Irish Potatoes Grown in Certain Designated Counties in Idaho, and Malheur County, Oregon; Decreased Assessment Rate, 10423-10426 [2014-03852]
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10423
Proposed Rules
Federal Register
Vol. 79, No. 37
Tuesday, February 25, 2014
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Docket No. AMS–FV–13–0097; FV14–930–
1]
Tart Cherries Grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington and
Wisconsin; Continuance Referendum
Agricultural Marketing Service,
USDA.
ACTION: Referendum order.
AGENCY:
This document directs that a
referendum be conducted among
eligible growers and processors of tart
cherries grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington and
Wisconsin to determine whether they
favor continuance of the marketing
order that regulates the handling of tart
cherries produced in the production
area.
DATES: The referendum will be
conducted from March 10 through
March 28, 2014. To vote in this
referendum, growers and processors
must have produced or processed tart
cherries within the designated
production area during the period of
July 1, 2011, through June 30, 2012.
ADDRESSES: Copies of the marketing
order may be obtained from the
referendum agents at 799 Overlook
Drive, Winter Haven, FL 33884, or the
Office of 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.
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, 799 Overlook Drive,
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SUMMARY:
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Winter Haven, FL 33884; Telephone:
(863) 324–3375, Fax: (863) 325–8793, or
Email: Jennie.Varela@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
SUPPLEMENTARY INFORMATION: Pursuant
to Marketing Agreement and Order No.
930, as amended (7 CFR Part 930),
hereinafter referred to as the ‘‘order,’’
and the applicable provisions of the
Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act,’’ it is
hereby directed that a referendum be
conducted to ascertain whether
continuance of the order is favored by
growers and processors. The referendum
shall be conducted from March 10
through March 28, 2014, among tart
cherry growers and processors in the
production area. Only tart cherry
growers and processors currently
engaged in the production or processing
of tart cherries that produced or
processed tart cherries during the period
of July 1, 2011, through June 30, 2012,
may participate in the continuance
referendum.
USDA has determined that
continuance referenda are an effective
means for determining whether
producers favor the continuation of
marketing order programs. The order
would continue in effect if at least 50
percent of the growers and processors
voting, by number or volume, vote in
favor of continuance. In evaluating the
merits of continuance versus
termination, USDA will consider the
results of the continuance referendum.
USDA will also consider all other
relevant information concerning the
operation of the order and the relative
benefits and disadvantages to growers,
processors, and consumers in
determining whether continued
operation of the order would tend to
effectuate the declared policy of the Act.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501–
3520), the ballot materials to be used in
the referendum have been submitted to
and approved by the Office of
Management and Budget (OMB) and
have been assigned OMB No. 0581–0177
(Tart Cherries Grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and
Wisconsin). It has been estimated that it
will take an average of 20 minutes for
each of the approximately 600 growers
and 40 processors of tart cherries to cast
a ballot. Participation is voluntary.
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Ballots postmarked after March 28,
2014, will not be included in the vote
tabulation.
Jennie M. Varela and Christian D.
Nissen of the Southeast Marketing Field
Office, Fruit and Vegetable Program,
AMS, USDA, are hereby designated as
the referendum agents of the Secretary
of Agriculture to conduct this
referendum. The procedure applicable
to the referendum shall be the
‘‘Procedure for the Conduct of
Referenda in Connection With
Marketing Orders for Fruits, Vegetables,
and Nuts Pursuant to the Agricultural
Marketing Agreement Act of 1937, as
Amended’’ (7 CFR 900.400–900.407).
Ballots will be mailed to all growers
and processors of record and may also
be obtained from the referendum agents,
or from their appointees.
List of Subjects in 7 CFR Part 930
Marketing agreements, Reporting and
recordkeeping requirements, Tart
cherries.
Authority: 7 U.S.C. 601–674.
