Michael T. Lesar, Chief, Rulemaking,
Directives, and Editing Branch, Division
of Administrative Services, Office of
Administrative Services, U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001, telephone 301–415–
7163, e-mail Michael.Lesar@nrc.gov.
SUPPLEMENTARY INFORMATION: This
document corrects an inadvertent
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
31607
omission in the Code of Federal
Regulations by adding 10 CFR
50.55a(f)(3)(iv)(B).
I For the reasons set out in the
preamble and under the authority of the
Atomic Energy Act of 1954, as amended;
the Energy Reorganization Act of 1974,
as amended; and 5 U.S.C. 552 and 553,
the NRC is adopting the following
amendment to 10 CFR part 50.
PART 50—DOMESTIC LICENSING OF
PRODUCTION AND UTILIZATION
FACILITIES
1. The authority citation for part 50
continues to read as follows:
I
Authority: Secs. 102, 103, 104, 105, 161,
182, 183, 186, 189, 68 Stat. 936, 937, 938,
948, 953, 954, 955, 956, as amended, sec.
234, 83 Stat. 444, as amended (42 U.S.C.
2132, 2133, 2134, 2135, 2201, 2232, 2233,
2236, 2239, 2282); secs. 201, as amended,
202, 206, 88 Stat. 1242, as amended, 1244,
1246 (42 U.S.C. 5841, 5842, 5846); sec. 1704,
112 Stat. 2750 (44 U.S.C. 3504 note); sec.
651(e), Pub. L. 109–58, 119 Stat. 806–810 (42
U.S.C. 2014, 2021, 2021b, 2111).
Section 50.7 also issued under Pub. L. 95–
601, sec. 10, 92 Stat. 2951 as amended by
Pub. L. 102–486, sec. 2902, 106 Stat. 3123 (42
U.S.C. 5841). Section 50.10 also issued under
secs. 101, 185, 68 Stat. 955, as amended (42
U.S.C. 2131, 2235); sec. 102, Pub. L. 91–190,
83 Stat. 853 (42 U.S.C. 4332). Sections 50.13,
50.54(dd), and 50.103 also issued under sec.
108, 68 Stat. 939, as amended (42 U.S.C.
2138). Sections 50.23, 50.35, 50.55, and 50.56
also issued under sec. 185, 68 Stat. 955 (42
U.S.C. 2235). Sections 50.33a, 50.55a and
appendix Q also issued under sec. 102, Pub.
L. 91–190, 83 Stat. 853 (42 U.S.C. 4332).
Sections 50.34 and 50.54 also issued under
sec. 204, 88 Stat. 1245 (42 U.S.C. 5844).
Sections 50.58, 50.91, and 50.92 also issued
under Pub. L. 97–415, 96 Stat. 2073 (42
U.S.C. 2239). Section 50.78 also issued under
sec. 122, 68 Stat. 939 (42 U.S.C. 2152).
Sections 50.80–50.81 also issued under sec.
184, 68 Stat. 954, as amended (42 U.S.C.
2234). Appendix F also issued under sec.
187, 68 Stat. 955 (42 U.S.C. 2237).
2. In § 50.55a, paragraph (f)(3)(iv)(B) is
added to read as follows:
I
§ 50.55a
Codes and standards.
*
*
*
*
*
(f) * * *
(3) * * *
(iv) * * *
(B) Pumps and valves, in facilities
whose construction permit under this
part or design certification or combined
license under part 52 of this chapter is
issued on or after November 22, 1999,
which are classified as ASME Code
Class 2 and 3 must be designed and be
provided with access to enable the
performance of inservice testing of the
pumps and valves for assessing
operational readiness set forth in
E:\FR\FM\03JNR1.SGM
03JNR1
Agencies
[Federal Register Volume 73, Number 107 (Tuesday, June 3, 2008)]
[Rules and Regulations]
[Pages 31605-31607]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12318]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 73, No. 107 / Tuesday, June 3, 2008 / Rules
and Regulations
[[Page 31605]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 955
[Docket No. AMS-FV-07-0159; FV08-955-1 FR]
Vidalia Onions Grown in Georgia; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule increases the assessment rate established for the
Vidalia Onion Committee (Committee) for the 2008 and subsequent fiscal
periods from $0.10 to $0.13 per 40-pound container of Vidalia onions
handled. The Committee locally administers the marketing order which
regulates the handling of Vidalia onions grown in Georgia. Assessments
upon Vidalia onion handlers are used by the Committee to fund
reasonable and necessary expenses of the program. The fiscal period
begins January 1 and ends December 31. The assessment rate will remain
in effect indefinitely unless modified, suspended, or terminated.
