Tart Cherries Grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin; Revising Handler Reporting and Grower Diversion Requirements, 46494-46496 [2013-18432]
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46494
Federal Register / Vol. 78, No. 148 / Thursday, August 1, 2013 / Rules and Regulations
ARTICLES SUBJECT TO: APPENDIX 1, HISTORICAL LICENSES; APPENDIX 2, NON-HISTORICAL LICENSES; AND APPENDIX 3,
DESIGNATED IMPORTERS LICENSES FOR QUOTA YEAR 2013—Continued
[Quantities in kilograms]
Appendix 1
Appendix 2
Appendix 3
Sum of
Appendix
1&2
HTS
Grand total
Tokyo R.
Uruguay R.
Chapter
4/2010
EU–25 ....................................
Israel ......................................
New Zealand .........................
Other Countries .....................
SWISS
OR
EMMENTHALER
CHEESE WITH EYE FORMATION (SW—NOTE 25) ..............
Argentina ...............................
Australia .................................
Canada ..................................
EU–25 ....................................
Iceland ...................................
Israel ......................................
Norway ...................................
Switzerland ............................
Other Countries .....................
1,840,852
....................
....................
....................
2,584,055
0
0
1
4,424,907
0
0
1
....................
50,000
1,000,000
....................
....................
....................
....................
....................
4,424,907
50,000
1,000,000
1
4,424,907
50,000
1,000,000
1
15,337,670
....................
209,698
....................
10,979,785
149,999
27,000
3,159,885
763,050
48,253
6,959,661
9,115
0
0
5,497,043
0
0
495,425
921,055
37,023
22,297,331
9,115
209,698
0
16,476,828
149,999
27,000
3,655,310
1,684,105
85,276
9,557,945
70,885
290,302
70,000
4,003,172
150,001
....................
3,227,690
1,745,895
....................
2,620,000
....................
....................
....................
2,420,000
....................
....................
....................
200,000
....................
34,475,276
80,000
500,000
70,000
22,900,000
300,000
27,000
6,883,000
3,630,000
85,276
34,475,276
80,000
500,000
70,000
22,900,000
300,000
27,000
6,883,000
3,630,000
85,276
TOTAL: CHEESE ARTICLES .......
62,625,617
25,275,026
87,900,653
22,764,145
24,921,000
135,585,788
135,585,788
TOTAL: CHEESE & NON–
CHEESE ....................................
67,247,025
42,518,399
109,765,434
22,764,145
24,921,000
157,450,569
157,450,569
[FR Doc. 2013–18568 Filed 7–31–13; 8:45 am]
BILLING CODE 3410–10–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Doc. No. AMS–FV–13–0030; FV13–930–2
IR]
Tart Cherries Grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and
Wisconsin; Revising Handler
Reporting and Grower Diversion
Requirements
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule invites comments
on changes to handler reporting and
grower diversion requirements
prescribed under the marketing order
for tart cherries grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and
Wisconsin (order). The Cherry Industry
Administrative Board (Board) locally
administers the order. This rule changes
the deadline for submitting the handler
reserve plan from November 1 to
October 1 and extends the deadline for
redeeming or transferring grower
diversion certificates from November 1
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SUMMARY:
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to June 30 of a given crop year. A crop
year is the 12-month period beginning
on July 1 of any crop year and ending
on June 30 of the following year. These
changes will provide the industry with
a more complete and timely picture of
the available supply earlier in the
season and give handlers more time and
flexibility in meeting their obligations
under volume regulation.
DATES: Effective August 2, 2013;
comments received by September 30,
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. All comments
should reference the document number
and the date and page number of this
issue of the Federal Register and will be
made 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.
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FOR FURTHER INFORMATION CONTACT:
Jennie M. Varela, Marketing Specialist,
or Christian D. Nissen, Regional
Director, Southeast Marketing Field
Office, Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 325–8793, or Email:
Jennie.Varela@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jeffrey Smutny,
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:
Jeffrey.Smutny@ams.usda.gov.
