Olives Grown in California; Decreased Assessment Rate, 14379-14381 [2018-06877]
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14379
Proposed Rules
Federal Register
Vol. 83, No. 65
Wednesday, April 4, 2018
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 932
[Doc. No. AMS–SC–18–0001; SC18–932–1
PR]
Olives Grown in California; Decreased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
California Olive Committee (Committee)
to decrease the assessment rate
established for the 2018 fiscal year and
subsequent fiscal years. The assessment
rate would remain in effect indefinitely
unless modified, suspended, or
terminated.
DATES: Comments must be received by
May 4, 2018.
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 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:
Peter Sommers, Marketing Specialist or
Jeffrey Smutny, Regional Director,
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SUMMARY:
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California Marketing Field Office,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (559) 487–
5901, Fax: (559) 487–5906, or Email:
PeterR.Sommers@ams.usda.gov or
Jeffrey.Smutny@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
action, pursuant to 5 U.S.C. 553,
proposes an amendment to regulations
issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed
rule is issued under Marketing
Agreement and Order No. 932, as
amended (7 CFR part 932), regulating
the handling of olives grown in
California. Part 932 (referred to as 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
Committee locally administers the
Order and is comprised of producers
and handlers of olives operating within
the area of production.
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Orders
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 proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the Order now in
effect, California olive handlers are
subject to assessments. Funds to
administer the Order are derived from
such assessments. It is intended that the
proposed assessment rate would be
applicable to all assessable olives
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Frm 00001
Fmt 4702
Sfmt 4702
beginning on January 1, 2018, 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 for the 2018 and
subsequent fiscal years from $26.00 to
$24.00 per ton of assessed olives.
The 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 olives in
California. 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
in a public meeting where all directly
affected persons have an opportunity to
participate and provide input in budget
matters.
For the 2015 and subsequent fiscal
years, the Committee recommended,
and USDA approved, an assessment rate
of $26.00 per ton of assessed olives.
That rate would continue in effect
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 December 13,
2017, and unanimously recommended
2018 expenditures of $1,940,477, and an
assessment rate of $24.00 per ton of
assessed olives. In comparison, last
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Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Proposed Rules
year’s budgeted expenditures were
$1,752,366. The proposed assessment
rate of $24.00 is $2.00 lower than the
rate currently in effect. Producer
receipts show a yield of 83,799 tons of
assessable olives from the 2017 crop
year. This is higher than the 2016 crop
year, which yielded 63,000 tons of
assessable olives. The 2018 fiscal year
assessment rate decrease is necessary to
ensure the Committee has sufficient
revenue to fund the recommended 2018
budgeted expenditures while ensuring
the funds in the financial reserve would
be kept within the maximum permitted
by § 932.40.
The Order has a fiscal year and a crop
year that are independent of each other.
The crop year is a 12-month period that
begins on August 1 of each year and
ends on July 31 of the following year.
The fiscal year is the 12-month period
that begins on January 1 and ends on
December 31 of each year. Olives are an
alternate-bearing crop, with a small crop
followed by a large crop. For this
assessment rate proposed rule, the
actual 2017 crop year receipts are used
to determine the assessment rate for the
2018 fiscal year.
The major expenditures
recommended by the Committee for
2018 includes $401,200 for program
administration, $973,500 for marketing
activities, and $297,777 for research.
Budgeted expenses for these items
during the 2017 fiscal year were
$513,100 for program administration,
$823,500 for marketing activities, and
$317,766 for research. The assessment
rate recommended by the Committee
resulted from consideration of
anticipated fiscal year expenses, actual
olive tonnage received by handers
during the 2017 crop year, and the
amount in the Committee’s financial
reserve.
Income derived from handler
assessments, along with interest income
and funds from the Committee’s
authorized reserve will be adequate to
cover budgeted expenses. Funds in the
reserve will be kept within the
maximum permitted by the Order of
approximately one fiscal year’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 year to
recommend a budget of expenses and
consider recommendations for
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17:08 Apr 03, 2018
Jkt 244001
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 budget for subsequent
fiscal years 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 1,100
producers of olives in the production
area and two handlers subject to
regulation under the Order. Small
agricultural producers are defined by
the Small Business Administration
(SBA) 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 (13 CFR 121.201).
