Irish Potatoes Grown in Washington; Suspension of Reporting and Assessment Requirements, 11091-11094 [2021-03528]
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11091
Rules and Regulations
Federal Register
Vol. 86, No. 35
Wednesday, February 24, 2021
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
Federal Crop Insurance Corporation
7 CFR Parts 407 and 457
RIN 0563–AC70
[Docket ID FCIC–20–0008]
Area Risk Protection Insurance
Regulations; Common Crop Insurance
Policy Basic Provisions; Common
Crop Insurance Regulations,
Sunflower Seed Crop Insurance
Provisions; and Common Crop
Insurance Regulations, Dry Pea Crop
Insurance Provisions
Federal Crop Insurance
Corporation, USDA.
ACTION: Correcting amendment.
AGENCY:
On November 30, 2020, the
Federal Crop Insurance Corporation
published a final rule which revised the
Area Risk Protection Insurance
Regulations; Common Crop Insurance
Policy Basic Provisions; Common Crop
Insurance Regulations, Sunflower Seed
Crop Insurance Provisions; and
Common Crop Insurance Regulations,
and Dry Pea Crop Insurance Provisions.
Changes were published in the final rule
that were inadvertently not incorporated
when the changes were made in the
Code of Federal Regulations (CFR) as
currently reflected in the electronic
CFR. This rule makes those corrections.
DATES: Effective: February 24, 2021.
FOR FURTHER INFORMATION CONTACT:
Francie Tolle; telephone (816) 926–
7730; email francie.tolle@usda.gov.
Persons with disabilities who require
alternative means of communication
should contact the USDA Target Center
at (202) 720–2600 (voice).
SUPPLEMENTARY INFORMATION:
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SUMMARY:
Background
We published a final rule in the
Federal Register on November 30, 2020,
(85 FR 76420–76428), that included
changes to the Cancellation and
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Termination Dates in the Sunflower
Seed Crop Insurance provisions and the
Insurance Period in the Dry Pea Crop
Insurance provisions. Changes were
published in the final rule that were
inadvertently not incorporated when the
changes were made in the Code of
Federal Regulations (CFR) as currently
reflected in the electronic CFR.
Additionally, there was a typo in one of
the changes. This rule makes the
required corrections.
This correction is being published to
correct section 4, Cancellation and
Termination Dates, in the Sunflower
Seed Crop Insurance Provisions. The
table that provided specific state and
county cancellation and termination
dates was inadvertently omitted.
Additionally, a comma is being removed
in section 11, Settlement of Claim. The
correction to the Dry Pea Crop Insurance
Provisions will replace the phrase ‘‘the
sales closing date’’ with ‘‘its sales
closing date’’ that was inadvertently
omitted in section 7, Insured Crop.
Additionally, the word ‘‘types’’ was
inadvertently included twice in a row in
section 9, Insurance Period; that section
is being edited to remove the repetitive
word.
Cancellation
and
termination
dates
State and county
Hidalgo, Jim Wells, Nueces,
and Starr Counties, Texas.
All other Texas counties and
all other States.
*
*
§ 457.140
*
*
January 31.
March 15.
*
Amended]
3. Amend § 457.140 by:
a. In section 7, in paragraph (c),
removing the phrase ‘‘the sales closing
date’’ and add the phrase ‘‘its sales
closing date’’ in its place.
■ b. In section 9, in paragraph (a),
removing the phrase ‘‘spring-planted
types types’’ and add ‘‘spring-planted
types’’ in its place.
■
■
Richard Flournoy,
Acting Manager, Federal Crop Insurance
Corporation.
[FR Doc. 2021–03502 Filed 2–23–21; 8:45 am]
BILLING CODE 3410–08–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
List of Subjects in 7 CFR Part 457
7 CFR Part 946
Acreage allotments, Crop insurance,
Reporting and recordkeeping
requirements.
Accordingly, 7 CFR part 457 is
corrected by making the following
correcting amendments:
[Doc. No. AMS–SC–20–0062; SC20–946–1
FR]
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
PART 457—COMMON CROP
INSURANCE REGULATIONS
1. The authority citation for part 457
continues to read as follows:
■
Authority: 7 U.S.C. 1506(l) and 1506(o).