Dated: February 18, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–03908 Filed 2–24–14; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Doc. No. AMS–FV–13–0093; FV14–945–1
PR]
Irish Potatoes Grown in Certain
Designated Counties in Idaho, and
Malheur County, Oregon; Decreased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
decrease the assessment rate established
for the Idaho-Eastern Oregon Potato
Committee (Committee) for the 2014–
2015 and subsequent fiscal periods from
$0.0045 to $0.0025 per hundredweight
of potatoes handled. The Committee
locally administers the marketing order,
which regulates the handling of potatoes
grown in certain designated counties in
SUMMARY:
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Federal Register / Vol. 79, No. 37 / Tuesday, February 25, 2014 / Proposed Rules
Idaho, and Malheur County, Oregon.
Assessments upon potato handlers are
used by the Committee to fund
reasonable and necessary expenses of
the program. The fiscal period begins
August 1 and ends July 31. The
assessment rate would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
March 27, 2014.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed 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 business hours, or
can be viewed at: https://
www.regulations.gov. All comments
submitted in response to this proposed
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: Sue
Coleman, Marketing Specialist, or Gary
D. Olson, Regional Director, 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: Sue.Coleman@
ams.usda.gov or GaryD.Olson@
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
proposed rule is issued under Marketing
Agreement No. 98 and Order No. 945,
both as amended (7 CFR part 945),
regulating the handling of Irish potatoes
grown in certain designated counties in
Idaho, and Malheur County, Oregon,
hereinafter referred to as the ‘‘order.’’
The order is effective under the
Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’
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The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Order
12866 and Executive Order 13563.
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the marketing
order now in effect, Idaho-Eastern
Oregon potato handlers are subject to
assessments. Funds to administer the
order are derived from such
assessments. It is intended that the
assessment rate as proposed herein
would be applicable to all assessable
potatoes beginning August 1, 2014, 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 proposed rule would decrease
the assessment rate established for the
Committee for the 2014–2015 and
subsequent fiscal periods from $0.0045
to $0.0025 per hundredweight of
potatoes.
The Idaho-Eastern Oregon potato
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 Idaho-Eastern
Oregon potatoes. 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 2013–2014 and subsequent
fiscal periods, the Committee
recommended, and USDA approved, an
assessment rate that would continue in
effect from fiscal period to fiscal period
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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 November 21,
2013, to consider the Committee’s
projected 2014–2015 budget, the size of
the Committee’s operating reserve, and
the order’s continuing assessment rate.
The Committee unanimously
recommended an assessment rate of
$0.0025 per hundredweight of potatoes
for the 2014–2015 fiscal period. The
assessment rate of $0.0025 is $0.002
lower than the rate currently in effect.
The assessment rate decrease is
necessary to reduce the funds held in
reserve to less than approximately one
fiscal period’s budgeted expenses, the
maximum level allowed by the order.
The Committee expects to recommend
budgeted expenditures of $112,883 for
the 2014–2015 fiscal period at its next
scheduled meeting in June of 2014. In
comparison, 2013–2014 budgeted
expenditures were $101,662. The major
expenditures projected by the
Committee for the 2014–2015 fiscal
period include $62,743 for
administrative expenses; $35,140 for
travel/office expenses; and $15,000 for a
marketing order contingency fund.
Budgeted expenses for these items in
2013–2014 were $62,022, $35,640, and
$4,000, respectively.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses by expected
shipments of Idaho-Eastern Oregon
potatoes. Potato shipments for 2014–
2015 are estimated at 32 million
hundredweight which should provide
$80,000 in assessment income. Income
derived from handler assessments, along
with reimbursed expenses, interest
earned, and funds from the Committee’s
authorized reserve, would be adequate
to cover budgeted expenses. Funds in
the reserve (projected to be $168,084 on
July 31, 2014) would be reduced to
comply with the maximum permitted by
the order of approximately one fiscal
period’s expenses.
The proposed assessment rate would
continue in effect indefinitely unless
modified, suspended, or terminated by
USDA upon recommendation and
information submitted by the
Committee or other available
information.
