Grapes Grown in a Designated Area of Southeastern California; Increased Assessment Rate, 16085-16087 [2021-06222]
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16085
Proposed Rules
Federal Register
Vol. 86, No. 57
Friday, March 26, 2021
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Doc. No. AMS–SC–20–0093; SC21–925–1
PR]
Grapes Grown in a Designated Area of
Southeastern California; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
California Desert Grape Administrative
Committee (Committee) to increase the
assessment rate established for the 2021
and subsequent fiscal periods. The
proposed assessment rate would remain
in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
May 10, 2021.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments must be sent to the Docket
Clerk, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington,
DC 20250–0237; or internet: https://
www.regulations.gov. Comments should
reference the document number and the
date and page number of this issue of
the Federal Register and will be
available for public inspection in the
Office of the Docket Clerk during regular
business hours, or can be viewed at:
https://www.regulations.gov. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Bianca Bertrand, Management, Program
Analyst, California Marketing Field
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SUMMARY:
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Office or Andrew Hatch, Deputy
Director, Marketing Order and
Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (559)
487–5901 or email: BiancaM.Bertrand@
usda.gov or Andrew.Hatch@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,
proposes to amend regulations issued to
carry out a marketing order as defined
in 7 CFR 900.2(j). This proposed rule is
issued under Marketing Agreement and
Order No. 925, as amended (7 CFR part
925), regulating the handling of grapes
grown in a designated area of
southeastern California. Part 925
(referred to as the ‘‘Order’’) is effective
under the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act.’’ The Committee locally
administers the Order and is comprised
of producers and handlers of grapes
operating within the production area,
and a public member.
The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Orders
13563 and 13175. This proposed rule
falls within a category of regulatory
actions that the Office of Management
and Budget (OMB) exempted from
Executive Order 12866 review.
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the Order now in
effect, grape handlers in a designated
area of southeastern California are
subject to assessments. Funds to
administer the Order are derived from
such assessments. It is intended that the
assessment rate would be applicable to
all assessable grapes for the 2021 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
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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 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 the entry of the
ruling.
This proposed rule would increase
the assessment rate from $0.020 per 18pound lug of assessable grapes handled,
the rate that was established for the
2018 and subsequent fiscal periods, to
$0.040 per 18-pound lug of assessable
grapes handled for the 2021 and
subsequent fiscal periods.
The Order authorizes the Committee,
with the approval of USDA, to formulate
an annual budget of expenses and
collect assessments from handlers to
administer the program. The members
are familiar with the Committee’s needs
and with the costs of goods and services
in their local area and are in a position
to formulate an appropriate budget and
assessment rate. The assessment rate is
formulated and discussed in a public
meeting. Thus, all directly affected
persons have an opportunity to
participate and provide input.
For the 2018 and subsequent fiscal
periods, the Committee recommended,
and USDA approved, an assessment rate
of $0.020 per 18-pound lug of assessable
grapes handled. That assessment rate
continues in effect from fiscal period to
fiscal period unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on November 4,
2020, and unanimously recommended
expenditures of $85,500, and an
assessment rate of $0.040 per 18-pound
lug of assessable grapes handled for the
2021 and subsequent fiscal periods. In
comparison, last year’s budgeted
expenditures were $121,100. The
proposed assessment rate of $0.040 is
$0.020 higher than the rate currently in
effect. The Committee recommended
increasing the assessment rate to
provide adequate income to cover the
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Federal Register / Vol. 86, No. 57 / Friday, March 26, 2021 / Proposed Rules
Committee’s budgeted expenses for the
2021 fiscal period, as well as add funds
to the contingency reserve. Funds in the
reserve are expected to be
approximately $50,100 at the end of the
2021 fiscal period, which is within the
Order’s requirement to carryover no
more than approximately one fiscal
period’s budgeted expenses.
The major expenditures
recommended by the Committee for the
2021 fiscal period include $50,000 for
management and compliance expenses;
$19,500 for direct office expenses;
$16,000 for shared office, facilities, and
maintenance expenses.
