Onions Grown in Certain Designated Counties in Idaho and Malheur County, Oregon; Increased Assessment Rate, 86066-86069 [2023-27213]
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86066
Proposed Rules
Federal Register
Vol. 88, No. 237
Tuesday, December 12, 2023
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 958
[Doc. No. AMS–SC–23–0033]
Onions Grown in Certain Designated
Counties in Idaho and Malheur County,
Oregon; Increased Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Idaho-Eastern Oregon Onion Committee
(Committee) to increase the assessment
rate established for the 2023–2024 and
subsequent fiscal periods. The proposed
assessment rate would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
January 11, 2024.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments can be sent to the Docket
Clerk, Market Development Division,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP
0237, Washington, DC 20250–0237.
Comments can also be submitted to the
Docket Clerk electronically by Email:
MarketingOrderComment@usda.gov or
via the internet at: https://
www.regulations.gov. Comments should
reference the document number and the
date and page number of this issue of
the Federal Register. Comments
submitted in response to this proposed
rule will be included in the record and
will be made available to the public and
can be viewed at: https://
www.regulations.gov. 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: Josh
Wilde, Marketing Specialist, or Gary
Olson, Chief, West Region Branch,
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SUMMARY:
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Market Development Division, Specialty
Crops Program, AMS, USDA;
Telephone: (503) 326–2724, or Email:
Joshua.R.Wilde@usda.gov or
GaryD.Olson@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) 720–8085, or Email:
Richard.Lower@usda.gov.
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 No.
130 and Marketing Order No. 958, both
as amended (7 CFR part 958), regulating
the handling of onions grown in certain
counties in Idaho, and Malheur County,
Oregon. Part 958 (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 onions operating within
the area of production, and a public
member.
The Agricultural Marketing Service
(AMS) is issuing this proposed rule in
conformance with Executive Orders
12866, 13563, and 14094. 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. Executive Order
14094 reaffirms, supplements, and
updates Executive Order 12866 and
further directs agencies to solicit and
consider input from a wide range of
affected and interested parties through a
variety of means. This proposed action
falls within a category of regulatory
actions that the Office of Management
and Budget (OMB) exempted from
Executive Order 12866 review.
SUPPLEMENTARY INFORMATION:
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This proposed rule has been reviewed
under Executive Order 13175—
Consultation and Coordination with
Indian Tribal Governments, which
requires Federal agencies to consider
whether their rulemaking actions would
have Tribal implications. AMS has
determined that this proposed 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 proposed rule has been reviewed
under Executive Order 12988—Civil
Justice Reform. Under the Order now in
effect, Idaho-Eastern Oregon onion
handlers 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 IdahoEastern Oregon onions for the 2023–
2024 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 the U.S. Department of Agriculture
(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.
This proposed rule would increase
the assessment rate for Idaho-Eastern
Oregon onions handled under the Order
from $0.05 per hundredweight, the rate
that was established for the 2015–2016
and subsequent fiscal periods, to $0.07
per hundredweight for the 2023–2024
and subsequent fiscal periods.
The Order authorizes the Committee,
with the approval of AMS, to formulate
an annual budget of expenses and
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collect assessments from handlers to
administer the program. The members
of the Committee are familiar with the
Committee’s needs and with the costs of
goods and services in their local area
and are able to formulate an appropriate
budget and assessment rate. The
assessment rate is formulated and
discussed in a public meeting, and all
directly affected persons have an
opportunity to participate and provide
input.
For the 2015–2016 and subsequent
fiscal periods, the Committee
recommended, and AMS approved, an
assessment rate of $0.05 per
hundredweight of Idaho-Eastern Oregon
onions within the production area. That
rate continues in effect from fiscal
period to fiscal period until modified,
suspended, or terminated by AMS upon
recommendation and information
submitted by the Committee or other
information available to AMS.
The Committee met on June 27, 2023,
and recommended 2023–2024 fiscal
period expenditures of $1,039,785 and
an assessment rate of $0.07 per
hundredweight of Idaho-Eastern Oregon
onions handled for the 2023–2024 and
subsequent fiscal periods with a vote of
7 in favor and none opposed. In
comparison, last fiscal period’s
budgeted expenditures were $819,435.