DATES: Effective Date: June 4, 2008.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist,
or Christian D. Nissen, Regional Manager, Southeast Marketing Field
Office, Fruit and Vegetable Programs, AMS, USDA; Telephone: (863) 324-
3375, Fax: (863) 325-8793, or E-mail: Doris.Jamieson@usda.gov, or
Christian.Nissen@usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202)
720-2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 955, both as amended (7 CFR part 955),
regulating the handling of Vidalia onions grown in Georgia, 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, Vidalia onion
handlers 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 Vidalia onions
beginning on January 1, 2008, 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 increases the assessment rate established for the
Committee for the 2008 and subsequent fiscal periods from $0.10 to
$0.13 per 40-pound container of Vidalia onions.
The Vidalia 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
Vidalia 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 2005 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 upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on December 13, 2007, and unanimously recommended
2008 expenditures of $712,000 and an assessment rate of $0.13 per 40-
pound container of Vidalia onions. In comparison, last year's budgeted
expenditures were $835,200. The assessment rate of $0.13 is $0.03
higher than the rate currently in effect.
Over the past few years, the Committee has been using funds from
reserves rather than increasing assessments to cover their expanded
marketing program. This has reduced the reserve fund. The increase in
the assessment rate allows the Committee to fund its recommended level
of promotion, while reducing the amount drawn from its authorized
reserve fund.
The major expenditures recommended by the Committee for the 2008
fiscal year include $410,000 for marketing, $86,350 for salaries,
$42,800 for compliance, and $37,200 for research. Budgeted expenses for
these items in 2007 were $505,000, $82,000, $20,000, and $65,500,
respectively.
The assessment rate recommended by the Committee was derived by
considering available reserves, and dividing anticipated expenses by
expected shipments of Vidalia onions. Vidalia onion shipments for the
year are estimated at 4,300,000 40-pound containers, which should
provide $559,000 in assessment income. Income derived from handler
assessments, along
[[Page 31606]]
with interest income and funds from the Committee's authorized reserve,
should be adequate to cover budgeted expenses. Funds in the reserve
(currently $204,000) will be kept within the maximum permitted by the
order (according to Sec. 955.44, approximately three fiscal periods'
expenses).
The assessment rate established in this rule will 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 will be in effect for an indefinite
period, the Committee will 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 will evaluate Committee
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 2008 budget and those for
subsequent fiscal periods will be reviewed and, as appropriate,
approved by USDA.
Final 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 final 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 86 producers of Vidalia onions in the
production area and approximately 65 handlers subject to regulation
under the marketing order. Small agricultural producers are defined by
the Small Business Administration (SBA) as those having annual receipts
less than $750,000, and small agricultural service firms, which include
handlers, are defined as those whose annual receipts are less than
$6,500,000 (13 CFR 121.201).
Based on the Georgia Agricultural Statistical Service and Committee
data, the average annual grower price for fresh Vidalia onions during
the 2007 season was around $15 per 40-pound container. Total Vidalia
onion shipments for the 2007 season were around 4,868,000 40-pound
containers. Using available data, more than 90 percent of Vidalia onion
handlers could be considered small businesses under the SBA definition.
In addition, based on information from the Georgia Department of
Agriculture, Committee data, and the National Agricultural Statistics
Service, the majority of producers could be considered small entities.