This rule
is issued under Marketing Order and
Agreement No. 930, as amended (7 CFR
part 930), regulating the handling of tart
cherries grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and
Wisconsin, 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
SUPPLEMENTARY INFORMATION:
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01AUR1
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Federal Register / Vol. 78, No. 148 / Thursday, August 1, 2013 / Rules and Regulations
Reform. This rule is not intended to
have retroactive effect.
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. A 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
no later than 20 days after the date of
the entry of the ruling.
This rule changes the deadline for
submitting the handler reserve plan
from November 1 to October 1 and
extends the deadline for redeeming or
transferring grower diversion certificates
issued by the Board from November 1 to
June 30 of a given crop year. These
changes will provide the industry with
a more complete and timely picture of
the available supply earlier in the
season and will provide handlers more
time and flexibility in meeting their
obligations under volume regulation.
The Board unanimously approved these
changes at its March 21, 2013, meeting.
Sections 930.58 and 930.59 of the
order provide authority for grower and
handler diversion, respectively. In
particular, § 930.59(c) requires that
handlers notify the Board of their intent
to divert cherries. These sections also
provide authority for the Board to
establish rules and regulations to
administer these provisions, with the
approval of the Secretary.
Section 930.159 of the rules and
regulations establishes requirements for
handler diversion. This section
currently states, in part, that handlers
intending to divert cherries or cherry
products under a volume regulation
must notify the Board and submit their
plan for complying with that season’s
restriction obligation by November 1.
Section 930.158 of the order’s rules
and regulations establishes
requirements for using grower diversion
certificates. This section currently
provides that handlers redeem grower
diversion certificates with the Board by
November 1 of the crop year, as the
certificates will not be valid after that
date.
Section 930.58 of the order was
recently amended to exempt cherries
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diverted in the orchard (grower
diversion) from inclusion in a handler’s
total volume calculation. When a
volume regulation is issued, handlers
are obligated to keep a percentage of
their total volume in reserve or account
for the restricted volume with diversion
certificates. These certificates can be
earned through export sales, new market
or new product sales, or through grower
diversion. Before the amendment, the
volume of cherries represented by a
grower diversion certificate was added
to the handler’s total volume. Following
the amendment, handlers can redeem
grower diversion certificates without
adding tonnage to their total volume.
Amendments to an order often require
conforming changes or adjustments to
the administrative rules and regulations.
The Board created a committee to
review the order’s diversion and
reporting regulations and present any
recommended changes to the Board.
This rule implements the two
recommended changes: Changing the
due date for the handler reserve plan to
October 1, and allowing the transfer and
redemption of grower diversion
certificates through the end of the crop
year, June 30.
Separating grower diversion
certificates from a handler’s total
volume simplified the completion of the
reserve plan. Consequently, the Board
believes handlers will be able to
complete their reserve plan for
restricted tart cherries at an earlier date.
As a result, the Board recommended
that the deadline for submitting handler
reserve plans be changed from
November 1 to October 1 of each season.
The reserve plan is submitted in
combination with a handler’s final pack
report. The Board consolidates this data
and uses it to issue reports on the final
volume processed and available
inventory. This date change will
provide the industry a more complete
and timely picture of the available
supply earlier in the season. This
information is important to the industry,
especially when considering the release
of additional reserves when a volume
regulation is in effect.
Originally, the deadline to redeem
grower diversion certificates was tied to
the handler reserve plan as handlers
needed to account for grower diversion
when calculating their total volume. As
such, current regulations establish a due
date of November 1 for grower diversion
certificates, while other diversion
certificates can be transferred
throughout the season. With the
amendment to the order, grower
diversion certificates no longer need to
be linked to when the handler reserve
plan is due. To bring consistency to the
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46495
use of diversion certificates, the Board
recommended allowing handlers to
transfer and redeem grower diversion
certificates through the end of the
season, June 30. This change also
provides handlers additional time and
flexibility in meeting restriction
obligations.
