Pears Grown in Oregon and Washington; Assessment Rate Decrease for Fresh Pears, 54075-54078 [2011-22113]
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Federal Register / Vol. 76, No. 169 / Wednesday, August 31, 2011 / Rules and Regulations
Paperwork Reduction Act
These regulations are exempt from the
requirements of the Paperwork
Reduction Act (44 U.S.C. chapter 35), as
specified in section 1601(c)(2) of the
2008 Farm Bill, which provides that
these regulations be promulgated and
administered without regard to the
Paperwork Reduction Act.
E-Government Act Compliance
FSA 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.
List of Subjects in 7 CFR Part 760
Dairy products, Indemnity payments,
Pesticide and pests, Reporting and
recordkeeping requirements.
For the reasons discussed in the
preamble, the Farm Service Agency
(USDA) amends 7 CFR part 760 as
follows:
PART 760—INDEMNITY PAYMENT
PROGRAMS
1. The authority citation for part 760
continues to read as follows:
■
Authority: 7 U.S.C. 4501, 7 U.S.C. 1531, 16
U.S.C. 3801, note, and 19 U.S.C. 2497; Title
III, Pub. L. 109–234, 120 Stat. 474; Title IX,
Pub. L. 110–28, 121 Stat. 211; and Sec. 748,
Pub. L. 111–80, 123 Stat. 2131.
Subpart B—General Provisions for
Supplemental Agricultural Disaster
Assistance Programs
2. Revise § 760.106 paragraph (a)(1), to
read as follows:
Equitable relief.
(a) * * *
(1) Are otherwise ineligible or provide
evidence, satisfactory to FSA, that the
failure to meet the requirements of
§ 760.104 for one or more eligible crops
on the farm was unintentional and not
because of any fault of the participant,
as determined by the Secretary, or
*
*
*
*
*
§ 760.107
[Amended]
3. Amend § 760.107, in paragraph
(b)(2)(ii), by removing the words
‘‘paragraph (a)’’ and adding, in their
place, the words ‘‘paragraph (b)(2)(i)’’.
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■
Subpart C—Emergency Assistance for
Livestock, Honeybees, and FarmRaised Fish Program
4. Revise § 760.203, paragraph (c)(2) to
read as follows:
■
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(c) * * *
(2) Due to an eligible adverse weather
event or loss condition that occurred on
or after January 1, 2008, and before
October 1, 2011.
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■ 5. Revise § 760.204, paragraph (f)(1) to
read as follows:
Subpart G—Supplemental Revenue
Assistance Payments Program
*
§ 760.204 Eligible livestock, honeybees,
and farm-raised fish.
*
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*
(f) * * *
(1) They must have died:
(i) On or after the beginning date of
the eligible loss condition; and
(ii) On or after January 1, 2008, and
no later than 60 calendar days from the
ending date of the eligible loss
condition, but before November 30,
2011; and
(iii) As a direct result of an eligible
loss condition that occurs on or after
January 1, 2008, and before October 1,
2011; and
(iv) In the calendar year for which
payment is being requested; and
*
*
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Subpart E—Livestock Indemnity
Program
4. Revise § 760.404, paragraph (c) to
read as follows:
■
§ 760.404
Eligible livestock.
*
■
§ 760.106
§ 760.203 Eligible losses, adverse weather,
and other loss conditions.
54075
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(c) To be considered eligible livestock
for the purpose of generating payments
under this subpart, livestock must meet
all of the following conditions:
(1) Died as a direct result of an
eligible adverse weather event that
occurred on or after January 1, 2008,
and before October 1, 2011;
(2) Died no later than 60 calendar
days from the ending date of the
applicable adverse weather event, but
before November 30, 2011;
(3) Died in the calendar year for
which benefits are being requested;
(4) Been maintained for commercial
use as part of a farming operation on the
day they died; and
(5) Before dying, not have been
produced or maintained for reasons
other than commercial use as part of a
farming operation, such non-eligible
uses being understood to include, but
not be limited to, any uses of wild, free
roaming animals or use of the animals
for recreational purposes, such as
pleasure, hunting, roping, pets, or for
show.
