Domestic Dates Produced or Packed in Riverside County, California; Increased Assessment Rate, 64343-64345 [2021-25115]
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64343
Rules and Regulations
Federal Register
Vol. 86, No. 220
Thursday, November 18, 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
Agricultural Marketing Service
7 CFR Part 987
[Doc. No. AMS–SC–21–0056; SC21–987–1
FR]
Domestic Dates Produced or Packed in
Riverside County, California; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the California
Date Administrative Committee
(Committee) to increase the assessment
rate for the 2020–21 and subsequent
crop years. The assessment rate will
remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Effective December 20, 2021.
FOR FURTHER INFORMATION CONTACT:
Barry Broadbent, Senior Marketing
Specialist, West Region Branch, Market
Development Division, Specialty Crops
Program, AMS, USDA; Telephone: (503)
326–2724, or Email: Barry.Broadbent@
usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Market Development 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.
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. 987, as amended (7
CFR part 987), regulating the handling
of domestic dates produced or packed in
Riverside County, California. Part 987,
(referred to as the ‘‘Order’’), is effective
under the Agricultural Marketing
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SUMMARY:
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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 producer-handlers
operating within the area of production.
The Department of Agriculture
(USDA) is issuing this final rule in
conformance with 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.
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. The Agricultural
Marketing Service (AMS) has
determined that this 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 date handlers are
subject to assessments. Funds to
administer the Order are derived from
such assessments. The assessment rate
is applicable to all assessable dates for
the 2020–21 crop year, and will
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 (7 U.S.C.
608(15)(A)), any handler subject to an
order may file with USDA a petition
stating that the order, any provision of
the order, or any obligation imposed in
connection with the order is not in
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accordance with law and request a
modification of the order or to be
exempted therefrom. Such handler is
afforded the opportunity for a hearing
on the petition. After the hearing, USDA
would rule on the petition. The Act
provides that the district court of the
United States in any district in which
the handler is an inhabitant, or has his
or her principal place of business, has
jurisdiction to review USDA’s ruling on
the petition, provided an action is filed
not later than 20 days after the date of
the entry of the ruling.
The Order provides authority for the
Committee, with the approval of USDA,
to formulate an annual budget of
expenses and collect assessments from
handlers to administer the program. The
members are familiar with the
Committee’s needs and with the costs of
goods and services in their local area
and can formulate an appropriate
budget and assessment rate. The
assessment rate is formulated and
discussed in a public meeting. Thus, all
directly affected persons have an
opportunity to participate and provide
input.
This rule increases the assessment
rate from $0.15 per hundredweight, the
rate that was established for the 2018–
19 and subsequent crop years, to $0.20
per hundredweight of dates handled for
the 2020–21 and subsequent crop years.
The Committee recommended the
increased assessment rate to compensate
for increasing administrative expenses.
The higher assessment rate will provide
sufficient funds to cover most of the
2020–21 crop year anticipated expenses,
with the balance coming from other
income and the Committee’s financial
reserve.
The Committee met on June 25, 2020,
and unanimously recommended
increasing the assessment rate from
$0.15 per hundredweight to $0.20 per
hundredweight to fund necessary
administrative expenses and maintain a
sufficient operating reserve. The
assessment rate increase will provide
sufficient funds to cover most of the
Committee’s 2020–21 crop year
budgeted expenses, with the balance
coming from other revenue sources and
reserve funds.
The Committee estimates the 2020–21
domestic date crop to be 32,000,000
pounds (320,000 hundredweight),
which is expected to generate $64,000
in assessment income at the $0.20 per
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64344
Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 / Rules and Regulations
hundredweight assessment rate. The
Committee anticipates other income of
approximately $5,000. Total income of
$69,000, combined with $6,250 from the
financial reserve, will provide enough
funds to cover 2020–21 crop year
budgeted expenditures. Reserve funds
remaining at the end of the 2020–21
crop year are expected to be $28,750.