Budgeted expenses for these items for
the 2020 fiscal period were $56,000 for
management and compliance expenses;
$20,700 for direct office expenses;
$15,900 for shared office, facilities, and
maintenance expenses; and $28,500 for
production research.
The Committee determined that the
contingency reserve fund had grown too
large, so they used $37,100 from it to
help fund the 2020 budget rather than
raise their assessment rate.
The Committee derived the
recommended assessment rate by
considering anticipated expenses; an
estimated crop of 2.5 million 18-pound
lugs of assessable grapes; and the
amount of funds available in the
authorized contingency reserve. Income
derived from handler assessments,
calculated at $100,000 (2.5 million 18pound lugs of assessable grapes
multiplied by $0.040 assessment rate),
would be adequate to cover budgeted
expenses of $85,500, as well as add a
small amount of funds ($14,500) back
into the contingency reserve. Funds in
the reserve are estimated to be $50,100
at the end of the 2021 fiscal period.
The assessment rate proposed in this
rule would continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate would
be in effect for an indefinite period, the
Committee 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 would evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
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16:46 Mar 25, 2021
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undertaken as necessary. The
Committee’s 2021 fiscal period budget,
and those for subsequent fiscal periods,
would be reviewed and, as appropriate,
approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
proposed rule on small entities.
Accordingly, AMS has prepared this
initial regulatory flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 10 handlers
subject to the regulation under the
Order, and approximately 21 producers
of grapes in the production area. Small
agricultural producers are defined by
the Small Business Administration
(SBA) as those having annual receipts of
less than $1,000,000, and small
agricultural service firms have been
defined as those whose annual receipts
are less than $30,000,000 (13 CFR
121.201).
According to the Committee data,
USDA Market News Shipping Point
Data, and National Agricultural
Statistics Service (NASS), the national
average producer price data released in
2020 for the 2019 production year was
approximately $10.62 per 18-pound lug.
Assuming that the 2020 producer price
remains the same as that for 2019, and
using Committee data for the 2020 total
grape production of 2,448,021 18-pound
lugs, the total 2020 value of the grape
crop was $25,997,983 (2,448,021 18pound lugs times $10.62 per 18-pound
lug equals $25,997,983). Dividing the
total grape crop value by the estimated
number of producers (21) yields an
estimated average receipt per producer
of $1,237,999, which is above the SBA
threshold for small producers.
According to USDA Market News
data, the reported terminal price for
2020 for grapes ranged between $18.95
to $24.95 per 18-pound lug. The average
of this range is $21.95 ($18.95 plus
$24.95 divided by 2). Multiplying the
2020 grape total production of 2,448,021
18-pound lugs by the estimated average
price per 18-pound lug of $21.95 equals
$53,734,061.
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Dividing this figure by 10 regulated
handlers yields estimated average
annual handler receipts of $5,373,406,
which is below the SBA threshold for
small agricultural service firms.
Therefore, using the above data, the
majority of producers may be
considered large entities, and handlers
of grapes in the production area may be
classified as small entities.
Based upon information from NASS,
the grower price reported for grapes in
2019 was $1,180 per ton ($10.62 per 18pound lug) of grapes. In order to
determine the estimated assessment
revenue as a percentage of the total
grower revenue, we calculate the
assessment rate ($0.040 per 18-pound
lug) times the estimated production
(2,500,000 18-pound lugs), which equals
the assessment revenue of $100,000.
The grower revenue is calculated by
multiplying the grower price of $10.62
per 18-pound lug times the estimated
production (2,500,000 18-pound lugs),
which equals the grower revenue of
$26,550,000.
In the final step, dividing the
assessment revenue by the grower
revenue indicates that, for the 2021
fiscal period, the estimated assessment
revenue as a percentage of total grower
revenue would be about 0.38 percent.
This proposal would increase the
assessment rate collected from handlers
for the 2021 and subsequent fiscal
periods from $0.020 to $0.040 per 18pound lug of assessable grapes handled.
