Olives Grown in California; Increased Assessment Rate, 9536-9538 [2010-4338]
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9536
Proposed Rules
Federal Register
Vol. 75, No. 41
Wednesday, March 3, 2010
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Doc. No. AMS–FV–09–0089; FV10–932–1
PR]
Olives Grown in California; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
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SUMMARY: This rule would increase the
assessment rate established for the
California Olive Committee (Committee)
for the 2010 and subsequent fiscal years
from $28.63 to $44.72 per assessable ton
of olives handled. The Committee
locally administers the marketing order
which regulates the handling of olives
grown in California. Assessments upon
olive handlers are used by the
Committee to fund reasonable and
necessary expenses of the program. The
fiscal year began January 1 and ends
December 31. The assessment rate
would remain in effect indefinitely
unless modified, suspended, or
terminated.
DATES: Comments must be received by
April 2, 2010.
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. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
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14:15 Mar 02, 2010
Jkt 220001
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Jeffrey S. Smutny, 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:
Jeffrey.Smutny@ams.usda.gov or
Kurt.Kimmel@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Antoinette
Carter, 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:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
No. 148 and Order No. 932, both as
amended (7 CFR part 932), regulating
the handling of olives grown in
California, 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, California olive 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
olives beginning on January 1, 2010, and
continue until amended, suspended, or
terminated.
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
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Fmt 4702
Sfmt 4702
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 2010 and subsequent
fiscal years from $28.63 to $44.72 per
ton of olives.
The California olive 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 California olives. They are
familiar with the Committee’s needs and
with 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 2009 and subsequent fiscal
years, the Committee recommended,
and USDA approved, an assessment rate
that would continue in effect from fiscal
year to fiscal year 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 15,
2009, and unanimously recommended
2010 fiscal year expenditures of
$929,923 and an assessment rate of
$44.72 per ton of olives. In comparison,
last year’s budgeted expenditures were
$1,482,349. The assessment rate of
$44.72 is $16.09 higher than the rate
currently in effect. The Committee
recommended the higher assessment
rate because the 2009–10 assessable
olive receipts as reported by the
California Agricultural Statistics Service
(CASS) are only 22,150 tons, which
compares to 49,067 tons in 2008–09.
Unusual weather conditions, including
untimely temperatures that fell below
freezing, contributed to a substantially
smaller crop. The Committee also plans
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03MRP1
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Federal Register / Vol. 75, No. 41 / Wednesday, March 3, 2010 / Proposed Rules
to use available reserve funds to help
meet its 2010 expenses.
The major expenditures
recommended by the Committee for the
2010 fiscal year include $300,000 for
research, $255,000 for marketing
activities, and $324,923 for
administration. Budgeted expenditures
for these items in 2009 were $495,000,
$627,800, and $359,549, respectively.
The assessment rate recommended by
the Committee was derived by
considering anticipated fiscal year
expenses, actual olive tonnage received
by handlers during the 2009–10 crop
year, and additional pertinent factors.
Actual assessable tonnage for the 2010
fiscal year is expected to be lower than
the 2009–10 crop receipts of 22,150 tons
reported by the CASS because some
olives may be diverted by handlers to
uses that are exempt from marketing
order requirements. 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 would be kept
within the maximum permitted by the
order of approximately one fiscal year’s
expenses (§ 932.40).
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 year 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 2010 budget and those for
subsequent fiscal years would be
reviewed and, as appropriate, approved
by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–602), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
rule on small entities. Accordingly,
VerDate Nov<24>2008
14:15 Mar 02, 2010
Jkt 220001
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 1000
producers of olives in the production
area and 2 handlers subject to regulation
under the marketing order. Small
agricultural producers are defined by
the Small Business Administration (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 $7,000,000.
Based upon information from the
Committee, the majority of olive
producers may be classified as small
entities. Both of the handlers may be
classified as large entities.
This rule would increase the
assessment rate established for the
Committee and collected from handlers
for the 2010 and subsequent fiscal years
from $28.63 to $44.72 per ton of
assessable olives. The Committee
unanimously recommended 2010
expenditures of $929,923 and an
assessment rate of $44.72 per ton. The
proposed assessment rate of $44.72 is
$16.09 higher than the 2009 rate. The
higher assessment rate is necessary
because assessable olive receipts for the
2009–10 crop year were reported by the
CASS to be 22,150 tons, compared to
49,067 tons for the 2008–09 crop year.
Actual assessable tonnage for the 2010
fiscal year is expected to be lower
because some of the receipts may be
diverted by handlers to exempt outlets
on which assessments are not paid.
