Pears Grown in Oregon and Washington; Decreased Assessment Rate for Processed Pears, 46119-46121 [2018-19683]
Download as PDF
<![CDATA[
46119
Proposed Rules
Federal Register
Vol. 83, No. 177
Wednesday, September 12, 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 927
[Doc. No. AMS–SC–18–0049; SC18–927–2
PR]
Pears Grown in Oregon and
Washington; Decreased Assessment
Rate for Processed Pears
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Processed Pear Committee (Committee)
to decrease the assessment rate
established for ‘‘summer/fall’’ varieties
of pears for canning for the 2018–2019
and subsequent fiscal periods. The
assessment rate would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
October 12, 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 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.
daltland on DSKBBV9HB2PROD with PROPOSALS
SUMMARY:
VerDate Sep<11>2014
16:21 Sep 11, 2018
Jkt 244001
Dale
Novotny, Marketing Specialist, or Gary
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: DaleJ.Novotny@
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
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 Order
No. 927, as amended (7 CFR part 927),
regulating the handling of pears grown
in Oregon and Washington. Part 927,
(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 growers, handlers, and processors
operating within the area of production,
and a public member.
The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Orders
13563 and 13175. This proposed rule
falls within a category of regulatory
actions that the Office of Management
and Budget (OMB) exempted from
Executive Order 12866 review.
Additionally, because this proposed
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, Oregon and Washington pear
handlers are subject to assessments.
Funds to administer the Order are
derived from such assessments. It is
FOR FURTHER INFORMATION CONTACT:
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
intended that the assessment rate would
be applicable to all assessable ‘‘summer/
fall’’ varieties of pears specifically used
for canning for the 2018–2019 fiscal
period, 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.
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
Committee members are familiar with
the Committee’s needs and with the
costs of goods and services in their local
area and are in a position to formulate
an appropriate budget and assessment
rate. The assessment rate is formulated
and discussed in a public meeting
where all directly affected persons have
an opportunity to participate and
provide input.
This proposed rule would decrease
the assessment rate from $8.00, the rate
that was established for the 2017–2018
and subsequent fiscal periods, to $7.15
per ton of ‘‘summer/fall’’ varieties of
pears for canning handled for the 2018–
2019 and subsequent fiscal periods. The
assessment rate for ‘‘winter’’ and
‘‘other’’ pears for processing would
remain unchanged at $0.00. The
Committee met on May 30, 2018, and
unanimously recommended 2018–2019
fiscal period expenditures of $693,472.
In comparison, last year’s budgeted
expenditures were $800,150. The
Committee also unanimously
recommended an assessment rate of
$7.15 per ton of ‘‘summer/fall’’ varieties
E:\FR\FM\12SEP1.SGM
12SEP1
daltland on DSKBBV9HB2PROD with PROPOSALS
46120
Federal Register / Vol. 83, No. 177 / Wednesday, September 12, 2018 / Proposed Rules
of pears for canning handled. The
proposed assessment rate of $7.15 per
ton is $0.85 lower than the $8.00 per ton
rate currently in effect. The Committee
recommended the lower assessment rate
to balance assessment revenue with its
budgeted expenditures and to maintain
its monetary reserve at levels authorized
in the Order.
The major expenditures
recommended by the Committee for the
2018–2019 fiscal period include
$495,000 for promotion and paid
advertising, $136,172 for research,
$15,000 for market access programs,
$25,000 for administrative and
management services, and $22,300 for
Committee expenses. In comparison,
these major expense categories for the
2017–2018 fiscal period were budgeted
at $591,030, $147,694, $14,576, $25,000,
and $21,850; respectively.
The assessment rate recommended by
the Committee was derived by
considering anticipated expenses,
expected shipments, and the amount of
funds available in the authorized
reserve. The quantity of assessable
‘‘summer/fall’’ pears for canning for the
2018–2019 fiscal period is estimated at
100,000 tons. Thus, the proposed $7.15
per ton should provide handler
assessments of $715,000. This amount
would be adequate to cover budgeted
expenses of $693,472, with any excess
funds used to make a small contribution
to the Committee’s monetary reserve.
Funds in the reserve (currently
$497,565) would be kept within the
maximum permitted by § 927.42(a) of
approximately one fiscal period’s
expenses.