Based upon National Agricultural
Statistics Service (NASS) information,
the average price to producers for the
2016 crop year was $865.00 per ton, and
total assessable volume for the 2017
crop year was 83,799 tons. Based on
production, price paid to producer, and
the total number of California olive
producers, the average annual producer
revenue is less than $750,000 ($865.00
times 83,799 equals $72,486,135,
divided by 1,100 producers equals an
average annual producer revenue of
$65,896). Thus, the majority of olive
producers may be classified as small
entities. Both of the handlers may be
classified as large entities under the
SBA’s definitions because of their
annual receipts are greater than
$7,500,000.
This proposal would decrease the
assessment rate collected from handlers
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Frm 00002
Fmt 4702
Sfmt 4702
for the 2018 and subsequent fiscal years
from $26.00 to $24.00 per ton of
assessable olives. The Committee
unanimously recommended 2018
expenditures of $1,940,477 and an
assessment rate of $24.00 per ton of
assessable olives. The recommended
assessment rate of $24.00 is $2.00 lower
than the 2017 rate. The quantity of
assessable olives for the 2017 crop year
is 83,799 tons. Thus, the $24.00 rate
should provide $2,011,176. The lower
assessment rate is possible because
annual receipts for the 2017 crop year
are 83,799 tons compared to 63,000 tons
for the 2016 crop year. Olives are an
alternate-bearing crop, with a small crop
followed by a large crop. Income
derived from the $24.00 per ton
assessment rate, along with funds from
the authorized reserve and interest
income, should be adequate to meet this
fiscal year’s expenses.
The major expenditures
recommended by the Committee for the
2018 fiscal year include $401,200 for
program administration, $973,500 for
marketing activities, and $297,777 for
research. Budgeted expenses for these
items during the 2017 fiscal year were
$513,100 for program administration,
$823,500 for marketing activities, and
$317,766 for research.
The Committee deliberated on many
of the expenses, weighed the relative
value of various programs or projects,
and increased their expenses for
marketing and research activities. The
Committee decreased their inspection
costs because expenses incurred in
previous years towards the development
of electronic reporting and optical sizing
projects have been completed and, as a
result, the industry is able to utilize
new, cost saving procedures.
Prior to arriving at this budget and
assessment rate, the Committee
considered information from various
sources including the Committee’s
Executive, Marketing, Inspection, and
Research Subcommittees. Alternate
expenditure levels were discussed by
these groups, based upon the relative
value of various projects to the olive
industry and the increased olive
production. The assessment rate of
$24.00 per ton of assessable olives was
derived by considering anticipated
expenses, the volume of assessable
olives, and additional pertinent factors.
A review of NASS information
indicates that the average producer
price for the 2016 crop year was $865.00
per ton. Therefore, utilizing the
assessment rate of $24.00 per ton, the
assessment revenue for the 2018 fiscal
year as a percentage of total producer
revenue would be approximately 2.77
percent.
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Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Proposed Rules
This action would decrease the
assessment rate collected from handlers
for the 2018 and subsequent fiscal years.
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
production area. The olive industry and
all interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the
December 13, 2017, 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 information collection
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 OMB and
assigned OMB No. 0581–0178. 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
California olive 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/
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. All written
comments timely received will be
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17:08 Apr 03, 2018
Jkt 244001
considered before a final determination
is made on this rule.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 932 is proposed to
be amended as follows:
PART 932—OLIVES GROWN IN
CALIFORNIA
1. The authority citation for 7 CFR
part 932 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 932.230 is revised to read
as follows:
■
§ 932.230
Assessment rate.
On and after January 1, 2018, an
assessment rate of $24.00 per ton is
established for California olives.
Dated: March 30, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–06877 Filed 4–3–18; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[Docket Number USCG–2018–0088]
RIN 1625–AA08
Special Local Regulation; Tred Avon
River, Between Bellevue, MD and
Oxford, MD
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Coast Guard proposes to
establish special local regulations for
certain waters of the Tred Avon River.
This action is necessary to provide for
the safety of life on the navigable waters
located between Bellevue, MD, and
Oxford, MD, during a swim event on
June 9, 2018. If necessary, due to
inclement weather, the event will be
rescheduled to June 10, 2018. This
proposed rulemaking would prohibit
persons and vessels from entering the
regulated area unless authorized by the
Captain of the Port Maryland-National
Capital Region or the Coast Guard Patrol
Commander. We invite your comments
on this proposed rulemaking.
DATES: Comments and related material
must be received by the Coast Guard on
or before May 4, 2018.
SUMMARY:
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
14381
You may submit comments
identified by docket number USCG–
2018–0088 using the Federal
eRulemaking Portal at https://
www.regulations.gov. See the ‘‘Public
Participation and Request for
Comments’’ portion of the
SUPPLEMENTARY INFORMATION section for
further instructions on submitting
comments.