Income generated from the $44.72 per
ton assessment rate should be adequate
to meet this year’s expenses when
combined with funds from the
authorized reserve and interest income.
Funds in the reserve would be kept
within the maximum permitted by the
order of about one fiscal year’s expenses
(§ 932.40).
The major expenditures
recommended by the Committee for the
2010 fiscal year include $300,000 for
research, $255,000 for marketing
activities, and $324,923 for
administration. Budgeted expenses for
these items in 2009 were $495,000,
$627,800, and $359,549 respectively.
The Committee recommended decreases
in all major expense categories due to
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9537
the huge decrease in assessable crop
volume as reported by the CASS.
Prior to arriving at this budget, the
Committee considered information from
various sources, such as the
Committee’s Executive, Market
Development, and Research
Subcommittees. Alternate spending
levels were discussed by these groups,
based upon the relative value of various
research and marketing projects to the
olive industry and the reduced olive
production. The assessment rate of
$44.72 per ton of assessable olives was
derived by considering anticipated
expenses, the volume of assessable
olives and additional pertinent factors.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal year indicates that
the grower price for the 2009–10 crop
year was approximately $1,193.94 per
ton for canning fruit and $375.01 per
ton for limited-use sizes, leaving the
balance as unusable cull fruit.
Approximately 91 percent of a ton of
olives are canning fruit sizes and 5
percent are limited use sizes, leaving the
balance as unusable cull fruit. Grower
revenue on 22,150 total tons of canning
and limited-use sizes would be
$24,321,145 given the current grower
prices for those sizes. Therefore, with an
assessment rate increased from $28.63
to $44.72, the estimated assessment
revenue is expected to be approximately
4 percent of grower revenue.
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 California
olive 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 15, 2009,
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
California olive handlers. As with all
Federal marketing order programs,
reports and forms are periodically
reviewed to reduce information
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Federal Register / Vol. 75, No. 41 / Wednesday, March 3, 2010 / Proposed Rules
requirements and duplication by
industry and public sector agencies.
The 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: https://www.ams.usda.gov/
AMSv1.0/ams.fetchTemplateData.do?
template=TemplateN&page=
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Antoinette
Carter at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
A 30-day comment period is provided
to allow interested persons to respond
to this proposed rule. Thirty days is
deemed appropriate because: (1) The
2010 fiscal year began on January 1,
2010, and the marketing order requires
that the rate of assessment for each
fiscal year apply to all assessable olives
handled during such fiscal year; (2) the
Committee needs sufficient funds to pay
its expenses, which are incurred on a
continuous basis; and (3) handlers are
aware of this action, which was
discussed by the Committee and
unanimously recommended at a public
meeting, and is similar to other
assessment rate actions issued in past
years.
List of Subjects in 7 CFR Part 932
Olives, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 932 is proposed to
be amended as follows:
PART 932—OLIVES GROWN IN
CALIFORNIA
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1. The authority citation for 7 CFR
part 932 continues to read as follows:
Authority: 7 U.S.C. 601–674.
2. Section 932.230 is revised to read
as follows:
§ 932.230
Assessment rate.
On and after January 1, 2010, an
assessment rate of $44.72 per ton is
established for California olives.
VerDate Nov<24>2008
14:15 Mar 02, 2010
Jkt 220001
Dated: February 25, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2010–4338 Filed 3–2–10; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 71
[Docket No Docket No. FAA–2010–0049;
Airspace Docket No. 08–AWA–1]
RIN 2120–AA66
Proposed Modification of Class B
Airspace; Charlotte, NC
AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
SUMMARY: This action proposes to
modify the Charlotte, NC, Class B
airspace area to ensure the containment
of aircraft, accommodate the
implementation of area navigation
(RNAV) departure procedures, and to
support operations of the third parallel
runway planned for commissioning in
early 2010. The FAA is proposing this
action to improve the flow of air traffic,
enhance safety, and reduce the potential
for midair collision in the Charlotte
terminal area.
DATES: Comments must be received on
or before May 3, 2010.
ADDRESSES: Send comments on this
proposal to the U.S. Department of
Transportation, Docket Operations, M–
30, 1200 New Jersey Avenue, SE., West
Building Ground Floor, RoomW12–140,
Washington, DC 20590–0001; telephone:
(202) 366–9826. You must identify FAA
Docket No. FAA–2010–0049 and
Airspace Docket No. 08–AWA–1, at the
beginning of your comments. You may
also submit comments through the
Internet at https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Paul
Gallant, Airspace and Rules Group,
Office of System Operations Airspace
and AIM, Federal Aviation
Administration, 800 Independence
Avenue, SW., Washington, DC 20591;
telephone: (202) 267–8783.
