Sweet Onions Grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon; Amendments to Marketing Order 956, 13513-13516 [2019-06701]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 84, Number 66 (Friday, April 5, 2019)]
[Rules and Regulations]
[Pages 13513-13516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06701]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Doc. No.: AMS-SC-18-0028; SC-18-956-1]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Amendments to Marketing Order 956

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule amends Marketing Order No. 956, which 
regulates the handling of sweet onions grown in the Walla Walla Valley 
of Southeast Washington and Northeast Oregon. The three amendments, 
which were proposed by the Walla Walla Sweet Onion Marketing Committee 
(Committee), were approved by producers in a referendum. This action 
also updates the term of office and staggered term limits for producers 
and handlers.

DATES: This rule is effective May 6, 2019.

FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing 
Specialist, or Patty Bennett, Director, 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] 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. 956, as 
amended (7 CFR part 956), regulating the handling of sweet onions grown 
in the Walla Walla Valley of Southeast Washington and Northeast Oregon. 
Part 956 (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, which is 
responsible for the local administration of the Order, is comprised of 
sweet onion producers and handlers operating within the area of 
production and a public member. Section 608c(17) of the Act and the 
applicable rules of practice and procedure governing the formulation of 
marketing agreements and orders (7 CFR part 900) authorize amendment of 
the Order through this informal rulemaking action.
    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 final 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. This rule is not intended to have retroactive effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 8c(15)(A) of the 
Act (7 U.S.C. 608c(15)(A)), 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. A 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 no later than 20 days 
after the date of entry of the ruling.
    Section 1504 of the Food, Conservation, and Energy Act of 2008 
(2008 Farm Bill) (Pub. L. 110-246) amended section 8c(17) of the Act (7 
U.S.C. 608c(17), which in turn required the addition of supplemental 
rules of practice to 7 CFR part 900 (73 FR 49307; August 21, 2008). The 
amendment of section 8c(17) of the Act and additional supplemental 
rules of practice authorize the use of informal rulemaking (5 U.S.C. 
553) to amend Federal fruit, vegetable, and nut marketing agreements 
and orders. USDA may use informal rulemaking to amend marketing orders 
based on the nature and complexity of the proposed amendments, the 
potential regulatory and economic impacts on affected entities, and any 
other relevant matters.
    The USDA's Agricultural Marketing Service (AMS) considered these 
factors and has determined that amending the Order as proposed could 
appropriately be accomplished through informal rulemaking.
    The proposed amendments were unanimously recommended by the 
Committee following deliberations at two public meetings held on 
November 14, 2017, and March 3, 2018. A proposed rule soliciting 
comments on the amendment was issued on July 19, 2018, and published in 
the Federal Register on July 24, 2018 (83 FR 34953). One comment in 
support of the amendments was received. As a result, no changes to the 
proposed rule were made. A proposed rule and referendum order was then 
issued on December 11, 2018, and published in the Federal Register on 
December 14, 2018 (83 FR 64296). This document directed that a 
referendum among Walla Walla sweet

[[Page 13514]]

onion producers be conducted December 17, 2018, through December 31, 
2018, to determine whether they favored the proposals. To become 
effective, the amendments had to be approved by two-thirds of producers 
voting or by those producers voting in the referendum who represented 
at least two-thirds of the volume of Walla Walla sweet onions.
    The amendments were favored by 100 percent of the producers voting 
and by 100 percent of the volume represented; both exceed the two-
thirds requirement.
    The amendments in this final rule change the Committee's size, 
quorum, and voting requirements. The amendments also change the term of 
office and stagger term limits for producers and handlers.