2. Amend § 457.108 by:
a. Revising section 4;
■ b. In section 11, in paragraph (d)(3)(i),
removing the comma following the
phrase ‘‘or conditions’’.
The revision reads as follows:
■
■
§ 457.108 Sunflower seed crop insurance
provisions.
*
*
*
*
*
4. Cancellation and Termination
Dates.
In accordance with section 2 of the
Basic Provisions, the cancellation and
termination dates are:
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Irish Potatoes Grown in Washington;
Suspension of Reporting and
Assessment Requirements
This final rule suspends the
reporting and assessment requirements
prescribed under the marketing order
regulating Irish potatoes grown in
Washington. In a separate action, the
State of Washington Potato Committee
recommended termination of the
marketing order. This final rule
indefinitely suspends the reporting and
assessment requirements of the
marketing order during the period that
USDA is processing the termination
request.
DATES: Effective March 26, 2021
§§ 946.143 and 946.248 are stayed
indefinitely.
FOR FURTHER INFORMATION CONTACT:
Gregory A. Breasher, Marketing
SUMMARY:
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Federal Register / Vol. 86, No. 35 / Wednesday, February 24, 2021 / Rules and Regulations
Specialist, or Gary Olson, Regional
Director, Northwest Marketing Field
Office, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (503) 326–
2724 or Email: Gregory.Breasher@
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, or Email: Richard.Lower@
usda.gov.
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 final rule is issued under
Marketing Order No. 946, as amended (7
CFR part 946), regulating the handling
of Irish potatoes grown in Washington.
Part 946 (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 State of Washington Potato
Committee (hereinafter referred to as the
‘‘Committee’’) locally administers the
Order and is comprised of producers
and handlers of Irish potatoes operating
within the production area.
The Department of Agriculture
(USDA) is issuing this final 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.
This final rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. This final 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 608c(15)(A) of the Act, any
handler subject to a marketing order
may file with USDA a petition stating
that the marketing order, any provision
of the marketing order, or any obligation
imposed in connection with the
marketing order is not in accordance
with law and request a modification of
the marketing 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
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SUPPLEMENTARY INFORMATION:
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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 Committee meets regularly to
consider recommendations for
modification, suspension, or
termination of the Order’s regulatory
requirements. Committee meetings are
open to the public and interested
persons may express their views at these
meetings. USDA reviews Committee
recommendations, including
information provided by the Committee
and from other available sources, and
determines whether modification,
suspension, or termination of the
regulatory requirements will tend to
effectuate the declared policy of the Act.
On June 11, 2020, the Committee met
and, after much deliberation,
unanimously recommended that USDA
terminate the Order. Additionally, the
Committee recommended that the
Order’s reporting and assessment
requirements—the only regulatory
activities of the Order in effect at the
time—be suspended while the
recommendation for termination is
being processed by USDA. The
termination is a separate regulatory
action from the suspension of
administrative requirements.
Section 946.41 of the Order provides
authority for the Committee to assess
handlers for their pro rata share of the
Committee expenses authorized each
fiscal period. Section 946.70 of the
Order authorizes the Committee to
collect reports and other information
necessary for the Committee to perform
its duties under the Order. This rule
suspends—or ‘‘stays’’—§ 946.248, which
establishes a continuing assessment rate
of $0.0025 per hundredweight, effective
for the 2013–2014 and subsequent fiscal
periods, and § 946.143, which requires
monthly reporting of fresh potato
shipments from the production area.
The Order has been in effect since
1949, providing the Washington potato
industry authority for grade, size,
quality, maturity, pack, and container
requirements, as well as authority for
inspection requirements. Based on the
Committee’s recommendation in 2010,
USDA suspended the Order’s handling
requirements for Russet potatoes. The
Committee believed that the costs of
inspection outweighed the benefits
provided from having the Order’s
regulatory requirements in effect for that
type potato.