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5. Amend § 760.601 by adding a
sentence at the end of paragraph (b) to
read as follows:
■
§ 760.601
Applicability.
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(b) * * * Crop losses must have
occurred in crop year 2008 or
subsequent crop years due to an eligible
disaster event that occurs on or before
September 30, 2011.
*
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■ 6. Revise § 760.610, paragraph (a)(2),
to read as follows:
§ 760.610
Participant eligibility.
(a) * * *
(2) Crop losses must have occurred in
crop year 2008 or subsequent crop years
due to an eligible disaster event that
occurred on or before September 30,
2011.
(i) For insured crops, the coverage
period, as defined in the insurance
policy, must have begun on or before
September 30, 2011;
(ii) For NAP crops, the coverage
period must have begun on or before
September 30, 2011; and
(iii) The final planting date for that
crop according to the Federal crop
insurance or NAP policy must have
been on or before September 30, 2011.
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Carolyn B. Cooksie,
Acting Administrator, Farm Service Agency.
[FR Doc. 2011–22323 Filed 8–30–11; 8:45 am]
BILLING CODE 3410–05–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS–FV–11–0060; FV11–927–2
IR]
Pears Grown in Oregon and
Washington; Assessment Rate
Decrease for Fresh Pears
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule decreases the
assessment rate established for the Fresh
Pear Committee (Committee) for the
2011–2012 and subsequent fiscal
periods from $0.501 to $0.471 per
standard box or equivalent of fresh
winter pears handled. The Committee
locally administers the marketing order
SUMMARY:
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Federal Register / Vol. 76, No. 169 / Wednesday, August 31, 2011 / Rules and Regulations
which regulates the handling of fresh
pears grown in Oregon and Washington.
Assessments upon Oregon-Washington
fresh pear handlers are used by the
Committee to fund reasonable and
necessary expenses of the program. The
fiscal period begins July 1 and ends June
30. The assessment rate will remain in
effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective September 1, 2011.
Comments received by October 31,
2011, will be considered prior to
issuance of a final rule.
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 document 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:
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@ams.usda.gov or
GaryD.Olson@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Laurel May,
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:
Laurel.May@ams.usda.gov.
This rule
is issued under Marketing Order No.
927, as amended (7 CFR part 927),
regulating the handling of pears grown
in Oregon and Washington, 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.’’
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SUPPLEMENTARY INFORMATION:
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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, Oregon-Washington pear
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 fresh winter pears beginning
July 1, 2011, 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 decreases the assessment
rate established for the Committee for
the 2011–2012 and subsequent fiscal
periods from $0.501 to $0.471 per
standard box or equivalent of fresh
winter pears handled. The standard box
or equivalent assessment rate for fresh
‘‘summer/fall’’ pears and ‘‘other’’ fresh
pears would remain unchanged at
$0.366 and $0.00, respectively.
The Oregon-Washington pear
marketing order provides authority for
the Committee, with USDA approval, to
formulate an annual budget of expenses
and to collect assessments from
handlers to administer the fresh pear
program. The members of the
Committee are producers and handlers
of Oregon-Washington fresh pears. 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 at a public meeting. Thus, all
directly affected persons have an
opportunity to participate and provide
input.
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For the 2005–2006 and subsequent
fiscal periods, the Committee
recommended, and the USDA approved,
the following three base rates of
assessment: (a) $0.366 per standard box
or equivalent for any or all varieties or
subvarieties of fresh pears classified as
‘‘summer/fall’’; (b) $0.501 per standard
box or equivalent for any or all varieties
or subvarieties of fresh pears classified
as ‘‘winter’’; and (c) $0.000 per standard
box or equivalent for any or all varieties
or subvarieties of fresh pears classified
as ‘‘other’’. These assessment rates
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 June 3, 2011,
and unanimously recommended 2011–
2012 expenditures of $8,827,860 and an
assessment rate of $0.471 per standard
box or equivalent of fresh winter pears
handled. In comparison, last year’s
budgeted expenditures were $9,262,200.
