User Fees for 2012 Crop Cotton Classification Services to Growers, 33289-33290 [2012-13527]
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33289
Rules and Regulations
Federal Register
Vol. 77, No. 109
Wednesday, June 6, 2012
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 28
[Doc. AMS–CN–12–0005]
RIN 0581–AD23
User Fees for 2012 Crop Cotton
Classification Services to Growers
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
The Agricultural Marketing
Service (AMS) will maintain user fees
for cotton producers for 2012 crop
cotton classification services under the
Cotton Statistics and Estimates Act and
the Cotton Standards Act of 1923 at
$2.20 per bale—the same level as in
2011. This fee and the existing reserve
are sufficient to cover the costs of
providing classification services for the
2012 crop, including costs for
administration and supervision.
DATES: Effective Date: June 7, 2012.
FOR FURTHER INFORMATION CONTACT:
Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Programs, AMS,
USDA, 3275 Appling Road, Room 11,
Memphis, TN 38133. Telephone (901)
384–3060, facsimile (901) 384–3021, or
email darryl.earnest@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Executive Order 12866
erowe on DSK2VPTVN1PROD with RULES
This final rule has been determined to
be not significant for purposes of
Executive Order 12866; and, therefore
has not been reviewed by the Office of
Management and Budget (OMB).
Executive Order 12988
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. There are no
administrative procedures that must be
VerDate Mar<15>2010
15:04 Jun 05, 2012
Jkt 226001
exhausted prior to any judicial
challenge to the provisions of this rule.
Regulatory Flexibility Act and
Paperwork Reduction Act
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), AMS has considered
the economic impact of this action on
small entities and has determined that
its implementation will not have a
significant economic impact on a
substantial number of small businesses.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions so
that small businesses will not be
disproportionately burdened. There are
an estimated 25,000 cotton growers in
the U.S. who voluntarily use the AMS
cotton classing services annually, and
the majority of these cotton growers are
small businesses under the criteria
established by the Small Business
Administration (13 CFR 121.201).
Continuing the user fee at the 2011 crop
level as stated will not significantly
affect small businesses as defined in the
RFA because:
(1) The fee represents a very small
portion of the cost-per-unit currently
borne by those entities utilizing the
services. (According to USDA’s
Economic Research Service, the U.S.
average total cost of production in 2010
was $483 per bale. The user fee for
classification services of $2.20 per bale
represents less the one half percent of
this average U.S. per-bale cost of
production.);
(2) The fee for services will not affect
competition in the marketplace;
(3) The use of classification services is
voluntary. For the 2011 crop,
approximately 15.1 million bales were
produced; and, almost all of these bales
were voluntarily submitted by growers
for the classification service; and
(4) Based on the average price paid to
growers for cotton from the 2010 crop of
0.8212 cents per pound, 500 pound
bales of cotton are worth an average of
$410 each. The user fee for classification
services, $2.20 per bale, is less than one
percent of the value of an average bale
of cotton.
In compliance with Office of
Management and Budget (OMB)
regulations (5 CFR part 1320), which
implement the Paperwork Reduction
Act (PRA) (44 U.S.C. 3501–3520), the
information collection requirements
contained in the regulation to be
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
amended is currently approved under
OMB control number 0581–0008, Cotton
Classing, Testing and Standards.
Fees for Classification Under the Cotton
Statistics and Estimates Act of 1927
This final rule establishes the 2012
user fee charged to producers for cotton
classification at $2.20 per bale—the
same as the 2011 user fee. The 2012 user
fee was set in accordance to section
14201 of the Food, Conservation, and
Energy Act of 2008 (Pub. L. 110–234)
(2008 Farm Bill). Section 14201 of the
2008 Farm Bill provides that: (1) The
Secretary shall make available cotton
classification services to producers of
cotton, and provide for the collection of
classification fees from participating
producers or agents that voluntarily
agree to collect and remit the fees on
behalf of the producers; (2)
classification fees collected and the
proceeds from the sales of samples
submitted for classification shall, to the
extent practicable, be used to pay the
cost of the services provided, including
administrative and supervisory costs; (3)
the Secretary shall announce a uniform
classification fee and any applicable
surcharge for classification services not
later than June 1 of the year in which
the fee applies; and (4) in establishing
the amount of fees under this section,
the Secretary shall consult with
representatives of the United States
cotton industry. At pages 313–314, the
Joint Explanatory Statement of the
committee of conference for section
14201 stated the expectation that the
cotton classification fee would be
established in the same manner as was
applied during the 1992 through 2007
fiscal years. Specifically, it states that
the classification fee should continue to
be a basic, uniform fee per bale fee as
determined necessary to maintain costeffective cotton classification service.