The Committee unanimously
recommended 2021 expenditures of
$85,500 and an assessment rate of
$0.040 per 18-pound lug of assessable
grapes handled. The proposed
assessment rate of $0.040 per 18-pound
lug of assessable grapes handled is
$0.020 higher than the current rate. The
volume of assessable grapes for the 2021
fiscal period is estimated to be
2,500,000 18-pound lugs. Thus, the
$0.040 per 18-pound lug of assessable
grapes handled should provide
$100,000 in assessment income
(2,500,000 multiplied by $0.040).
Income derived from handler
assessments would be adequate to cover
budgeted expenses for the 2021 fiscal
period.
The major expenditures
recommended by the Committee for the
2021 fiscal period include $50,000 for
management and compliance expenses;
$19,500 for direct office expenses;
$16,000 for shared office, facilities, and
maintenance expenses. Budgeted
expenses for the 2020 fiscal period were
$56,000 for management and
compliance; $20,700 for direct office;
$15,900 for shared office, facilities, and
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maintenance; and $28,500 for
production research.
The Committee recommended
increasing the assessment rate to
provide adequate income to cover the
Committee’s budgeted expenses for the
2021 fiscal period, while adding funds
to its financial reserve. This action
would maintain the Committee’s reserve
balance at a level that the Committee
believes is appropriate and meets the
requirements of the Order.
Prior to arriving at this budget and
assessment rate recommendation, the
Committee discussed various
alternatives, including maintaining the
current assessment rate of $0.020 per
18-pound lug of assessable grapes
handled, and increasing the assessment
rate by a different amount. However, the
Committee determined that the
recommended assessment rate would
fully fund budgeted expenses and add
funds to the contingency reserve.
This proposed rule would increase
the assessment obligation imposed on
handlers. Assessments are applied
uniformly on all handlers, and some of
the costs may be passed on to
producers. However, these costs would
be offset by the benefits derived by the
operation of the Order.
The Committee’s meeting was widely
publicized throughout the industry. All
interested persons were invited to
attend the meeting and encouraged to
participate in Committee deliberations
on all issues. Like all Committee
meetings, the November 4, 2020,
meeting was a public meeting, and all
entities, both large and small, were able
to express views on this issue.
Interested persons are invited to submit
comments on this proposed rule,
including the regulatory and
information collection impacts of this
action on small businesses.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order’s information
collection requirements have been
previously approved by OMB and
assigned OMB No. 0581–0189, Fruit
Crops. No changes in those
requirements would be necessary as a
result of this proposed rule. Should any
changes become necessary, they would
be submitted to OMB for approval.
This proposed rule would not impose
any additional reporting or
recordkeeping requirements on either
small or large southeastern California
grape 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.
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AMS is committed to complying with
the E-Government Act, to promote the
use of the internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this proposed rule.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://
www.ams.usda.gov/rules-regulations/
moa/small-businesses. Any questions
about the compliance guide should be
sent to Richard Lower at the previously
mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
A 45-day comment period is provided
to allow interested persons to respond
to this proposed rule. All written
comments timely received will be
considered before a final determination
is made on this matter.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, AMS proposes to amend 7
CFR part 925 as follows:
PART 925—GRAPES GROWN IN A
DESIGNATED AREA OF
SOUTHEASTERN CALIFORNIA.
1. The authority citation for 7 CFR
part 925 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 925.215 is revised to read
as follows:
■
§ 925.215
Assessment rate.
On and after January 1, 2021, an
assessment rate of $0.040 per 18-pound
lug is established for grapes grown in a
designated area of southeastern
California.
Bruce Summers, Administrator,
Agricultural Marketing Service.
[FR Doc. 2021–06222 Filed 3–25–21; 8:45 am]
BILLING CODE 3410–02–P
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16087
NUCLEAR REGULATORY
COMMISSION
10 CFR Part 50
[NRC–2018–0290]
RIN 3150–AK22
American Society of Mechanical
Engineers 2019–2020 Code Editions
Nuclear Regulatory
Commission.
ACTION: Proposed rule.
