Irish Potatoes Grown in Certain Designated Counties in Idaho, and Malheur County, Oregon; Decreased Assessment Rate, 28550-28552 [2017-13174]
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Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Rules and Regulations
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[FR Doc. 2017–13056 Filed 6–22–17; 8:45 am]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Doc. No. AMS–SC–16–0111; SC17–945–1
FR]
Irish Potatoes Grown in Certain
Designated Counties in Idaho, and
Malheur County, Oregon; Decreased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements 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 will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective August 1, 2017.
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 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
SUMMARY:
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of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this final rule in
conformance with Executive Orders
12866, 13771, 13563, and 13175.
This action falls within a category of
regulatory actions that the Office of
Management and Budget (OMB)
exempted from Executive Order 12866
review. Additionally, because this rule
does not meet the definition of a
significant regulatory action it does not
trigger the requirements contained in
Executive Order 13771. See OMB’s
Memorandum titled ‘‘Interim Guidance
Implementing Section 2 of the Executive
Order of January 30, 2017 titled
‘Reducing Regulation and Controlling
Regulatory Costs’ ’’ (February 2, 2017).
This final 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 established herein
will 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 rule decreases 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 handled.
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
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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 of $0.0025 per
hundredweight of potatoes 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, will be adequate to cover
budgeted expenses. Funds in the reserve
(projected to be $158,275 on July 31,
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2017) are expected to be reduced to
comply with the maximum permitted by
the order of approximately one fiscal
period’s expenses.
The assessment rate will continue in
effect indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate will be
in effect for an indefinite period, the
Committee will continue to meet prior
to or during each fiscal period to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA will evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
Committee’s 2017–2018 budget, and
those for subsequent fiscal periods, will
be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
rule on small entities. Accordingly,
AMS has prepared this final 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
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28551
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 rule decreases 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 handled. 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, will 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
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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 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, will
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 decreases the assessment
obligation imposed on handlers.
Assessments are applied uniformly on
all handlers, and some of the costs may
be passed on to producers. However,
decreasing the assessment rate will
reduce the burden on handlers, and may
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reduce the burden on producers. In
addition, the Committee’s meeting was
widely publicized throughout the IdahoEastern 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.
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 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 rule imposes 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. As
noted in the initial regulatory flexibility
analysis, USDA has not identified any
relevant Federal rules that duplicate,
overlap, or conflict with this final rule.
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.
A proposed rule concerning this
action was published in the Federal
Register on March 21, 2017 (82 FR
14485). Copies of the proposed rule
were also mailed or sent via facsimile to
all Idaho-E. Oregon potato handlers.
Finally, the proposal was made
available through the internet by USDA
and the Office of the Federal Register. A
30-day comment period ending April
20, 2017, was provided for interested
persons to respond to the proposal.
Two comments were received during
the comment period in response to the
proposal. Both comments were received
from outside of the regulated production
area. One comment supported the
proposed assessment decrease. The
other comment did not support the
proposal, however, it did not address
the merits of the proposed rule.
Accordingly, no changes have been
made to the rule as proposed, based on
the comments received.
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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.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
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 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, 2017, an
assessment rate of $0.002 per
hundredweight is established for IdahoEastern Oregon potatoes.
Dated: June 20, 2017.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2017–13174 Filed 6–22–17; 8:45 am]
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Notice of deviation from
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[Federal Register Volume 82, Number 120 (Friday, June 23, 2017)]
[Rules and Regulations]
[Pages 28550-28552]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13174]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Doc. No. AMS-SC-16-0111; SC17-945-1 FR]
Irish Potatoes Grown in Certain Designated Counties in Idaho, and
Malheur County, Oregon; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements 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
will remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective August 1, 2017.
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 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 final rule in
conformance with Executive Orders 12866, 13771, 13563, and 13175.
This action falls within a category of regulatory actions that the
Office of Management and Budget (OMB) exempted from Executive Order
12866 review. Additionally, because this rule does not meet the
definition of a significant regulatory action it does not trigger the
requirements contained in Executive Order 13771. See OMB's Memorandum
titled ``Interim Guidance Implementing Section 2 of the Executive Order
of January 30, 2017 titled `Reducing Regulation and Controlling
Regulatory Costs'[thinsp]'' (February 2, 2017).
This final 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 established herein will 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 rule decreases 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 handled.
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
[[Page 28551]]
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 of $0.0025 per
hundredweight of potatoes 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, will be adequate to cover budgeted
expenses. Funds in the reserve (projected to be $158,275 on July 31,
2017) are expected to be reduced to comply with the maximum permitted
by the order of approximately one fiscal period's expenses.
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by USDA upon recommendation and
information submitted by the Committee or other available information.
Although this assessment rate will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2017-2018 budget, and those
for subsequent fiscal periods, will be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this rule on small entities.
Accordingly, AMS has prepared this final 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 rule decreases 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
handled. 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, will 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
[[Page 28552]]
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 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, will 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 decreases the assessment obligation imposed on
handlers. Assessments are applied uniformly on all handlers, and some
of the costs may be passed on to producers. However, decreasing the
assessment rate will 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.
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 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 rule imposes 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. As noted in the
initial regulatory flexibility analysis, USDA has not identified any
relevant Federal rules that duplicate, overlap, or conflict with this
final rule.
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.
A proposed rule concerning this action was published in the Federal
Register on March 21, 2017 (82 FR 14485). Copies of the proposed rule
were also mailed or sent via facsimile to all Idaho-E. Oregon potato
handlers. Finally, the proposal was made available through the internet
by USDA and the Office of the Federal Register. A 30-day comment period
ending April 20, 2017, was provided for interested persons to respond
to the proposal.
Two comments were received during the comment period in response to
the proposal. Both comments were received from outside of the regulated
production area. One comment supported the proposed assessment
decrease. The other comment did not support the proposal, however, it
did not address the merits of the proposed rule. Accordingly, no
changes have been made to the rule as proposed, based on the comments
received.
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.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
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
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: June 20, 2017.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2017-13174 Filed 6-22-17; 8:45 am]
BILLING CODE 3410-02-P