FOR FURTHER INFORMATION CONTACT: If
you have questions about this proposed
rulemaking, call or email Mr. Ronald
Houck, U.S. Coast Guard Sector
Maryland-National Capital Region;
telephone 410–576–2674, email
Ronald.L.Houck@uscg.mil.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
I. Table of Abbreviations
CFR Code of Federal Regulations
COTP Captain of the Port
DHS Department of Homeland Security
E.O. Executive Order
FR Federal Register
NPRM Notice of proposed rulemaking
§ Section
U.S.C. United States Code
II. Background, Purpose, and Legal
Basis
On June 13, 2017, Charcot-MarieTooth Association of Trappe, MD,
notified the Coast Guard that it will be
conducting the swim portion of the
Oxford Biathlon from 9:15 a.m. until
10:15 a.m. on June 9, 2018, and if
necessary, due to inclement weather,
from 9:15 a.m. until 10:15 a.m. on June
10, 2018. The swim consists of
approximately 30 participants
competing on a designated 1300-meter
course that starts at the ferry dock at
Bellevue, MD and finishes at the Tred
Avon Yacht Club at Oxford, MD.
Hazards from the swim competition
include participants swimming within
and adjacent to the designated
navigation channel and interfering with
vessels intending to operate within that
channel, as well as swimming within
approaches to public and private
marinas and public boat facilities. The
COTP Maryland-National Capital
Region has determined that potential
hazards associated with the swim would
be a safety concern for anyone intending
to participate in this event or for vessels
that operate within specified waters of
the Tred Avon River between Bellevue,
MD, and Oxford, MD.
The purpose of this rulemaking is to
protect event participants, spectators
and transiting vessels on specified
waters of the Tred Avon River before,
during, and after the scheduled event.
The Coast Guard proposes this
rulemaking under authority in 33 U.S.C.
1233, which authorize the Coast Guard
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Agencies
[Federal Register Volume 83, Number 65 (Wednesday, April 4, 2018)]
[Proposed Rules]
[Pages 14379-14381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06877]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
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.
========================================================================
Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 /
Proposed Rules
[[Page 14379]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Doc. No. AMS-SC-18-0001; SC18-932-1 PR]
Olives Grown in California; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
California Olive Committee (Committee) to decrease the assessment rate
established for the 2018 fiscal year and subsequent fiscal years. The
assessment rate would remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by May 4, 2018.
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 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: Peter Sommers, Marketing Specialist or
Jeffrey Smutny, Regional Director, California Marketing Field Office,
Marketing Order and Agreement Division, Specialty Crops Program, AMS,
USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email:
[email protected] or [email protected].
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: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This proposed rule is issued under
Marketing Agreement and Order No. 932, as amended (7 CFR part 932),
regulating the handling of olives grown in California. Part 932
(referred to as 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 Committee locally
administers the Order and is comprised of producers and handlers of
olives operating within the area of production.
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Orders 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 proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the Order now in effect, California olive
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the proposed
assessment rate would be applicable to all assessable olives beginning
on January 1, 2018, 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 for the 2018
and subsequent fiscal years from $26.00 to $24.00 per ton of assessed
olives.
The 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 olives in California. 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 in a public meeting where all directly affected persons have
an opportunity to participate and provide input in budget matters.
For the 2015 and subsequent fiscal years, the Committee
recommended, and USDA approved, an assessment rate of $26.00 per ton of
assessed olives. That rate would continue in effect 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 December 13, 2017, and unanimously recommended
2018 expenditures of $1,940,477, and an assessment rate of $24.00 per
ton of assessed olives. In comparison, last
[[Page 14380]]
year's budgeted expenditures were $1,752,366. The proposed assessment
rate of $24.00 is $2.00 lower than the rate currently in effect.
Producer receipts show a yield of 83,799 tons of assessable olives from
the 2017 crop year. This is higher than the 2016 crop year, which
yielded 63,000 tons of assessable olives. The 2018 fiscal year
assessment rate decrease is necessary to ensure the Committee has
sufficient revenue to fund the recommended 2018 budgeted expenditures
while ensuring the funds in the financial reserve would be kept within
the maximum permitted by Sec. 932.40.
The Order has a fiscal year and a crop year that are independent of
each other. The crop year is a 12-month period that begins on August 1
of each year and ends on July 31 of the following year. The fiscal year
is the 12-month period that begins on January 1 and ends on December 31
of each year. Olives are an alternate-bearing crop, with a small crop
followed by a large crop. For this assessment rate proposed rule, the
actual 2017 crop year receipts are used to determine the assessment
rate for the 2018 fiscal year.