In addition to adjusting the deadline
for submitting the handler reserve plan
and extending the deadline for
redeeming grower diversion certificates,
this rule also makes a minor wording
change to § 930.158 to facilitate the
change in date.
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
action 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
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and 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 600
producers of tart cherries in the
regulated area and approximately 40
handlers of tart cherries who are subject
to regulation under the order. Small
agricultural producers are defined by
the Small Business Administration
(SBA) as those having annual receipts of
less than $750,000 and small
agricultural service firms have been
defined as those having annual receipts
of less than $7,000,000 (13 CFR
121.201).
According to data from the National
Agricultural Statistics Service and the
Board, the average annual grower price
for tart cherries during the 2012–13
season was $0.54 per pound, and total
shipments were around 85 million
pounds. Therefore, average receipts for
tart cherry producers were around
$76,200, well below the SBA threshold
for small producers. In 2013, The Food
Institute estimated an f.o.b. price of
$0.84 per pound for frozen tart cherries,
which make up the majority of
processed tart cherries. Using this data,
average annual handler receipts were
about $1.8 million, also below the SBA
threshold for small agricultural service
firms. Assuming a normal distribution,
the majority of producers and handlers
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46496
Federal Register / Vol. 78, No. 148 / Thursday, August 1, 2013 / Rules and Regulations
of tart cherries may be classified as
small entities.
This rule modifies § 930.159,
changing the deadline for submitting the
handler reserve plan from November 1
to October 1. This rule also modifies
§ 930.158 to extend the deadline for
redeeming or transferring grower
diversion certificates issued by the
Board from November 1 to June 30 of a
given crop year. These changes are
authorized under §§ 930.59 and 930.58,
respectively. These changes will
provide the industry with a more
complete and timely picture of the
available supply earlier in the season. In
addition, the new deadline for
transferring grower diversion certificates
will allow handlers more time and
flexibility in meeting their obligations
under volume regulation.
It is not anticipated that this rule will
generate any additional costs for
growers or handlers. This action is
intended to adjust regulations to reflect
recent amendments to the order and to
allow the order to function more
efficiently. These changes are expected
to benefit the industry by providing a
clear picture of available supply earlier
in the season, and by allowing handlers
more time to utilize grower diversion
certificates to meet their restriction
under volume regulation. These changes
should impact all entities positively,
regardless of size.
Regarding alternatives to this action,
the Board considered not making any
changes to the regulations regarding the
handler reserve plan or grower
diversion certificates. However, the
Board unanimously supported an earlier
date for the handler reserve plan as all
handlers are aware of the restriction
well in advance and it would provide
timely information regarding the season.
Additionally, the Board determined that
changing the deadline for redeeming
grower diversion certificates was in line
with the industry’s objective to have
consistency among the application of
diversion credits. As such, these
alternatives were rejected.
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. 0581–0177, (Tart
Cherries Grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and
Wisconsin). 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.
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16:08 Jul 31, 2013
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This rule will require changes to
Cherry Industry Administrative Board
Form 4, ‘‘Handler Reserve Plan and
Final Pack Report’’. However, these
changes are minor and the currently
approved burden for the form remains
the same. The revised form has been
submitted to OMB for approval.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
tart 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.
In addition, USDA has not identified
any relevant Federal rules that
duplicate, overlap or conflict with this
rule.
Further, the Board’s meeting was
widely publicized throughout the tart
cherry industry and all interested
persons were invited to attend the
videoconference meeting at regional
locations or call in to participate in the
Board’s deliberations. Like all Board
meetings, the March 21, 2013, meeting
was a public meeting and all entities,
both large and small, were able to
express their views on these issues.
Finally, interested persons are invited to
submit comments on this interim rule,
including the regulatory and
informational impacts of this action on
small businesses.
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 Jeffrey Smutny
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on
changes to handler reporting and grower
diversion requirements prescribed
under the order. Any comments
received will be considered prior to
finalization of this rule.
