Irish Potatoes Grown in Colorado; Reinstatement of the Continuing Assessment Rate, 52171-52173 [E8-20853]
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52171
Rules and Regulations
Federal Register
Vol. 73, No. 175
Tuesday, September 9, 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 948
[Docket No. AMS–FV–08–0048; FV08–948–
2 FR]
Irish Potatoes Grown in Colorado;
Reinstatement of the Continuing
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: This rule reinstates the
continuing assessment rate established
for the Area No. 3 Colorado Potato
Administrative Committee (Committee)
for the 2008–2009 and subsequent fiscal
periods at $0.02 per hundredweight of
potatoes handled. The Committee
locally administers the marketing order
regulating the handling of potatoes
grown in northern Colorado. The
continuing assessment rate was
suspended for the 2006–2007 and
subsequent fiscal periods to bring the
monetary reserve within the program
limit of two fiscal periods’ operating
expenses. Assessments upon potato
handlers are used by the Committee to
fund reasonable and necessary expenses
of the program. The fiscal period began
on July 1 and ends June 30. The
assessment rate will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective Date: September 10,
2008.
yshivers on PROD1PC62 with RULES
FOR FURTHER INFORMATION CONTACT:
Teresa Hutchinson or Gary Olson,
Northwest Marketing Field Office,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA; Telephone: (503) 326–
2724, Fax: (503) 326–7440, or e-mail:
Teresa.Hutchinson@usda.gov or
GaryD.Olson@usda.gov.
VerDate Aug<31>2005
15:16 Sep 08, 2008
Jkt 214001
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
No. 97 and Order No. 948, both as
amended (7 CFR part 948), regulating
the handling of potatoes grown in
Colorado, 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, Colorado potato 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 potatoes
beginning July 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.
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Frm 00001
Fmt 4700
Sfmt 4700
This rule reinstates § 948.215 of the
order’s rules and regulations and
establishes a continuing assessment rate
for the Committee for the 2008–2009
and subsequent fiscal periods at $0.02
per hundredweight of potatoes handled.
The Colorado potato 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 Colorado potatoes in Area
No. 3. 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 2006–2007 and subsequent
fiscal periods, the Committee
recommended, and USDA approved, a
suspension of the continuing
assessment rate that would remain
suspended until reinstated by USDA
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on May 8, 2008,
and unanimously recommended 2008–
2009 expenditures of $19,497 and an
assessment rate of $0.02 per
hundredweight of potatoes. In
comparison, last year’s budgeted
expenditures were $18,697. For the
2006–2007 fiscal period, the Committee
recommended suspending the
continuing assessment rate to bring the
monetary reserve within program limits
of approximately two fiscal periods’
operating expenses (§ 948.78). At that
time, the reserve fund contained about
$49,237. The Committee has been
operating for the last two years by
drawing income from its reserve. With
a suspended assessment rate and a
significant decrease in the number of
potato producers and acreage in Area
No. 3, the reserve has rapidly decreased
to the current level of about $16,175.
The Committee would like to maintain
the reserve at approximately this level,
thus reinstatement of the assessment
rate at $0.02 per hundredweight is
needed.
The major expenditures
recommended by the Committee for the
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09SER1
52172
Federal Register / Vol. 73, No. 175 / Tuesday, September 9, 2008 / Rules and Regulations
yshivers on PROD1PC62 with RULES
2008–2009 fiscal period include $7,800
for salaries, $3,000 for rent expense, and
$1,750 for office expenses. Budgeted
expenses for these items in 2007–2008
were also $7,800, $3,000, and $1,750,
respectively.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses by expected
shipments of Colorado Area No. 3
potatoes. Colorado Area No. 3 potato
shipments for the year are estimated at
787,600 hundredweight which should
provide $15,752 in assessment income.
Income derived from handler
assessments, rent, and interest, along
with funds from the Committee’s
authorized reserve, should be adequate
to cover budgeted expenses. Funds in
the reserve (estimated at $16,175 as of
June 30, 2008) would be kept within the
maximum permitted by the order
(approximately two fiscal periods’
expenses; § 948.78).
The assessment rate reinstated 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 2008–2009 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
VerDate Aug<31>2005
15:16 Sep 08, 2008
Jkt 214001
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
Based on Committee data, there are 8
producers (7 of whom are also handlers)
in the regulated area and 9 handlers (7
of whom are also producers) who are
subject to regulation under the order.