The assessment rate proposed in this
rule 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 budget for subsequent
VerDate Sep<11>2014
16:21 Sep 11, 2018
Jkt 244001
fiscal periods would be reviewed and,
as appropriate, approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
proposed rule on small entities.
Accordingly, AMS has prepared this
initial regulatory flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 1,500
growers of pears for processing in the
production area and approximately 43
handlers of processed pears 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).
According to data from USDA
National Agricultural Statistics Service
(NASS), the Committee, and the
industry for the 2016–2017 season (the
most recent complete season of record)
the average f.o.b. price for OregonWashington processed Bartlett pears
(the only variety used for canning in the
production area) was approximately
$390.50 per ton. Total shipments for
that period were approximately 103,020
tons. Using the number of handlers, and
assuming a normal distribution, the
majority of handlers would have average
annual receipts of less than $7,500,000
($390.50 per ton times 103,020 tons
equals $40,229,310 divided by 43
handlers equals $935,565 per handler).
In addition, based on data from the
Committee, the industry produced
103,020 tons of processed pears in the
production area during the 2016–2017
season, with an average grower price of
$360 per ton. Based on the average
grower price, production, and the total
number of Oregon-Washington
processed pear growers reported by the
Committee (1,500), and assuming a
normal distribution, the average annual
grower revenue is below $750,000 ($360
per ton times 103,020 tons equals
$37,087,200 divided by 1,500 growers
equals $24,725 per grower). Thus, the
majority of Oregon and Washington
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
processed pear handlers and growers
may be classified as small entities.
This proposal would decrease the
assessment rate collected from handlers
for the 2018–2019 and subsequent fiscal
periods from $8.00 per ton to $7.15 per
ton of Oregon and Washington
‘‘summer/fall’’ pears for canning
handled. The Committee unanimously
recommended 2018–2019 fiscal period
expenditures of $693,472 and the $7.15
per ton assessment rate. The proposed
assessment rate of $7.15 per ton is $0.85
lower than the rate in effect for the
2017–2018 fiscal period. The quantity of
assessable ‘‘summer/fall’’ pears for
canning for the 2018–2019 fiscal period
is estimated at 100,000 tons. Thus, the
proposed $7.15 per ton rate should
provide $715,000 in assessment income.
Income derived from handler
assessments should be adequate to cover
budgeted expenses, with any excess
funds to be carried over in the
Committee’s monetary reserve to be
used in subsequent years.
The major expenditures
recommended by the Committee for the
2018–2019 fiscal period include
$495,000 for promotion and paid
advertising, $136,172 for research,
$15,000 for market access programs,
$25,000 for administrative and
management services, and $22,300 for
Committee expenses. In comparison,
these major expense categories for the
2017–2018 fiscal period were budgeted
at $591,030, $147,694, $14,576, $25,000,
and $21,850, respectively.
The proposed lower assessment rate is
necessary to balance assessment
revenue with the Committee’s 2018–
2019 fiscal period budgeted
expenditures and to maintain its
monetary reserve at levels authorized in
the Order.
Prior to arriving at this budget and
assessment rate, the Committee
considered the benefits and costs related
to maintaining the current assessment
rate of $8.00 per ton and establishing
other assessment rates. However,
leaving the assessment rate unchanged
would generate more revenue than
required to meet the Committee’s 2018–
2019 fiscal period budgeted expenses of
$693,472, and would add a large
amount of excess funds to the
Committee’s already sufficient monetary
reserve. Based on estimated shipments,
the recommended assessment rate of
$7.15 per ton should provide $715,000
in assessment income. The Committee
determined assessment revenue would
be adequate to fully cover budgeted
expenditures for the 2018–2019 fiscal
period, with a small amount of excess
funds to be added to the Committee’s
monetary reserve. Reserve funds would
E:\FR\FM\12SEP1.SGM
12SEP1
daltland on DSKBBV9HB2PROD with PROPOSALS
Federal Register / Vol. 83, No. 177 / Wednesday, September 12, 2018 / Proposed Rules
be kept within the amount authorized in
the Order.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal year indicates that
the average grower price for the 2018–
2019 season should be approximately
$296 per ton of pears for processing.