Although this assessment rate would
be in effect for an indefinite period, the
Committee would continue to meet
prior to or during each fiscal period to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
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are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA would evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The
Committee’s 2014–2015 budget and
those for subsequent fiscal periods
would be reviewed and, as appropriate,
approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
proposed 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
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 the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 450
producers of potatoes in the production
area and approximately 32 handlers
subject to regulation under the
marketing order. Small agricultural
producers are defined by the Small
Business Administration (13 CFR
121.201) as those having annual receipts
less than $750,000, and small
agricultural service firms are defined as
those whose annual receipts are less
than $7,000,000.
During the 2012–2013 fiscal period,
the most recent for which statistics are
available, 35,148,900 hundredweight of
Idaho-Eastern Oregon potatoes were
inspected under the order and sold into
the fresh market. Based on information
provided by the National Agricultural
Statistics Service, the average producer
price for the 2012 Idaho potato crop was
$6.55 per hundredweight. Multiplying
$6.55 by the shipment quantity of
35,148,900 hundredweight yields an
annual crop revenue estimate of
$230,225,295. The average annual fresh
potato revenue for each of the 450
producers is therefore calculated to be
$511,612 ($230,225,295 divided by 450),
which is less than the Small Business
Administration’s threshold of $750,000.
Consequently, on average most all of the
Idaho-Eastern Oregon potato producers
may be classified as small entities.
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In addition, based on information
reported by USDA’s Market News
Service, the average f.o.b. shipping
point price for the 2012 Idaho potato
crop was $5.87 per hundredweight.
Multiplying $5.87 by the shipment
quantity of 35,148,900 hundredweight
yields an annual crop revenue estimate
of $206,324,043. The average annual
fresh potato revenue for each of the 32
handlers is therefore calculated to be
$6,447,626 ($206,324,043 divided by
32), which is less than the Small
Business Administration’s threshold of
$7,000,000. Consequently, on average
most all of the Idaho-Eastern Oregon
potato handlers may be classified as
small entities.
This proposed rule would decrease
the assessment rate established for the
Committee and collected from handlers
for the 2014–2015 and subsequent fiscal
periods from $0.0045 to $0.0025 per
hundredweight of potatoes. The
Committee unanimously recommended
an assessment rate of $0.0025 per
hundredweight of potatoes for the 2014–
2015 fiscal period. The assessment rate
of $0.0025 is $0.002 lower than the
2013–2014 rate. The quantity of
assessable potatoes for the 2014–2015
fiscal period is estimated at 32 million
hundredweight. Thus, the $0.0025 rate
should provide $80,000 in assessment
income. Income derived from handler
assessments, along with reimbursed
expenses, interest earned, and funds
from the Committee’s authorized
reserve, would be adequate to cover
budgeted expenses.
The Committee expects to recommend
$112,883 in budgeted expenditures for
the 2014–2015 fiscal period at its next
scheduled meeting in June of 2014. In
comparison, 2013–2014 budgeted
expenditures were $101,662. The major
expenditures projected by the
Committee for the 2014–2015 year
include $62,743 for administrative
expenses; $35,140 for travel/office
expenses; and $15,000 for the marketing
order contingency fund. Budgeted
expenses for these items in 2013–2014
were $62,022, $35,640, and $4,000,
respectively.
The lower assessment rate is
necessary to reduce the reserve balance
to less than approximately one fiscal
period’s budgeted expenses. The reserve
balance on July 31, 2014, is projected to
be $168,084. Assessment income for the
2014–2015 fiscal period is estimated at
$80,000, while expenses are estimated
to be $112,883. The Committee
anticipates compensating for the
reduced assessment revenue with
$4,300 from reimbursed expenses, $100
from interest income, and $28,483 from
its reserve fund. The reserve fund is
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10425
projected to exceed the maximum
authorized level by $26,718 at the end
of the 2014–2015 fiscal period.
However, it was noted that it is possible
that the Committee may receive less
assessments than estimated, as well as
incur unanticipated expenses. In
addition, the Committee expects to draw
funds from the reserve in subsequent
fiscal periods that would further reduce
the balance.