Final Regulatory Flexibility Analysis

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612), AMS has considered the 
economic impact of this action 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 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 eight handlers of Walla Walla sweet onions subject to 
regulation under the Order and approximately 15 producers in the 
regulated production area. Small agricultural service firms are defined 
by the Small Business Administration (SBA) as those having annual 
receipts of less than $7,500,000, and small agricultural producers are 
defined as those having annual receipts of less than $750,000 (13 CFR 
121.201).
    The Committee reported that approximately 390,000 50-pound bags or 
equivalents of Walla Walla sweet onions were shipped into the fresh 
market in 2017. Based on information reported by USDA's Market News 
Service, the average 2017 marketing year f.o.b. shipping point price 
for the Walla Walla sweet onions was $14.90 per 50-pound equivalent. 
Multiplying the $14.90 average price by the shipment quantity of 
390,000 50-pound equivalents yields an annual crop revenue estimate of 
$5,811,000. The average annual revenue for each of the eight handlers 
is therefore calculated to be $726,375 ($5,811,000 divided by eight), 
which is less than the SBA threshold of $7,500,000. Consequently, all 
the Walla Walla sweet onion handlers could be classified as small 
entities.
    In addition, based on information provided by the National 
Agricultural Statistics Service (NASS), the average producer price for 
Walla Walla sweet onions for the 2012 through 2016 marketing years is 
$15.27 per 50-pound equivalent. NASS has not released data regarding 
the 2017 marketing year at this time. Multiplying the 2012-2016 
marketing year average price of $15.27 by the 2017 marketing year 
shipments of 390,000 50-pound equivalents yields an annual crop revenue 
estimate of $5,955,300. The estimated average annual revenue for each 
of the 15 producers is therefore calculated to be approximately 
$397,020 ($5,955,300 divided by 15), which is less than the SBA 
threshold of $750,000. In view of the foregoing, the majority of Walla 
Walla sweet onion producers and all of the Walla Walla sweet onion 
handlers may be classified as small entities.
    The amendments, which were unanimously recommended by the Committee 
at two public meetings on November 14, 2017, and March 3, 2018, will 
change the Committee's size, quorum, and voting requirements. They also 
change the term of office and stagger term limits so that the term of 
office for producers and handlers will be two fiscal periods instead of 
three fiscal periods, and one-half instead of one-third of the producer 
and handler member terms will expire every year.
    These amendments will have no direct economic effect on producers 
or handlers. The number of producers and handlers operating in the 
industry has decreased, which makes it difficult to find enough members 
to fill positions on the Committee. Decreasing the Committee's size 
will make it more reflective of today's industry.
    Therefore, it is anticipated that both small and large producer and 
handler businesses will benefit from these amendments.
    The Committee considered alternatives to the proposals, including 
making no changes at this time. Due to changes in the industry, AMS 
believes the proposals are justified and necessary to ensure the 
Committee's ability to locally administer the program. Reducing the 
size of the Committee will enable it to fulfill membership and quorum 
requirements fully, thereby ensuring a more efficient and orderly flow 
of business.

Paperwork Reduction Act

    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 (Vegetable 
and Specialty Crops). No changes in those requirements are necessary as 
a result of this action. Should any changes become necessary, they 
would be submitted to OMB for approval.
    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. In addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap, 
or conflict with this 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 citizens to access Government information 
and services, and for other purposes.
    The Committee's meetings were widely publicized throughout the 
Walla Walla sweet onion production area. All interested persons were 
invited to attend the meetings and encouraged to participate in 
Committee deliberations on all issues. The Committee meetings were 
public, and all entities, both large and small, were encouraged to 
express their views on these proposals.
    A proposed rule concerning this action was published in the Federal 
Register on July 24, 2018 (83 FR 34953). Copies of the proposed rule 
were mailed or sent via facsimile to all Committee members and all 
interested parties. The proposed rule was made available through the 
internet by USDA and the Office of the Federal Register. A 60-day 
comment period ending September 24, 2018, was provided to allow 
interested persons to respond to the proposals. One comment was 
received. The comment submitted was in support of the proposals; 
therefore, no changes were made to the proposed amendments.
    A proposed rule and referendum order was then issued on December 
11, 2018, and published in the Federal Register on December 14, 2018 
(83 FR 64296). This document directed that a referendum among Walla 
Walla sweet onion producers be conducted December 17, 2018, through 
December 31, 2018, to determine whether they favored the proposals. To 
become effective, the amendments had to be approved by two-thirds of 
producers voting or by those producers voting in the referendum who 
represented at least two-thirds of the volume of Walla Walla sweet 
onions.

[[Page 13515]]

    The amendments were favored by 100 percent of the producers voting 
and by 100 percent of the volume represented; both exceed the two-
thirds requirement.
    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/MarketingOrdersSmallBusinessGuide. Any questions 
about the compliance guide should be sent to Richard Lower at his 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.

Order Amending the Order Regulating the Handling of Sweet Onions Grown 
in the Walla Walla Valley of Southeast Washington and Northeast Oregon 
1
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    \1\ This order shall not become effective unless and until the 
requirements of Sec.  900.14 of the rules of practice and procedure 
governing proceedings to formulate marketing agreements and 
marketing orders have been met.
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Findings and Determinations