Further, in consulting with the cotton
industry, the Secretary should
demonstrate the level of fees necessary
to maintain effective cotton
classification services and provide the
Department of Agriculture with an
adequate operating reserve, while also
working to limit adjustments in the
year-to-year fee.
Under the provisions of section
14201, a user fee (dollar amount per
bale classed) is established for the 2012
cotton crop that, when combined with
other sources of revenue, will result in
E:\FR\FM\06JNR1.SGM
06JNR1
33290
Federal Register / Vol. 77, No. 109 / Wednesday, June 6, 2012 / Rules and Regulations
erowe on DSK2VPTVN1PROD with RULES
projected revenues sufficient to
reasonably cover budgeted costs—
adjusted for inflation—and allow for
adequate operating reserves to be
maintained. Costs considered in this
method include salaries, costs of
equipment and supplies, and other
overhead costs, such as facility costs
and costs for administration and
supervision. In addition to covering
expected costs, the user fee is set such
that projected revenues will generate an
operating reserve adequate to effectively
manage uncertainties related to crop
size and cash-flow timing while meeting
minimum reserve requirements set by
the Agricultural Marketing Service,
which require maintenance of a reserve
fund amount equal to at least four
months of projected operating costs.
The user fee charged to cotton
producers for cotton classification in
2012 is $2.20 per bale, which is the
same fee charged for the 2011 crop. This
fee is based on the preseason projection
that 14,475,000 bales will be classed by
the United States Department of
Agriculture during the 2012 crop year.
Accordingly, § 28.909, paragraph (b)
reflects the continuation of the cotton
classification fee at $2.20 per bale.
As provided for in the 1987 Act, a 5
cent per bale discount will continue to
be applied to voluntary centralized
billing and collecting agents as specified
in § 28.909(c).
Growers or their designated agents
receiving classification data will
continue to incur no additional fees if
classification data is requested only
once. The fee for each additional
retrieval of classification data in
§ 28.910 will remain at 5 cents per bale.
The fee in § 28.910(b) for an owner
receiving classification data from the
National Database will remain at 5 cents
per bale, and the minimum charge of
$5.00 for services provided per monthly
billing period will remain the same. The
provisions of § 28.910(c) concerning the
fee for new classification memoranda
issued from the National Database for
the business convenience of an owner
without reclassification of the cotton
will remain the same at 15 cents per
bale or a minimum of $5.00 per sheet.
The fee for review classification in
§ 28.911 is maintained at $2.20 per bale.
The fee for returning samples after
classification in § 28.911 will remain at
50 cents per sample.
Summary of Comments
A proposed rule was published in the
Federal Register on April 11, 2012, with
a comment period of April 11, 2012
through April 26, 2012 (77 FR 21684).
AMS received two comments: One from
a national trade organization that
VerDate Mar<15>2010
16:41 Jun 05, 2012
Jkt 226001
represents approximately 80 percent of
the U.S. cotton industry, including
cotton producers, ginners,
warehousemen, merchants,
cooperatives, cottonseed processors, and
textile manufacturers from Virginia to
California; and one from a national trade
organization comprised of eight state
and regional membership organizations
that represent approximately 680
individual cotton ginning operations in
17 cotton-producing states. Comments
from the national trade organizations
expressed support for the decision to
maintain the fee at the level established
for the 2011 crop. Comments may be
viewed at www.regulations.gov.