In 2013, also upon the
recommendation of the Committee,
USDA suspended handling
requirements temporarily, through June
30, 2014, for all yellow flesh and white
type potatoes. The Committee believed
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that the costs of inspection outweighed
the benefits provided from regulation
for these type potatoes as well.
In 2014, the handling requirements
for red type potatoes were indefinitely
suspended. Also in 2014, the temporary
suspension of handling requirements for
yellow flesh and white types was
extended indefinitely. The sum of the
previous actions effectively suspended
the handling requirements for all types
of Washington potatoes after the 2013–
2014 marketing year. The Committee
believed operating without handling
regulation offered Washington potato
handlers a cost savings through the
elimination of mandatory inspection
fees. Also, the Committee had
determined that the potential negative
market impact of operating without
mandatory quality and inspection
requirements was minimal.
Following the suspension of the
handling requirements in 2014, the
Committee continued to levy
assessments and to maintain its
administrative function. The Committee
believed that it should continue to fund
its full operational capability, collect
industry statistics on an ongoing basis,
and maintain the program if regulating
quality was again deemed necessary.
The Committee met on June 11, 2020,
to discuss the status of the Washington
potato industry and the relevance of the
Order. The Committee determined that
the suspension of the Order’s handling
requirements has not negatively
impacted the industry and that there is
no longer a need for the Order. Also, the
Committee concluded that the
collection of information under the
Order’s authority is redundant, as the
Washington Potato Commission has
similar handler reporting requirements
as the Order, and that the statistical
information collected by the
Commission is provided to the industry.
Thus, the Committee unanimously
recommended terminating the Order.
In addition, the Committee
determined that there is no need to
continue collecting assessments and
requiring reports while USDA considers
its termination recommendation.
Therefore, the Committee also
unanimously recommended that the
assessment and reporting requirements
of the Order be immediately suspended.
This action relieves handlers of the
assessment and reporting burden during
the pendency of the termination
process.
At the June meeting, the Committee
recommended a budget of $41,150 for
the indefinite period leading up to the
termination of the Order. The budgeted
amount was established based on the
funds remaining in the Committee’s
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monetary reserve and expected future
expenses. The budget, in its entirety,
will provide for such operating
expenses as are necessary during the
termination process, including a final
financial review and management
compensation.
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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
final 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 250
producers of Washington potatoes and
approximately 26 fresh potato handlers
in the production area subject to
regulation by the Order.
Small agricultural service firms are
defined by the Small Business
Administration (13 CFR 121.201) as
those having annual receipts of less than
$30,000,000, and small agricultural
producers are defined as those having
annual receipts of less than $1,000,000.
According to USDA Market News, the
average shipping point price for fresh
Washington potatoes during the 2019
shipping season was approximately
$15.79 per hundredweight. The
Committee reported 2019–2020
marketing year fresh potato shipments
were 9,687,170 hundredweight. Using
the average price and shipment
information along with the number of
handlers, average annual receipts for a
handler were significantly less than
$30,000,000 ($15.79 times 9,687,170
hundredweight equals $152,960,414,
divided by 26 handlers equals
$5,883,093 per handler).
In addition, USDA National
Agricultural Statistics Service reported
an average producer price of $8.20 per
hundredweight for the 2019 crop. Given
the number of Washington potato
producers, the average annual producer
revenue is well below $1,000,000 ($8.20
times 9,687,170 hundredweight equals
$79,434,794, divided by 250 producers
equals $317,739 per producer).
Therefore, most handlers and producers
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of fresh Washington potatoes may be
classified as small agricultural
businesses.
This final rule suspends the reporting
and assessment requirements of the
Order. The handler reporting
requirement that is suspended is the
monthly collection of Washington fresh
potato shipment information. The
assessment rate that is suspended is the
$0.0025 per hundredweight rate that
was established beginning July 1, 2013.
The Committee also recommended a
budget of expenditures of $41,150 for
the period beginning July 1, 2020 and
ending with termination of the Order.
The budget was based on the
Committee’s estimated financial
resources on June 30, 2020. Budgeted
expenditures include administrative
expenses and a final financial review.