The assessment rate of $0.471 is $0.03
lower than the rate previously in effect.
The Committee recommended the
assessment rate decrease because the
winter pear promotion budget for the
2011–2011 fiscal period was reduced.
The major expenditures
recommended by the Committee for the
2011–2012 fiscal period include
$437,160 for contracted administration
by Pear Bureau Northwest, $610,700 for
production research and market
development, $6,355,000 for promotion
and paid advertising for winter pears,
and $1,260,000 for promotion and paid
advertising for summer/fall pears. In
comparison, major expenses for the
2010–2011 fiscal period included
$482,500 for contracted administration
by Pear Bureau Northwest, $610,700 for
production research and market
development, $6,600,000 for promotion
and paid advertising for winter pears,
and $1,410,000 for promotion and paid
advertising for summer/fall pears.
The Committee based its
recommended assessment rate for fresh
winter pears on the 2011–2012 fresh
winter pear crop estimate, the 2011–
2012 program expenditure needs, and
the current and projected size of its
monetary reserve. Applying the $0.471
per standard box or equivalent
assessment rate to the Committee’s
15,500,000 standard box or equivalent
fresh winter pear crop estimate should
provide $7,300,500 in assessment
income. The quantity of assessable fresh
summer/fall pears for the 2011–2012
fiscal period is estimated at 4,200,000
standard boxes or equivalent. The
summer/fall fresh pear assessment rate
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of $0.366 per standard box or equivalent
should provide $1,537,200 in
assessment income. Thus, income
derived from winter and summer/fall
fresh pear handler assessments
($8,837,700) and interest and
miscellaneous income ($20,000) would
be adequate to cover the recommended
$8,827,860 budget for 2011–2012. Funds
in the reserve were $1,040,646 as of
June 30, 2010. The Committee estimates
that $61,117 will be deducted from the
reserve to cover budgeted expenses for
2010–2011. The Committee estimates a
reserve of $979,529 on June 30, 2011.
For 2011–2012, the Committee estimates
that $29,840 will be added to the reserve
for an estimated reserve of $1,009,369
on June 30, 2012, which would be
within the maximum permitted by the
order of approximately one fiscal
period’s operational expenses (§ 927.42).
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 is
effective 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 2011–2012 budget and
those for subsequent fiscal periods will
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. 601–612), 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
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through group action of essentially
small entities acting on their own
behalf.
There are approximately 1,581
growers of fresh pears in the regulated
production area and approximately 38
handlers of fresh pears subject to
regulation under the order. Small
agricultural growers are defined by the
Small Business Administration (SBA)
(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 $7,000,000.
According to the Noncitrus Fruits and
Nuts 2010 Summary issued in July 2011
by the National Agricultural Statistics
Service, the average price for fresh pears
in 2010 was $591 per ton. The 2010
farm-gate value of fresh pears grown in
Oregon and Washington is estimated at
approximately $249,500,579, based on
shipments of 19,189,400 44-pound
standard boxes. Based on the number of
fresh pear growers in the Oregon and
Washington, the average gross revenue
for each grower can be estimated at
approximately $157,812. Furthermore,
based on Committee records, the
Committee has estimated that 56
percent of Northwest pear handlers
currently ship less than $7,000,000
worth of fresh pears on an annual basis.
From this information, it is concluded
that the majority of growers and
handlers of Oregon and Washington
fresh pears may be classified as small
entities.
This rule decreases the assessment
rate established for the Committee and
collected from handlers for the 2011–
2012 and subsequent fiscal periods from
$0.501 to $0.471 per standard box or
equivalent of fresh winter pears
handled. The Committee unanimously
recommended 2011–2012 expenditures
of $8,827,860 and an assessment rate of
$0.471 per standard box or equivalent of
fresh winter pears. The assessment rate
of $0.471 is $0.03 lower than the
previous rate. The Committee
recommended the assessment rate
decrease because the winter pear
promotion budget for the 2011–2012
fiscal period was reduced.