Pursuant to 5 U.S.C. 533, good cause
exists for not postponing the effective
date of this final rule until 30 days after
publication in the Federal Register
because this rule maintains uniform
user fees for 2012 crop cotton
classification services as mandated by
the Cotton Statistics and Estimates Act,
at the same level as 2011.
List of Subjects in 7 CFR Part 28
Administrative practice and
procedure, Cotton, Reporting and
recordkeeping requirements,
Warehouses.
For the reasons set forth in the
preamble, 7 CFR part 28 is amended to
read as follows:
PART 28—[AMENDED]
Subpart D—[Amended]
1. The authority citation for 7 CFR
part 28, Subpart D, continues to read as
follows:
■
Authority: 7 U.S.C. 51–65; 7 U.S.C. 471–
476.
2. In § 28.909, paragraph (b) is revised
to read as follows:
■
§ 28.909
Costs.
*
*
*
*
*
(b) The cost of High Volume
Instrument (HVI) cotton classification
service to producers is $2.20 per bale.
*
*
*
*
*
■ 3. In § 28.911, the last sentence of
paragraph (a) is revised to read as
follows:
§ 28.911
Review classification.
(a) * * * The fee for review
classification is $2.20 per bale.
*
*
*
*
*
Dated: May 30, 2012.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2012–13527 Filed 6–5–12; 8:45 am]
BILLING CODE 3410–02–P
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 205
[Document Number AMS–NOP–09–0074;
NOP–09–01FR]
RIN 0581–AC96
National Organic Program (NOP);
Sunset Review (2012)
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This final rule addresses
recommendations submitted to the
Secretary of Agriculture (Secretary) by
the National Organic Standards Board
(NOSB) on April 29, 2010, October 28,
2010, and April 29, 2011. These
recommendations pertain to the 2012
Sunset Review of substances on the U.S.
Department of Agriculture’s (USDA)
National List of Allowed and Prohibited
Substances (National List). Consistent
with the NOSB recommendations, this
final rule continues, without change, the
exemptions (use) and prohibitions for
multiple listings on the National List for
5 years after their respective sunset
dates. This final rule also amends the
exemptions (use) for 7 substances and
removes the exemptions for 3
substances on the National List.
DATES: Effective Dates: This rule is
effective June 27, 2012, except for the
amendments to §§ 205.601(g) and
205.605(a), which are effective October
21, 2012. For more information on these
effective dates and renewals, see the
SUPPLEMENTARY INFORMATION.
FOR FURTHER INFORMATION CONTACT:
Melissa R. Bailey, Ph.D., Director,
Standards Division, Telephone: (202)
720–3252; Fax: (202) 205–7808.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The Organic Foods Production Act of
1990 (OFPA) (7 U.S.C. 6501–6522)
authorizes the establishment of the
National List of Allowed and Prohibited
Substances (National List). The National
List identifies synthetic substances that
may be used in organic production and
nonsynthetic (natural) substances that
are prohibited in organic crop and
livestock production. The National List
also identifies nonagricultural
nonsynthetic, nonagricultural synthetic
and nonorganic agricultural substances
that may be used in organic handling.
The exemptions and prohibitions
granted under the OFPA are required to
be reviewed every 5 years by the
National Organic Standards Board
E:\FR\FM\06JNR1.SGM
06JNR1
Agencies
[Federal Register Volume 77, Number 109 (Wednesday, June 6, 2012)]
[Rules and Regulations]
[Pages 33289-33290]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-13527]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 77, No. 109 / Wednesday, June 6, 2012 / Rules
and Regulations
[[Page 33289]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 28
[Doc. AMS-CN-12-0005]
RIN 0581-AD23
User Fees for 2012 Crop Cotton Classification Services to Growers
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Agricultural Marketing Service (AMS) will maintain user
fees for cotton producers for 2012 crop cotton classification services
under the Cotton Statistics and Estimates Act and the Cotton Standards
Act of 1923 at $2.20 per bale--the same level as in 2011. This fee and
the existing reserve are sufficient to cover the costs of providing
classification services for the 2012 crop, including costs for
administration and supervision.