The Committee discussed alternatives
to this proposed change, including other
assessment rate levels and leaving the
current rate in place. Prior to arriving at
this assessment rate recommendation,
the Committee considered information
from the Board’s Executive Committee
on the cost savings resulting from recent
administrative changes in the
Committee office and the level of
anticipated Committee expenses moving
forward. The Committee debated
between an assessment rate of $0.003
and $0.0025 per hundredweight of
potatoes. Based on the market and
shipping quantities, the Committee
recommended the rate of $0.0025 per
hundredweight. The Committee believes
assessment income combined with
income from reimbursed expenses,
interest income, and funds from the
Committee’s financial reserve, would
provide sufficient funds to meet its
expenses.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal period indicates
that the producer price for the 2014–
2015 crop could range between $6.55
and $8.10 per hundredweight of
potatoes. Therefore, the estimated
assessment revenue for the 2014–2015
fiscal period as a percentage of total
producer revenue could range between
0.03 and 0.04 percent.
This action would decrease 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 would reduce the
burden on handlers, and may reduce the
burden on producers. In addition, the
Committee’s meeting was widely
publicized throughout the Idaho-Eastern
Oregon potato industry and all
interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the
November 21, 2013, meeting was a
public meeting and all entities, both
large and small, were able to express
views on this issue. Finally, interested
persons are invited to submit comments
on this proposed rule, including the
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Federal Register / Vol. 79, No. 37 / Tuesday, February 25, 2014 / Proposed Rules
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. 0581–0178 (Generic
Vegetable and Specialty 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 proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
Idaho-Eastern Oregon potato 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 action.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Jeffrey Smutny
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
A 30-day comment period is provided
to allow interested persons to respond
to this proposed rule. Thirty days is
deemed appropriate because: (1) The
2014–2015 fiscal period begins on
August 1, 2014, and the marketing order
requires that the rate of assessment for
each fiscal period apply to all assessable
potatoes handled during such fiscal
period; (2) the proposed rule would
decrease the assessment rate for
assessable potatoes beginning with the
2014–2015 fiscal period; and (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.
List of Subjects in 7 CFR Part 945
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
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For the reasons set forth in the
preamble, 7 CFR part 945 is proposed to
be amended as follows:
PART 945—IRISH POTATOES GROWN
IN CERTAIN DESIGNATED COUNTIES
IN IDAHO, AND MALHEUR COUNTY,
OREGON
1. The authority citation for 7 CFR
part 945 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 945.249 is revised to read
as follows:
■
§ 945.249
Assessment rate.
On and after August 1, 2014, an
assessment rate of $0.0025 per
hundredweight is established for IdahoEastern Oregon potatoes.
Dated: February 18, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–03852 Filed 2–24–14; 8:45 am]
BILLING CODE 3410–02–P
FARM CREDIT ADMINISTRATION
12 CFR Part 651
RIN 3052–AC89
Federal Agricultural Mortgage
Corporation Governance; Farmer Mac
Corporate Governance and Standards
of Conduct
Farm Credit Administration.
Advance notice of proposed
rulemaking.
AGENCY:
ACTION:
The Farm Credit
Administration (FCA, we, or our) is
considering issuing new regulations, or
clarifying and enhancing existing
regulations, related to the Federal
Agricultural Mortgage Corporation
(Farmer Mac) board governance and
standards of conduct, including director
election procedures, conflicts of interest
and risk governance. We are requesting
comments on ways to address these
issues. In keeping with today’s financial
and economic environment, we believe
it prudent and timely to undertake a
review of our regulatory guidance on the
identified areas. We intend to use the
information and suggestions we receive
in response to this Advance Notice of
Proposed Rulemaking (ANPRM) for the
development of guidance on Farmer
Mac board governance and standards of
conduct.
DATES: You may send comments on or
before April 28, 2014.
ADDRESSES: We offer a variety of
methods for you to submit your
SUMMARY:
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comments. For accuracy and efficiency
reasons, commenters are encouraged to
submit comments by email or through
the FCA’s Web site. As facsimiles (fax)
are difficult for us to process and
achieve compliance with section 508 of
the Rehabilitation Act, we are no longer
accepting comments submitted by fax.
