Sweet Cherries Grown in Designated Counties in Washington; Decreased Assessment Rate, 72683-72686 [2012-29436]
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
order. The result of these discussions
was the Committee’s recommendation
to decrease the assessment rate. The
Committee also recommended
suspension of the handling regulations,
and that recommendation is being
reviewed separately by USDA.
A review of historical crop and price
information, as well as preliminary
information pertaining to the 2012–13
fiscal period, indicates that the producer
price could average approximately
$1,000 per ton for fresh Washington
apricots. Therefore, the estimated
assessment revenue for the 2012–13
fiscal period as a percentage of total
producer revenue is 0.05 percent for
Washington apricots.
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 Washington
apricot industry, and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations on all issues. Like all
Committee meetings, the May 24, 2012,
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 1995, (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. No
changes in those requirements as a
result of this action are necessary.
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 Washington
apricot 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.
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14:03 Dec 05, 2012
Jkt 229001
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: 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 2012–13 fiscal period
began on April 1, 2012, and the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable apricots handled during
such fiscal period; (2) the action
decreases the assessment rate for
assessable apricots beginning with the
2012–13 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 922
Apricots, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 922 is amended as
follows:
PART 922—APRICOTS GROWN IN
DESIGNATED COUNTIES IN
WASHINGTON
1. The authority citation for 7 CFR
part 922 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 922.235 is revised to read
as follows:
■
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§ 922.235
72683
Assessment rate.
On or after April 1, 2012, an
assessment rate of $0.50 per ton is
established for the Washington Apricot
Marketing Committee.
Dated: November 30, 2012.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2012–29435 Filed 12–5–12; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 923
[Doc. No. AMS–FV–12–0026; FV12–923–1
IR]
Sweet Cherries Grown in Designated
Counties in Washington; Decreased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule decreases the
assessment rate established for the
Washington Cherry Marketing
Committee (Committee) for the 2012–
2013 and subsequent fiscal periods from
$0.40 to $0.18 per ton of sweet cherries
handled. The Committee locally
administers the marketing order which
regulates the handling of sweet cherries
grown in designated counties in
Washington. Assessments upon
Washington sweet cherry handlers are
used by the Committee to fund
reasonable and necessary expenses of
the program. The fiscal period begins
April 1 and ends March 31. The
assessment rate will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective December 7, 2012.
Comments received by February 4,
2013, 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 and Agreement Division, Fruit
and Vegetable Program, 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
SUMMARY:
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
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 and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (503) 326–
2724, Fax: (503) 326–7440, or Email:
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 and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Laurel.May@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Order No.
923, as amended (7 CFR part 923),
regulating the handling of sweet
cherries grown in designated counties in
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, Washington sweet cherry
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 sweet cherries beginning
April 1, 2012, 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
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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 2012–2013 and subsequent fiscal
periods from $0.40 to $0.18 per ton of
sweet cherries handled.
The Washington sweet cherry
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 Washington
sweet cherries. They are familiar with
the Committee’s needs and with the
costs for goods and services in their
local area and are thus in a position to
formulate an appropriate budget and
assessment rate. The assessment rate is
formulated and discussed in a public
meeting. Thus, all directly affected
persons have an opportunity to
participate and provide input.
For the 2007–2008 and subsequent
fiscal periods, the Committee
recommended, and USDA approved, an
assessment rate that 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 May 15, 2012,
and unanimously recommended 2012–
2013 expenditures of $64,400 and an
assessment rate of $0.18 per ton of sweet
cherries. In comparison, last year’s
budgeted expenditures were $72,200.
The assessment rate of $0.18 is $0.22
lower than the rate currently in effect.
The Committee recommended the lower
assessment rate for the purpose of
decreasing the monetary reserve, which
is approximately $107,074. Funds in the
reserve must be kept within the
maximum permitted by the order of
approximately one fiscal period’s
operational expenses (§ 923.42).
The major expenditures
recommended by the Committee for the
2012–2013 fiscal period include $20,000
for administration and data management
fees; $35,000 for Committee expenses
such as travel, accounting, and
compliance; $5,000 for contingency; and
$4,400 for office expenses—including
bonds, insurance, telephone, office
equipment and supplies. Budgeted
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expenses for these items in 2011–2012
were $22,500, $38,000, $2,500, and
$9,200, respectively.