The quantity of assessable fresh
winter pears for the 2011–2012 fiscal
period is estimated at 15,500,000
standard boxes or equivalent. Thus, the
$0.471 rate should provide $7,300,500
in assessment income. Applying the
$0.366 per standard box or equivalent
assessment rate to the Committee’s
4,200,000 standard box or equivalent
fresh summer/fall pear crop estimate
should provide $1,537,200 in
assessment income. Income derived
from winter and summer/fall fresh pear
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54077
handler assessments ($8,837,700) and
interest and miscellaneous income
($20,000) would be adequate to cover
the budgeted expenses.
The major expenditures
recommended by the Committee for the
2011–2012 fiscal period include
$437,160 for contracted administration
by Pear Bureau Northwest, $610,700 for
production research and market
development, $6,355,000 for promotion
and paid advertising for winter pears,
and $1,260,000 for promotion and paid
advertising for summer/fall pears. In
comparison, major expenses for the
2010–2011 fiscal period included
$482,500 for contracted administration
by Pear Bureau Northwest, $610,700 for
production research and market
development, $6,600,000 for promotion
and paid advertising for winter pears,
and $1,410,000 for promotion and paid
advertising for summer/fall pears.
The Committee discussed alternate
lower rates of assessment, but
determined that the recommended
assessment rate would be sufficient to
fund the 2011–2012 fresh winter pear
programs.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal period indicates
that the grower price for the 2011–2012
fiscal period could range between $372
and $456 per ton of pears. Therefore, the
estimated assessment revenue for the
2011–2012 fiscal period as a percentage
of total grower revenue could range
between 5.75 and 4.69 percent.
This action decreases 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 reduces
the burden on handlers, and may reduce
the burden on producers.
In addition, the Committee’s meeting
was widely publicized throughout the
Oregon-Washington pear industry and
all interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the June 3,
2011, 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 interim rule,
including the regulatory and
informational impacts of this action on
small businesses.
In accordance with the Paperwork
Reduction Act of 1991 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0189, Generic
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Federal Register / Vol. 76, No. 169 / Wednesday, August 31, 2011 / Rules and Regulations
Fruit Crops. No changes in those
requirements as a result of this action
are anticipated. Should any changes
become necessary, they would be
submitted to OMB for approval.
This action imposes no additional
reporting or recordkeeping requirements
on either small or large OregonWashington fresh pear handlers. As
with all Federal marketing order
programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Laurel May at
the previously mentioned address in the
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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 upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect, and 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 2011–2012 fiscal
period begins on July 1, 2011, and the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable pears handled during
such fiscal period; (2) this action
decreases the assessment rate for
assessable fresh winter pears beginning
with the 2011–2012 fiscal period; (3)
handlers are aware of this action which
was unanimously recommended by the
Committee at a public meeting and is
similar to other assessment rate actions
issued in past years; and (4) this interim
rule provides a 60-day comment period,
and all comments timely received will
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be considered prior to finalization of
this rule.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 927 is amended as
follows:
PART 927—PEARS GROWN IN
OREGON AND WASHINGTON
1. The authority citation for 7 CFR
part 927 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 927.236, the introductory text
and paragraph (b) are revised to read as
follows:
■
§ 927.236
Fresh pear assessment rate.
On and after July 1, 2011, the
following base rates of assessment for
fresh pears are established for the Fresh
Pear Committee:
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(b) $0.471 per 44-pound net weight
standard box or container equivalent for
any or all varieties or subvarieties of
fresh pears classified as ‘‘winter’’; and
*
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*
Dated: August 19, 2011.