Regardless of the method you use,
please do not submit your comments
multiple times via different methods.
You may submit comments by any of
the following methods:
• Email: Send us an email at regcomm@fca.gov.
• FCA Web site: https://www.fca.gov.
Select ‘‘Public Commenters,’’ then
‘‘Public Comments,’’ and follow the
directions for ‘‘Submitting a Comment.’’
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Laurie A. Rea, Director, Office
of Secondary Market Oversight, Farm
Credit Administration, 1501 Farm
Credit Drive, McLean, VA 22102–5090.
You may review copies of all
comments we receive at our office in
McLean, Virginia, or on our Web site at
https://www.fca.gov. Once you are in the
Web site, select ‘‘Public Commenters,’’
then ‘‘Public Comments,’’ and follow
the directions for ‘‘Reading Submitted
Public Comments.’’ We will show your
comments as submitted, including any
supporting data provided, but for
technical reasons we may omit items
such as logos and special characters.
Identifying information that you
provide, such as phone numbers and
addresses, will be publicly available.
However, we will attempt to remove
email addresses to help reduce Internet
spam.
FOR FURTHER INFORMATION CONTACT: Joe
Connor, Associate Director for Policy
and Analysis, Office of Secondary
Market Oversight, Farm Credit
Administration, McLean, VA 22102–
5090, (703) 883–4364, TTY (703) 883–
4056, or Laura McFarland, Senior
Counsel, Office of General Counsel,
Farm Credit Administration, McLean,
VA 22102–5090, (703) 883–4020, TTY
(703) 883–4056.
SUPPLEMENTARY INFORMATION:
I. Objective
The purpose of this ANPRM is to
gather public input on how FCA might:
• Enhance risk governance at Farmer
Mac to further its long-term safety and
soundness and mission achievement;
• Clarify the roles of the board and
voting stockholders in the Farmer Mac
director nomination and election
process;
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]]>Agencies
[Federal Register Volume 79, Number 37 (Tuesday, February 25, 2014)]
[Proposed Rules]
[Pages 10423-10426]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03852]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Doc. No. AMS-FV-13-0093; FV14-945-1 PR]
Irish Potatoes Grown in Certain Designated Counties in Idaho, and
Malheur County, Oregon; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would decrease the assessment rate
established for the Idaho-Eastern Oregon Potato Committee (Committee)
for the 2014-2015 and subsequent fiscal periods from $0.0045 to $0.0025
per hundredweight of potatoes handled. The Committee locally
administers the marketing order, which regulates the handling of
potatoes grown in certain designated counties in
[[Page 10424]]
Idaho, and Malheur County, Oregon. Assessments upon potato handlers are
used by the Committee to fund reasonable and necessary expenses of the
program. The fiscal period begins August 1 and ends July 31. The
assessment rate would remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by March 27, 2014.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed 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 business hours, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this
proposed 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: Sue Coleman, Marketing Specialist, or
Gary D. Olson, Regional Director, 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:
Sue.Coleman@ams.usda.gov or GaryD.Olson@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 proposed rule is issued under Marketing
Agreement No. 98 and Order No. 945, both as amended (7 CFR part 945),
regulating the handling of Irish potatoes grown in certain designated
counties in Idaho, and Malheur County, Oregon, 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 proposed rule
in conformance with Executive Order 12866 and Executive Order 13563.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the marketing order now in effect, Idaho-
Eastern Oregon potato handlers are subject to assessments. Funds to
administer the order are derived from such assessments. It is intended
that the assessment rate as proposed herein would be applicable to all
assessable potatoes beginning August 1, 2014, 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 proposed rule would decrease the assessment rate established
for the Committee for the 2014-2015 and subsequent fiscal periods from
$0.0045 to $0.0025 per hundredweight of potatoes.