The assessment rate recommended by
the Committee was derived by
multiplying anticipated shipments of
Washington sweet cherries by various
assessment rates. Applying the $0.18
per ton assessment rate to the
Committee’s 120,000 ton crop estimate
should provide $21,600 in assessment
income. Thus, income derived from
handler assessments and interest ($5)
plus $42,795 from the Committee’s
monetary reserve would be adequate to
cover the recommended $64,400 budget
for 2012–2013. Funds in the reserve
were $107,074 as of March 31, 2012.
The Committee estimates a reserve of
$64,279 on March 31, 2013, which
would be within the maximum
permitted by the order of approximately
one fiscal period’s operational expenses.
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 2012–2013 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
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Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are 53 handlers of Washington
sweet cherries subject to regulation
under the order and approximately
1,500 producers in the regulated
production area. Small agricultural
service firms are defined by the Small
Business Administration (13 CFR
121.201) as those having annual receipts
of less than $7,000,000, and small
agricultural producers are defined as
those having annual receipts of less than
$750,000.
National Agricultural Statistics
Service has prepared a preliminary
report for the 2011 shipping season
showing that the sweet cherry fresh
market utilization of 165,000 tons sold
for an average of $2,300 per ton. Based
on the number of producers in the
production area (1,500), the average
producer revenue from the sale of sweet
cherries in 2011 can therefore be
estimated at approximately $253,000
per year. In addition, the Committee
reports that most of the industry’s 53
handlers would have each averaged
gross receipts of less than $7,500,000
from the sale of fresh sweet cherries last
season. Thus, the majority of producers
and handlers of Washington sweet
cherries may be classified as small
entities.
This rule decreases the assessment
rate established for the Committee and
collected from handlers for the 2012–
2013 and subsequent fiscal periods from
$0.40 to $0.18 per ton of sweet cherries.
The Committee also unanimously
recommended 2012–2013 expenditures
of $64,400. The assessment rate of $0.18
is $0.22 lower than the previous rate.
The quantity of assessable sweet
cherries for the 2012–2013 fiscal period
is estimated at 120,000 tons. Thus, the
$0.18 rate should provide $21,600 in
assessment income. Income derived
from handler assessments, along with
interest income and funds from the
Committee’s authorized reserve, will be
adequate to cover budgeted expenses.
The Committee recommended the
assessment rate decrease for the purpose
of decreasing the monetary reserve,
which is approximately $107,074. With
this recommended assessment rate and
budget, the Committee may need to
draw $42,795 from its monetary reserve,
thus helping to decrease the reserve to
a level that is less than approximately
one fiscal period’s operating expenses,
the maximum permitted by the order.
The major expenditures
recommended by the Committee for the
2012–2013 fiscal period include $20,000
for administration and data management
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Jkt 229001
fees; $35,000 for Committee expenses
such as travel, accounting, and
compliance; $5,000 for contingency; and
$4,400 for office expenses—including
bonds, insurance, telephone, office
equipment and supplies. Budgeted
expenses for these items in 2011–2012
were $22,500, $38,000, $2,500, and
$9,200, respectively.
The Committee discussed alternatives
to this rule. Leaving the assessment rate
at the current $0.40 per ton was initially
considered, but not recommended
because of the Committee’s desire to
decrease the level of the monetary
reserve so that it is not more than
approximately one fiscal period’s
operational expenses.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal period indicates
that the producer price for the 2012–
2013 fiscal period could average $2,300
per ton of sweet cherries. Therefore, the
estimated assessment revenue for the
2012–2013 fiscal period as a percentage
of total producer revenue is 0.008
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 Washington
sweet cherry industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations on all issues. Like all
Committee meetings, the May 15, 2012,
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 1995, (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
Fruit Crops. No changes in those
requirements as a result of this action
are necessary. 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 Washington
sweet cherry handlers. As with all
Federal marketing order programs,
reports and forms are periodically
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
72685
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: 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 2012–2013 fiscal
period began on April 1, 2012, and the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable sweet cherries handled
during such fiscal period; (2) this action
decreases the assessment rate for
assessable sweet cherries beginning
with the 2012–2013 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 923
Cherries, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 923 is amended as
follows:
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72686
Federal Register / Vol. 77, No. 235 / Thursday, December 6, 2012 / Rules and Regulations
PART 923—SWEET CHERRIES
GROWN IN DESIGNATED COUNTIES
IN WASHINGTON
1. The authority citation for 7 CFR
part 923 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 923.236 is revised to read
as follows:
■
§ 923.236
Assessment rate.