SUPPLEMENTARY INFORMATION:
Comments Invited
Interested parties are invited to
participate in this proposed rulemaking
by submitting such written data, views,
or arguments as they may desire.
Comments that provide the factual basis
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Fmt 4702
Sfmt 4702
supporting the views and suggestions
presented are particularly helpful in
developing reasoned regulatory
decisions on the proposal. Comments
are specifically invited on the overall
regulatory, aeronautical, economic,
environmental, and energy-related
aspects of the proposal.
Communications should identify both
docket numbers (FAA Docket No. FAA–
2010–0049 and Airspace Docket No. 08–
AWA–1) and be submitted in triplicate
to the Docket Management Facility (see
ADDRESSES section for address and
phone number). You may also submit
comments through the Internet at
https://www.regulations.gov.
Commenters wishing the FAA to
acknowledge receipt of their comments
on this action must submit with those
comments a self-addressed, stamped
postcard on which the following
statement is made: ‘‘Comments to
Docket Nos. FAA–2010–0049 and
Airspace Docket No.08–AWA–1.’’ The
postcard will be date/time stamped and
returned to the commenter.
All communications received on or
before the specified closing date for
comments will be considered before
taking action on the proposed rule. The
proposal contained in this action may
be changed in light of comments
received. All comments submitted will
be available for examination in the
public docket both before and after the
closing date for comments. A report
summarizing each substantive public
contact with FAA personnel concerned
with this rulemaking will be filed in the
docket.
Availability of NPRM’s
An electronic copy of this document
may be downloaded through the
Internet at https://www.regulations.gov.
Recently published rulemaking
documents can also be accessed through
the FAA’s Web page at https://
www.faa.gov/regulations_policies/
rulemaking/recently_published/.
You may review the public docket
containing the proposal, any comments
received and any final disposition in
person in the Dockets Office (see
ADDRESSES section for address and
phone number) between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays. An informal docket
may also be examined during normal
business hours at the office of the
Eastern Service Center, Federal Aviation
Administration, Room 210, 1701
Columbia Ave., College Park, GA 30337.
Persons interested in being placed on
a mailing list for future NPRMs should
contact the FAA’s Office of Rulemaking,
(202) 267–9677, for a copy of Advisory
Circular No. 11–2A, Notice of Proposed
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Agencies
[Federal Register Volume 75, Number 41 (Wednesday, March 3, 2010)]
[Proposed Rules]
[Pages 9536-9538]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4338]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 75, No. 41 / Wednesday, March 3, 2010 /
Proposed Rules
[[Page 9536]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Doc. No. AMS-FV-09-0089; FV10-932-1 PR]
Olives Grown in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule would increase the assessment rate established for
the California Olive Committee (Committee) for the 2010 and subsequent
fiscal years from $28.63 to $44.72 per assessable ton of olives
handled. The Committee locally administers the marketing order which
regulates the handling of olives grown in California. Assessments upon
olive handlers are used by the Committee to fund reasonable and
necessary expenses of the program. The fiscal year began January 1 and
ends December 31. The assessment rate would remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by April 2, 2010.
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. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting the comments will be made public on the Internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Jeffrey S. Smutny, 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: Jeffrey.Smutny@ams.usda.gov or
Kurt.Kimmel@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, 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:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 148 and Order No. 932, both as amended (7 CFR part 932),
regulating the handling of olives grown in California, 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, California
olive 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 olives beginning on January 1, 2010, and continue until
amended, suspended, or terminated.
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 2010 and subsequent fiscal years from $28.63 to
$44.72 per ton of olives.
The California olive 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
California olives. They are familiar with the Committee's needs and
with 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 2009 and subsequent fiscal years, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal year to fiscal year 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 15, 2009, and unanimously recommended
2010 fiscal year expenditures of $929,923 and an assessment rate of
$44.72 per ton of olives. In comparison, last year's budgeted
expenditures were $1,482,349. The assessment rate of $44.72 is $16.09
higher than the rate currently in effect. The Committee recommended the
higher assessment rate because the 2009-10 assessable olive receipts as
reported by the California Agricultural Statistics Service (CASS) are
only 22,150 tons, which compares to 49,067 tons in 2008-09. Unusual
weather conditions, including untimely temperatures that fell below
freezing, contributed to a substantially smaller crop. The Committee
also plans
[[Page 9537]]
to use available reserve funds to help meet its 2010 expenses.
The major expenditures recommended by the Committee for the 2010
fiscal year include $300,000 for research, $255,000 for marketing
activities, and $324,923 for administration. Budgeted expenditures for
these items in 2009 were $495,000, $627,800, and $359,549,
respectively.
