Irish Potatoes Grown in Certain Designated Counties in Idaho, and Malheur County, Oregon; Decreased Assessment Rate, 14485-14488 [2017-05482]

Download as PDF mstockstill on DSK3G9T082PROD with PROPOSALS Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Proposed Rules Regarding demand, the Board began with the actual sales average of 230 million pounds. However, the Board noted that some previously contracted sales would be due for delivery in the coming season. In order to avoid undersupplying the market, the Board determined that the calculation of the optimum supply should include an additional adjustment for that purpose. After discussion, an adjustment of an additional 22 million pounds was made the 2016–17 available supply of tart cherries as it was determined that this amount would best meet the industry’s sales needs. Thus, the other alternative levels were rejected. Regarding the carry-out value, the Board considered a range of alternatives. One member suggested the Board begin with 57 million pounds, approximately a quarter of average annual sales. Other members suggested alternatives as high as 70 million pounds. However, some members were concerned about leaving too much fruit on the market at the end of the season and depressing prices going into the next year. The Board determined three months of sales would be a good estimate for what was needed at the end of the season, as there is a three-month gap between the calculation of carry-out at the end of one season and the availability of fruit from the next season. Thus, the other 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 proposal would 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. VerDate Sep<11>2014 15:59 Mar 20, 2017 Jkt 241001 USDA has not identified any relevant Federal rules that duplicate, overlap or conflict with this proposed rule. In addition, the Board’s meeting was widely publicized throughout the tart cherry industry and all interested persons were invited to attend the meeting and participate in Board deliberations on all issues. Like all Board meetings, the June 23, 2016, and September 8, 2016, meetings were public meetings 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 regulatory and informational impacts of this proposal on small businesses. 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/ rules-regulations/moa/small-businesses. Any questions about the compliance guide should be sent to Richard Lower 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 proposal. Thirty days is deemed appropriate because this proposed rule would need to be in place as soon as possible since handlers are already shipping tart cherries from the 2016–17 crop. All written comments timely received will be considered before a final determination is made on this matter. 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 proposed to be 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. 2. Section 930.151 is revised to read as follows: ■ § 930.151 Desirable carry-out inventory. For the 2016 crop year, the desirable carry-out inventory, for the purposes of determining an optimum supply volume, will be 57 million pounds. ■ 3. Revise § 930.256 to read as follows: PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 14485 § 930.256 Free and restricted percentages for the 2016–17 crop year. The percentages for tart cherries handled by handlers during the crop year beginning on July 1, 2016, which shall be free and restricted, respectively, are designated as follows: Free percentage, 71 percent and restricted percentage, 29 percent. Dated: March 15, 2017. Bruce Summers, Acting Administrator, Agricultural Marketing Service. [FR Doc. 2017–05484 Filed 3–20–17; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 945 [Doc. No. AMS–SC–16–0111; SC17–945–1 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 implement a recommendation from the Idaho-Eastern Oregon Potato Committee (Committee) to decrease the assessment rate established for the 2017–2018 and subsequent fiscal periods from $0.0025 to $0.002 per hundredweight of potatoes handled. The Committee locally administers the marketing order which regulates the handling of potatoes grown in certain designated counties in 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 April 20, 2017. 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, Specialty Crops 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 SUMMARY: E:\FR\FM\21MRP1.SGM 21MRP1 mstockstill on DSK3G9T082PROD with PROPOSALS 14486 Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Proposed Rules 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: Barry Broadbent, Senior Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326– 2724, Fax: (503) 326–7440, or Email: Barry.Broadbent@ams.usda.gov or GaryD.Olson@ams.usda.gov. Small businesses may request information on complying with this regulation by contacting Richard Lower, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250–0237; Telephone: (202) 720– 2491, Fax: (202) 720–8938, or Email: Richard.Lower@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 Orders 12866, 13563, and 13175. 