The Committee’s budget for the 2020–
21 crop year is estimated to be $75,250.
The Committee’s expenses include
$47,000 for management, $19,250 for
office administration, and $9,000 for the
financial audit. In comparison, the
previous crop year’s total budget was
$74,200, and the administrative
expenses were $43,000, $21,200, and
$10,000, respectively.
The assessment rate recommended by
the Committee was derived by
considering anticipated expenses, the
expected volume of dates handled, and
the amount of funds available in the
operating reserve. Income derived from
handler assessments of $64,000 (320,000
hundredweight assessed at a rate of
$0.20 per hundredweight) will be
adequate to cover most of the
Committee’s budgeted expenses of
$75,250, with the balance covered from
$5,000 in other income and $6,250 from
reserve funds. After expending $6,250,
the ending 2020–21 crop year balance in
the financial reserve is expected to be
$28,750, which would be less than the
average of the annual expenses of the
preceding five years as mandated by
§ 987.72(d).
The assessment rate established by
this rule will continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate will be
in effect for an indefinite period, the
Committee will continue to meet prior
to or during each crop year 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. Meetings are public and held
virtually or in a hybrid style with
participants having a choice whether to
attend in person or virtually. All
interested persons may express their
views at these meetings. USDA will
evaluate Committee recommendations
and other available information to
determine whether modification of the
assessment rate is needed. Further
rulemaking will be undertaken as
necessary. The Committee’s budget for
subsequent crop years will be reviewed
and, as appropriate, approved by USDA.
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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), AMS has considered
the economic impact of this rule on
small entities. Accordingly, AMS has
prepared this final regulatory flexibility
analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses subject to such actions in
order that small businesses will not be
unduly or disproportionately burdened.
Marketing orders issued pursuant to the
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 70 date
producers in the production area and 11
date handlers subject to regulation
under the Order. The Small Business
Administration defines small
agricultural producers as those having
annual receipts of less than $1,000,000,
and small agricultural service firms as
those whose annual receipts are less
than $30,000,000. (13 CFR 121.201)
According to the National
Agricultural Statistics Service (NASS),
data for the most-recently completed
crop year (2019) shows that the
producer price for fresh market
California dates was $4,130 per ton.
With the estimated 16,000-ton crop, the
total farm gate value for California date
producers was approximately
$66,080,000 (16,000 times $4,130).
Therefore, the average fresh market date
revenue for the 70 producers within the
production area is approximately
$944,000 ($66,080,000 divided by 70).
Thus, assuming a normal bell-curve
distribution of receipts among
producers, AMS estimates the majority
of producers would qualify as small
businesses under the SBA definition.
Furthermore, USDA Market News
reported an average terminal market
price of $50.88 per 11-pound carton for
the 2019–20 crop year. With
approximately 32,000,000 pounds
handled, the industry would have
shipped an estimated 2,909,091 11pound cartons (32,000,000 divided by
11) of packaged dates for a total value
of $148,014,550 (2,909,091 times
$50.88). With 11 date handlers within
the production area, the average revenue
per handler is estimated to be
$13,455,868 for the 2019–20 crop year
($148,014,550 divided by 11). Thus,
most California date handlers would be
considered small businesses under the
SBA definition.
This final rule increases the
assessment rate collected from handlers
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for the 2020–21 and subsequent crop
years from $0.15 to $0.20 per
hundredweight of dates handled. The
Committee unanimously recommended
2020–21 crop year expenditures of
$75,250 and an assessment rate of $0.20
per hundredweight of dates, which is
$0.05 higher than the rate currently in
effect. The quantity of assessable dates
for the 2020–21 crop year is estimated
to be 32,000,000 pounds (320,000
hundredweight). The $0.20 per
hundredweight assessment rate is
expected to provide $64,000 in
assessment income. Income derived
from handlers’ assessments, plus $5,000
of other income and $6,250 from the
Committee’s authorized reserve, will be
adequate to cover the Committee’s
budgeted expenses for the 2020–21 crop
year.