Thus, the majority of handlers and producers of Vidalia onions may be
classified as small entitles.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2008 and subsequent
fiscal periods from $0.10 to $0.13 per 40-pound container of Vidalia
onions. The Committee unanimously recommended 2008 expenditures of
$712,000 and an assessment rate of $0.13 per 40-pound container. The
assessment rate of $0.13 is $0.03 higher than the 2007 rate. The
quantity of assessable Vidalia onions for the 2008 fiscal year is
estimated at 4,300,000. Thus, the $0.13 rate should provide $559,000 in
assessment income. Income derived from handler assessments, along with
interest income and funds from the Committee's authorized reserve,
should be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2008
fiscal year include $410,000 for marketing, $86,350 for salaries,
$42,800 for compliance, and $37,200 for research. Budgeted expenses for
these items in 2007 were $505,000, $82,000, $20,000, and $65,500,
respectively.
Over the past few years, the Committee has been using funds from
reserves rather than increasing assessments to cover their expanded
marketing program. This has reduced the reserve fund. The increase in
the assessment rate allows the Committee to fund its recommended level
of promotion, while reducing the amount drawn from its authorized
reserve fund. Funds in the reserve (currently $204,000) will be kept
within the maximum permitted by the order.
The Committee reviewed and unanimously recommended 2008
expenditures of $712,000 which included increases in administrative
expenses, and compliance programs. Prior to arriving at this budget,
the Committee considered information from various sources, including
the Executive Committee and the Research Subcommittee. Alternative
expenditure levels were discussed by the Committee based upon the
relative value of various research and promotion projects to the
Vidalia onion industry. The Committee also discussed keeping the
current $0.10 per 40-pound bag or equivalent assessment rate. However,
keeping the assessment rate at $0.10 per 40-pound bag would not allow
the Committee to fund many of the proposed promotional projects. The
assessment rate of $0.13 per 40-pound container of assessable Vidalia
onions was then determined by considering available reserves, and
dividing the total recommended budget by the quantity of assessable
Vidalia onions, estimated at 4,300,000 40-pound containers for the 2008
fiscal year. This is approximately $138,000 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 2008 season could range between $10.00 and $34.00 per 40-
pound container of Vidalia onions. Therefore, the estimated assessment
revenue for the 2008 fiscal period as a percentage of total grower
revenue could range between .4 and 1 percent.
This action increases 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
are offset by the benefits derived by the operation of the marketing
order. In addition, the Committee's meeting was widely publicized
throughout the Vidalia 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 December
13, 2007, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large Vidalia 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.
[[Page 31607]]
As noted in the initial regulatory flexibility analysis, USDA has
not identified any relevant Federal rules that duplicate, overlap, or
conflict with this final rule.
A proposed rule concerning this action was published in the Federal
Register on March 18, 2008 (73 FR 14400). Copies of the proposed rule
were also mailed or sent via facsimile to all Vidalia onion handlers.
Finally, the proposal was made available through the Internet by USDA
and the Office of the Federal Register. A 30-day comment period ending
April 17, 2008, was provided for interested persons to respond to the
proposal. No comments were received.
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.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because handlers are
already receiving 2008 crop Vidalia onions from growers. In addition,
the fiscal year began on January 1, 2008, and the marketing order
requires that the rate of assessment for each fiscal period apply to
all assessable Vidalia onions handled during such fiscal period. The
Committee also needs to have sufficient funds to pay its expenses which
are incurred on a continuous basis. Further, handlers are aware of this
rule which was recommended at a public meeting. Also, a 30-day comment
period was provided for in the proposed rule.
List of Subjects in 7 CFR Part 955
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 955 is amended as
follows:
PART 955--VIDALIA ONIONS GROWN IN GEORGIA
0
1. The authority citation for 7 CFR part 955 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 955.209 is revised to read as follows:
Sec. 955.209 Assessment rate.
On and after January 1, 2008, an assessment rate of $0.13 per 40-
pound carton or equivalent is established for Vidalia onions.
Dated: May 29, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-12318 Filed 6-2-08; 8:45 am]
BILLING CODE 3410-02-P