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, 2017, 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 VerDate Sep<11>2014 15:59 Mar 20, 2017 Jkt 241001 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 2017–2018 and subsequent fiscal periods from $0.0025 to $0.002 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 cover the expenses of administering 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 2014–2015 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 9, 2016, to consider the Committee’s projected 2017–2018 financial requirements, the size of the Committee’s operating reserve, and the order’s continuing assessment rate. The Committee unanimously recommended an assessment rate of $0.002 per hundredweight of potatoes for the 2017– 2018 fiscal period. The assessment rate of $0.002 is $0.0005 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. PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 The Committee adopted a budget of $119,075 for the 2016–2017 fiscal period. It expects to recommend a similar level of budgeted expenditures for the 2017–2018 fiscal period at its next scheduled meeting in June 2017. The Committee expects its budget for major expenditures for the 2017–2018 fiscal period to be close to the budgeted amounts for the 2016–2017 fiscal period. These expenditures include $68,638 for administrative expenses, $35,437 for travel/office expenses, and $15,000 for marketing order contingency. The assessment rate recommended by the Committee was derived by dividing anticipated expenses by expected shipments of Idaho-Eastern Oregon potatoes. Potato shipments for 2017– 2018 are estimated at 32 million hundredweight which should provide $64,000 in assessment income at the proposed assessment rate. Income derived from handler assessments, along with other income, interest earned, and funds from the Committee’s authorized reserve, would be adequate to cover budgeted expenses. Funds in the reserve (projected to be $158,275 on July 31, 2017) 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 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 2017–2018 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 E:\FR\FM\21MRP1.SGM 21MRP1 mstockstill on DSK3G9T082PROD with PROPOSALS Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Proposed Rules 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 $7,500,000. During the 2015–2016 fiscal period, the most recent full year of statistics available, 33,606,000 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 2015 Idaho potato crop (the most recent full marketing year recorded) was $7.00 per hundredweight. Multiplying $7.00 by the shipment quantity of 33,606,000 hundredweight yields an annual crop revenue estimate of $235,242,000. The average annual fresh potato revenue for each of the 450 producers is therefore calculated to be $522,760 ($235,242,000 divided by 450), which is less than the Small Business Administration threshold of $750,000. Consequently, on average, a majority 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 free-on-board (f.o.b.) shipping point price for the 2015 Idaho potato crop was $7.47 per hundredweight. Multiplying $7.47 by the shipment quantity of 33,606,000 hundredweight yields an annual crop revenue estimate of $251,036,820. The average annual fresh potato revenue for each of the 32 handlers is therefore calculated to be $7,844,900 ($251,036,820 divided by 32), which is slightly more than the Small Business Administration threshold of $7,500,000. Given the likelihood that there may be several large handlers, some of the VerDate Sep<11>2014 15:59 Mar 20, 2017 Jkt 241001 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 2017–2018 and subsequent fiscal periods from $0.0025 to $0.002 per hundredweight of potatoes. The Committee unanimously recommended an assessment rate of $0.002 per hundredweight of potatoes for the 2017– 2018 fiscal period. The assessment rate of $0.002 per hundredweight is $0.0005 lower than the rate for the 2016–2017 fiscal period. The quantity of assessable potatoes for the 2017–2018 fiscal period is estimated at 32 million hundredweight. Thus, the $0.002 rate should provide $64,000 in assessment income. Income derived from handler assessments, along with other income, interest earned, and funds from the Committee’s authorized reserve, would be adequate to cover budgeted expenses. The Committee adopted a budget of $119,075 for the 2016–2017 fiscal period and expects to recommend a similar amount in budgeted expenditures for the 2017–2018 fiscal period at its next scheduled meeting in June 2017. The major budgeted expenditures for the 2016–2017 year include $68,638 for administrative expenses, $35,437 for travel/office expenses, and $15,000 for marketing order contingency. Budgeted expenses for these items in 2015–2016 were $64,901, $37,340, and $15,000, 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, 2017, is projected to be $158,275. Assessment income for the 2017–2018 fiscal period is estimated at $64,000, while expenses are estimated to be $119,075. The Committee anticipates compensating for the reduced assessment revenue with $5,100 from miscellaneous income, $100 from interest income, and $49,875 from its reserve fund. The reserve fund is projected to be under the maximum authorized level at the end of the 2017– 2018 fiscal period. The Committee discussed alternatives to this proposed change, including suspending assessments for one year, recommending 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 PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 14487 forward. The Committee debated between suspending assessments for one year and recommending the assessment rate be lowered to $0.002 per hundredweight of potatoes. Based on the market and shipping quantities, the