    (a) Findings and Determinations Upon the Basis of the Rulemaking 
Record.
    The findings hereinafter set forth are supplementary to the 
findings and determinations which were previously made in connection 
with the issuance of the Order; and all said previous findings and 
determinations are hereby ratified and affirmed, except insofar as such 
findings and determinations may be in conflict with the findings and 
determinations set forth herein.
    1. The Order, as amended, and as hereby further amended, and all of 
the terms and conditions thereof, would tend to effectuate the declared 
policy of the Act;
    2. The Order, as amended, and as hereby further amended, regulates 
the handling of sweet onions grown in the Walla Walla Valley of 
Southeast Washington and Northeast Oregon in the same manner as, and is 
applicable only to, persons in the respective classes of commercial and 
industrial activity specified in the Order;
    3. The Order, as amended, and as hereby further amended, is limited 
in application to the smallest regional production area that is 
practicable, consistent with carrying out the declared policy of the 
Act, and the issuance of several orders applicable to subdivisions of 
the production area would not effectively carry out the declared policy 
of the Act;
    4. The Order, as amended, and as hereby further amended, 
prescribes, insofar as practicable, such different terms applicable to 
different parts of the production area as are necessary to give due 
recognition to the differences in the production and marketing of 
onions produced in the production area; and
    5. All handling of onions produced in the production area as 
defined in the Order is in the current of interstate or foreign 
commerce or directly burdens, obstructs, or affects such commerce.
    (b) Determinations.
    It is hereby determined that:
    1. Handlers (excluding cooperative associations of producers who 
are not engaged in processing, distributing, or shipping of onions 
covered under the Order) who during the period June 1, 2017, through 
May 31, 2018, handled not less than 50 percent of the volume of such 
onions covered by said Order, as hereby amended, have signed an amended 
marketing agreement; and
    2. The issuance of this amendatory order, further amending the 
aforesaid Order, is favored or approved by at least two-thirds of the 
producers who participated in a referendum on the question of approval 
and who, during the period of June 1, 2017, through May 31, 2018, were 
engaged within the production area in the production of such onions. 
Such producers also produced for market at least two-thirds of the 
volume of such commodity represented in the referendum.
    3. The issuance of this amendatory order together with a signed 
marketing agreement advances the interests of growers of onions in the 
production area pursuant to the declared policy of the Act.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, all handling of sweet onions grown in the Walla Walla Valley of 
Southeast Washington and Northeast Oregon shall be in conformity to, 
and in compliance with, the terms and conditions of the said Order as 
hereby proposed to be amended as follows:
    The provisions amending the Order contained in the proposed rule 
issued by the Administrator on July 19, 2018, and published in the 
Federal Register on July 24, 2018, (83 FR 34953) will be and are the 
terms and provisions of this order amending the Order and are set forth 
in full herein.

List of Subjects in 7 CFR Part 956

    Onions, Marketing agreements, Reporting and recordkeeping 
requirements.

    Dated: April 2, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.


    For the reasons set forth in the preamble, 7 CFR part 956 is 
amended as follows:

PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST 
WASHINGTON AND NORTHEAST OREGON

0
1. The authority citation for 7 CFR part 956 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.


0
2. Amend Sec.  956.20 by revising paragraph (a) to read as follows:


Sec.  956.20  Establishment and membership.

    (a) The Walla Walla Sweet Onion Marketing Committee, consisting of 
seven members, is hereby established. The Committee shall consist of 
four producer members, two handler members, and one public member. Each 
member shall have an alternate who shall have the same qualifications 
as the member.
* * * * *

0
3. Amend Sec.  956.21 by revising to read as follows:


Sec.  956.21  Term of office.

    (a) Except as otherwise provided in paragraph (b) of this section, 
the term of office of grower and handler Committee members and their 
respective alternates shall be two fiscal periods beginning on June 1 
or such other date as recommended by the Committee and approved by the 
Secretary. The terms shall be determined so that one-half of the grower 
membership and one-half of the handler membership shall terminate each 
year. Members and alternates shall serve during the term of office for 
which they are selected and have been qualified, or during that portion 
thereof beginning on the date on which they qualify during such term of 
office and continuing until the end thereof, or until their successors 
are selected and have qualified.
    (b) The term of office of the initial members and alternates shall 
begin as soon as possible after May 6, 2019. One-half of the initial 
industry grower and handler members and alternates shall serve for a 
one-year term and one-half shall serve for a two-year term. The initial 
as well as all successive terms of office of the public member and 
alternate member shall be for three years.
    (c) The consecutive terms of office for all members shall be 
limited to two two-

[[Page 13516]]

year terms. There shall be no such limitation for alternate members.

0
4. Amend Sec.  956.28 by revising paragraph (a) to read as follows:


Sec.  956.28  Procedure.

    (a) Four members of the Committee shall constitute a quorum, and 
four concurring votes shall be required to pass any motion or approve 
any Committee action, except that recommendations made pursuant to 
Sec.  956.61 shall require five concurring votes.
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[FR Doc. 2019-06701 Filed 4-4-19; 8:45 am]
 BILLING CODE 3410-02-P