On and after April 1, 2012, an
assessment rate of $0.18 per ton is
established for the Washington Cherry
Marketing Committee.
Dated: November 30, 2012.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2012–29436 Filed 12–5–12; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service
9 CFR Parts 417
[Docket No. FSIS–2012–0007]
HACCP Plan Reassessment for NotReady-To-Eat Comminuted Poultry
Products and Related Agency
Verification Procedures
Food Safety and Inspection
Service, USDA.
ACTION: Compliance with the HACCP
system regulations and request for
comments
AGENCY:
The Food Safety and
Inspection Service (FSIS) is publishing
this notice to inform establishments
producing not-ready-to-eat (NRTE)
ground or otherwise comminuted
chicken and turkey products that they
must reassess their Hazard Analysis and
Critical Control Points (HACCP) plans
for these products to take into account
several recent Salmonella outbreaks
associated with consumption of
comminuted NRTE turkey products. No
sooner than 90 days following
publication of this notice, Agency
inspection program personnel (IPP) will
begin verifying that establishments that
manufacture comminuted NRTE turkey
or chicken product, as a final or
intermediary product for further
processing as NRTE product, have
reassessed their HACCP plans for these
products.
This notice also describes how FSIS
will determine whether the association
of NRTE meat or poultry product with
an outbreak would make subsequentlyproduced like product adulterated.
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SUMMARY:
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In addition, FSIS is expanding its
Salmonella Verification Sampling
Program for Raw Meat and Poultry
product to include all forms of nonbreaded, non-battered comminuted
NRTE poultry product that are not
destined under company control
programs for further processing into
RTE products in official establishments.
Finally, this notice announces that
FSIS will apply its Category 1
performance measure based on current
performance standards for ground
chicken and turkey product to
comminuted poultry to mark the level of
process control that all establishments
producing such products should
maintain. No sooner than 90 days after
publication of this notice, the Agency
will begin sampling to determine the
prevalence of Salmonella in
comminuted poultry and will use the
results from this sampling to develop
performance standards for these
products. For reasons discussed later,
FSIS has not tested NRTE comminuted
poultry products, other than ground
chicken and ground turkey, for
Salmonella. In addition, FSIS is likely
to develop Campylobacter standards for
these products following validation of
an analytic method.
FSIS invites comments on this notice.
DATES: The Agency must receive
comments by March 6, 2013.
ADDRESSES: FSIS invites interested
persons to submit comments on this
notice. Comments may be submitted by
either of the following methods:
Federal eRulemaking Portal: This
Web site provides the ability to type
short comments directly into the
comment field on this Web page or
attach a file for lengthier comments. Go
to https://www.regulations.gov/. Follow
the on-line instructions at that site for
submitting comments.
Mail, including CD–ROMs: Send to
Docket Clerk, U.S. Department of
Agriculture, Food Safety and Inspection
Service, Patriots Plaza 3, 1400
Independence Avenue SW., Mailstop
3782 Room 8–163A, Washington, DC
20250–3700.
Hand- or courier-delivered submittals:
Deliver to Patriots Plaza 3, 355 E Street
SW., Room 8–163A, Washington, DC
20250–3700.
Instructions: All items submitted by
mail or electronic mail must include the
Agency name and docket number FSIS–
2012–0007. Comments received in
response to this docket will be made
available for public inspection and
posted without change, including any
personal information, to https://
www.regulations.gov.
Docket: For access to background
documents or to comments received, go
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to the FSIS Docket Room at Patriots
Plaza 3, 355 E Street SW., Room 8–164,
Washington, DC 20250–3700 between
8:00 a.m. and 4:30 p.m., Monday
through Friday.
FOR FURTHER INFORMATION CONTACT: For
information: Contact Rachel Edelstein,
Assistant Administrator, Office of Policy
and Program Development, at (202)
205–0495, or by fax at (202) 720–2025.
