Dried Prunes Produced in California; Increased Assessment Rate, 44259-44262 [2021-17267]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 86, Number 153 (Thursday, August 12, 2021)]
[Rules and Regulations]
[Pages 44259-44262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17267]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Doc. No. AMS-SC-20-0104; SC21-993-1 FR]


Dried Prunes Produced in California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule implements a recommendation from the Prune Marketing 
Committee to increase the assessment rate established for the 2020-21 
and subsequent crop years. The assessment rate will remain in effect 
indefinitely unless modified, suspended, or terminated.

DATES: Effective September 13, 2021.

FOR FURTHER INFORMATION CONTACT: Bianca Bertrand, Management and 
Program Analyst, or Gary D. Olson, Acting Regional Director, California 
Marketing Field Office, 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, 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 Agreement and 
Order No. 993, as amended (7 CFR part 993), regulating the handling of 
dried prunes produced in California. Part 993 (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 Prune Marketing Committee (Committee) locally administers 
the Order and is comprised of producers and handlers of dried prunes 
operating within the production area, and a public member. The crop 
year for this Order runs from August 1 to July 31.
    The Department of Agriculture (USDA) is issuing this final rule in 
conformance with Executive Orders 12866 and 13563. Executive Orders

[[Page 44260]]

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.
    This final rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which 
requires agencies to consider whether their rulemaking actions would 
have tribal implications. Agricultural Marketing Service (AMS) has 
determined that this final rule is unlikely to have substantial direct 
effects on one or more Indian tribes, on the relationship between the 
Federal Government and Indian tribes, or on the distribution of power 
and responsibilities between the Federal Government and Indian tribes.
    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the order now in effect, California dried 
prune handlers are subject to assessments. Funds to administer the 
order are derived from such assessments. The assessment rate is 
applicable to all assessable dried prunes for the 2020-21 crop year and 
would 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 final rule increases the assessment rate from $0.25 per ton of 
salable dried prunes, the rate that was established for the 2019-20 and 
subsequent crop years, to $0.28 per ton of salable dried prunes for the 
2020-21 and subsequent crop years.
    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. Members are familiar with the 
Committee's needs and with the cost of goods and services in their 
local area and can formulate an appropriate budget and assessment rate. 
The assessment rate is formulated and discussed in a public meeting. 
All directly affected persons have an opportunity to participate and 
provide input.
    For the 2019-20 and subsequent crop years, the Committee 
recommended, and USDA approved, an assessment rate of $0.25 per ton of 
salable dried prunes. That assessment rate continues in effect from 
crop year to crop year 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 December 10, 2020, and unanimously recommended 
expenditures of $24,550 and an assessment rate of $0.28 per ton of 
salable dried prunes handled for the 2020-21 and subsequent crop years. 
In comparison, last year's budgeted expenditures were $24,500. The 
$0.28 per ton assessment rate is $0.03 higher than the rate currently 
in effect. The Committee recommended increasing the assessment rate due 
to a smaller crop, and to provide adequate income along with 
carryforward/contingency funds and interest income to cover all the 
Committee's budgeted expenses for the 2020-21 crop year.
    Major expenditures recommended by the Committee for the 2020-21 
crop year include $13,700 for personnel expenses and $10,850 for 
operating expenses. Budgeted expenses for these items for the 2019-20 
crop year were $13,300 and $11,200, respectively.
    The Committee derived the recommended assessment rate by 
considering anticipated expenses and an estimated crop of 50,000 tons 
of salable dried prunes. Income derived from handler assessments, 
calculated at $14,000 (50,000 tons salable dried prunes multiplied by 
$0.28 assessment rate), along with carryforward/contingency funds and 
interest income ($11,682), will be adequate to cover budgeted expenses 
of $24,550.
    The assessment rate established by this rule will continue in 
effect indefinitely until modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Committee will continue to meet prior to or during each 
crop year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. Dates and 
times of Committee meetings are available from the Committee or USDA.
    Committee meetings are open to the public and interested persons 
may express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's 2020-21 crop year budget, 
and those for subsequent crop years, will be reviewed and, as 
appropriate, approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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 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 800 producers of dried prunes in the 
production area and 20 handlers subject to the regulation under the 
Order. 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 National Agricultural Statistics Service (NASS), 
the national average producer price for California dried prunes for the 
2019-20 crop year was $1,510 per ton. Committee data indicates that the 
California dried prune total production was 110,000 tons in the 2019-20 
crop year. The total 2019-20 crop year value of California dried prunes 
was

[[Page 44261]]