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.
Based on Committee data, the
production of Colorado Area No. 3
potatoes for the 2007–2008 fiscal period
was 550,026 hundredweight. Based on
National Agricultural Statistics Service
data, the average producer price for
Colorado summer potatoes for 2007 was
$7.55 per hundredweight. The average
annual producer revenue for the 8
Colorado Area No. 3 potato producers is
therefore calculated to be approximately
$519,000. Using Committee data
regarding each individual handler’s
total shipments during the 2007–2008
fiscal period and a Committee estimated
average f.o.b. price for 2007 of $9.75 per
hundredweight ($7.55 per
hundredweight plus estimated packing
and handling costs of $2.20 per
hundredweight), all of the Colorado
Area No. 3 potato handlers ship under
$6,500,000 worth of potatoes. Thus, the
majority of handlers and producers of
Colorado Area No. 3 potatoes may be
classified as small entities.
This rule reinstates § 948.215 of the
order’s rules and regulations and
establishes a continuing assessment rate
for the Committee for the 2008–2009
and subsequent fiscal periods at $0.02
per hundredweight of potatoes handled.
The reinstatement of the $0.02
assessment rate and the 2008–2009
expenditures of $19,497 were
unanimously recommended by the
Committee. The quantity of Colorado
Area No. 3 potatoes for the 2008–2009
fiscal period is estimated at 787,600
hundredweight. Thus, the $0.02 rate
should provide $15,752 in assessment
income. Income derived from handler
assessments, rent, and interest along
with funds from the Committee’s
authorized reserves should be adequate
to meet this fiscal period’s budgeted
expenses.
The major expenditures
recommended by the Committee for the
2008–2009 fiscal period include $7,800
for salaries, $3,000 for rent expense, and
$1,750 for office expenses. Budgeted
expenses for these items in 2007–2008
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
were also $7,800, $3,000, and $1,750,
respectively.
For the 2006–2007 fiscal period, the
Committee recommended suspending
the continuing assessment rate to bring
the monetary reserve within program
limits of approximately two fiscal
periods’ operating expenses (§ 948.78).
At that time, the reserve fund contained
about $49,237. The Committee has been
operating for the last two years by
drawing income from its reserve. With
a suspended assessment rate and a
significant decrease in the number of
potato producers and acreage in Area
No. 3, the reserve has rapidly decreased
to the current level of about $16,175.
The Committee would like to maintain
the reserve at approximately this level,
thus reinstatement of the assessment
rate is needed.
The Committee discussed alternatives
to this rule, including alternative
expenditure levels. Lower assessment
rates were considered, but not
recommended because they would not
generate the income necessary to
administer the program with adequate
reserves. Higher assessment rates were
also considered, but not recommended
because they would add funds to the
reserve.
To calculate the assessment rate, the
Committee deducted estimated income
received from rent and interest from the
total recommended budget ($19,497 ¥
$2,000 = $17,497). The assessment rate
was then determined by dividing
$17,497 by the quantity of assessable
potatoes, which is estimated at 787,600
hundredweight for the 2008–2009 fiscal
period. The result was rounded to $0.02
per hundredweight. This assessment
rate will generate approximately $1,745
less than anticipated expenses when
combined with interest and rent
income, which the Committee has
determined to be acceptable. Funds
from the Committee’s authorized reserve
should be adequate to cover budgeted
expenses not covered by income from
assessments, interest, and rent.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal period indicates
that the producer price for the 2008–
2009 fiscal period could range between
$7.55 and $8.45 per hundredweight of
Colorado summer potatoes. Therefore,
the estimated assessment revenue for
the 2008–2009 fiscal period as a
percentage of total producer revenue
could range between 0.24 and 0.26
percent.
This action reinstates 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
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Federal Register / Vol. 73, No. 175 / Tuesday, September 9, 2008 / Rules and Regulations
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
Colorado Area No. 3 potato industry and
all interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the May 8,
2008, 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 Colorado Area
No. 3 potato 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.
As noted in the initial regulatory
flexibility analysis, USDA has not
identified any relevant Federal rules
that duplicate, overlap, or conflict with
this rule.
A proposed rule concerning this
action was published in the Federal
Register on July 25, 2008 (73 FR 43375).