SUPPLEMENTARY INFORMATION:
I. Background
FSIS administers a regulatory program
under the Federal Meat Inspection Act
(FMIA) (21 U.S.C. 601 et seq.) and the
Poultry Products Inspection Act (PPIA)
(21 U.S.C. 453 et seq.) to protect the
health and welfare of consumers by
preventing the distribution in commerce
of meat or poultry products that are
adulterated or misbranded. In pursuit of
its goal of reducing the risk of foodborne
illness from meat and poultry products
to the maximum extent possible, FSIS
issued final regulations on July 25,
1996, that mandated the development
and implementation of Pathogen
Reduction and Hazard Analysis and
Critical Control Point (HACCP) Systems
by federally inspected establishments
(61 FR 38806). These regulations require
that federally inspected establishments
take preventive and corrective measures
at each stage of the food production
process where food safety hazards are
likely to occur. The HACCP regulations
(9 CFR 417.2(a)) require establishments
to conduct a hazard analysis to
determine what food safety hazards are
reasonably likely to occur in the
production process of particular
products and to identify the preventive
measures that the establishment can
apply to control those hazards.
Section 417.2(a)(1) of the HACCP
regulations states that a food safety
hazard that is reasonably likely to occur
is one for which a prudent
establishment would establish control
measures because the hazard
historically has occurred, or because
there is a reasonable possibility that it
will occur in the particular type of
product being processed, in the absence
of those controls. Whenever a hazard
analysis reveals that one or more
hazards are reasonably likely to occur in
the production process, the regulations
require that the establishment develop
and implement a written HACCP plan
that includes specific control measures
for each hazard identified (9 CFR
417.2(b)(1) and (c)).
Section 417.4(a)(3) of the regulations
requires that every establishment
reassess the adequacy of its HACCP plan
at least annually and whenever any
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]]>Agencies
[Federal Register Volume 77, Number 235 (Thursday, December 6, 2012)]
[Rules and Regulations]
[Pages 72683-72686]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29436]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 923
[Doc. No. AMS-FV-12-0026; FV12-923-1 IR]
Sweet Cherries Grown in Designated Counties in Washington;
Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule decreases the assessment rate established for the
Washington Cherry Marketing Committee (Committee) for the 2012-2013 and
subsequent fiscal periods from $0.40 to $0.18 per ton of sweet cherries
handled. The Committee locally administers the marketing order which
regulates the handling of sweet cherries grown in designated counties
in Washington. Assessments upon Washington sweet cherry handlers are
used by the Committee to fund reasonable and necessary expenses of the
program. The fiscal period begins April 1 and ends March 31. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective December 7, 2012. Comments received by February 4,
2013, 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 and Agreement Division, Fruit and Vegetable Program,
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
[[Page 72684]]
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 and Agreement
Division, Fruit and Vegetable Program, AMS, USDA; Telephone: (503) 326-
2724, Fax: (503) 326-7440, or Email: 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 and Agreement
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: Laurel.May@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 923, as amended (7 CFR part 923), regulating the handling of sweet
cherries grown in designated counties in 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, Washington
sweet cherry 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
sweet cherries beginning April 1, 2012, 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 2012-2013 and subsequent fiscal periods from $0.40 to
$0.18 per ton of sweet cherries handled.
The Washington sweet cherry 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
Washington sweet cherries. They are familiar with the Committee's needs
and with the costs for goods and services in their local area and are
thus in a position to formulate an appropriate budget and assessment
rate. The assessment rate is formulated and discussed in a public
meeting. Thus, all directly affected persons have an opportunity to
participate and provide input.
For the 2007-2008 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate that 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 May 15, 2012, and unanimously recommended
2012-2013 expenditures of $64,400 and an assessment rate of $0.18 per
ton of sweet cherries. In comparison, last year's budgeted expenditures
were $72,200. The assessment rate of $0.18 is $0.22 lower than the rate
currently in effect. The Committee recommended the lower assessment
rate for the purpose of decreasing the monetary reserve, which is
approximately $107,074. Funds in the reserve must be kept within the
maximum permitted by the order of approximately one fiscal period's
operational expenses (Sec. 923.42).
The major expenditures recommended by the Committee for the 2012-
2013 fiscal period include $20,000 for administration and data
management fees; $35,000 for Committee expenses such as travel,
accounting, and compliance; $5,000 for contingency; and $4,400 for
office expenses--including bonds, insurance, telephone, office
equipment and supplies. Budgeted expenses for these items in 2011-2012
were $22,500, $38,000, $2,500, and $9,200, respectively.