The Committee made the
recommendation to suspend the
reporting and assessment requirements
as an adjunct to the recommendation to
terminate the Order. As such, the only
other alternative discussed by the
Committee was to maintain the status
quo, continue to assess handlers, and to
require monthly handling reports. After
consideration, the Committee
determined that the Order is no longer
beneficial to the industry and that the
best recourse was to cease operations
and terminate the Order.
This action suspends the Order’s
reporting and assessment obligations
imposed on handlers. When in effect,
assessments are applied uniformly on
all handlers, and some of those costs
may be passed on to producers.
Suspension of the reporting and
assessment requirements reduces the
regulatory burden on handlers and is
also expected to reduce the burden on
producers.
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. This final rule
suspends those information collection
requirements, and any reporting and
recordkeeping requirements under the
Order.
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 final rule.
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11093
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.
The Committee’s meeting was widely
publicized throughout the Washington
potato industry, and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations on all issues. Like all
Committee meetings, the June 11, 2020,
meeting was a public meeting, and all
entities, both large and small, were able
to express their views on these issues.
A proposed rule concerning this
action was published in the Federal
Register on October 13, 2020 (85 FR
64415). Copies of the proposal were
provided by the Committee to members
and handlers. Finally, the proposed rule
was made available through the internet
by USDA and the Office of the Federal
Register. A 60-day comment period
ending December 14, 2020, was
provided to allow interested persons to
respond to the proposal. No comments
were submitted. Accordingly, no
changes have been made to the rule as
proposed.
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 946
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, the Agriculture Marketing
Service amends 7 CFR part 946 as
follows:
PART 946—IRISH POTATOES GROWN
IN WASHINGTON
1. The authority citation for 7 CFR
part 946 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
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Federal Register / Vol. 86, No. 35 / Wednesday, February 24, 2021 / Rules and Regulations
§§ 946.143 and 946.248
[Stayed]
public on the internet at https://
www.regulations.gov.
2. Stay §§ 946.143 and 946.248
indefinitely.
■
FOR FURTHER INFORMATION CONTACT:
Marlene Betts, Marketing Specialist,
Promotion and Economics Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, Room
1406–S, Stop 0244, Washington, DC
20250–0244; telephone: (202) 720–5057;
or email: Marlene.Betts@usda.gov.
SUPPLEMENTARY INFORMATION: This rule
affecting 7 CFR part 1206 (the Order) is
authorized under the Commodity
Promotion, Research, and Information
Act of 1996 (1996 Act) (7 U.S.C. 7411–
7425).
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2021–03528 Filed 2–23–21; 8:45 am]
BILLING CODE P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1206
[Document No. AMS–SC–20–0086]
Mango Promotion, Research and
Information Order; Removal of Frozen
Mangos
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule amends the Mango
Promotion, Research and Information
Order (Order) by removing the
provisions of frozen mangos as a
covered commodity. The Order is
administered by the National Mango
Board (Board) with oversight by the U.S.
Department of Agriculture (USDA). In a
referendum, first handlers and
importers voted to remove frozen
mangos as a covered commodity under
the Order. This rule will remove frozen
mangos as a covered commodity,
discontinue the collection of
assessments on frozen mangos, remove
frozen mango entity representation on
the Board, and make necessary
conforming changes.
DATES:
Effective date: February 25, 2021.
Assessment collection on frozen mangos
will discontinue on the effective date of
this rule.
Comments due: Comments which are
received by April 26, 2021 will be
considered prior to issuance of any final
rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. All comments
must be submitted through the Federal
e-rulemaking portal at: https://
www.regulations.gov and should
reference the document number and the
date and page number of this issue of
the Federal Register. All comments
submitted in response to this rule will
be included in the rulemaking record
and will be made available to the
public. Please be advised that the
identity of individuals or entities
submitting comments will be made
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SUMMARY:
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Executive Orders 12866 and 13563
Executive Orders 12866 and 13563
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs
and benefits, reducing costs,
harmonizing rules, and promoting
flexibility. This action falls within a
category of regulatory actions that the
Office of Management and Budget
(OMB) exempted from Executive Order
12866 review.