The total budget recommended by the
Committee for the 2020–21 crop year is
$75,250, compared to $74,200 for the
2019–20 crop year. The Committee
recommended the higher assessment
rate to fully fund ongoing program
expenses without depleting its operating
reserve.
The income generated from the higher
assessment rate, combined with other
income and a small amount from the
financial reserve, will be sufficient to
cover anticipated 2020–21 expenses and
to maintain a financial reserve within
the limit specified by the Order.
Section 987.72(d) states that the
Committee may maintain an operating
monetary reserve not to exceed the
average of one year’s expenses incurred
during the most recent five preceding
crop years, except that an established
reserve need not be reduced to conform
to any recomputed average. The
Committee estimated that funds in its
reserve were approximately $35,000 at
the beginning of the 2020–21 crop year.
It expects to utilize $6,250 of the reserve
during the year, leaving a reserve of
approximately $28,750 to start the
2021–22 crop year, which would be
within the limit specified in the Order.
The Committee reviewed and
unanimously recommended 2020–21
crop year expenditures of $75,250. The
Committee considered several factors
before making its recommendation,
including the size of the anticipated
2020–21 crop, the Committee’s
estimated 2020–21 reserve carry-in,
other sources of income, and its
anticipated expenses. Further, the
Committee considered several
alternative expenditure levels and
assessment rates, including not
changing the assessment rate or
adjusting expenses. Ultimately, the
Committee recommended the $0.20 per
hundredweight assessment rate to fund
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Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 / Rules and Regulations
the program’s expenses and maintain its
reserve at a reasonable level.
A review of historical and preliminary
information pertaining to the upcoming
crop year indicates that the producer
price for the 2020–21 crop year is
estimated to be $201.50 per
hundredweight of dates. Utilizing that
price, the estimated crop size, and the
$0.20 per hundredweight assessment
rate, the estimated assessment revenue
for the 2020–21 crop year as a
percentage of total producer revenue is
approximately 0.1 percent ($0.20 per
hundredweight divided by $201.50 per
hundredweight).
This action increases the assessment
obligation imposed on handlers. While
assessments impose some additional
costs on handlers, the costs are minimal
and uniform on all handlers. Some of
the additional costs may be passed on
to producers. However, these costs are
offset by the benefits derived by the
operation of the Order. In addition, the
Committee meetings were widely
publicized throughout the California
date industry. All interested persons
were invited to attend the meetings and
encouraged to participate in Committee
deliberations on all issues. The June 25,
2020 Committee meeting was a virtually
held public meeting and all entities,
both large and small, were able to
express views on this issue. 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 the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178 Vegetable
and Specialty Crops. No changes in
those requirements are necessary as a
result of this action. Should any changes
become necessary, they would be
submitted to OMB for approval.
This final rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
California date 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.
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USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this final rule.
A proposed rule concerning this
action was published in the Federal
Register on August 26, 2021 (86 FR
47599). 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 Federal Register. A
15-day comment period ending
September 10, 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 987
Dates, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 987 is amended as
follows:
PART 987—DOMESTIC DATES
PRODUCED OR PACKED IN
RIVERSIDE, CALIFORNIA
1. The authority citation for part 987
continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 987.339 is revised to read
as follows:
■
§ 987.339
Assessment rate.
On and after October 1, 2020, an
assessment rate of $0.20 per
hundredweight is established for dates
produced or packed in Riverside
County, California.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2021–25115 Filed 11–17–21; 8:45 am]
BILLING CODE 3410–02–P
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64345
CONSUMER PRODUCT SAFETY
COMMISSION
16 CFR Part 1227
[Docket No. CPSC–2013–0019]
Safety Standard for Carriages and
Strollers
Consumer Product Safety
Commission.
ACTION: Direct final rule.
AGENCY:
In March 2014, the U.S.
