Pears Grown in Oregon and Washington; Decreased Assessment Rate for Processed Pears, 62449-62451 [2018-26311]
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62449
Rules and Regulations
Federal Register
Vol. 83, No. 233
Tuesday, December 4, 2018
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS–SC–18–0049; SC18–927–2
FR]
Pears Grown in Oregon and
Washington; Decreased Assessment
Rate for Processed Pears
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This final rule implements 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 will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective January 3, 2019.
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: DaleJ.Novotny@
usda.gov or GaryD.Olson@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@usda.gov.
SUPPLEMENTARY INFORMATION: This
action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out
a marketing order as defined in 7 CFR
900.2(j). This rule is issued under
Marketing Order No. 927, as amended (7
SUMMARY:
VerDate Sep<11>2014
16:14 Dec 03, 2018
Jkt 247001
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 rule in
conformance with Executive Orders
13563 and 13175. This 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 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 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. The assessment rate
established by this rule will be
applicable to all ‘‘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,
PO 00000
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Fmt 4700
Sfmt 4700
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 can 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 final rule decreases the
assessment rate from $8.00 per ton, 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 will 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
of pears for canning handled. The new
assessment rate of $7.15 per ton is $0.85
lower than the previous $8.00 per ton
rate. The Committee recommended the
lower assessment rate to balance
assessment revenue with its budgeted
expenditures and to maintain its
monetary reserve at levels authorized by
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
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Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Rules and Regulations
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 recommended
$7.15 per ton assessment rate is
expected to provide handler
assessments of $715,000. This amount
will 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) will be kept within the
maximum permitted by § 927.42(a) of
approximately one fiscal period’s
expenses.
The assessment rate established in
this rule 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 budget 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 1,500
growers of pears for processing in the
production area and approximately 43
VerDate Sep<11>2014
16:14 Dec 03, 2018
Jkt 247001
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 may 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 rule decreases 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 assessment
rate of $7.15 per ton is $0.85 lower than
the previous 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
$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.
PO 00000
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Fmt 4700
Sfmt 4700
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 new, 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 previous assessment
rate of $8.00 per ton and establishing
other assessment rates. However,
leaving the assessment rate unchanged
would have generated more revenue
than required to meet the Committee’s
2018–2019 fiscal period budgeted
expenses of $693,472, and would have
added a large amount of excess funds to
the Committee’s already sufficient
monetary reserve. Based on estimated
shipments, the assessment rate of $7.15
per ton is expected to provide $715,000
in assessment income. The Committee
determined assessment revenue will 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 will be
kept within the amount authorized by
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
is about 2.4 percent ($7.15 per ton
assessment divided by $296 per ton
grower price).
This action decreases 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 will reduce the burden
on handlers, and may reduce the burden
on producers.
The Committee’s meetings were
widely publicized throughout the
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Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 / Rules and Regulations
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.
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, Fruit
Crops. No changes in those
requirements are necessary because of
this action. Should any changes become
necessary, they will be submitted to
OMB for approval.
This rule does 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. 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 September 12, 2018 (83 FR
46119). Copies of the proposed rule
were also mailed or sent via facsimile to
all Oregon and Washington fresh pear
handlers. The proposal was made
available through the internet by USDA
and the Office of the Federal Register. A
30-day comment period ending October
12, 2018, was provided for interested
persons to respond to the proposal. Two
comments were received during the
comment period. The first comment was
in support of the action. The second
comment was a negative opinion on
marketing orders in general and did not
address the specific proposed
rulemaking action. Accordingly, no
changes will be 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
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16:14 Dec 03, 2018
Jkt 247001
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, will tend to effectuate the
declared policy of the Act.
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 amended as
follows:
PART 927—PEARS GROWN IN
OREGON AND WASHINGTON
1. The authority citation for part 927
continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 927.237 is amended by
revising the introductory 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: November 29, 2018.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–26311 Filed 12–3–18; 8:45 am]
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 71
[Docket No. FAA–2018–0034; Airspace
Docket No. 17–ANM–34]
RIN 2120–AA66
Establishment of Class E Airspace;
Kemmerer, WY
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
This action amends Class E
surface area airspace at Kemmerer
Municipal Airport, Kemmerer, WY, by
SUMMARY:
Frm 00003
Fmt 4700
enlarging the airspace area north of the
airport and removing the Notice to
Airmen (NOTAM) part-time status for
the airspace. Also, this action reduces
Class E airspace extending upward from
700 feet above the surface and removes
Class E airspace extending upward from
1,200 feet above the surface.
DATES: Effective 0901 UTC, February 28,
2019. The Director of the Federal
Register approves this incorporation by
reference action under Title 1, Code of
Federal Regulations, part 51, subject to
the annual revision of FAA Order
7400.11 and publication of conforming
amendments.