Therefore, the estimated assessment
revenue for the 2018–2019 fiscal period
as a percentage of total grower revenue
would be about 2.4 percent ($7.15 per
ton assessment divided by $296 per ton
grower price).
This proposed action would decrease
the assessment obligation imposed on
handlers for the 2018–2019 and
subsequent fiscal periods. 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.
The Committee’s meetings were
widely publicized throughout the
Oregon and Washington processed pear
industry. All interested persons were
invited to attend the meetings and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the May 30, 2018, 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. 0581–0189. No
changes in those requirements would be
necessary because of this action. Should
any changes become necessary, they
would be submitted to OMB for
approval.
This proposed rule would not impose
any additional reporting or
recordkeeping requirements on either
small or large Oregon and Washington
processed pear 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
16:21 Sep 11, 2018
Jkt 244001
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this proposed rule.
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.
46121
[Docket No. FDA–2017–N–6924]
The Food and Drug
Administration (FDA, the Agency, or
we) is proposing to repeal a regulation
that requires an FDA-approved new
drug application (NDA) or abbreviated
new drug application (ANDA) for any
drug product that is sterilized by
irradiation (the irradiation regulation).
Repealing the irradiation regulation
would mean that over-the-counter
(OTC) drug products that are generally
recognized as safe and effective, that are
not misbranded, and that comply with
all applicable regulatory requirements
can be marketed legally without an NDA
or ANDA, even if they are sterilized by
irradiation. FDA is proposing to take
this action because the irradiation
regulation is out of date and
unnecessary. The technology of
controlled nuclear radiation for
sterilization of drugs is now well
understood, and our regulations require
that OTC drugs be manufactured in
compliance with current good
manufacturing practices (CGMPs).
Appropriate and effective sterilization
of drugs, including by irradiation, is
adequately addressed by the CGMP
requirements. This action is part of
FDA’s implementation of Executive
Orders (EOs) 13771 and 13777. Under
these EOs, FDA is comprehensively
reviewing existing regulations to
identify opportunities for repeal,
replacement, or modification that will
result in meaningful burden reduction
while allowing the Agency to achieve
our public health mission and fulfill
statutory obligations.
DATES: Submit either electronic or
written comments on the proposed rule
by November 13, 2018.
ADDRESSES: You may submit comments
as follows. Please note that late,
untimely filed comments will not be
considered. Electronic comments must
be submitted on or before November 13,
2018. The https://www.regulations.gov
electronic filing system will accept
comments until midnight Eastern Time
at the end of November 13, 2018.
Comments received by mail/hand
delivery/courier (for written/paper
submissions) will be considered timely
if they are postmarked or the delivery
service acceptance receipt is on or
before that date.
RIN 0910–AH47
Electronic Submissions
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 927 is proposed to
be amended as follows:
PART 927—PEARS GROWN IN
OREGON AND WASHINGTON
1. The authority citation for 7 CFR
part 927 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 927.237 revise the intro
paragraph text and paragraph (a) to read
as follows:
■
§ 927.237
Assessment rate.
On and after July 1, 2018, the
following base rates of assessment for
pears for processing are established for
the Processed Pear Committee:
(a) $7.15 per ton for any or all
varieties or subvarieties of pears for
canning classified as ‘‘summer/fall’’
excluding pears for other methods of
processing;
*
*
*
*
*
Dated: September 6, 2018.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–19683 Filed 9–11–18; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Part 310
Repeal of Regulation Requiring an
Approved New Drug Application for
Drugs Sterilized by Irradiation
AGENCY:
Food and Drug Administration,
HHS.
ACTION:
PO 00000
Proposed rule.