David R. Shipman,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2011–22113 Filed 8–30–11; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1205
[Doc. # AMS–CN–11–0026; CN–11–002]
Cotton Board Rules and Regulations:
Adjusting Supplemental Assessment
on Imports
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
The Agricultural Marketing
Service (AMS) is amending the Cotton
Board Rules and Regulations by
updating the value assigned to imported
cotton for the purpose of calculating
supplemental assessments collected for
use by the Cotton Research and
Promotion Program. An amendment is
required to adjust the supplemental
assessment and to ensure that
assessments collected on imported raw
cotton and the cotton content of
imported cotton-containing products are
SUMMARY:
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the same as assessments collected on
domestically produced cotton. In
addition, AMS is updating the textile
trade conversion factors used to
determine the raw fiber equivalents of
imported cotton-containing products
and expanding the number of
Harmonized Tariff Schedule (HTS)
statistical reporting numbers from the
current 706 to 2,371 to assess all
imported cotton and cotton-containing
products.
DATES:
Effective Date: September 30,
2011.
FOR FURTHER INFORMATION CONTACT:
Shethir M. Riva, Chief, Research and
Promotion Staff, Cotton and Tobacco
Programs, AMS, USDA, Stop 0224, 1400
Independence Ave., SW., Room 2635–S,
Washington, DC 20250–0224, telephone
(540) 361–2726, facsimile (202) 690–
1718, or e-mail at
Shethir.Riva@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
The Office of Management and Budget
has waived the review process required
by Executive Order 12866 for this
action.
Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. It is not intended to have
retroactive effect.
The Cotton Research and Promotion
Act (7 U.S.C. 2101–2118) (Act) provides
that administrative proceedings must be
exhausted before parties may file suit in
court. Under section 12 of the Act, any
person subject to an order may file with
the Secretary of Agriculture (Secretary)
a petition stating that the order, any
provision of the plan, or any obligation
imposed in connection with the order is
not in accordance with law and
requesting a modification of the order or
to be exempted therefrom. Such person
is afforded the opportunity for a hearing
on the petition. After the hearing, the
Secretary would rule on the petition.
The Act provides that the District Court
of the United States in any district in
which the person is an inhabitant, or
has his principal place of business, has
jurisdiction to review the Secretary’s
ruling, provided a complaint is filed
within 20 days from the date of the
entry of ruling.
Background
Import Assessment
Amendments to the Act were enacted
by Congress under Subtitle G of Title
XIX of the Food, Agriculture,
Conservation, and Trade Act of 1990
E:\FR\FM\31AUR1.SGM
31AUR1
]]>Agencies
[Federal Register Volume 76, Number 169 (Wednesday, August 31, 2011)]
[Rules and Regulations]
[Pages 54075-54078]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22113]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS-FV-11-0060; FV11-927-2 IR]
Pears Grown in Oregon and Washington; Assessment Rate Decrease
for Fresh Pears
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule decreases the assessment rate established for the
Fresh Pear Committee (Committee) for the 2011-2012 and subsequent
fiscal periods from $0.501 to $0.471 per standard box or equivalent of
fresh winter pears handled. The Committee locally administers the
marketing order
[[Page 54076]]
which regulates the handling of fresh pears grown in Oregon and
Washington. Assessments upon Oregon-Washington fresh pear handlers are
used by the Committee to fund reasonable and necessary expenses of the
program. The fiscal period begins July 1 and ends June 30. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective September 1, 2011. Comments received by October 31,
2011, will be considered prior to issuance of a final rule.
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 document 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: 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@ams.usda.gov or
GaryD.Olson@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Laurel May, 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: Laurel.May@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 927, as amended (7 CFR part 927), regulating the handling of pears
grown in Oregon and Washington, 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, Oregon-
Washington pear 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 fresh winter pears beginning July 1, 2011, 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 decreases the assessment rate established for the
Committee for the 2011-2012 and subsequent fiscal periods from $0.501
to $0.471 per standard box or equivalent of fresh winter pears handled.
The standard box or equivalent assessment rate for fresh ``summer/
fall'' pears and ``other'' fresh pears would remain unchanged at $0.366
and $0.00, respectively.
The Oregon-Washington pear marketing order provides authority for
the Committee, with USDA approval, to formulate an annual budget of
expenses and to collect assessments from handlers to administer the
fresh pear program. The members of the Committee are producers and
handlers of Oregon-Washington fresh pears. 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 at a public meeting. Thus, all directly affected persons have
an opportunity to participate and provide input.