Copies of the proposed rule were also
mailed or sent via facsimile to all
handlers. Finally, the proposal was
made available through the Internet by
USDA and the Office of the Federal
Register. A 15-day comment period
ending August 11, 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/
AMSv1.0/ams.fetchTemplateData.do?
template=TemplateN&page=Marketing
OrdersSmallBusinessGuide. Any
questions about the compliance guide
should be sent to Jay Guerber at the
previously mentioned address in the
yshivers on PROD1PC62 with RULES
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 is also
found and determined that good cause
VerDate Aug<31>2005
15:16 Sep 08, 2008
Jkt 214001
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The 2008–2009 fiscal
period began on July 1, 2008, and the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable potatoes handled
during such fiscal period; (2) the
northern Colorado potato shipping
season began in July; (3) the Committee
needs to have sufficient funds to pay for
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. Also, a 15-day comment period
was provided for in the proposed rule.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
I For the reasons set forth in the
preamble, 7 CFR part 948 is amended as
follows:
PART 948—IRISH POTATOES GROWN
IN COLORADO
1. The authority citation for 7 CFR
part 948 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
2. In Part 948, the suspension of
§ 948.215 is lifted.
I
Dated: September 4, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. E8–20853 Filed 9–8–08; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Animal and Plant Health Inspection
Service
9 CFR Parts 71, 83, and 93
[Docket No. APHIS–2007–0038]
RIN 0579–AC74
Viral Hemorrhagic Septicemia;
Interstate Movement and Import
Restrictions on Certain Live Fish
Animal and Plant Health
Inspection Service, USDA.
ACTION: Interim rule and request for
comments.
AGENCY:
SUMMARY: We are establishing
regulations to restrict the interstate
movement and importation into the
United States of live fish that are
susceptible to viral hemorrhagic
PO 00000
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Fmt 4700
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52173
septicemia, a highly contagious disease
of certain fresh and saltwater fish. In
2005 and 2006, viral hemorrhagic
septicemia was detected in freshwater
fish in several of the Great Lakes and
related tributaries. The disease has been
responsible for several large-scale dieoffs of wild fish in the Great Lakes
region. This action is necessary to
prevent further introductions into, and
dissemination within, the United States
of viral hemorrhagic septicemia.
Effective date: This interim rule
is effective November 10, 2008.
Comment dates: Comments on the
interim rule are due on or before
November 10, 2008. Comments on the
environmental assessment are due on or
before October 9, 2008.
DATES:
You may submit comments
by either of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov/fdmspublic/
component/
main?main=DocketDetail&d=APHIS2007-0038 to submit or view comments
and to view supporting and related
materials available electronically.
• Postal Mail/Commercial Delivery:
Please send two copies of your comment
to Docket No. APHIS–2007–0038,
Regulatory Analysis and Development,
PPD, APHIS, Station 3A–03.8, 4700
River Road Unit 118, Riverdale, MD
20737–1238. Please state that your
comment refers to Docket No. APHIS–
2007–0038.
Reading Room: You may read any
comments that we receive on this
docket in our reading room. The reading
room is located in room 1141 of the
USDA South Building, 14th Street and
Independence Avenue, SW.,
Washington, DC. Normal reading room
hours are 8 a.m. to 4:30 p.m., Monday
through Friday, except holidays. To be
sure someone is there to help you,
please call (202) 690–2817 before
coming.
Other Information: Additional
information about APHIS and its
programs is available on the Internet at
https://www.aphis.usda.gov.
ADDRESSES:
Dr.
P. Gary Egrie, Senior Staff Veterinary
Medical Officer, National Center for
Animal Health Programs, VS, APHIS,
4700 River Road Unit 46, Riverdale, MD
20737–1231; (301) 734–0695; or Dr.