DATES: Effective Date: June 7, 2012.
FOR FURTHER INFORMATION CONTACT: Darryl Earnest, Deputy Administrator,
Cotton & Tobacco Programs, AMS, USDA, 3275 Appling Road, Room 11,
Memphis, TN 38133. Telephone (901) 384-3060, facsimile (901) 384-3021,
or email darryl.earnest@ams.usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This final rule has been determined to be not significant for
purposes of Executive Order 12866; and, therefore has not been reviewed
by the Office of Management and Budget (OMB).
Executive Order 12988
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
There are no administrative procedures that must be exhausted prior to
any judicial challenge to the provisions of this rule.
Regulatory Flexibility Act and Paperwork Reduction Act
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this action on small entities and has determined that its
implementation will not have a significant economic impact on a
substantial number of small businesses.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
disproportionately burdened. There are an estimated 25,000 cotton
growers in the U.S. who voluntarily use the AMS cotton classing
services annually, and the majority of these cotton growers are small
businesses under the criteria established by the Small Business
Administration (13 CFR 121.201). Continuing the user fee at the 2011
crop level as stated will not significantly affect small businesses as
defined in the RFA because:
(1) The fee represents a very small portion of the cost-per-unit
currently borne by those entities utilizing the services. (According to
USDA's Economic Research Service, the U.S. average total cost of
production in 2010 was $483 per bale. The user fee for classification
services of $2.20 per bale represents less the one half percent of this
average U.S. per-bale cost of production.);
(2) The fee for services will not affect competition in the
marketplace;
(3) The use of classification services is voluntary. For the 2011
crop, approximately 15.1 million bales were produced; and, almost all
of these bales were voluntarily submitted by growers for the
classification service; and
(4) Based on the average price paid to growers for cotton from the
2010 crop of 0.8212 cents per pound, 500 pound bales of cotton are
worth an average of $410 each. The user fee for classification
services, $2.20 per bale, is less than one percent of the value of an
average bale of cotton.
In compliance with Office of Management and Budget (OMB)
regulations (5 CFR part 1320), which implement the Paperwork Reduction
Act (PRA) (44 U.S.C. 3501-3520), the information collection
requirements contained in the regulation to be amended is currently
approved under OMB control number 0581-0008, Cotton Classing, Testing
and Standards.
Fees for Classification Under the Cotton Statistics and Estimates Act
of 1927
This final rule establishes the 2012 user fee charged to producers
for cotton classification at $2.20 per bale--the same as the 2011 user
fee. The 2012 user fee was set in accordance to section 14201 of the
Food, Conservation, and Energy Act of 2008 (Pub. L. 110-234) (2008 Farm
Bill). Section 14201 of the 2008 Farm Bill provides that: (1) The
Secretary shall make available cotton classification services to
producers of cotton, and provide for the collection of classification
fees from participating producers or agents that voluntarily agree to
collect and remit the fees on behalf of the producers; (2)
classification fees collected and the proceeds from the sales of
samples submitted for classification shall, to the extent practicable,
be used to pay the cost of the services provided, including
administrative and supervisory costs; (3) the Secretary shall announce
a uniform classification fee and any applicable surcharge for
classification services not later than June 1 of the year in which the
fee applies; and (4) in establishing the amount of fees under this
section, the Secretary shall consult with representatives of the United
States cotton industry. At pages 313-314, the Joint Explanatory
Statement of the committee of conference for section 14201 stated the
expectation that the cotton classification fee would be established in
the same manner as was applied during the 1992 through 2007 fiscal
years. Specifically, it states that the classification fee should
continue to be a basic, uniform fee per bale fee as determined
necessary to maintain cost-effective cotton classification service.
Further, in consulting with the cotton industry, the Secretary should
demonstrate the level of fees necessary to maintain effective cotton
classification services and provide the Department of Agriculture with
an adequate operating reserve, while also working to limit adjustments
in the year-to-year fee.