For the 2005-2006 and subsequent fiscal periods, the Committee
recommended, and the USDA approved, the following three base rates of
assessment: (a) $0.366 per standard box or equivalent for any or all
varieties or subvarieties of fresh pears classified as ``summer/fall'';
(b) $0.501 per standard box or equivalent for any or all varieties or
subvarieties of fresh pears classified as ``winter''; and (c) $0.000
per standard box or equivalent for any or all varieties or subvarieties
of fresh pears classified as ``other''. These assessment rates 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 June 3, 2011, and unanimously recommended
2011-2012 expenditures of $8,827,860 and an assessment rate of $0.471
per standard box or equivalent of fresh winter pears handled. In
comparison, last year's budgeted expenditures were $9,262,200. The
assessment rate of $0.471 is $0.03 lower than the rate previously in
effect. The Committee recommended the assessment rate decrease because
the winter pear promotion budget for the 2011-2011 fiscal period was
reduced.
The major expenditures recommended by the Committee for the 2011-
2012 fiscal period include $437,160 for contracted administration by
Pear Bureau Northwest, $610,700 for production research and market
development, $6,355,000 for promotion and paid advertising for winter
pears, and $1,260,000 for promotion and paid advertising for summer/
fall pears. In comparison, major expenses for the 2010-2011 fiscal
period included $482,500 for contracted administration by Pear Bureau
Northwest, $610,700 for production research and market development,
$6,600,000 for promotion and paid advertising for winter pears, and
$1,410,000 for promotion and paid advertising for summer/fall pears.
The Committee based its recommended assessment rate for fresh
winter pears on the 2011-2012 fresh winter pear crop estimate, the
2011-2012 program expenditure needs, and the current and projected size
of its monetary reserve. Applying the $0.471 per standard box or
equivalent assessment rate to the Committee's 15,500,000 standard box
or equivalent fresh winter pear crop estimate should provide $7,300,500
in assessment income. The quantity of assessable fresh summer/fall
pears for the 2011-2012 fiscal period is estimated at 4,200,000
standard boxes or equivalent. The summer/fall fresh pear assessment
rate
[[Page 54077]]
of $0.366 per standard box or equivalent should provide $1,537,200 in
assessment income. Thus, income derived from winter and summer/fall
fresh pear handler assessments ($8,837,700) and interest and
miscellaneous income ($20,000) would be adequate to cover the
recommended $8,827,860 budget for 2011-2012. Funds in the reserve were
$1,040,646 as of June 30, 2010. The Committee estimates that $61,117
will be deducted from the reserve to cover budgeted expenses for 2010-
2011. The Committee estimates a reserve of $979,529 on June 30, 2011.
For 2011-2012, the Committee estimates that $29,840 will be added to
the reserve for an estimated reserve of $1,009,369 on June 30, 2012,
which would be within the maximum permitted by the order of
approximately one fiscal period's operational expenses (Sec. 927.42).
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 is effective 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 2011-2012 budget and those
for subsequent fiscal periods will 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. 601-612), 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 1,581 growers of fresh pears in the
regulated production area and approximately 38 handlers of fresh pears
subject to regulation under the order. Small agricultural growers are
defined by the Small Business Administration (SBA) (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 $7,000,000.
According to the Noncitrus Fruits and Nuts 2010 Summary issued in
July 2011 by the National Agricultural Statistics Service, the average
price for fresh pears in 2010 was $591 per ton. The 2010 farm-gate
value of fresh pears grown in Oregon and Washington is estimated at
approximately $249,500,579, based on shipments of 19,189,400 44-pound
standard boxes. Based on the number of fresh pear growers in the Oregon
and Washington, the average gross revenue for each grower can be
estimated at approximately $157,812. Furthermore, based on Committee
records, the Committee has estimated that 56 percent of Northwest pear
handlers currently ship less than $7,000,000 worth of fresh pears on an
annual basis. From this information, it is concluded that the majority
of growers and handlers of Oregon and Washington fresh pears may be
classified as small entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2011-2012 and subsequent
fiscal periods from $0.501 to $0.471 per standard box or equivalent of
fresh winter pears handled. The Committee unanimously recommended 2011-
2012 expenditures of $8,827,860 and an assessment rate of $0.471 per
standard box or equivalent of fresh winter pears. The assessment rate
of $0.471 is $0.03 lower than the previous rate. The Committee
recommended the assessment rate decrease because the winter pear
promotion budget for the 2011-2012 fiscal period was reduced.
