Nectarines and Peaches Grown in California; Decreased Assessment Rates, 48846-48848 [E9-23152]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 74, Number 185 (Friday, September 25, 2009)]
[Rules and Regulations]
[Pages 48846-48848]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-23152]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Doc. No. AMS-FV-09-0013; FV09-916/917-2 IFR]


Nectarines and Peaches Grown in California; Decreased Assessment 
Rates

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim final rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule that decreased the 
assessment rates established for the Nectarine Administrative Committee 
and the Peach Commodity Committee (Committees) for the 2009-10 and 
subsequent fiscal periods. The Nectarine Administrative Committee (NAC) 
program decreased its assessment rate from $0.06 to $0.0175 per 25-
pound container or container equivalent of nectarines handled. The 
Peach Commodity Committee (PCC) program decreased its assessment rate 
from $0.06 to $0.0025 per 25-pound container or container equivalent of 
peaches handled. The Committees locally administer the marketing orders 
for nectarines and peaches grown in California (order). The interim 
final rule was necessary to align the Committees' expected revenue with 
decreases in its proposed budget for the 2009-10 fiscal period, which 
began March 1, 2009.

DATES: Effective Date: Effective September 26, 2009.

FOR FURTHER INFORMATION CONTACT: Jennifer Robinson, Marketing 
Specialist, or Kurt J. Kimmel, Regional Manager, California Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 
487-5906; or E-mail: Jen.Robinson@ams.usda.gov or 
Kurt.Kimmel@ams.usda.gov.
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: https://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide; or 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@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
Nos. 916 and 917, both as amended (7 CFR parts 916 and 917), regulating 
the handling of nectarines and peaches grown in California, 
respectively, hereinafter referred to as the ``orders.'' The orders are 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    USDA is issuing this rule in conformance with Executive Order 
12866.
    Under the orders, California nectarine and peach handlers are 
subject to assessments, which provide funds to administer the orders. 
Assessment rates issued under the orders are intended to be the 
applicable to all assessable nectarines and peaches for the entire 
fiscal period, and continue indefinitely until amended, suspended, or 
terminated. The Committee's fiscal period begins on March 1, and ends 
on the last day of February.
    In an interim final rule published in the Federal Register on June 
18, 2009, and effective on June 19, 2009 (74 FR 28869, Doc. No. AMS-FV-
09-0013; FV09-916/917-2 IFR), Sec. Sec.  916.234 and

[[Page 48847]]