Under the provisions of section 14201, a user fee (dollar amount
per bale classed) is established for the 2012 cotton crop that, when
combined with other sources of revenue, will result in
[[Page 33290]]
projected revenues sufficient to reasonably cover budgeted costs--
adjusted for inflation--and allow for adequate operating reserves to be
maintained. Costs considered in this method include salaries, costs of
equipment and supplies, and other overhead costs, such as facility
costs and costs for administration and supervision. In addition to
covering expected costs, the user fee is set such that projected
revenues will generate an operating reserve adequate to effectively
manage uncertainties related to crop size and cash-flow timing while
meeting minimum reserve requirements set by the Agricultural Marketing
Service, which require maintenance of a reserve fund amount equal to at
least four months of projected operating costs.
The user fee charged to cotton producers for cotton classification
in 2012 is $2.20 per bale, which is the same fee charged for the 2011
crop. This fee is based on the preseason projection that 14,475,000
bales will be classed by the United States Department of Agriculture
during the 2012 crop year.
Accordingly, Sec. 28.909, paragraph (b) reflects the continuation
of the cotton classification fee at $2.20 per bale.
As provided for in the 1987 Act, a 5 cent per bale discount will
continue to be applied to voluntary centralized billing and collecting
agents as specified in Sec. 28.909(c).
Growers or their designated agents receiving classification data
will continue to incur no additional fees if classification data is
requested only once. The fee for each additional retrieval of
classification data in Sec. 28.910 will remain at 5 cents per bale.
The fee in Sec. 28.910(b) for an owner receiving classification data
from the National Database will remain at 5 cents per bale, and the
minimum charge of $5.00 for services provided per monthly billing
period will remain the same. The provisions of Sec. 28.910(c)
concerning the fee for new classification memoranda issued from the
National Database for the business convenience of an owner without
reclassification of the cotton will remain the same at 15 cents per
bale or a minimum of $5.00 per sheet.
The fee for review classification in Sec. 28.911 is maintained at
$2.20 per bale.
The fee for returning samples after classification in Sec. 28.911
will remain at 50 cents per sample.
Summary of Comments
A proposed rule was published in the Federal Register on April 11,
2012, with a comment period of April 11, 2012 through April 26, 2012
(77 FR 21684). AMS received two comments: One from a national trade
organization that represents approximately 80 percent of the U.S.
cotton industry, including cotton producers, ginners, warehousemen,
merchants, cooperatives, cottonseed processors, and textile
manufacturers from Virginia to California; and one from a national
trade organization comprised of eight state and regional membership
organizations that represent approximately 680 individual cotton
ginning operations in 17 cotton-producing states. Comments from the
national trade organizations expressed support for the decision to
maintain the fee at the level established for the 2011 crop. Comments
may be viewed at www.regulations.gov.
Pursuant to 5 U.S.C. 533, good cause exists for not postponing the
effective date of this final rule until 30 days after publication in
the Federal Register because this rule maintains uniform user fees for
2012 crop cotton classification services as mandated by the Cotton
Statistics and Estimates Act, at the same level as 2011.
List of Subjects in 7 CFR Part 28
Administrative practice and procedure, Cotton, Reporting and
recordkeeping requirements, Warehouses.
For the reasons set forth in the preamble, 7 CFR part 28 is amended
to read as follows:
PART 28--[AMENDED]
Subpart D--[Amended]
0
1. The authority citation for 7 CFR part 28, Subpart D, continues to
read as follows:
Authority: 7 U.S.C. 51-65; 7 U.S.C. 471-476.
0
2. In Sec. 28.909, paragraph (b) is revised to read as follows:
Sec. 28.909 Costs.
* * * * *
(b) The cost of High Volume Instrument (HVI) cotton classification
service to producers is $2.20 per bale.
* * * * *
0
3. In Sec. 28.911, the last sentence of paragraph (a) is revised to
read as follows:
Sec. 28.911 Review classification.
(a) * * * The fee for review classification is $2.20 per bale.
* * * * *
Dated: May 30, 2012.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2012-13527 Filed 6-5-12; 8:45 am]
BILLING CODE 3410-02-P