The Idaho-Eastern Oregon potato 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
Idaho-Eastern Oregon potatoes. 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 2013-2014 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 November 21, 2013, to consider the Committee's
projected 2014-2015 budget, the size of the Committee's operating
reserve, and the order's continuing assessment rate. The Committee
unanimously recommended an assessment rate of $0.0025 per hundredweight
of potatoes for the 2014-2015 fiscal period. The assessment rate of
$0.0025 is $0.002 lower than the rate currently in effect. The
assessment rate decrease is necessary to reduce the funds held in
reserve to less than approximately one fiscal period's budgeted
expenses, the maximum level allowed by the order.
The Committee expects to recommend budgeted expenditures of
$112,883 for the 2014-2015 fiscal period at its next scheduled meeting
in June of 2014. In comparison, 2013-2014 budgeted expenditures were
$101,662. The major expenditures projected by the Committee for the
2014-2015 fiscal period include $62,743 for administrative expenses;
$35,140 for travel/office expenses; and $15,000 for a marketing order
contingency fund. Budgeted expenses for these items in 2013-2014 were
$62,022, $35,640, and $4,000, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Idaho-Eastern
Oregon potatoes. Potato shipments for 2014-2015 are estimated at 32
million hundredweight which should provide $80,000 in assessment
income. Income derived from handler assessments, along with reimbursed
expenses, interest earned, and funds from the Committee's authorized
reserve, would be adequate to cover budgeted expenses. Funds in the
reserve (projected to be $168,084 on July 31, 2014) would be reduced to
comply with the maximum permitted by the order of approximately one
fiscal period's expenses.
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by USDA upon recommendation
and information submitted by the Committee or other available
information.
Although this assessment rate would be in effect for an indefinite
period, the Committee would continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings
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are available from the Committee or USDA. Committee meetings are open
to the public and interested persons may express their views at these
meetings. USDA would evaluate Committee recommendations and other
available information to determine whether modification of the
assessment rate is needed. Further rulemaking would be undertaken as
necessary. The Committee's 2014-2015 budget and those for subsequent
fiscal periods would be reviewed and, as appropriate, approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this proposed 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
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 the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 450 producers of potatoes in the production
area and approximately 32 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (13 CFR 121.201) as those having annual
receipts less than $750,000, and small agricultural service firms are
defined as those whose annual receipts are less than $7,000,000.
During the 2012-2013 fiscal period, the most recent for which
statistics are available, 35,148,900 hundredweight of Idaho-Eastern
Oregon potatoes were inspected under the order and sold into the fresh
market. Based on information provided by the National Agricultural
Statistics Service, the average producer price for the 2012 Idaho
potato crop was $6.55 per hundredweight. Multiplying $6.55 by the
shipment quantity of 35,148,900 hundredweight yields an annual crop
revenue estimate of $230,225,295. The average annual fresh potato
revenue for each of the 450 producers is therefore calculated to be
$511,612 ($230,225,295 divided by 450), which is less than the Small
Business Administration's threshold of $750,000. Consequently, on
average most all of the Idaho-Eastern Oregon potato producers may be
classified as small entities.
In addition, based on information reported by USDA's Market News
Service, the average f.o.b. shipping point price for the 2012 Idaho
potato crop was $5.87 per hundredweight. Multiplying $5.87 by the
shipment quantity of 35,148,900 hundredweight yields an annual crop
revenue estimate of $206,324,043. The average annual fresh potato
revenue for each of the 32 handlers is therefore calculated to be
$6,447,626 ($206,324,043 divided by 32), which is less than the Small
Business Administration's threshold of $7,000,000. Consequently, on
average most all of the Idaho-Eastern Oregon potato handlers may be
classified as small entities.
This proposed rule would decrease the assessment rate established
for the Committee and collected from handlers for the 2014-2015 and
subsequent fiscal periods from $0.0045 to $0.0025 per hundredweight of
potatoes. The Committee unanimously recommended an assessment rate of
$0.0025 per hundredweight of potatoes for the 2014-2015 fiscal period.
The assessment rate of $0.0025 is $0.002 lower than the 2013-2014 rate.