Peter L. Merrill, Senior Staff
Veterinarian, National Center for Import
and Export, VS, APHIS, 4700 River
Road Unit 39, Riverdale, MD 20737–
1231; (301) 734–8364.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
E:\FR\FM\09SER1.SGM
09SER1
Agencies
[Federal Register Volume 73, Number 175 (Tuesday, September 9, 2008)]
[Rules and Regulations]
[Pages 52171-52173]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-20853]
========================================================================
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. 175 / Tuesday, September 9, 2008 /
Rules and Regulations
[[Page 52171]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 948
[Docket No. AMS-FV-08-0048; FV08-948-2 FR]
Irish Potatoes Grown in Colorado; Reinstatement of the Continuing
Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule reinstates the continuing assessment rate
established for the Area No. 3 Colorado Potato Administrative Committee
(Committee) for the 2008-2009 and subsequent fiscal periods at $0.02
per hundredweight of potatoes handled. The Committee locally
administers the marketing order regulating the handling of potatoes
grown in northern Colorado. The continuing assessment rate was
suspended for the 2006-2007 and subsequent fiscal periods to bring the
monetary reserve within the program limit of two fiscal periods'
operating expenses. Assessments upon potato handlers are used by the
Committee to fund reasonable and necessary expenses of the program. The
fiscal period began on July 1 and ends June 30. The assessment rate
will remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective Date: September 10, 2008.
FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary Olson,
Northwest Marketing Field Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA; Telephone: (503) 326-
2724, Fax: (503) 326-7440, or e-mail: Teresa.Hutchinson@usda.gov or
GaryD.Olson@usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington, DC 20250-0237; telephone: (202)
720-2491, Fax: (202) 720-8938, or e-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 97 and Order No. 948, both as amended (7 CFR part 948),
regulating the handling of potatoes grown in Colorado, 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, Colorado
potato 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
potatoes beginning July 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 reinstates Sec. 948.215 of the order's rules and
regulations and establishes a continuing assessment rate for the
Committee for the 2008-2009 and subsequent fiscal periods at $0.02 per
hundredweight of potatoes handled.
The Colorado potato 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
Colorado potatoes in Area No. 3. 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 2006-2007 and subsequent fiscal periods, the Committee
recommended, and USDA approved, a suspension of the continuing
assessment rate that would remain suspended until reinstated by USDA
upon recommendation and information submitted by the Committee or other
information available to USDA.
The Committee met on May 8, 2008, and unanimously recommended 2008-
2009 expenditures of $19,497 and an assessment rate of $0.02 per
hundredweight of potatoes. In comparison, last year's budgeted
expenditures were $18,697. For the 2006-2007 fiscal period, the
Committee recommended suspending the continuing assessment rate to
bring the monetary reserve within program limits of approximately two
fiscal periods' operating expenses (Sec. 948.78). At that time, the
reserve fund contained about $49,237. The Committee has been operating
for the last two years by drawing income from its reserve. With a
suspended assessment rate and a significant decrease in the number of
potato producers and acreage in Area No. 3, the reserve has rapidly
decreased to the current level of about $16,175. The Committee would
like to maintain the reserve at approximately this level, thus
reinstatement of the assessment rate at $0.02 per hundredweight is
needed.
The major expenditures recommended by the Committee for the
[[Page 52172]]
2008-2009 fiscal period include $7,800 for salaries, $3,000 for rent
expense, and $1,750 for office expenses. Budgeted expenses for these
items in 2007-2008 were also $7,800, $3,000, and $1,750, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Colorado Area
No. 3 potatoes. Colorado Area No. 3 potato shipments for the year are
estimated at 787,600 hundredweight which should provide $15,752 in
assessment income. Income derived from handler assessments, rent, and
interest, along with funds from the Committee's authorized reserve,
should be adequate to cover budgeted expenses. Funds in the reserve
(estimated at $16,175 as of June 30, 2008) would be kept within the
maximum permitted by the order (approximately two fiscal periods'
expenses; Sec. 948.78).
The assessment rate reinstated 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 2008-2009 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.
Based on Committee data, there are 8 producers (7 of whom are also
handlers) in the regulated area and 9 handlers (7 of whom are also
producers) who are subject to regulation under the order. 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.
Based on Committee data, the production of Colorado Area No. 3
potatoes for the 2007-2008 fiscal period was 550,026 hundredweight.
Based on National Agricultural Statistics Service data, the average
producer price for Colorado summer potatoes for 2007 was $7.55 per
hundredweight. The average annual producer revenue for the 8 Colorado
Area No. 3 potato producers is therefore calculated to be approximately
$519,000. Using Committee data regarding each individual handler's
total shipments during the 2007-2008 fiscal period and a Committee
estimated average f.o.b. price for 2007 of $9.75 per hundredweight
($7.55 per hundredweight plus estimated packing and handling costs of
$2.20 per hundredweight), all of the Colorado Area No. 3 potato
handlers ship under $6,500,000 worth of potatoes. Thus, the majority of
handlers and producers of Colorado Area No. 3 potatoes may be
classified as small entities.