AGENCY:
The U.S. Nuclear Regulatory
Commission (NRC) is proposing to
amend its regulations to incorporate by
reference the 2019 Edition of the
American Society of Mechanical
Engineers Boiler and Pressure Vessel
Code and the 2020 Edition of the
American Society of Mechanical
Engineers Operation and Maintenance
of Nuclear Power Plants, Division 1: OM
Code: Section IST, for nuclear power
plants. The NRC is also proposing to
incorporate by reference the 2011
Addenda to ASME NQA–1–2008,
Quality Assurance Requirements for
Nuclear Facility Applications (ASME
NQA–1b–2011), and the 2012 and 2015
Editions of ASME NQA–1, Quality
Assurance Requirements for Nuclear
Facility Applications. This action is in
accordance with the NRC’s policy to
periodically update the regulations to
incorporate by reference new editions of
the American Society of Mechanical
Engineers Codes and is intended to
maintain the safety of nuclear power
plants and to make NRC activities more
effective and efficient.
DATES: Submit comments by May 25,
2021. Comments received after this date
will be considered if it is practical to do
so, but the NRC is able to ensure
consideration only for comments
received on or before this date.
ADDRESSES: You may submit comments
by any of the following methods (unless
this document describes a different
method for submitting comments on a
specific subject):
• Federal Rulemaking Website: Go to
https://www.regulations.gov and search
for Docket ID NRC–2018–0290. Address
questions about NRC dockets to Dawn
Forder; telephone: 301–415–3407;
email: Dawn.Forder@nrc.gov. For
technical questions contact the
individuals listed in the FOR FURTHER
INFORMATION CONTACT section of this
document.
• Email comments to:
Rulemaking.Comments@nrc.gov. If you
do not receive an automatic email reply
confirming receipt, then contact us at
301–415–1677.
SUMMARY:
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]]>Agencies
[Federal Register Volume 86, Number 57 (Friday, March 26, 2021)]
[Proposed Rules]
[Pages 16085-16087]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06222]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 86, No. 57 / Friday, March 26, 2021 /
Proposed Rules
[[Page 16085]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Doc. No. AMS-SC-20-0093; SC21-925-1 PR]
Grapes Grown in a Designated Area of Southeastern California;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
California Desert Grape Administrative Committee (Committee) to
increase the assessment rate established for the 2021 and subsequent
fiscal periods. The proposed assessment rate would remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by May 10, 2021.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Specialty Crops Program,
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC
20250-0237; or internet: https://www.regulations.gov. Comments should
reference the document number and the date and page number of this
issue of the Federal Register and will be available for public
inspection in the Office of the Docket Clerk during regular business
hours, or can be viewed at: https://www.regulations.gov. All comments
submitted in response to this rule will be included in the record and
will be made available to the public. Please be advised that the
identity of the individuals or entities submitting the comments will be
made public on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Bianca Bertrand, Management, Program
Analyst, California Marketing Field Office or Andrew Hatch, Deputy
Director, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (559) 487-5901 or email:
[email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202)720-8938, or email: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
Agreement and Order No. 925, as amended (7 CFR part 925), regulating
the handling of grapes grown in a designated area of southeastern
California. Part 925 (referred to as the ``Order'') is effective under
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C.
601-674), hereinafter referred to as the ``Act.'' The Committee locally
administers the Order and is comprised of producers and handlers of
grapes operating within the production area, and a public member.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 13563 and 13175. This proposed
rule falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Order 12866 review.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the Order now in effect, grape handlers in
a designated area of southeastern California are subject to
assessments. Funds to administer the Order are derived from such
assessments. It is intended that the assessment rate would be
applicable to all assessable grapes for the 2021 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 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 the
entry of the ruling.
This proposed rule would increase the assessment rate from $0.020
per 18-pound lug of assessable grapes handled, the rate that was
established for the 2018 and subsequent fiscal periods, to $0.040 per
18-pound lug of assessable grapes handled for the 2021 and subsequent
fiscal periods.
The Order authorizes the Committee, with the approval of USDA, to
formulate an annual budget of expenses and collect assessments from
handlers to administer the program. The members are familiar with the
Committee's needs and with the costs of goods and services in their
local area and are in a position to formulate an appropriate budget and
assessment rate. The assessment rate is formulated and discussed in a
public meeting. Thus, all directly affected persons have an opportunity
to participate and provide input.