The quantity of assessable potatoes for the 2014-2015 fiscal period is
estimated at 32 million hundredweight. Thus, the $0.0025 rate should
provide $80,000 in assessment income. Income derived from handler
assessments, along with reimbursed expenses, interest earned, and funds
from the Committee's authorized reserve, would be adequate to cover
budgeted expenses.
The Committee expects to recommend $112,883 in budgeted
expenditures for the 2014-2015 fiscal period at its next scheduled
meeting in June of 2014. In comparison, 2013-2014 budgeted expenditures
were $101,662. The major expenditures projected by the Committee for
the 2014-2015 year include $62,743 for administrative expenses; $35,140
for travel/office expenses; and $15,000 for the marketing order
contingency fund. Budgeted expenses for these items in 2013-2014 were
$62,022, $35,640, and $4,000, respectively.
The lower assessment rate is necessary to reduce the reserve
balance to less than approximately one fiscal period's budgeted
expenses. The reserve balance on July 31, 2014, is projected to be
$168,084. Assessment income for the 2014-2015 fiscal period is
estimated at $80,000, while expenses are estimated to be $112,883. The
Committee anticipates compensating for the reduced assessment revenue
with $4,300 from reimbursed expenses, $100 from interest income, and
$28,483 from its reserve fund. The reserve fund is projected to exceed
the maximum authorized level by $26,718 at the end of the 2014-2015
fiscal period. However, it was noted that it is possible that the
Committee may receive less assessments than estimated, as well as incur
unanticipated expenses. In addition, the Committee expects to draw
funds from the reserve in subsequent fiscal periods that would further
reduce the balance.
The Committee discussed alternatives to this proposed change,
including other assessment rate levels and leaving the current rate in
place. Prior to arriving at this assessment rate recommendation, the
Committee considered information from the Board's Executive Committee
on the cost savings resulting from recent administrative changes in the
Committee office and the level of anticipated Committee expenses moving
forward. The Committee debated between an assessment rate of $0.003 and
$0.0025 per hundredweight of potatoes. Based on the market and shipping
quantities, the Committee recommended the rate of $0.0025 per
hundredweight. The Committee believes assessment income combined with
income from reimbursed expenses, interest income, and funds from the
Committee's financial reserve, would provide sufficient funds to meet
its expenses.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the producer
price for the 2014-2015 crop could range between $6.55 and $8.10 per
hundredweight of potatoes. Therefore, the estimated assessment revenue
for the 2014-2015 fiscal period as a percentage of total producer
revenue could range between 0.03 and 0.04 percent.
This action would decrease 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 would reduce the burden on handlers, and may reduce the
burden on producers. In addition, the Committee's meeting was widely
publicized throughout the Idaho-Eastern Oregon potato industry and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the November 21, 2013, meeting was a public meeting and all entities,
both large and small, were able to express views on this issue.
Finally, interested persons are invited to submit comments on this
proposed rule, including the
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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. 0581-0178 (Generic Vegetable and Specialty 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 proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large Idaho-Eastern
Oregon potato 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 action.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Jeffrey Smutny at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. Thirty days is deemed appropriate
because: (1) The 2014-2015 fiscal period begins on August 1, 2014, and
the marketing order requires that the rate of assessment for each
fiscal period apply to all assessable potatoes handled during such
fiscal period; (2) the proposed rule would decrease the assessment rate
for assessable potatoes beginning with the 2014-2015 fiscal period; and
(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.
List of Subjects in 7 CFR Part 945
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 945 is
proposed to be amended as follows:
PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN
IDAHO, AND MALHEUR COUNTY, OREGON
0
1. The authority citation for 7 CFR part 945 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 945.249 is revised to read as follows:
Sec. 945.249 Assessment rate.
On and after August 1, 2014, an assessment rate of $0.0025 per
hundredweight is established for Idaho-Eastern Oregon potatoes.
Dated: February 18, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-03852 Filed 2-24-14; 8:45 am]
BILLING CODE 3410-02-P