The quantity of assessable fresh winter pears for the 2011-2012
fiscal period is estimated at 15,500,000 standard boxes or equivalent.
Thus, the $0.471 rate should provide $7,300,500 in assessment income.
Applying the $0.366 per standard box or equivalent assessment rate to
the Committee's 4,200,000 standard box or equivalent fresh summer/fall
pear crop estimate should provide $1,537,200 in assessment income.
Income derived from winter and summer/fall fresh pear handler
assessments ($8,837,700) and interest and miscellaneous income
($20,000) would be adequate to cover the budgeted expenses.
The major expenditures recommended by the Committee for the 2011-
2012 fiscal period include $437,160 for contracted administration by
Pear Bureau Northwest, $610,700 for production research and market
development, $6,355,000 for promotion and paid advertising for winter
pears, and $1,260,000 for promotion and paid advertising for summer/
fall pears. In comparison, major expenses for the 2010-2011 fiscal
period included $482,500 for contracted administration by Pear Bureau
Northwest, $610,700 for production research and market development,
$6,600,000 for promotion and paid advertising for winter pears, and
$1,410,000 for promotion and paid advertising for summer/fall pears.
The Committee discussed alternate lower rates of assessment, but
determined that the recommended assessment rate would be sufficient to
fund the 2011-2012 fresh winter pear programs.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the grower
price for the 2011-2012 fiscal period could range between $372 and $456
per ton of pears. Therefore, the estimated assessment revenue for the
2011-2012 fiscal period as a percentage of total grower revenue could
range between 5.75 and 4.69 percent.
This action decreases 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 reduces the burden on handlers, and may reduce the
burden on producers.
In addition, the Committee's meeting was widely publicized
throughout the Oregon-Washington pear industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the June 3,
2011, 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 interim rule, including
the regulatory and informational impacts of this action on small
businesses.
In accordance with the Paperwork Reduction Act of 1991 (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0189, Generic
[[Page 54078]]
Fruit Crops. No changes in those requirements as a result of this
action are anticipated. Should any changes become necessary, they would
be submitted to OMB for approval.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Oregon-Washington fresh pear
handlers. As with all Federal marketing order programs, reports and
forms are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Laurel May 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 upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and 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 2011-2012 fiscal period begins on July 1,
2011, and the marketing order requires that the rate of assessment for
each fiscal period apply to all assessable pears handled during such
fiscal period; (2) this action decreases the assessment rate for
assessable fresh winter pears beginning with the 2011-2012 fiscal
period; (3) handlers are aware of this action which was unanimously
recommended by the Committee at a public meeting and is similar to
other assessment rate actions issued in past years; and (4) this
interim rule provides a 60-day comment period, and all comments timely
received will be considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 927 is
amended as follows:
PART 927--PEARS GROWN IN OREGON AND WASHINGTON
0
1. The authority citation for 7 CFR part 927 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 927.236, the introductory text and paragraph (b) are
revised to read as follows:
Sec. 927.236 Fresh pear assessment rate.
On and after July 1, 2011, the following base rates of assessment
for fresh pears are established for the Fresh Pear Committee:
* * * * *
(b) $0.471 per 44-pound net weight standard box or container
equivalent for any or all varieties or subvarieties of fresh pears
classified as ``winter''; and
* * * * *
Dated: August 19, 2011.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2011-22113 Filed 8-30-11; 8:45 am]
BILLING CODE 3410-02-P