Consumer Product Safety Commission
(CPSC) published a consumer product
safety standard for carriages and
strollers under section 104 of the
Consumer Product Safety Improvement
Act of 2008 (CPSIA). The CPSIA sets
forth a process for updating mandatory
standards for durable infant or toddler
products that are based on a voluntary
standard when a voluntary standards
organization revises the standard. This
direct final rule updates the mandatory
standard for carriages and strollers to
incorporate by reference ASTM’s 2021
version of the voluntary standard.
DATES: The rule is effective on February
15, 2022, unless CPSC receives a
significant adverse comment by
December 20, 2021. If CPSC receives
such a comment, it will publish a
document in the Federal Register,
withdrawing this direct final rule before
its effective date. The incorporation by
reference of the publication listed in
this rule is approved by the Director of
the Federal Register as of February 15,
2022.
ADDRESSES: You may submit comments,
identified by Docket No. CPSC–2013–
0019, by any of the following methods:
Electronic Submissions: Submit
electronic comments to the Federal
eRulemaking Portal at: https://
www.regulations.gov. Follow the
instructions for submitting comments.
The CPSC does not accept comments
submitted by electronic mail (email),
except through https://
www.regulations.gov and as described
below. The CPSC encourages you to
submit electronic comments by using
the Federal eRulemaking Portal, as
described above.
Mail/Hand Delivery/Courier Written
Submissions: Submit comments by
mail/hand delivery/courier to: Division
of the Secretariat, Consumer Product
Safety Commission, 4330 East West
Highway, Bethesda, MD 20814;
telephone (301) 504–7479.
Alternatively, as a temporary option
during the COVID–19 pandemic, you
can email such submissions to: cpsc-os@
cpsc.gov.
SUMMARY:
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]]>Agencies
[Federal Register Volume 86, Number 220 (Thursday, November 18, 2021)]
[Rules and Regulations]
[Pages 64343-64345]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25115]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 /
Rules and Regulations
[[Page 64343]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
[Doc. No. AMS-SC-21-0056; SC21-987-1 FR]
Domestic Dates Produced or Packed in Riverside County,
California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the California Date
Administrative Committee (Committee) to increase the assessment rate
for the 2020-21 and subsequent crop years. The assessment rate will
remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective December 20, 2021.
FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing
Specialist, West Region Branch, Market Development Division, Specialty
Crops Program, AMS, USDA; Telephone: (503) 326-2724, or Email:
[email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Market Development 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.
987, as amended (7 CFR part 987), regulating the handling of domestic
dates produced or packed in Riverside County, California. Part 987,
(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 producer-
handlers operating within the area of production.
The Department of Agriculture (USDA) is issuing this final rule in
conformance with 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.
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. The Agricultural Marketing Service (AMS) has
determined that this 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 date
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. The assessment rate is applicable to all
assessable dates for the 2020-21 crop year, and will 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 (7 U.S.C. 608(15)(A)), any handler subject to an order may file
with USDA a petition stating that the order, any provision of the
order, or any obligation imposed in connection with the order is not in
accordance with law and request a modification of the order or to be
exempted therefrom. Such handler is afforded the opportunity for a
hearing on the petition. After the hearing, USDA would rule on the
petition. The Act provides that the district court of the United States
in any district in which the handler is an inhabitant, or has his or
her principal place of business, has jurisdiction to review USDA's
ruling on the petition, provided an action is filed not later than 20
days after the date of the entry of the ruling.
The Order provides authority for the Committee, with the approval
of USDA, to formulate an annual budget of expenses and collect
assessments from handlers to administer the program. The members are
familiar with the Committee's needs and with the costs of goods and
services in their local area and can formulate an appropriate budget
and assessment rate. The assessment rate is formulated and discussed in
a public meeting. Thus, all directly affected persons have an
opportunity to participate and provide input.