This rule reinstates Sec. 948.215 of the order's rules and
regulations and establishes a continuing assessment rate for the
Committee for the 2008-2009 and subsequent fiscal periods at $0.02 per
hundredweight of potatoes handled. The reinstatement of the $0.02
assessment rate and the 2008-2009 expenditures of $19,497 were
unanimously recommended by the Committee. The quantity of Colorado Area
No. 3 potatoes for the 2008-2009 fiscal period is estimated at 787,600
hundredweight. Thus, the $0.02 rate should provide $15,752 in
assessment income. Income derived from handler assessments, rent, and
interest along with funds from the Committee's authorized reserves
should be adequate to meet this fiscal period's budgeted expenses.
The major expenditures recommended by the Committee for the 2008-
2009 fiscal period include $7,800 for salaries, $3,000 for rent
expense, and $1,750 for office expenses. Budgeted expenses for these
items in 2007-2008 were also $7,800, $3,000, and $1,750, respectively.
For the 2006-2007 fiscal period, the Committee recommended
suspending the continuing assessment rate to bring the monetary reserve
within program limits of approximately two fiscal periods' operating
expenses (Sec. 948.78). At that time, the reserve fund contained about
$49,237. The Committee has been operating for the last two years by
drawing income from its reserve. With a suspended assessment rate and a
significant decrease in the number of potato producers and acreage in
Area No. 3, the reserve has rapidly decreased to the current level of
about $16,175. The Committee would like to maintain the reserve at
approximately this level, thus reinstatement of the assessment rate is
needed.
The Committee discussed alternatives to this rule, including
alternative expenditure levels. Lower assessment rates were considered,
but not recommended because they would not generate the income
necessary to administer the program with adequate reserves. Higher
assessment rates were also considered, but not recommended because they
would add funds to the reserve.
To calculate the assessment rate, the Committee deducted estimated
income received from rent and interest from the total recommended
budget ($19,497 - $2,000 = $17,497). The assessment rate was then
determined by dividing $17,497 by the quantity of assessable potatoes,
which is estimated at 787,600 hundredweight for the 2008-2009 fiscal
period. The result was rounded to $0.02 per hundredweight. This
assessment rate will generate approximately $1,745 less than
anticipated expenses when combined with interest and rent income, which
the Committee has determined to be acceptable. Funds from the
Committee's authorized reserve should be adequate to cover budgeted
expenses not covered by income from assessments, interest, and rent.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the producer
price for the 2008-2009 fiscal period could range between $7.55 and
$8.45 per hundredweight of Colorado summer potatoes. Therefore, the
estimated assessment revenue for the 2008-2009 fiscal period as a
percentage of total producer revenue could range between 0.24 and 0.26
percent.
This action reinstates 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
[[Page 52173]]
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 Colorado Area No. 3 potato industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the May 8,
2008, 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 Colorado Area No. 3 potato
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.
As noted in the initial regulatory flexibility analysis, USDA has
not identified any relevant Federal rules that duplicate, overlap, or
conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on July 25, 2008 (73 FR 43375). Copies of the proposed rule
were also mailed or sent via facsimile to all handlers. Finally, the
proposal was made available through the Internet by USDA and the Office
of the Federal Register. A 15-day comment period ending August 11,
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/AMSv1.0/
ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide. 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 is 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: (1) The
2008-2009 fiscal period began on July 1, 2008, and the marketing order
requires that the rate of assessment for each fiscal period apply to
all assessable potatoes handled during such fiscal period; (2) the
northern Colorado potato shipping season began in July; (3) the
Committee needs to have sufficient funds to pay for 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. Also,
a 15-day comment period was provided for in the proposed rule.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 948 is amended as
follows:
PART 948--IRISH POTATOES GROWN IN COLORADO
0
1. The authority citation for 7 CFR part 948 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Part 948, the suspension of Sec. 948.215 is lifted.
Dated: September 4, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-20853 Filed 9-8-08; 8:45 am]
BILLING CODE 3410-02-P