Committee recommended the rate of $0.002 per hundredweight. The Committee believes this assessment rate, in combination with other income, interest earned, and funds utilized 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 2017 crop could range between $6.00 and $9.00 per hundredweight of potatoes. Therefore, the estimated assessment revenue for the 2017–2018 fiscal period as a percentage of total producer revenue could range between 0.022 and 0.033 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 9, 2016, 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 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 E:\FR\FM\21MRP1.SGM 21MRP1 14488 Federal Register / Vol. 82, No. 53 / Tuesday, March 21, 2017 / Proposed Rules 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/ rules-regulations/moa/small-businesses. Any questions about the compliance guide should be sent to Richard Lower 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 2017–2018 fiscal period begins on August 1, 2017, 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 2017–2018 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 1. The authority citation for 7 CFR part 945 continues to read as follows: mstockstill on DSK3G9T082PROD with PROPOSALS ■ 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, 2017, an assessment rate of $0.002 per hundredweight is established for IdahoEastern Oregon potatoes. VerDate Sep<11>2014 15:59 Mar 20, 2017 Jkt 241001 Dated: March 15, 2017. Bruce Summers, Acting Administrator, Agricultural Marketing Service. [FR Doc. 2017–05482 Filed 3–20–17; 8:45 am] BILLING CODE 3410–02–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 39 [Docket No. FAA–2017–0194; Directorate Identifier 2017–CE–006–AD] RIN 2120–AA64 Airworthiness Directives; PILATUS AIRCRAFT LTD. Airplanes Federal Aviation Administration (FAA), Department of Transportation (DOT). ACTION: Notice of proposed rulemaking (NPRM). AGENCY: We propose to adopt a new airworthiness directive (AD) for PILATUS AIRCRAFT LTD. Model PC– 12/47E airplanes. This proposed AD results from mandatory continuing airworthiness information (MCAI) originated by an aviation authority of another country to identify and correct an unsafe condition on an aviation product. The MCAI describes the unsafe condition as an error within the flight management system caused by installing Primus APEX software Build 10 or 10.9, which could cause deviation from the correctly calculated barometric vertical navigation nominal glide path. We are issuing this proposed AD to require actions to address the unsafe condition on these products. DATES: We must receive comments on this proposed AD by May 5, 2017. ADDRESSES: You may send comments by any of the following methods: • Federal eRulemaking Portal: Go to https://www.regulations.gov. Follow the instructions for submitting comments. • Fax: (202) 493–2251. • Mail: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590. • Hand Delivery: U.S. Department of Transportation, Docket Operations, M– 30, West Building Ground Floor, Room W12–140, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. For service information identified in this proposed AD, contact PILATUS AIRCRAFT LTD., Customer Support SUMMARY: PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 PC–12, CH–6371 Stans, Switzerland; phone: +41 41 619 33 33; fax: +41 41 619 73 11; email: SupportPC12@pilatusaircraft.com; Internet: www.pilatusaircraft.com. You may review this referenced service information at the FAA, Small Airplane Directorate, 901 Locust, Kansas City, Missouri 64106. For information on the availability of this material at the FAA, call (816) 329– 4148. Examining the AD Docket You may examine the AD docket on the Internet at https:// www.regulations.gov by searching for and locating Docket No. FAA–2017– 0194; or in person at the Docket Management Facility between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this proposed AD, the regulatory evaluation, any comments received, and other information. The street address for the Docket Office (telephone (800) 647–5527) is in the ADDRESSES section. Comments will be available in the AD docket shortly after receipt. FOR FURTHER INFORMATION CONTACT: Doug Rudolph, Aerospace Engineer, FAA, Small Airplane Directorate, 901 Locust, Room 301, Kansas City, Missouri 64106; telephone: (816) 329– 4059; fax: (816) 329–4090; email: doug.rudolph@faa.gov. SUPPLEMENTARY INFORMATION: Comments Invited We invite you to send any written relevant data, views, or arguments about this proposed AD. Send your comments to an address listed under the ADDRESSES section. Include ‘‘Docket No. FAA–2017–0194; Directorate Identifier 2017–CE–006–AD’’ at the beginning of your comments. We specifically invite comments on the overall regulatory, economic, environmental, and energy aspects of this proposed AD. We will consider all comments received by the closing date and may amend this proposed AD because of those comments. We will post all comments we receive, without change, to https:// regulations.gov, including any personal information you provide. We will also post a report summarizing each substantive verbal contact we receive about this proposed AD. Discussion The European Aviation Safety Agency (EASA), which is the Technical Agent for the Member States of the European Community, has issued EASA AD No. 2017–0024, dated February 13, 2017 (referred to after this as ‘‘the MCAI’’), to E:\FR\FM\21MRP1.SGM 21MRP1