Frm 00003
Fmt 4702
Sfmt 4702
SUMMARY:
Submit electronic comments in the
following way:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Comments submitted electronically,
including attachments, to https://
www.regulations.gov will be posted to
E:\FR\FM\12SEP1.SGM
12SEP1
]]>Agencies
[Federal Register Volume 83, Number 177 (Wednesday, September 12, 2018)]
[Proposed Rules]
[Pages 46119-46121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19683]
========================================================================
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. 177 / Wednesday, September 12, 2018 /
Proposed Rules
[[Page 46119]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS-SC-18-0049; SC18-927-2 PR]
Pears Grown in Oregon and Washington; Decreased Assessment Rate
for Processed Pears
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Processed Pear Committee (Committee) to decrease the assessment rate
established for ``summer/fall'' varieties of pears for canning for the
2018-2019 and subsequent fiscal periods. The assessment rate would
remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Comments must be received by October 12, 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 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: Dale Novotny, Marketing Specialist, or
Gary 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:
[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 Order No. 927, as amended (7 CFR part 927), regulating the
handling of pears grown in Oregon and Washington. Part 927, (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 growers, handlers, and processors operating within
the area of production, and a public member.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 13563 and 13175. This proposed
rule falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Order 12866 review.
Additionally, because this proposed 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, Oregon and
Washington pear handlers are subject to assessments. Funds to
administer the Order are derived from such assessments. It is intended
that the assessment rate would be applicable to all assessable
``summer/fall'' varieties of pears specifically used for canning for
the 2018-2019 fiscal period, 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.
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 Committee
members are familiar with the Committee's needs and with the costs of
goods and services in their local area and are in a position to
formulate an appropriate budget and assessment rate. The assessment
rate is formulated and discussed in a public meeting where all directly
affected persons have an opportunity to participate and provide input.
This proposed rule would decrease the assessment rate from $8.00,
the rate that was established for the 2017-2018 and subsequent fiscal
periods, to $7.15 per ton of ``summer/fall'' varieties of pears for
canning handled for the 2018-2019 and subsequent fiscal periods. The
assessment rate for ``winter'' and ``other'' pears for processing would
remain unchanged at $0.00. The Committee met on May 30, 2018, and
unanimously recommended 2018-2019 fiscal period expenditures of
$693,472. In comparison, last year's budgeted expenditures were
$800,150. The Committee also unanimously recommended an assessment rate
of $7.15 per ton of ``summer/fall'' varieties
[[Page 46120]]
of pears for canning handled. The proposed assessment rate of $7.15 per
ton is $0.85 lower than the $8.00 per ton rate currently in effect. The
Committee recommended the lower assessment rate to balance assessment
revenue with its budgeted expenditures and to maintain its monetary
reserve at levels authorized in the Order.
The major expenditures recommended by the Committee for the 2018-
2019 fiscal period include $495,000 for promotion and paid advertising,
$136,172 for research, $15,000 for market access programs, $25,000 for
administrative and management services, and $22,300 for Committee
expenses. In comparison, these major expense categories for the 2017-
2018 fiscal period were budgeted at $591,030, $147,694, $14,576,
$25,000, and $21,850; respectively.
The assessment rate recommended by the Committee was derived by
considering anticipated expenses, expected shipments, and the amount of
funds available in the authorized reserve. The quantity of assessable
``summer/fall'' pears for canning for the 2018-2019 fiscal period is
estimated at 100,000 tons. Thus, the proposed $7.15 per ton should
provide handler assessments of $715,000. This amount would be adequate
to cover budgeted expenses of $693,472, with any excess funds used to
make a small contribution to the Committee's monetary reserve. Funds in
the reserve (currently $497,565) would be kept within the maximum
permitted by Sec. 927.42(a) of approximately one fiscal period's
expenses.
The assessment rate proposed in this rule 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 budget for subsequent
fiscal periods would be reviewed and, as appropriate, approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this proposed rule on small
entities. Accordingly, AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 1,500 growers of pears for processing in
the production area and approximately 43 handlers of processed pears
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).
According to data from USDA National Agricultural Statistics
Service (NASS), the Committee, and the industry for the 2016-2017
season (the most recent complete season of record) the average f.o.b.
price for Oregon-Washington processed Bartlett pears (the only variety
used for canning in the production area) was approximately $390.50 per
ton. Total shipments for that period were approximately 103,020 tons.
Using the number of handlers, and assuming a normal distribution, the
majority of handlers would have average annual receipts of less than
$7,500,000 ($390.50 per ton times 103,020 tons equals $40,229,310
divided by 43 handlers equals $935,565 per handler).
In addition, based on data from the Committee, the industry
produced 103,020 tons of processed pears in the production area during
the 2016-2017 season, with an average grower price of $360 per ton.