This rule increases the assessment rate from $0.15 per
hundredweight, the rate that was established for the 2018-19 and
subsequent crop years, to $0.20 per hundredweight of dates handled for
the 2020-21 and subsequent crop years. The Committee recommended the
increased assessment rate to compensate for increasing administrative
expenses. The higher assessment rate will provide sufficient funds to
cover most of the 2020-21 crop year anticipated expenses, with the
balance coming from other income and the Committee's financial reserve.
The Committee met on June 25, 2020, and unanimously recommended
increasing the assessment rate from $0.15 per hundredweight to $0.20
per hundredweight to fund necessary administrative expenses and
maintain a sufficient operating reserve. The assessment rate increase
will provide sufficient funds to cover most of the Committee's 2020-21
crop year budgeted expenses, with the balance coming from other revenue
sources and reserve funds.
The Committee estimates the 2020-21 domestic date crop to be
32,000,000 pounds (320,000 hundredweight), which is expected to
generate $64,000 in assessment income at the $0.20 per
[[Page 64344]]
hundredweight assessment rate. The Committee anticipates other income
of approximately $5,000. Total income of $69,000, combined with $6,250
from the financial reserve, will provide enough funds to cover 2020-21
crop year budgeted expenditures. Reserve funds remaining at the end of
the 2020-21 crop year are expected to be $28,750.
The Committee's budget for the 2020-21 crop year is estimated to be
$75,250. The Committee's expenses include $47,000 for management,
$19,250 for office administration, and $9,000 for the financial audit.
In comparison, the previous crop year's total budget was $74,200, and
the administrative expenses were $43,000, $21,200, and $10,000,
respectively.
The assessment rate recommended by the Committee was derived by
considering anticipated expenses, the expected volume of dates handled,
and the amount of funds available in the operating reserve. Income
derived from handler assessments of $64,000 (320,000 hundredweight
assessed at a rate of $0.20 per hundredweight) will be adequate to
cover most of the Committee's budgeted expenses of $75,250, with the
balance covered from $5,000 in other income and $6,250 from reserve
funds. After expending $6,250, the ending 2020-21 crop year balance in
the financial reserve is expected to be $28,750, which would be less
than the average of the annual expenses of the preceding five years as
mandated by Sec. 987.72(d).
The assessment rate established by this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
upon recommendation and information submitted by the Committee or other
available information.
Although this assessment rate will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
crop year 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.
Meetings are public and held virtually or in a hybrid style with
participants having a choice whether to attend in person or virtually.
All interested persons may express their views at these meetings. USDA
will evaluate Committee recommendations and other available information
to determine whether modification of the assessment rate is needed.
Further rulemaking will be undertaken as necessary. The Committee's
budget for subsequent 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 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 70 date producers in the production area
and 11 date handlers subject to regulation under the Order. The Small
Business Administration defines small agricultural producers as those
having annual receipts of less than $1,000,000, and small agricultural
service firms as those whose annual receipts are less than $30,000,000.
(13 CFR 121.201)
According to the National Agricultural Statistics Service (NASS),
data for the most-recently completed crop year (2019) shows that the
producer price for fresh market California dates was $4,130 per ton.
With the estimated 16,000-ton crop, the total farm gate value for
California date producers was approximately $66,080,000 (16,000 times
$4,130). Therefore, the average fresh market date revenue for the 70
producers within the production area is approximately $944,000
($66,080,000 divided by 70). Thus, assuming a normal bell-curve
distribution of receipts among producers, AMS estimates the majority of
producers would qualify as small businesses under the SBA definition.
Furthermore, USDA Market News reported an average terminal market
price of $50.88 per 11-pound carton for the 2019-20 crop year. With
approximately 32,000,000 pounds handled, the industry would have
shipped an estimated 2,909,091 11-pound cartons (32,000,000 divided by
11) of packaged dates for a total value of $148,014,550 (2,909,091
times $50.88). With 11 date handlers within the production area, the
average revenue per handler is estimated to be $13,455,868 for the
2019-20 crop year ($148,014,550 divided by 11). Thus, most California
date handlers would be considered small businesses under the SBA
definition.