For the 2018 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $0.020 per 18-
pound lug of assessable grapes handled. That assessment rate continues
in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on November 4, 2020, and unanimously recommended
expenditures of $85,500, and an assessment rate of $0.040 per 18-pound
lug of assessable grapes handled for the 2021 and subsequent fiscal
periods. In comparison, last year's budgeted expenditures were
$121,100. The proposed assessment rate of $0.040 is $0.020 higher than
the rate currently in effect. The Committee recommended increasing the
assessment rate to provide adequate income to cover the
[[Page 16086]]
Committee's budgeted expenses for the 2021 fiscal period, as well as
add funds to the contingency reserve. Funds in the reserve are expected
to be approximately $50,100 at the end of the 2021 fiscal period, which
is within the Order's requirement to carryover no more than
approximately one fiscal period's budgeted expenses.
The major expenditures recommended by the Committee for the 2021
fiscal period include $50,000 for management and compliance expenses;
$19,500 for direct office expenses; $16,000 for shared office,
facilities, and maintenance expenses.
Budgeted expenses for these items for the 2020 fiscal period were
$56,000 for management and compliance expenses; $20,700 for direct
office expenses; $15,900 for shared office, facilities, and maintenance
expenses; and $28,500 for production research.
The Committee determined that the contingency reserve fund had
grown too large, so they used $37,100 from it to help fund the 2020
budget rather than raise their assessment rate.
The Committee derived the recommended assessment rate by
considering anticipated expenses; an estimated crop of 2.5 million 18-
pound lugs of assessable grapes; and the amount of funds available in
the authorized contingency reserve. Income derived from handler
assessments, calculated at $100,000 (2.5 million 18-pound lugs of
assessable grapes multiplied by $0.040 assessment rate), would be
adequate to cover budgeted expenses of $85,500, as well as add a small
amount of funds ($14,500) back into the contingency reserve. Funds in
the reserve are estimated to be $50,100 at the end of the 2021 fiscal
period.
The assessment rate proposed in this rule would continue in effect
indefinitely unless modified, suspended, or terminated by USDA upon
recommendation and information submitted by the Committee or other
available information.
Although this assessment rate would be in effect for an indefinite
period, the Committee 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 would evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2021 fiscal period budget,
and those for subsequent fiscal periods, would be reviewed and, as
appropriate, approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this proposed rule on small
entities. Accordingly, AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 10 handlers subject to the regulation under
the Order, and approximately 21 producers of grapes in the production
area. Small agricultural producers are defined by the Small Business
Administration (SBA) as those having annual receipts of less than
$1,000,000, and small agricultural service firms have been defined as
those whose annual receipts are less than $30,000,000 (13 CFR 121.201).
According to the Committee data, USDA Market News Shipping Point
Data, and National Agricultural Statistics Service (NASS), the national
average producer price data released in 2020 for the 2019 production
year was approximately $10.62 per 18-pound lug. Assuming that the 2020
producer price remains the same as that for 2019, and using Committee
data for the 2020 total grape production of 2,448,021 18-pound lugs,
the total 2020 value of the grape crop was $25,997,983 (2,448,021 18-
pound lugs times $10.62 per 18-pound lug equals $25,997,983). Dividing
the total grape crop value by the estimated number of producers (21)
yields an estimated average receipt per producer of $1,237,999, which
is above the SBA threshold for small producers.
According to USDA Market News data, the reported terminal price for
2020 for grapes ranged between $18.95 to $24.95 per 18-pound lug. The
average of this range is $21.95 ($18.95 plus $24.95 divided by 2).
Multiplying the 2020 grape total production of 2,448,021 18-pound lugs
by the estimated average price per 18-pound lug of $21.95 equals
$53,734,061.
Dividing this figure by 10 regulated handlers yields estimated
average annual handler receipts of $5,373,406, which is below the SBA
threshold for small agricultural service firms. Therefore, using the
above data, the majority of producers may be considered large entities,
and handlers of grapes in the production area may be classified as
small entities.