The proposed assessment rate of $0.07
per hundredweight is $0.02 higher than
the rate currently in effect. The
Committee recommended increasing the
assessment rate to more fully fund the
Committee’s operations without relying
on its financial reserve funds. The
Committee has drawn down its financial
reserve in recent years to cover
Committee expenses as unfavorable
growing conditions have caused the
volume of assessable onion shipments
to fall well below what the Committee
had expected. Therefore, actual
assessment income collected for the
2021–2022 and 2022–2023 fiscal
periods was significantly less than
projected. The Committee is cautiously
optimistic that conditions would
improve, projecting handler shipments
of 10,000,000 hundredweight of
assessable Idaho-Eastern Oregon onions
for the 2023–2024 fiscal period, which
is the same as initially projected for the
2022–2023 fiscal period.
The major expenditures
recommended by the Committee for the
2023–2024 fiscal period include
$190,000 for research; $175,000 for
promotion; $21,000 for export
initiatives; $118,529 in salary expenses;
$55,270 for travel/office expenses;
$15,000 for marketing order
contingency; and $6,000 for Committee
expenses. By comparison, for the 2022–
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2023 fiscal period, budgeted expenses
for research, promotion, export
initiatives, salaries, travel/office, and
marketing order contingency were
$263,061; $200,000; $126,000; $103,004;
$96,370; $25,000; and $6,000,
respectively. The Committee’s 2023–
2024 budget also includes a separate
line-item expense of $458,986 for ‘‘grant
expenses’’ which refers to other research
and development projects funded with
reimbursable Specialty Crop Block
Grant Program funds. This category
reflects the total grant amount awarded
for approved research, promotion, and
export activities. In previous budgets,
these funds were allocated to the
individual programs where those funds
would be utilized (e.g., research,
promotion, and export). However, the
Committee felt that holding these
expenditures as a separate expense
category for the 2023–2024 fiscal period
helped differentiate activities funded
exclusively through assessment income
from those funded through reimbursable
grants. The Committee submits each
project under the Specialty Crop Block
Grant to the State of Idaho for
evaluation and approval prior to
reimbursement.
The expected 10,000,000
hundredweight of Idaho-Eastern Oregon
onions from the 2023–2024 crop would
generate $700,000 in assessment
revenue at the proposed assessment rate
(10,000,000 hundredweight of onions
multiplied by $0.07 assessment rate).
The 2023–2024 fiscal period assessment
rate increase should be appropriate to
ensure the Committee has sufficient
revenue, along with an anticipated
$458,986 in funds awarded through the
Specialty Crop Block Grant Program and
$23,850 in other income, to fully fund
its recommended 2023–2024 fiscal
period budgeted expenditures and begin
replenishing the Committee’s reserve
funds to a level that the Committee
believes is appropriate.
The Committee derived the
recommended assessment rate by
considering anticipated fiscal period
expenses and the estimated 2023 crop
volume of 10,000,000 hundredweight of
assessable Idaho-Eastern Oregon onions.
Income derived from handler
assessments ($700,000), Specialty Crop
Block Grants ($458,986), and other
sources including interest income and
voluntary contributions ($23,850),
should be more than adequate to cover
budgeted expenses ($1,039,785). The
Committee projects a positive net
difference between 2023–2024 fiscal
period income and expenses of
$143,051. This amount would help
replenish the Committee’s reserve fund
from an estimated $230,351 on July 1,
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2023, to an estimated $373,402 on July
1, 2024, a figure much more closely
aligned with the Committee’s preferred
reserve balance of approximately half of
one year’s operational expenses.
The proposed assessment rate would
continue in effect indefinitely unless
modified, suspended, or terminated by
AMS 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 would 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 AMS. Committee
meetings are open to the public and
interested persons may express their
views at these meetings. AMS 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 2023–2024
fiscal period budget, and those for
subsequent fiscal periods, will be
reviewed and, as appropriate, approved
by AMS.
Initial 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 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 190
producers of Idaho-Eastern Oregon
onions in the production area and 30
handlers subject to regulation under the
Order. Small agricultural producers of
onions are defined by the Small
Business Administration (SBA) as those
having annual receipts of less than
$3,750,000, and small agricultural
service firms are defined as those whose
annual receipts are less than
$34,000,000 (13 CFR 121.201).
According to the National
Agricultural Statistics Service (NASS),
the average annual producer price
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received for dry fresh market onions in
Idaho and Malheur County, Oregon, in
2021, the most recent year for which
there is NASS data, was $21.10 per
hundredweight. Total production of
Idaho-Eastern Oregon onions for the
2021 season was reported by the
Committee to be 9,281,912
hundredweight. Using the average
producer price from 2021, the total
2021–2022 crop value of Idaho-Eastern
Oregon onions could therefore be
estimated to be $195,848,343 (9,281,912
hundredweight times $21.10 per
hundredweight). Dividing the crop
value by the estimated number of
producers (190) yields an estimated
average receipt per producer of
$1,030,780, which is well below the
SBA threshold for small producers.