ADDRESSES: FAA Order 7400.11C,
Airspace Designations and Reporting
Points, and subsequent amendments can
be viewed online at https://www.faa.gov/
air_traffic/publications/. For further
information, you can contact the
Airspace Policy Group, Federal Aviation
Administration, 800 Independence
Avenue SW, Washington, DC 20591;
telephone: (202) 267–8783. The Order is
also available for inspection at the
National Archives and Records
Administration (NARA). For
information on the availability of this
material at NARA, call (202) 741–6030,
or go to https://www.archives.gov/
federal-register/cfr/ibr-locations.html.
FAA Order 7400.11, Airspace
Designations and Reporting Points, is
published yearly and effective on
September 15.
FOR FURTHER INFORMATION CONTACT:
Bonnie Malgarini, Federal Aviation
Administration, Operations Support
Group, Western Service Center, 2200 S
216th Street, Des Moines, WA 98198;
telephone (206) 231–2329.
SUPPLEMENTARY INFORMATION:
Authority for This Rulemaking
BILLING CODE 3410–02–P
PO 00000
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The FAA’s authority to issue rules
regarding aviation safety is found in
Title 49 of the United States Code.
Subtitle I, Section 106 describes the
authority of the FAA Administrator.
Subtitle VII, Aviation Programs,
describes in more detail the scope of the
agency’s authority. This rulemaking is
promulgated under the authority
described in Subtitle VII, Part A,
Subpart I, Section 40103. Under that
section, the FAA is charged with
prescribing regulations to assign the use
of airspace necessary to ensure the
safety of aircraft and the efficient use of
airspace. This regulation is within the
scope of that authority as it amends
Class E airspace at Kemmerer Municipal
Airport, Kemmerer, WY, to
accommodate airspace redesign in
support of IFR operations at the airport.
E:\FR\FM\04DER1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 233 (Tuesday, December 4, 2018)]
[Rules and Regulations]
[Pages 62449-62451]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26311]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 83, No. 233 / Tuesday, December 4, 2018 /
Rules and Regulations
[[Page 62449]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS-SC-18-0049; SC18-927-2 FR]
Pears Grown in Oregon and Washington; Decreased Assessment Rate
for Processed Pears
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule implements 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 will remain in
effect indefinitely unless modified, suspended, or terminated.
DATES: Effective January 3, 2019.
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,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This 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 rule in
conformance with Executive Orders 13563 and 13175. This 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 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 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. The assessment rate established by
this rule will be applicable to all ``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 can 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 final rule decreases the assessment rate from $8.00 per ton,
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 will
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 of pears for canning
handled. The new assessment rate of $7.15 per ton is $0.85 lower than
the previous $8.00 per ton rate. The Committee recommended the lower
assessment rate to balance assessment revenue with its budgeted
expenditures and to maintain its monetary reserve at levels authorized
by 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
[[Page 62450]]
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 recommended $7.15 per ton
assessment rate is expected to provide handler assessments of $715,000.
This amount will 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)
will be kept within the maximum permitted by Sec. 927.42(a) of
approximately one fiscal period's expenses.
The assessment rate established in this rule 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 budget 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 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 may 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 rule decreases 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
assessment rate of $7.15 per ton is $0.85 lower than the previous 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 $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 new, 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 previous
assessment rate of $8.00 per ton and establishing other assessment
rates. However, leaving the assessment rate unchanged would have
generated more revenue than required to meet the Committee's 2018-2019
fiscal period budgeted expenses of $693,472, and would have added a
large amount of excess funds to the Committee's already sufficient
monetary reserve. Based on estimated shipments, the assessment rate of
$7.15 per ton is expected to provide $715,000 in assessment income. The
Committee determined assessment revenue will 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 will be kept within the amount authorized by 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 is about 2.4 percent ($7.15 per ton assessment divided by $296
per ton grower price).
This action decreases 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 will reduce
the burden on handlers, and may reduce the burden on producers.
The Committee's meetings were widely publicized throughout the
[[Page 62451]]
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.
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, Fruit Crops.
No changes in those requirements are necessary because of this action.
Should any changes become necessary, they will be submitted to OMB for
approval.
This rule does 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. 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 September 12, 2018 (83 FR 46119). Copies of the proposed
rule were also mailed or sent via facsimile to all Oregon and
Washington fresh pear handlers. The proposal was made available through
the internet by USDA and the Office of the Federal Register. A 30-day
comment period ending October 12, 2018, was provided for interested
persons to respond to the proposal. Two comments were received during
the comment period. The first comment was in support of the action. The
second comment was a negative opinion on marketing orders in general
and did not address the specific proposed rulemaking action.
Accordingly, no changes will be 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, will tend to
effectuate the declared policy of the Act.
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
amended as follows:
PART 927--PEARS GROWN IN OREGON AND WASHINGTON
0
1. The authority citation for part 927 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 927.237 is amended by revising the introductory 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: November 29, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-26311 Filed 12-3-18; 8:45 am]
BILLING CODE 3410-02-P