The major expenditures recommended by the Committee for 2018
includes $401,200 for program administration, $973,500 for marketing
activities, and $297,777 for research. Budgeted expenses for these
items during the 2017 fiscal year were $513,100 for program
administration, $823,500 for marketing activities, and $317,766 for
research. The assessment rate recommended by the Committee resulted
from consideration of anticipated fiscal year expenses, actual olive
tonnage received by handers during the 2017 crop year, and the amount
in the Committee's financial reserve.
Income derived from handler assessments, along with interest income
and funds from the Committee's authorized reserve will be adequate to
cover budgeted expenses. Funds in the reserve will be kept within the
maximum permitted by the Order of approximately one fiscal year'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 year 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 budget for subsequent
fiscal years 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 1,100 producers of olives in the production
area and two handlers subject to regulation under the Order. Small
agricultural producers are defined by the Small Business Administration
(SBA) 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 (13 CFR 121.201). Based upon National
Agricultural Statistics Service (NASS) information, the average price
to producers for the 2016 crop year was $865.00 per ton, and total
assessable volume for the 2017 crop year was 83,799 tons. Based on
production, price paid to producer, and the total number of California
olive producers, the average annual producer revenue is less than
$750,000 ($865.00 times 83,799 equals $72,486,135, divided by 1,100
producers equals an average annual producer revenue of $65,896). Thus,
the majority of olive producers may be classified as small entities.
Both of the handlers may be classified as large entities under the
SBA's definitions because of their annual receipts are greater than
$7,500,000.
This proposal would decrease the assessment rate collected from
handlers for the 2018 and subsequent fiscal years from $26.00 to $24.00
per ton of assessable olives. The Committee unanimously recommended
2018 expenditures of $1,940,477 and an assessment rate of $24.00 per
ton of assessable olives. The recommended assessment rate of $24.00 is
$2.00 lower than the 2017 rate. The quantity of assessable olives for
the 2017 crop year is 83,799 tons. Thus, the $24.00 rate should provide
$2,011,176. The lower assessment rate is possible because annual
receipts for the 2017 crop year are 83,799 tons compared to 63,000 tons
for the 2016 crop year. Olives are an alternate-bearing crop, with a
small crop followed by a large crop. Income derived from the $24.00 per
ton assessment rate, along with funds from the authorized reserve and
interest income, should be adequate to meet this fiscal year's
expenses.
The major expenditures recommended by the Committee for the 2018
fiscal year include $401,200 for program administration, $973,500 for
marketing activities, and $297,777 for research. Budgeted expenses for
these items during the 2017 fiscal year were $513,100 for program
administration, $823,500 for marketing activities, and $317,766 for
research.
The Committee deliberated on many of the expenses, weighed the
relative value of various programs or projects, and increased their
expenses for marketing and research activities. The Committee decreased
their inspection costs because expenses incurred in previous years
towards the development of electronic reporting and optical sizing
projects have been completed and, as a result, the industry is able to
utilize new, cost saving procedures.
Prior to arriving at this budget and assessment rate, the Committee
considered information from various sources including the Committee's
Executive, Marketing, Inspection, and Research Subcommittees. Alternate
expenditure levels were discussed by these groups, based upon the
relative value of various projects to the olive industry and the
increased olive production. The assessment rate of $24.00 per ton of
assessable olives was derived by considering anticipated expenses, the
volume of assessable olives, and additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2016 crop year was $865.00 per ton. Therefore, utilizing
the assessment rate of $24.00 per ton, the assessment revenue for the
2018 fiscal year as a percentage of total producer revenue would be
approximately 2.77 percent.
[[Page 14381]]
This action would decrease the assessment rate collected from
handlers for the 2018 and subsequent fiscal years. 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 production area. The olive industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the December
13, 2017, 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 information collection 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 OMB and assigned OMB No. 0581-0178. 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 California olive
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/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. All written comments timely received
will be considered before a final determination is made on this rule.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 932 is
proposed to be amended as follows:
PART 932--OLIVES GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 932 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 932.230 is revised to read as follows:
Sec. 932.230 Assessment rate.
On and after January 1, 2018, an assessment rate of $24.00 per ton
is established for California olives.
Dated: March 30, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-06877 Filed 4-3-18; 8:45 am]
BILLING CODE 3410-02-P