Agencies

[Federal Register Volume 82, Number 53 (Tuesday, March 21, 2017)]
[Proposed Rules]
[Pages 14485-14488]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05482]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 945

[Doc. No. AMS-SC-16-0111; SC17-945-1 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 implement a recommendation from the
Idaho-Eastern Oregon Potato Committee (Committee) to decrease the
assessment rate established for the 2017-2018 and subsequent fiscal
periods from $0.0025 to $0.002 per hundredweight of potatoes handled.
The Committee locally administers the marketing order which regulates
the handling of potatoes grown in certain designated counties in 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 April 20, 2017.

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, Specialty Crops 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 14486]]

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: Barry Broadbent, Senior Marketing
Specialist, or Gary D. Olson, Regional Director, Northwest Marketing
Field Office, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or
Email: Barry.Broadbent@ams.usda.gov or GaryD.Olson@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202) 720-8938, or Email: Richard.Lower@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 Orders 12866, 13563, and 13175.
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, 2017, 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 2017-2018 and subsequent fiscal periods from
$0.0025 to $0.002 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 cover the
expenses of administering 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 2014-2015 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 9, 2016, to consider the Committee's
projected 2017-2018 financial requirements, the size of the Committee's
operating reserve, and the order's continuing assessment rate. The
Committee unanimously recommended an assessment rate of $0.002 per
hundredweight of potatoes for the 2017-2018 fiscal period. The
assessment rate of $0.002 is $0.0005 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 adopted a budget of $119,075 for the 2016-2017 fiscal
period. It expects to recommend a similar level of budgeted
expenditures for the 2017-2018 fiscal period at its next scheduled
meeting in June 2017. The Committee expects its budget for major
expenditures for the 2017-2018 fiscal period to be close to the
budgeted amounts for the 2016-2017 fiscal period. These expenditures
include $68,638 for administrative expenses, $35,437 for travel/office
expenses, and $15,000 for marketing order contingency.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Idaho-Eastern
Oregon potatoes. Potato shipments for 2017-2018 are estimated at 32
million hundredweight which should provide $64,000 in assessment income
at the proposed assessment rate. Income derived from handler
assessments, along with other income, interest earned, and funds from
the Committee's authorized reserve, would be adequate to cover budgeted
expenses. Funds in the reserve (projected to be $158,275 on July 31,
2017) 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 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 2017-2018 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

[[Page 14487]]

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 $7,500,000.
During the 2015-2016 fiscal period, the most recent full year of
statistics available, 33,606,000 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 2015 Idaho potato crop (the
most recent full marketing year recorded) was $7.00 per hundredweight.
Multiplying $7.00 by the shipment quantity of 33,606,000 hundredweight
yields an annual crop revenue estimate of $235,242,000. The average
annual fresh potato revenue for each of the 450 producers is therefore
calculated to be $522,760 ($235,242,000 divided by 450), which is less
than the Small Business Administration threshold of $750,000.
Consequently, on average, a majority 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 free-on-board (f.o.b.) shipping point price for
the 2015 Idaho potato crop was $7.47 per hundredweight. Multiplying
$7.47 by the shipment quantity of 33,606,000 hundredweight yields an
annual crop revenue estimate of $251,036,820. The average annual fresh
potato revenue for each of the 32 handlers is therefore calculated to
be $7,844,900 ($251,036,820 divided by 32), which is slightly more than
the Small Business Administration threshold of $7,500,000. Given the
likelihood that there may be several large handlers, some 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 2017-2018 and
subsequent fiscal periods from $0.0025 to $0.002 per hundredweight of
potatoes. The Committee unanimously recommended an assessment rate of
$0.002 per hundredweight of potatoes for the 2017-2018 fiscal period.
The assessment rate of $0.002 per hundredweight is $0.0005 lower than
the rate for the 2016-2017 fiscal period. The quantity of assessable
potatoes for the 2017-2018 fiscal period is estimated at 32 million
hundredweight. Thus, the $0.002 rate should provide $64,000 in
assessment income. Income derived from handler assessments, along with
other income, interest earned, and funds from the Committee's
authorized reserve, would be adequate to cover budgeted expenses.
The Committee adopted a budget of $119,075 for the 2016-2017 fiscal
period and expects to recommend a similar amount in budgeted
expenditures for the 2017-2018 fiscal period at its next scheduled
meeting in June 2017. The major budgeted expenditures for the 2016-2017
year include $68,638 for administrative expenses, $35,437 for travel/
office expenses, and $15,000 for marketing order contingency. Budgeted
expenses for these items in 2015-2016 were $64,901, $37,340, and
$15,000, 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, 2017, is projected to be
$158,275. Assessment income for the 2017-2018 fiscal period is
estimated at $64,000, while expenses are estimated to be $119,075. The
Committee anticipates compensating for the reduced assessment revenue
with $5,100 from miscellaneous income, $100 from interest income, and
$49,875 from its reserve fund. The reserve fund is projected to be
under the maximum authorized level at the end of the 2017-2018 fiscal
period.
The Committee discussed alternatives to this proposed change,
including suspending assessments for one year, recommending 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 suspending assessments for one year and
recommending the assessment rate be lowered to $0.002 per hundredweight
of potatoes. Based on the market and shipping quantities, the Committee
recommended the rate of $0.002 per hundredweight. The Committee
believes this assessment rate, in combination with other income,
interest earned, and funds utilized 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 2017 crop could range between $6.00 and $9.00 per
hundredweight of potatoes. Therefore, the estimated assessment revenue
for the 2017-2018 fiscal period as a percentage of total producer
revenue could range between 0.022 and 0.033 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 9, 2016, 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 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

[[Page 14488]]

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/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Richard Lower 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 2017-2018 fiscal period begins on August 1, 2017, 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 2017-2018 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, 2017, an assessment rate of $0.002 per
hundredweight is established for Idaho-Eastern Oregon potatoes.

Dated: March 15, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-05482 Filed 3-20-17; 8:45 am]
BILLING CODE 3410-02-P

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