Executive Order 13175
This rule has been reviewed in
accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation will not have substantial
and direct effects on Tribal governments
and will not have significant Tribal
implications.
Executive Order 12988
In addition, this rule has been
reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended
to have a retroactive effect. Section 524
of the 1996 Act (7 U.S.C. 7423) provides
that it shall not affect or preempt any
other Federal or State law authorizing
promotion or research relating to an
agricultural commodity.
Under section 519 of the 1996 Act (7
U.S.C. 7418), a person subject to an
order issued under the Act may file a
written petition with USDA stating that
the order, any provision of the order, or
any obligation imposed in connection
with the order, is not established in
accordance with the law, and request a
modification of the order or an
exemption from the order. Any petition
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filed challenging an order, any
provision of an order, or any obligation
imposed in connection with an order,
shall be filed within two years after the
effective date of an order, provision, or
obligation subject to challenge in the
petition. The petitioner will have the
opportunity for a hearing on the
petition. Thereafter, USDA will issue a
ruling on the petition. The Act provides
that the district court of the United
States for any district in which the
petitioner resides or conducts business
shall have jurisdiction to review a final
ruling on the petition, if the petitioner
files a complaint for that purpose not
later than 20 days after the date of the
entry of USDA’s final ruling.
Background
The Mango Promotion, Research, and
Information Order (Order) took effect in
November 2004 (69 FR 59120), and
assessment collection began in January
2005 for fresh mangos. The Order is
administered by the National Mango
Board (Board) with oversight by the U.S.
Department of Agriculture. Currently,
the program is funded by assessments
on first handlers and importers of fresh
and frozen mangos, and is focused on
maintaining and expanding existing
markets and uses for fresh and frozen
mangos through its research, promotion
and information efforts.
Frozen mangos as a covered
commodity was added to the Order on
February 21, 2019 (84 FR 5335), and a
referendum was held in 2019 to
determine whether the industry favored
the inclusion of frozen mangos as a
covered commodity under the Order. In
the 2019 referendum, 52.5 percent of
first handlers and importers of fresh and
frozen mangos were in favor of the
amendment to add frozen mangos to the
Order. Since the vote passed by a small
margin, the frozen mango industry
asked the Board to conduct another
referendum on whether frozen mangos
should continue as a covered
commodity under the Order.
The Order prescribes that every five
years, the USDA conduct a referendum
to determine if first handlers and
importers of mangos favor the
continuation of the Order. Such a
referendum was required to be
conducted in 2020. At the Board’s
September 2019 meeting, it was
unanimously recommended to the
USDA to add a second question to the
continuance referendum ballot
concerning frozen mangos as a covered
commodity. USDA conducted a
referendum from September 21 through
October 9, 2020, among eligible first
handlers and importers to (1) ascertain
whether the continuance of the Order is
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]]>Agencies
[Federal Register Volume 86, Number 35 (Wednesday, February 24, 2021)]
[Rules and Regulations]
[Pages 11091-11094]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03528]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Doc. No. AMS-SC-20-0062; SC20-946-1 FR]
Irish Potatoes Grown in Washington; Suspension of Reporting and
Assessment Requirements
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule suspends the reporting and assessment
requirements prescribed under the marketing order regulating Irish
potatoes grown in Washington. In a separate action, the State of
Washington Potato Committee recommended termination of the marketing
order. This final rule indefinitely suspends the reporting and
assessment requirements of the marketing order during the period that
USDA is processing the termination request.
DATES: Effective March 26, 2021 Sec. Sec. 946.143 and 946.248 are
stayed indefinitely.
FOR FURTHER INFORMATION CONTACT: Gregory A. Breasher, Marketing
[[Page 11092]]
Specialist, or Gary Olson, Regional Director, Northwest Marketing Field
Office, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (503) 326-2724 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, 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 final rule is issued under Marketing Order No.