After consideration of all relevant
material presented, including the
Board’s recommendation, and other
information, it is found that this interim
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
PO 00000
Frm 00006
Fmt 4700
Sfmt 9990
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 order amendments
prompting these changes were
implemented on June 7, 2012; (2) the
Board unanimously recommended these
changes at a public meeting and
interested parties had an opportunity to
provide input; (3) this change relaxes
the date for utilizing grower diversion
certificates; (4) handlers begin to make
plans regarding diversion requirements
in July; and (5) this rule provides a 60day comment period and any comments
received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 930
Marketing agreements, Reporting and
recordkeeping requirements, Tart
cherries.
For the reasons set forth in the
preamble, 7 CFR part 930 is amended as
follows:
PART 930—TART CHERRIES GROWN
IN THE STATES OF MICHIGAN, NEW
YORK, PENNSYLVANIA, OREGON,
UTAH, WASHINGTON, AND
WISCONSIN
1. The authority citation for 7 CFR
part 930 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
§ 930.158
[Amended]
2. In § 930.158, paragraph (a) is
amended by removing the words
‘‘November 1’’ and adding in their place
‘‘June 30’’ everywhere they appear.
■
§ 930.159
[Amended]
3. In § 930.159, paragraph (b) is
amended by removing the word
‘‘November’’ and adding in its place
‘‘October’’ in the first sentence, and
removing the words ‘‘certificates
redeemed’’ and adding in their place
‘‘certificates to be redeemed’’ in the
fourth sentence.
■
Dated: July 25, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2013–18432 Filed 7–31–13; 8:45 am]
BILLING CODE 3410–02–P
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]]>Agencies
[Federal Register Volume 78, Number 148 (Thursday, August 1, 2013)]
[Rules and Regulations]
[Pages 46494-46496]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-18432]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Doc. No. AMS-FV-13-0030; FV13-930-2 IR]
Tart Cherries Grown in the States of Michigan, New York,
Pennsylvania, Oregon, Utah, Washington, and Wisconsin; Revising Handler
Reporting and Grower Diversion Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule invites comments on changes to handler reporting and
grower diversion requirements prescribed under the marketing order for
tart cherries grown in the States of Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and Wisconsin (order). The Cherry Industry
Administrative Board (Board) locally administers the order. This rule
changes the deadline for submitting the handler reserve plan from
November 1 to October 1 and extends the deadline for redeeming or
transferring grower diversion certificates from November 1 to June 30
of a given crop year. A crop year is the 12-month period beginning on
July 1 of any crop year and ending on June 30 of the following year.
These changes will provide the industry with a more complete and timely
picture of the available supply earlier in the season and give handlers
more time and flexibility in meeting their obligations under volume
regulation.
DATES: Effective August 2, 2013; comments received by September 30,
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. All comments should reference the document number
and the date and page number of this issue of the Federal Register and
will be made 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: Jennie M. Varela, Marketing
Specialist, or Christian D. Nissen, Regional Director, Southeast
Marketing Field Office, Marketing Order and Agreement Division, Fruit
and Vegetable Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863)
325-8793, or Email: Jennie.Varela@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jeffrey Smutny, 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: Jeffrey.Smutny@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
and Agreement No. 930, as amended (7 CFR part 930), regulating the
handling of tart cherries grown in the States of Michigan, New York,
Pennsylvania, Oregon, Utah, Washington, and Wisconsin, 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
[[Page 46495]]
Reform. This rule is not intended to have retroactive effect.
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. A
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 no later than 20 days after the date of the
entry of the ruling.
This rule changes the deadline for submitting the handler reserve
plan from November 1 to October 1 and extends the deadline for
redeeming or transferring grower diversion certificates issued by the
Board from November 1 to June 30 of a given crop year. These changes
will provide the industry with a more complete and timely picture of
the available supply earlier in the season and will provide handlers
more time and flexibility in meeting their obligations under volume
regulation. The Board unanimously approved these changes at its March
21, 2013, meeting.