In addition, according to AMS Market
News data, the reported average free on
board (FOB) price for onions from
Idaho-Eastern Oregon over the 2021–
2022 fiscal period was between $15.00
and $20.00 per 50-pound carton,
depending upon variety, size and grade,
and shipping date. Assuming an average
of $17.50 for the fiscal period and
multiplying this figure by 2 (to adjust to
hundredweight) yields an average FOB
price of $35.00 per hundredweight for
the 2021–2022 fiscal period.
Multiplying the 2021–2022 IdahoEastern Oregon onion production of
9,281,912 hundredweight by the
estimated average price per
hundredweight of $35.00 equals
$324,866,920. Dividing this figure by
the 30 regulated handlers yields
estimated average annual handler
receipts of $10,828,897 ($324,866,920
divided by 30 handlers), which is below
the SBA threshold for small agricultural
service firms. Therefore, using the above
data and assuming a normal
distribution, most of the producers and
handlers of Idaho-Eastern Oregon
onions may be classified as small
entities.
This proposal would increase the
assessment rate collected from handlers
for the 2023–2024 and subsequent fiscal
periods from $0.05 to $0.07 per
hundredweight of Idaho-Eastern Oregon
onions. The Committee unanimously
recommended 2023–2024 fiscal period
expenditures of $1,039,785 and an
assessment rate of $0.07 per
hundredweight of Idaho-Eastern Oregon
onions. The proposed assessment rate of
$0.07 is $0.02 higher than the current
rate. The Committee expects the
industry to handle 10,000,000
hundredweight of Idaho-Eastern Oregon
onions during the 2023–2024 fiscal
period. Thus, the $0.07 per
hundredweight rate should provide
$700,000 in assessment income
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16:23 Dec 11, 2023
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(10,000,000 multiplied by $0.07). The
Committee expects to use an anticipated
$458,986 awarded from the Specialty
Crop Block Grant Program to cover
remaining expenses. Income derived
from handler assessments, Specialty
Crop Block Grant Program funds, and
other sources including interest income
and voluntary contributions, should be
more than adequate to cover budgeted
expenses.
The major expenditures
recommended by the Committee for the
2023–2024 fiscal period include
$190,000 for research committee,
$175,000 for promotion committee,
$21,000 for export committee, $118,529
in salary expenses, $55,270 for travel/
office expenses, $15,000 for marketing
order contingency, and $6,000 in
committee expenses. By comparison, for
the 2022–2023 fiscal period, budgeted
expenses for research, promotion,
export initiatives, salaries, travel/office,
and marketing order contingency were
$263,061, $200,000, $126,000, $103,004,
$96,370, $25,000, and $6,000,
respectively.
In recent years, the Committee has
utilized reserve funds to partially fund
its budgeted expenditures. The
Committee recommended increasing the
assessment rate to fully fund 2023–2024
fiscal period budgeted expenditures and
replenish funds held in its reserve. This
action would add an estimated $143,051
to the Committee’s financial reserve
fund. The reserve balance would be kept
at a level that the Committee believes is
appropriate and which is compliant
with the provisions of the Order.
Prior to arriving at this budget and
proposed assessment rate, the
Committee discussed various
alternatives, including maintaining the
current assessment rate of $0.05 per
hundredweight and increasing the
assessment rate by different amounts.
However, the Committee determined
that the recommended assessment rate
would fully fund budgeted expenses
and replenish reserves to appropriate
levels. The assessment rate of $0.07 per
hundredweight of Idaho-Eastern Oregon
onions was derived by considering
anticipated expenses, the projected
volume of assessable Idaho-Eastern
Oregon onions, grant funds awarded,
the projected monetary balance held in
reserve, and additional pertinent factors.
A review of NASS information
indicates that the average producer
price for the 2021–2022 fiscal period
was $21.10 per hundredweight of
onions in the production area. Further,
the Committee reported the quantity of
assessable Idaho-Eastern Oregon onions
harvested in the 2021–2022 fiscal period
was 9,281,912 hundredweight, which
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yields estimated total producer revenue
of $195,848,343 ($21.10 per
hundredweight multiplied by
9,281,912). Therefore, utilizing the
assessment rate of $0.07 per
hundredweight, assessment revenue for
the 2021–2022 fiscal period, as a
percentage of total producer revenue,
would be approximately 0.33 percent of
total producer revenue ($0.07
multiplied by 9,281,912 per
hundredweight divided by $195,848,343
and multiplied by 100).
This proposed action would increase
the assessment obligation imposed on
Idaho-Eastern Oregon onion 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
the benefits derived by the operation of
the Order.