$166,100,000 (110,000 tons times $1,510 per ton equals $166,100,000). 
Dividing the crop value by the estimated number of producers (800) 
yields an estimated average receipt per producer of $207,625.
    According to USDA Market News data, the reported terminal price for 
2019 for California dried prunes ranged between $30.02 to $32.59 per 
28-pound carton. The average of this range is $31.31 ($30.02 plus 
$32.59 divided by 2 equals $31.31). Dividing the average value by the 
28-pound carton yields an estimated average price per pound of $1.12 
($31.31 average value for 28-pound carton divided by 28).
    The handler price for prunes is $2,240 per ton ($1.12 per pound 
multiplied by 2,000 pounds per ton equals $2,240 per ton). Multiplying 
2019-20 California dried prune total production of 110,000 tons by the 
estimated average price per ton of $2,240 equals $246,400,000. Dividing 
this figure by 20 regulated handlers yields estimated average annual 
handler receipts of $12,320,000. Therefore, using the above data, the 
majority of producers and handlers of California dried prunes may be 
classified as small entities.
    As noted above, the average price received per ton by producers in 
the preceding crop year was $1,510 per ton of salable dried prunes. 
Given the estimated tonnage of 50,000 tons salable dried prunes for the 
2020-21 crop year, the total producer revenue is estimated to be 
$75,500,000. The total assessment revenue is expected to be $14,000 
(50,000 tons multiplied by $0.28 per ton). Thus, the total assessment 
revenue compared to total producer revenue is 0.019 percent.
    This final rule increases the assessment rate collected from 
handlers for the 2020-21 and subsequent crop years from $0.25 to $0.28 
per ton of salable California dried prunes. The Committee unanimously 
recommended 2020-21 crop year expenditures of $24,550 and an assessment 
rate of $0.28 per ton of salable dried prunes. The $0.28 per ton 
assessment rate is $0.03 higher than the current rate. The volume of 
assessable dried prunes for the 2020-21 crop year is estimated to be 
50,000 tons. Thus, the $0.28 per ton of salable dried prunes should 
provide $14,000 in assessment income (50,000 multiplied by $0.28). 
Income derived from handler assessments, along with carryforward/
contingency funds and interest income, will be adequate to cover 
budgeted expenses for the 2020-21 crop year.
    Major expenditures recommended by the Committee for the 2020-21 
crop year include $13,700 for personnel expenses and $10,850 for 
operating expenses. Budgeted expenses for these items in the 2019-20 
crop year were $13,300 and $11,200 respectively.
    The Committee recommended increasing the assessment rate due to a 
smaller crop and to provide adequate income, along with carryforward/
contingency funds and interest income, to cover the Committee's 
budgeted expenses for the 2020-21 crop year. Prior to arriving at this 
budget and assessment rate recommendation, the Committee discussed 
various alternatives, including maintaining the current assessment rate 
of $0.25 per ton of salable dried prunes, and increasing the assessment 
rate by a different amount. However, the Committee determined that the 
recommended assessment rate, along with carryforward/contingency funds 
and interest income, will adequately fund budgeted expenses.
    This final rule increases 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 are 
expected to be offset by benefits derived by the operation of the 
Order.
    The Committee's meeting was widely publicized throughout the 
California prune industry. Meetings are public and virtual or in a 
hybrid style with participants having a choice whether to attend in 
person or virtually. All interested persons were invited to attend the 
meeting and encouraged to participate in Committee deliberations on all 
issues.
    The December 10, 2020, meeting was a virtual public meeting, and 
all entities, both large and small, were able to express views on this 
issue. Finally, interested persons were invited to submit comments on 
the 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. 0581-0178, Vegetable 
and Specialty Crops. No changes in those requirements will be necessary 
as a result of this final rule. Should any changes become necessary, 
they would be submitted to OMB for approval.
    This final rule will not impose any additional reporting or 
recordkeeping requirements on either small or large California prune 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on May 12, 2021 (86 FR 25975). 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 
Federal Register. A 30-day comment period ending June 11, 2021, was 
provided to allow interested persons to respond to the proposal. No 
comments were received. Accordingly, no changes will be 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 993

    Marketing agreements, Plum, Prunes, Reporting and recordkeeping 
requirements.

    For reasons set forth in the preamble, 7 CFR part 993 is amended as 
follows:

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA

0
1. The authority citation for 7 CFR part 993 continues to read as 
follows:

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


0
2. Section 993.347 is revised to read as follows:


Sec.  993.347  Assessment rate.

    On and after August 1, 2020, an assessment rate of $0.28 per ton of

[[Page 44262]]

salable dried prunes is established for California dried prunes.

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-17267 Filed 8-11-21; 8:45 am]
BILLING CODE 3410-02-P