Sections 930.58 and 930.59 of the order provide authority for
grower and handler diversion, respectively. In particular, Sec.
930.59(c) requires that handlers notify the Board of their intent to
divert cherries. These sections also provide authority for the Board to
establish rules and regulations to administer these provisions, with
the approval of the Secretary.
Section 930.159 of the rules and regulations establishes
requirements for handler diversion. This section currently states, in
part, that handlers intending to divert cherries or cherry products
under a volume regulation must notify the Board and submit their plan
for complying with that season's restriction obligation by November 1.
Section 930.158 of the order's rules and regulations establishes
requirements for using grower diversion certificates. This section
currently provides that handlers redeem grower diversion certificates
with the Board by November 1 of the crop year, as the certificates will
not be valid after that date.
Section 930.58 of the order was recently amended to exempt cherries
diverted in the orchard (grower diversion) from inclusion in a
handler's total volume calculation. When a volume regulation is issued,
handlers are obligated to keep a percentage of their total volume in
reserve or account for the restricted volume with diversion
certificates. These certificates can be earned through export sales,
new market or new product sales, or through grower diversion. Before
the amendment, the volume of cherries represented by a grower diversion
certificate was added to the handler's total volume. Following the
amendment, handlers can redeem grower diversion certificates without
adding tonnage to their total volume.
Amendments to an order often require conforming changes or
adjustments to the administrative rules and regulations. The Board
created a committee to review the order's diversion and reporting
regulations and present any recommended changes to the Board. This rule
implements the two recommended changes: Changing the due date for the
handler reserve plan to October 1, and allowing the transfer and
redemption of grower diversion certificates through the end of the crop
year, June 30.
Separating grower diversion certificates from a handler's total
volume simplified the completion of the reserve plan. Consequently, the
Board believes handlers will be able to complete their reserve plan for
restricted tart cherries at an earlier date. As a result, the Board
recommended that the deadline for submitting handler reserve plans be
changed from November 1 to October 1 of each season. The reserve plan
is submitted in combination with a handler's final pack report. The
Board consolidates this data and uses it to issue reports on the final
volume processed and available inventory. This date change will provide
the industry a more complete and timely picture of the available supply
earlier in the season. This information is important to the industry,
especially when considering the release of additional reserves when a
volume regulation is in effect.
Originally, the deadline to redeem grower diversion certificates
was tied to the handler reserve plan as handlers needed to account for
grower diversion when calculating their total volume. As such, current
regulations establish a due date of November 1 for grower diversion
certificates, while other diversion certificates can be transferred
throughout the season. With the amendment to the order, grower
diversion certificates no longer need to be linked to when the handler
reserve plan is due. To bring consistency to the use of diversion
certificates, the Board recommended allowing handlers to transfer and
redeem grower diversion certificates through the end of the season,
June 30. This change also provides handlers additional time and
flexibility in meeting restriction obligations.
In addition to adjusting the deadline for submitting the handler
reserve plan and extending the deadline for redeeming grower diversion
certificates, this rule also makes a minor wording change to Sec.
930.158 to facilitate the change in date.
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 action 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
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and 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 600 producers of tart cherries in the
regulated area and approximately 40 handlers of tart cherries who are
subject to regulation under the order. Small agricultural producers are
defined by the Small Business Administration (SBA) as those having
annual receipts of less than $750,000 and small agricultural service
firms have been defined as those having annual receipts of less than
$7,000,000 (13 CFR 121.201).
According to data from the National Agricultural Statistics Service
and the Board, the average annual grower price for tart cherries during
the 2012-13 season was $0.54 per pound, and total shipments were around
85 million pounds. Therefore, average receipts for tart cherry
producers were around $76,200, well below the SBA threshold for small
producers. In 2013, The Food Institute estimated an f.o.b. price of
$0.84 per pound for frozen tart cherries, which make up the majority of
processed tart cherries. Using this data, average annual handler
receipts were about $1.8 million, also below the SBA threshold for
small agricultural service firms. Assuming a normal distribution, the
majority of producers and handlers
[[Page 46496]]
of tart cherries may be classified as small entities.