The assessment rate recommended by the Committee was derived by
multiplying anticipated shipments of Washington sweet cherries by
various assessment rates. Applying the $0.18 per ton assessment rate to
the Committee's 120,000 ton crop estimate should provide $21,600 in
assessment income. Thus, income derived from handler assessments and
interest ($5) plus $42,795 from the Committee's monetary reserve would
be adequate to cover the recommended $64,400 budget for 2012-2013.
Funds in the reserve were $107,074 as of March 31, 2012. The Committee
estimates a reserve of $64,279 on March 31, 2013, which would be within
the maximum permitted by the order of approximately one fiscal period's
operational expenses.
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 2012-2013 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
[[Page 72685]]
unique in that they are brought about through group action of
essentially small entities acting on their own behalf.
There are 53 handlers of Washington sweet cherries subject to
regulation under the order and approximately 1,500 producers in the
regulated production area. Small agricultural service firms are defined
by the Small Business Administration (13 CFR 121.201) as those having
annual receipts of less than $7,000,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000.
National Agricultural Statistics Service has prepared a preliminary
report for the 2011 shipping season showing that the sweet cherry fresh
market utilization of 165,000 tons sold for an average of $2,300 per
ton. Based on the number of producers in the production area (1,500),
the average producer revenue from the sale of sweet cherries in 2011
can therefore be estimated at approximately $253,000 per year. In
addition, the Committee reports that most of the industry's 53 handlers
would have each averaged gross receipts of less than $7,500,000 from
the sale of fresh sweet cherries last season. Thus, the majority of
producers and handlers of Washington sweet cherries may be classified
as small entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2012-2013 and subsequent
fiscal periods from $0.40 to $0.18 per ton of sweet cherries. The
Committee also unanimously recommended 2012-2013 expenditures of
$64,400. The assessment rate of $0.18 is $0.22 lower than the previous
rate. The quantity of assessable sweet cherries for the 2012-2013
fiscal period is estimated at 120,000 tons. Thus, the $0.18 rate should
provide $21,600 in assessment income. Income derived from handler
assessments, along with interest income and funds from the Committee's
authorized reserve, will be adequate to cover budgeted expenses.
The Committee recommended the assessment rate decrease for the
purpose of decreasing the monetary reserve, which is approximately
$107,074. With this recommended assessment rate and budget, the
Committee may need to draw $42,795 from its monetary reserve, thus
helping to decrease the reserve to a level that is less than
approximately one fiscal period's operating expenses, the maximum
permitted by the order.
The major expenditures recommended by the Committee for the 2012-
2013 fiscal period include $20,000 for administration and data
management fees; $35,000 for Committee expenses such as travel,
accounting, and compliance; $5,000 for contingency; and $4,400 for
office expenses--including bonds, insurance, telephone, office
equipment and supplies. Budgeted expenses for these items in 2011-2012
were $22,500, $38,000, $2,500, and $9,200, respectively.
The Committee discussed alternatives to this rule. Leaving the
assessment rate at the current $0.40 per ton was initially considered,
but not recommended because of the Committee's desire to decrease the
level of the monetary reserve so that it is not more than approximately
one fiscal period's operational expenses.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the producer
price for the 2012-2013 fiscal period could average $2,300 per ton of
sweet cherries. Therefore, the estimated assessment revenue for the
2012-2013 fiscal period as a percentage of total producer revenue is
0.008 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 Washington sweet cherry industry and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the May 15, 2012, 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 1995, (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 Fruit Crops. No changes in those
requirements as a result of this action are necessary. 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 Washington sweet cherry 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:
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 2012-2013 fiscal period began on April 1,
2012, and the marketing order requires that the rate of assessment for
each fiscal period apply to all assessable sweet cherries handled
during such fiscal period; (2) this action decreases the assessment
rate for assessable sweet cherries beginning with the 2012-2013 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 923
Cherries, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 923 is
amended as follows:
[[Page 72686]]
PART 923--SWEET CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON
0
1. The authority citation for 7 CFR part 923 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 923.236 is revised to read as follows:
Sec. 923.236 Assessment rate.
On and after April 1, 2012, an assessment rate of $0.18 per ton is
established for the Washington Cherry Marketing Committee.
Dated: November 30, 2012.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2012-29436 Filed 12-5-12; 8:45 am]
BILLING CODE 3410-02-P