This final rule increases the assessment rate collected from
handlers for the 2020-21 and subsequent crop years from $0.15 to $0.20
per hundredweight of dates handled. The Committee unanimously
recommended 2020-21 crop year expenditures of $75,250 and an assessment
rate of $0.20 per hundredweight of dates, which is $0.05 higher than
the rate currently in effect. The quantity of assessable dates for the
2020-21 crop year is estimated to be 32,000,000 pounds (320,000
hundredweight). The $0.20 per hundredweight assessment rate is expected
to provide $64,000 in assessment income. Income derived from handlers'
assessments, plus $5,000 of other income and $6,250 from the
Committee's authorized reserve, will be adequate to cover the
Committee's budgeted expenses for the 2020-21 crop year.
The total budget recommended by the Committee for the 2020-21 crop
year is $75,250, compared to $74,200 for the 2019-20 crop year. The
Committee recommended the higher assessment rate to fully fund ongoing
program expenses without depleting its operating reserve.
The income generated from the higher assessment rate, combined with
other income and a small amount from the financial reserve, will be
sufficient to cover anticipated 2020-21 expenses and to maintain a
financial reserve within the limit specified by the Order.
Section 987.72(d) states that the Committee may maintain an
operating monetary reserve not to exceed the average of one year's
expenses incurred during the most recent five preceding crop years,
except that an established reserve need not be reduced to conform to
any recomputed average. The Committee estimated that funds in its
reserve were approximately $35,000 at the beginning of the 2020-21 crop
year. It expects to utilize $6,250 of the reserve during the year,
leaving a reserve of approximately $28,750 to start the 2021-22 crop
year, which would be within the limit specified in the Order.
The Committee reviewed and unanimously recommended 2020-21 crop
year expenditures of $75,250. The Committee considered several factors
before making its recommendation, including the size of the anticipated
2020-21 crop, the Committee's estimated 2020-21 reserve carry-in, other
sources of income, and its anticipated expenses. Further, the Committee
considered several alternative expenditure levels and assessment rates,
including not changing the assessment rate or adjusting expenses.
Ultimately, the Committee recommended the $0.20 per hundredweight
assessment rate to fund
[[Page 64345]]
the program's expenses and maintain its reserve at a reasonable level.
A review of historical and preliminary information pertaining to
the upcoming crop year indicates that the producer price for the 2020-
21 crop year is estimated to be $201.50 per hundredweight of dates.
Utilizing that price, the estimated crop size, and the $0.20 per
hundredweight assessment rate, the estimated assessment revenue for the
2020-21 crop year as a percentage of total producer revenue is
approximately 0.1 percent ($0.20 per hundredweight divided by $201.50
per hundredweight).
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
are offset by the benefits derived by the operation of the Order. In
addition, the Committee meetings were widely publicized throughout the
California date industry. All interested persons were invited to attend
the meetings and encouraged to participate in Committee deliberations
on all issues. The June 25, 2020 Committee meeting was a virtually held
public meeting and all entities, both large and small, were able to
express views on this issue. 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 the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0178 Vegetable and Specialty Crops. No changes in
those requirements are necessary as a result of this action. Should any
changes become necessary, they would be submitted to OMB for approval.
This final rule will not impose any additional reporting or
recordkeeping requirements on either small or large California date
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 final rule.
A proposed rule concerning this action was published in the Federal
Register on August 26, 2021 (86 FR 47599). 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
Federal Register. A 15-day comment period ending September 10, 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 987
Dates, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 987 is
amended as follows:
PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE,
CALIFORNIA
0
1. The authority citation for part 987 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 987.339 is revised to read as follows:
Sec. 987.339 Assessment rate.
On and after October 1, 2020, an assessment rate of $0.20 per
hundredweight is established for dates produced or packed in Riverside
County, California.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-25115 Filed 11-17-21; 8:45 am]
BILLING CODE 3410-02-P