Based on the average grower price, production, and the total number of
Oregon-Washington processed pear growers reported by the Committee
(1,500), and assuming a normal distribution, the average annual grower
revenue is below $750,000 ($360 per ton times 103,020 tons equals
$37,087,200 divided by 1,500 growers equals $24,725 per grower). Thus,
the majority of Oregon and Washington processed pear handlers and
growers may be classified as small entities.
This proposal would decrease the assessment rate collected from
handlers for the 2018-2019 and subsequent fiscal periods from $8.00 per
ton to $7.15 per ton of Oregon and Washington ``summer/fall'' pears for
canning handled. The Committee unanimously recommended 2018-2019 fiscal
period expenditures of $693,472 and the $7.15 per ton assessment rate.
The proposed assessment rate of $7.15 per ton is $0.85 lower than the
rate in effect for the 2017-2018 fiscal period. The quantity of
assessable ``summer/fall'' pears for canning for the 2018-2019 fiscal
period is estimated at 100,000 tons. Thus, the proposed $7.15 per ton
rate should provide $715,000 in assessment income. Income derived from
handler assessments should be adequate to cover budgeted expenses, with
any excess funds to be carried over in the Committee's monetary reserve
to be used in subsequent years.
The major expenditures recommended by the Committee for the 2018-
2019 fiscal period include $495,000 for promotion and paid advertising,
$136,172 for research, $15,000 for market access programs, $25,000 for
administrative and management services, and $22,300 for Committee
expenses. In comparison, these major expense categories for the 2017-
2018 fiscal period were budgeted at $591,030, $147,694, $14,576,
$25,000, and $21,850, respectively.
The proposed lower assessment rate is necessary to balance
assessment revenue with the Committee's 2018-2019 fiscal period
budgeted expenditures and to maintain its monetary reserve at levels
authorized in the Order.
Prior to arriving at this budget and assessment rate, the Committee
considered the benefits and costs related to maintaining the current
assessment rate of $8.00 per ton and establishing other assessment
rates. However, leaving the assessment rate unchanged would generate
more revenue than required to meet the Committee's 2018-2019 fiscal
period budgeted expenses of $693,472, and would add a large amount of
excess funds to the Committee's already sufficient monetary reserve.
Based on estimated shipments, the recommended assessment rate of $7.15
per ton should provide $715,000 in assessment income. The Committee
determined assessment revenue would be adequate to fully cover budgeted
expenditures for the 2018-2019 fiscal period, with a small amount of
excess funds to be added to the Committee's monetary reserve. Reserve
funds would
[[Page 46121]]
be kept within the amount authorized in the Order.
A review of historical information and preliminary information
pertaining to the upcoming fiscal year indicates that the average
grower price for the 2018-2019 season should be approximately $296 per
ton of pears for processing. Therefore, the estimated assessment
revenue for the 2018-2019 fiscal period as a percentage of total grower
revenue would be about 2.4 percent ($7.15 per ton assessment divided by
$296 per ton grower price).
This proposed action would decrease the assessment obligation
imposed on handlers for the 2018-2019 and subsequent fiscal periods.
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.
The Committee's meetings were widely publicized throughout the
Oregon and Washington processed pear industry. All interested persons
were invited to attend the meetings and participate in Committee
deliberations on all issues. Like all Committee meetings, the May 30,
2018, 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. 0581-0189. No changes
in those requirements would be necessary because of this action. Should
any changes become necessary, they would be submitted to OMB for
approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large Oregon and
Washington processed pear 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 proposed rule.
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.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 927 is
proposed to be amended as follows:
PART 927--PEARS GROWN IN OREGON AND WASHINGTON
0
1. The authority citation for 7 CFR part 927 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 927.237 revise the intro paragraph text and paragraph (a)
to read as follows:
Sec. 927.237 Assessment rate.
On and after July 1, 2018, the following base rates of assessment
for pears for processing are established for the Processed Pear
Committee:
(a) $7.15 per ton for any or all varieties or subvarieties of pears
for canning classified as ``summer/fall'' excluding pears for other
methods of processing;
* * * * *
Dated: September 6, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-19683 Filed 9-11-18; 8:45 am]
BILLING CODE 3410-02-P