946, as amended (7 CFR part 946), regulating the handling of Irish
potatoes grown in Washington. Part 946 (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 State of Washington Potato Committee (hereinafter referred to
as the ``Committee'') locally administers the Order and is comprised of
producers and handlers of Irish potatoes operating within the
production area.
The Department of Agriculture (USDA) is issuing this final 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.
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This final 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 608c(15)(A) of the
Act, any handler subject to a marketing order may file with USDA a
petition stating that the marketing order, any provision of the
marketing order, or any obligation imposed in connection with the
marketing order is not in accordance with law and request a
modification of the marketing 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 not later than 20 days after the date of
the entry of the ruling.
The Committee meets regularly to consider recommendations for
modification, suspension, or termination of the Order's regulatory
requirements. Committee meetings are open to the public and interested
persons may express their views at these meetings. USDA reviews
Committee recommendations, including information provided by the
Committee and from other available sources, and determines whether
modification, suspension, or termination of the regulatory requirements
will tend to effectuate the declared policy of the Act.
On June 11, 2020, the Committee met and, after much deliberation,
unanimously recommended that USDA terminate the Order. Additionally,
the Committee recommended that the Order's reporting and assessment
requirements--the only regulatory activities of the Order in effect at
the time--be suspended while the recommendation for termination is
being processed by USDA. The termination is a separate regulatory
action from the suspension of administrative requirements.
Section 946.41 of the Order provides authority for the Committee to
assess handlers for their pro rata share of the Committee expenses
authorized each fiscal period. Section 946.70 of the Order authorizes
the Committee to collect reports and other information necessary for
the Committee to perform its duties under the Order. This rule
suspends--or ``stays''--Sec. 946.248, which establishes a continuing
assessment rate of $0.0025 per hundredweight, effective for the 2013-
2014 and subsequent fiscal periods, and Sec. 946.143, which requires
monthly reporting of fresh potato shipments from the production area.
The Order has been in effect since 1949, providing the Washington
potato industry authority for grade, size, quality, maturity, pack, and
container requirements, as well as authority for inspection
requirements. Based on the Committee's recommendation in 2010, USDA
suspended the Order's handling requirements for Russet potatoes. The
Committee believed that the costs of inspection outweighed the benefits
provided from having the Order's regulatory requirements in effect for
that type potato.
In 2013, also upon the recommendation of the Committee, USDA
suspended handling requirements temporarily, through June 30, 2014, for
all yellow flesh and white type potatoes. The Committee believed that
the costs of inspection outweighed the benefits provided from
regulation for these type potatoes as well.
In 2014, the handling requirements for red type potatoes were
indefinitely suspended. Also in 2014, the temporary suspension of
handling requirements for yellow flesh and white types was extended
indefinitely. The sum of the previous actions effectively suspended the
handling requirements for all types of Washington potatoes after the
2013-2014 marketing year. The Committee believed operating without
handling regulation offered Washington potato handlers a cost savings
through the elimination of mandatory inspection fees. Also, the
Committee had determined that the potential negative market impact of
operating without mandatory quality and inspection requirements was
minimal.
Following the suspension of the handling requirements in 2014, the
Committee continued to levy assessments and to maintain its
administrative function. The Committee believed that it should continue
to fund its full operational capability, collect industry statistics on
an ongoing basis, and maintain the program if regulating quality was
again deemed necessary.
The Committee met on June 11, 2020, to discuss the status of the
Washington potato industry and the relevance of the Order. The
Committee determined that the suspension of the Order's handling
requirements has not negatively impacted the industry and that there is
no longer a need for the Order. Also, the Committee concluded that the
collection of information under the Order's authority is redundant, as
the Washington Potato Commission has similar handler reporting
requirements as the Order, and that the statistical information
collected by the Commission is provided to the industry. Thus, the
Committee unanimously recommended terminating the Order.
In addition, the Committee determined that there is no need to
continue collecting assessments and requiring reports while USDA
considers its termination recommendation. Therefore, the Committee also
unanimously recommended that the assessment and reporting requirements
of the Order be immediately suspended. This action relieves handlers of
the assessment and reporting burden during the pendency of the
termination process.