Based upon information from NASS, the grower price reported for
grapes in 2019 was $1,180 per ton ($10.62 per 18-pound lug) of grapes.
In order to determine the estimated assessment revenue as a percentage
of the total grower revenue, we calculate the assessment rate ($0.040
per 18-pound lug) times the estimated production (2,500,000 18-pound
lugs), which equals the assessment revenue of $100,000.
The grower revenue is calculated by multiplying the grower price of
$10.62 per 18-pound lug times the estimated production (2,500,000 18-
pound lugs), which equals the grower revenue of $26,550,000.
In the final step, dividing the assessment revenue by the grower
revenue indicates that, for the 2021 fiscal period, the estimated
assessment revenue as a percentage of total grower revenue would be
about 0.38 percent.
This proposal would increase the assessment rate collected from
handlers for the 2021 and subsequent fiscal periods from $0.020 to
$0.040 per 18-pound lug of assessable grapes handled. The Committee
unanimously recommended 2021 expenditures of $85,500 and an assessment
rate of $0.040 per 18-pound lug of assessable grapes handled. The
proposed assessment rate of $0.040 per 18-pound lug of assessable
grapes handled is $0.020 higher than the current rate. The volume of
assessable grapes for the 2021 fiscal period is estimated to be
2,500,000 18-pound lugs. Thus, the $0.040 per 18-pound lug of
assessable grapes handled should provide $100,000 in assessment income
(2,500,000 multiplied by $0.040). Income derived from handler
assessments would be adequate to cover budgeted expenses for the 2021
fiscal period.
The major expenditures recommended by the Committee for the 2021
fiscal period include $50,000 for management and compliance expenses;
$19,500 for direct office expenses; $16,000 for shared office,
facilities, and maintenance expenses. Budgeted expenses for the 2020
fiscal period were $56,000 for management and compliance; $20,700 for
direct office; $15,900 for shared office, facilities, and
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maintenance; and $28,500 for production research.
The Committee recommended increasing the assessment rate to provide
adequate income to cover the Committee's budgeted expenses for the 2021
fiscal period, while adding funds to its financial reserve. This action
would maintain the Committee's reserve balance at a level that the
Committee believes is appropriate and meets the requirements of the
Order.
Prior to arriving at this budget and assessment rate
recommendation, the Committee discussed various alternatives, including
maintaining the current assessment rate of $0.020 per 18-pound lug of
assessable grapes handled, and increasing the assessment rate by a
different amount. However, the Committee determined that the
recommended assessment rate would fully fund budgeted expenses and add
funds to the contingency reserve.
This proposed rule would increase the assessment obligation imposed
on handlers. Assessments are applied uniformly on all handlers, and
some of the costs may be passed on to producers. However, these costs
would be offset by the benefits derived by the operation of the Order.
The Committee's meeting was widely publicized throughout the
industry. All interested persons were invited to attend the meeting and
encouraged to participate in Committee deliberations on all issues.
Like all Committee meetings, the November 4, 2020, meeting was a public
meeting, and all entities, both large and small, were able to express
views on this issue. Interested persons are invited to submit comments
on this proposed rule, including the regulatory and information
collection impacts of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0189, Fruit Crops.
No changes in those requirements would be necessary as a result of this
proposed rule. Should any changes become necessary, they would be
submitted to OMB for approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large southeastern
California grape handlers. As with all Federal marketing order
programs, reports and forms are periodically reviewed to reduce
information requirements and duplication by industry and public sector
agencies.
AMS is committed to complying with the E-Government Act, to promote
the use of the internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this proposed rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any
questions about the compliance guide should be sent to Richard Lower at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 45-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, AMS proposes to amend 7
CFR part 925 as follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA.
0
1. The authority citation for 7 CFR part 925 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 925.215 is revised to read as follows:
Sec. 925.215 Assessment rate.
On and after January 1, 2021, an assessment rate of $0.040 per 18-
pound lug is established for grapes grown in a designated area of
southeastern California.
Bruce Summers, Administrator,
Agricultural Marketing Service.
[FR Doc. 2021-06222 Filed 3-25-21; 8:45 am]
BILLING CODE 3410-02-P