917.258 were amended by decreasing the assessment rates established for 
the NAC program for the 2009-10 and subsequent fiscal periods from 
$0.06 to $0.0175 per 25-pound container or container equivalent of 
nectarines and for the PCC program for the 2009-10 and subsequent 
fiscal periods from $0.06 to $0.0025 per 25-pound container or 
container equivalent of peaches. Decreases in the per-container 
assessment rates were possible due to significant decreases in budgeted 
administrative and promotional expenses for 2009.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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. Thus, both statutes have small 
entity orientation and compatibility.
    There are approximately 120 California nectarine and peach handlers 
subject to regulation under the orders covering nectarines and peaches 
grown in California, and about 550 producers of these fruits in 
California. Small agricultural service firms, which include handlers, 
are defined by the Small Business Administration (SBA) (13 CFR 121.201) 
as those whose annual receipts are less than $7,000,000. Small 
agricultural producers are defined by the SBA as those having annual 
receipts of less than $750,000. A majority of these handlers and 
producers may be classified as small entities.
    The Committees' staff has estimated that there are fewer than 30 
handlers in the industry who would not be considered small entities. 
For the 2008 season, the Committees' staff estimated that the average 
handler price received was $9.00 per container or container equivalent 
of nectarines or peaches. A handler would have to ship at least 777,778 
containers to have annual receipts of $7,000,000. Given data on 
shipments maintained by the Committees' staff and the average handler 
price received during the 2008 season, the Committees' staff estimates 
that small handlers represent approximately 78 percent of all the 
handlers within the industry.
    The Committees' staff has also estimated that fewer than 60 
producers in the industry would not be considered small entities. For 
the 2008 season, the Committees estimated the average producer price 
received was $4.25 per container or container equivalent for nectarines 
and peaches. A producer would have to produce at least 176,471 
containers of nectarines and peaches to have annual receipts of 
$750,000. Given data maintained by the Committees' staff and the 
average producer price received during the 2008 season, the Committees' 
staff estimates that small producers represent more than 88 percent of 
the producers within the industry.
    With an average producer price of $4.25 per container or container 
equivalent, and a combined packout of nectarines and peaches of 
45,543,561 containers, the value of the 2008 packout is estimated to be 
$193,560,134. Dividing this total estimated producer revenue figure by 
the estimated number of producers (550) yields an estimate of average 
revenue per producer of about $351,928 from the sales of peaches and 
nectarines.
    This rule continues in effect the action that decreased the 
assessment rates established for the NAC for the 2009-10 and subsequent 
fiscal periods from $0.06 to $0.0175 per 25-pound container or 
container equivalent of nectarines and for the PCC for the 2009-10 and 
subsequent fiscal periods from $0.06 to $0.0025 per 25-pound container 
or container equivalent of peaches.
    The NAC recommended 2009-10 fiscal period expenditures of 
$1,797,290.20 for nectarines and an assessment rate of $0.0175 per 25-
pound container or container equivalent of nectarines. The assessment 
rate of $0.0175 is $0.0425 lower than the rate currently in effect. The 
PCC recommended 2009-10 fiscal period expenditures of $1,885,250 for 
peaches and an assessment rate of $0.0025 per 25-pound container or 
container equivalent of peaches. The assessment rate of $0.0025 is 
$0.0575 lower than the rate currently in effect.
    This rule continues in effect the action that decreased the 
assessment obligation imposed on handlers. Assessments are applied 
uniformly on all handlers, and some of the costs may be passed on to 
producers. However, decreasing the assessment rate would reduce the 
burden on handlers, and may reduce the burden on producers. In 
addition, the Committees' meetings were widely publicized throughout 
the California nectarine and peach industries and all interested 
persons were invited to attend the meetings and encouraged to 
participate in the Committees' deliberations on all issues. Like all 
Committee meetings, the February 19, 2009 meetings were public meetings 
and entities of all sizes were able to express views on this issue.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large handlers. As with all Federal 
marketing order programs, reports and forms are periodically reviewed 
to reduce information requirements and duplication by industry and 
public sector agencies.
    In addition, as noted in the initial regulatory flexibility 
analysis, USDA has not identified any relevant Federal rules that 
duplicate, overlap or conflict with this rule.
    Comments on the interim final rule were required to be received on 
or before August 17, 2009. One comment was received in support of the 
decreased assessment rates. Therefore, for the reasons given in the 
interim final rule, we are adopting the interim final rule as a final 
rule, without change.
    To view the interim final rule and comment, go to: https://www.regulations.gov/search/Regs/home.html#docketDetail?R=AMS-FV-09-0013.
    This action also affirms information contained in the interim final 
rule concerning the Executive Orders 12866 and 12988, the Paperwork 
Reduction Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 
101).
    After consideration of all relevant material presented, it is found 
that finalizing this interim final rule, without change, as published 
in the Federal Register (74 FR 28869, June 18, 2009) will tend to 
effectuate the declared policy of the Act.

List of Subjects

7 CFR Part 916

    Marketing agreements, Nectarines, Reporting and recordkeeping 
requirements.

7 CFR Part 917

    Marketing agreements, Peaches, Pears, Reporting and recordkeeping 
requirements.

PARTS 916 AND 917--[AMENDED]

0
Accordingly, the interim final rule amending 7 CFR parts 916 and 917, 
which was published at 74 FR 28869 on June 18, 2009, is adopted as a 
final rule, without change.


[[Page 48848]]


    Dated: September 21, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-23152 Filed 9-24-09; 8:45 am]
BILLING CODE 3410-02-P