At the June meeting, the Committee recommended a budget of $41,150
for the indefinite period leading up to the termination of the Order.
The budgeted amount was established based on the funds remaining in the
Committee's
[[Page 11093]]
monetary reserve and expected future expenses. The budget, in its
entirety, will provide for such operating expenses as are necessary
during the termination process, including a final financial review and
management compensation.
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 final 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 250 producers of Washington potatoes and
approximately 26 fresh potato handlers in the production area subject
to regulation by the Order.
Small agricultural service firms are defined by the Small Business
Administration (13 CFR 121.201) as those having annual receipts of less
than $30,000,000, and small agricultural producers are defined as those
having annual receipts of less than $1,000,000.
According to USDA Market News, the average shipping point price for
fresh Washington potatoes during the 2019 shipping season was
approximately $15.79 per hundredweight. The Committee reported 2019-
2020 marketing year fresh potato shipments were 9,687,170
hundredweight. Using the average price and shipment information along
with the number of handlers, average annual receipts for a handler were
significantly less than $30,000,000 ($15.79 times 9,687,170
hundredweight equals $152,960,414, divided by 26 handlers equals
$5,883,093 per handler).
In addition, USDA National Agricultural Statistics Service reported
an average producer price of $8.20 per hundredweight for the 2019 crop.
Given the number of Washington potato producers, the average annual
producer revenue is well below $1,000,000 ($8.20 times 9,687,170
hundredweight equals $79,434,794, divided by 250 producers equals
$317,739 per producer). Therefore, most handlers and producers of fresh
Washington potatoes may be classified as small agricultural businesses.
This final rule suspends the reporting and assessment requirements
of the Order. The handler reporting requirement that is suspended is
the monthly collection of Washington fresh potato shipment information.
The assessment rate that is suspended is the $0.0025 per hundredweight
rate that was established beginning July 1, 2013. The Committee also
recommended a budget of expenditures of $41,150 for the period
beginning July 1, 2020 and ending with termination of the Order. The
budget was based on the Committee's estimated financial resources on
June 30, 2020. Budgeted expenditures include administrative expenses
and a final financial review.
The Committee made the recommendation to suspend the reporting and
assessment requirements as an adjunct to the recommendation to
terminate the Order. As such, the only other alternative discussed by
the Committee was to maintain the status quo, continue to assess
handlers, and to require monthly handling reports. After consideration,
the Committee determined that the Order is no longer beneficial to the
industry and that the best recourse was to cease operations and
terminate the Order.
This action suspends the Order's reporting and assessment
obligations imposed on handlers. When in effect, assessments are
applied uniformly on all handlers, and some of those costs may be
passed on to producers. Suspension of the reporting and assessment
requirements reduces the regulatory burden on handlers and is also
expected to reduce the burden on producers.
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. This final rule suspends those information collection
requirements, and any reporting and recordkeeping requirements under
the Order.
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 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.
The Committee's meeting was widely publicized throughout the
Washington potato industry, and all interested persons were invited to
attend the meeting and participate in Committee deliberations on all
issues. Like all Committee meetings, the June 11, 2020, meeting was a
public meeting, and all entities, both large and small, were able to
express their views on these issues.
A proposed rule concerning this action was published in the Federal
Register on October 13, 2020 (85 FR 64415). Copies of the proposal were
provided by the Committee to members and handlers. Finally, the
proposed rule was made available through the internet by USDA and the
Office of the Federal Register. A 60-day comment period ending December
14, 2020, was provided to allow interested persons to respond to the
proposal. No comments were submitted. Accordingly, no changes have been
made to the rule as proposed.
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 946
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agriculture
Marketing Service amends 7 CFR part 946 as follows:
PART 946--IRISH POTATOES GROWN IN WASHINGTON
0
1. The authority citation for 7 CFR part 946 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
[[Page 11094]]
Sec. Sec. 946.143 and 946.248 [Stayed]
0
2. Stay Sec. Sec. 946.143 and 946.248 indefinitely.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2021-03528 Filed 2-23-21; 8:45 am]
BILLING CODE P