The assessment rate recommended by the Committee was derived by
considering anticipated fiscal year expenses, actual olive tonnage
received by handlers during the 2009-10 crop year, and additional
pertinent factors. Actual assessable tonnage for the 2010 fiscal year
is expected to be lower than the 2009-10 crop receipts of 22,150 tons
reported by the CASS because some olives may be diverted by handlers to
uses that are exempt from marketing order requirements. 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 would be kept within the maximum
permitted by the order of approximately one fiscal year's expenses
(Sec. 932.40).
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 year 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 2010 budget and those for
subsequent fiscal years would be reviewed and, as appropriate, approved
by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-602), 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 1000 producers of olives in the production
area and 2 handlers subject to regulation under the marketing order.
Small agricultural producers are defined by the Small Business
Administration (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 $7,000,000.
Based upon information from the Committee, the majority of olive
producers may be classified as small entities. Both of the handlers may
be classified as large entities.
This rule would increase the assessment rate established for the
Committee and collected from handlers for the 2010 and subsequent
fiscal years from $28.63 to $44.72 per ton of assessable olives. The
Committee unanimously recommended 2010 expenditures of $929,923 and an
assessment rate of $44.72 per ton. The proposed assessment rate of
$44.72 is $16.09 higher than the 2009 rate. The higher assessment rate
is necessary because assessable olive receipts for the 2009-10 crop
year were reported by the CASS to be 22,150 tons, compared to 49,067
tons for the 2008-09 crop year. Actual assessable tonnage for the 2010
fiscal year is expected to be lower because some of the receipts may be
diverted by handlers to exempt outlets on which assessments are not
paid.
Income generated from the $44.72 per ton assessment rate should be
adequate to meet this year's expenses when combined with funds from the
authorized reserve and interest income. Funds in the reserve would be
kept within the maximum permitted by the order of about one fiscal
year's expenses (Sec. 932.40).
The major expenditures recommended by the Committee for the 2010
fiscal year include $300,000 for research, $255,000 for marketing
activities, and $324,923 for administration. Budgeted expenses for
these items in 2009 were $495,000, $627,800, and $359,549 respectively.
The Committee recommended decreases in all major expense categories due
to the huge decrease in assessable crop volume as reported by the CASS.
Prior to arriving at this budget, the Committee considered
information from various sources, such as the Committee's Executive,
Market Development, and Research Subcommittees. Alternate spending
levels were discussed by these groups, based upon the relative value of
various research and marketing projects to the olive industry and the
reduced olive production. The assessment rate of $44.72 per ton of
assessable olives was derived by considering anticipated expenses, the
volume of assessable olives and additional pertinent factors.
A review of historical information and preliminary information
pertaining to the upcoming fiscal year indicates that the grower price
for the 2009-10 crop year was approximately $1,193.94 per ton for
canning fruit and $375.01 per ton for limited-use sizes, leaving the
balance as unusable cull fruit. Approximately 91 percent of a ton of
olives are canning fruit sizes and 5 percent are limited use sizes,
leaving the balance as unusable cull fruit. Grower revenue on 22,150
total tons of canning and limited-use sizes would be $24,321,145 given
the current grower prices for those sizes. Therefore, with an
assessment rate increased from $28.63 to $44.72, the estimated
assessment revenue is expected to be approximately 4 percent of grower
revenue.
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 California olive 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
15, 2009, 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 California olive
handlers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information
[[Page 9538]]
requirements and duplication by industry and public sector agencies.
The 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: https://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide. Any questions about the compliance guide should be sent to
Antoinette Carter at the previously mentioned address in the FOR
FURTHER INFORMATION CONTACT section.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. Thirty days is deemed appropriate
because: (1) The 2010 fiscal year began on January 1, 2010, and the
marketing order requires that the rate of assessment for each fiscal
year apply to all assessable olives handled during such fiscal year;
(2) the Committee needs sufficient funds to pay its expenses, which are
incurred on a continuous basis; and (3) handlers are aware of this
action, which was discussed by the Committee and unanimously
recommended at a public meeting, and is similar to other assessment
rate actions issued in past years.
List of Subjects in 7 CFR Part 932
Olives, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 932 is
proposed to be amended as follows:
PART 932--OLIVES GROWN IN CALIFORNIA
1. The authority citation for 7 CFR part 932 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 932.230 is revised to read as follows:
Sec. 932.230 Assessment rate.
On and after January 1, 2010, an assessment rate of $44.72 per ton
is established for California olives.
Dated: February 25, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2010-4338 Filed 3-2-10; 8:45 am]
BILLING CODE 3410-02-P