This rule modifies Sec. 930.159, changing the deadline for
submitting the handler reserve plan from November 1 to October 1. This
rule also modifies Sec. 930.158 to extend the deadline for redeeming
or transferring grower diversion certificates issued by the Board from
November 1 to June 30 of a given crop year. These changes are
authorized under Sec. Sec. 930.59 and 930.58, respectively. These
changes will provide the industry with a more complete and timely
picture of the available supply earlier in the season. In addition, the
new deadline for transferring grower diversion certificates will allow
handlers more time and flexibility in meeting their obligations under
volume regulation.
It is not anticipated that this rule will generate any additional
costs for growers or handlers. This action is intended to adjust
regulations to reflect recent amendments to the order and to allow the
order to function more efficiently. These changes are expected to
benefit the industry by providing a clear picture of available supply
earlier in the season, and by allowing handlers more time to utilize
grower diversion certificates to meet their restriction under volume
regulation. These changes should impact all entities positively,
regardless of size.
Regarding alternatives to this action, the Board considered not
making any changes to the regulations regarding the handler reserve
plan or grower diversion certificates. However, the Board unanimously
supported an earlier date for the handler reserve plan as all handlers
are aware of the restriction well in advance and it would provide
timely information regarding the season. Additionally, the Board
determined that changing the deadline for redeeming grower diversion
certificates was in line with the industry's objective to have
consistency among the application of diversion credits. As such, these
alternatives were rejected.
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. 0581-0177, (Tart Cherries Grown in the States of
Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and
Wisconsin). 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 rule will require changes to Cherry Industry Administrative
Board Form 4, ``Handler Reserve Plan and Final Pack Report''. However,
these changes are minor and the currently approved burden for the form
remains the same. The revised form has been submitted to OMB for
approval.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large tart 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.
In addition, USDA has not identified any relevant Federal rules
that duplicate, overlap or conflict with this rule.
Further, the Board's meeting was widely publicized throughout the
tart cherry industry and all interested persons were invited to attend
the videoconference meeting at regional locations or call in to
participate in the Board's deliberations. Like all Board meetings, the
March 21, 2013, meeting was a public meeting and all entities, both
large and small, were able to express their views on these issues.
Finally, interested persons are invited to submit comments on this
interim rule, including the regulatory and informational impacts of
this action on small businesses.
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 Jeffrey Smutny at the previously
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
This rule invites comments on changes to handler reporting and
grower diversion requirements prescribed under the order. Any comments
received will be considered prior to finalization of this rule.
After consideration of all relevant material presented, including
the Board's recommendation, and other information, it is found that
this interim 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 order amendments prompting these changes were
implemented on June 7, 2012; (2) the Board unanimously recommended
these changes at a public meeting and interested parties had an
opportunity to provide input; (3) this change relaxes the date for
utilizing grower diversion certificates; (4) handlers begin to make
plans regarding diversion requirements in July; and (5) this rule
provides a 60-day comment period and any comments received will be
considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 930
Marketing agreements, Reporting and recordkeeping requirements,
Tart cherries.
For the reasons set forth in the preamble, 7 CFR part 930 is
amended as follows:
PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK,
PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN
0
1. The authority citation for 7 CFR part 930 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Sec. 930.158 [Amended]
0
2. In Sec. 930.158, paragraph (a) is amended by removing the words
``November 1'' and adding in their place ``June 30'' everywhere they
appear.
Sec. 930.159 [Amended]
0
3. In Sec. 930.159, paragraph (b) is amended by removing the word
``November'' and adding in its place ``October'' in the first sentence,
and removing the words ``certificates redeemed'' and adding in their
place ``certificates to be redeemed'' in the fourth sentence.
Dated: July 25, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-18432 Filed 7-31-13; 8:45 am]
BILLING CODE 3410-02-P