The Committee’s meetings are widely
publicized throughout the production
area. The Idaho-Eastern Oregon onion
industry and all interested persons are
invited to attend the meetings and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the June 27, 2023, meeting
was a public meeting and all entities,
both large and small, were able to
express views on this issue. Finally,
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. 0581–0178,
Vegetable and Specialty 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 Idaho-Eastern Oregon
onion 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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Federal Register / Vol. 88, No. 237 / Tuesday, December 12, 2023 / Proposed Rules
AMS 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.
After consideration of all relevant
material presented, including the
information and recommendations
submitted by the Committee and other
available information, USDA has
determined that this proposed rule is
consistent with and will effectuate the
purposes of the Act.
A 30-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 rule.
List of Subjects in 7 CFR Part 958
Marketing agreements, Onions,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, the Agricultural Marketing
Service proposes to amend 7 CFR part
958 as follows:
PART 958—ONIONS GROWN IN
CERTAIN DESIGNATED COUNTIES IN
IDAHO, AND MALHEUR COUNTY,
OREGON
1. The authority citation for 7 CFR
part 958 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
■
Assessment rate.
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On and after July 1, 2023, an
assessment rate of $0.07 per
hundredweight is established for IdahoEastern Oregon onions.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2023–27213 Filed 12–11–23; 8:45 am]
BILLING CODE P
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Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2023–2234; Project
Identifier AD–2023–00963–T]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
The FAA proposes to adopt a
new airworthiness directive (AD) for all
The Boeing Company Model 737–600,
–700, –700C, –800, –900, and –900ER
series airplanes. This proposed AD was
prompted by two engine fan blade-out
(FBO) events that resulted in the
separation of engine inlet cowl and fan
cowl parts from the airplane. In one
event, fan cowl parts damaged the
fuselage, which caused loss of
pressurization and subsequent
emergency descent. This proposed AD
would require replacing the fasteners on
the fan cowl support beam hinge fittings
for certain airplanes and, for all
airplanes, would require modifying the
radial restraint assembly and installing
an external doubler at the starter vent,
or as an option, installing a serviceable
fan cowl. This proposed AD would also
require revising the existing
maintenance or inspection program, as
applicable, to incorporate new
airworthiness limitations. The FAA is
proposing this AD to address the unsafe
condition on these products.
DATES: The FAA must receive comments
on this proposed AD by January 26,
2024.
SUMMARY:
You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
regulations.gov. Follow the instructions
for submitting comments.
• Fax: 202–493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE,
Washington, DC 20590.
• Hand Delivery: Deliver to Mail
address above between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
AD Docket: You may examine the AD
docket at regulations.gov under Docket
No. FAA–2023–2234; or in person at
Docket Operations between 9 a.m. and
ADDRESSES:
2. Revise § 958.240 to read as follows:
§ 958.240
DEPARTMENT OF TRANSPORTATION
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86069
5 p.m., Monday through Friday, except
Federal holidays. The AD docket
contains this NPRM, any comments
received, and other information. The
street address for Docket Operations is
listed above.
Material Incorporated by Reference:
• For service information identified
in this NPRM, contact Boeing
Commercial Airplanes, Attention:
Contractual & Data Services (C&DS),
2600 Westminster Blvd., MC 110–SK57,
Seal Beach, CA 90740–5600; telephone
562–797–1717; website
myboeingfleet.com.
• You may view this service
information at the FAA, Airworthiness
Products Section, Operational Safety
Branch, 2200 South 216th St., Des
Moines, WA. For information on the
availability of this material at the FAA,
call 206–231–3195. It is also available at
regulations.gov by searching for and
locating Docket No. FAA–2023–2234.
FOR FURTHER INFORMATION CONTACT: Luis
Cortez-Muniz, Aviation Safety Engineer,
FAA, 2200 South 216th St., Des Moines,
WA 98198; telephone: 206–231–3958;
email: luis.a.cortez-muniz@faa.gov.
SUPPLEMENTARY INFORMATION:
Comments Invited
The FAA invites you to send any
written relevant data, views, or
arguments about this proposal. Send
your comments to an address listed
under ADDRESSES. Include ‘‘Docket No.
FAA–2023–2234; Project Identifier AD–
2023–00963–T’’ at the beginning of your
comments. The most helpful comments
reference a specific portion of the
proposal, explain the reason for any
recommended change, and include
supporting data. The FAA will consider
all comments received by the closing
date and may amend this proposal
because of those comments.
Except for Confidential Business
Information (CBI) as described in the
following paragraph, and other
information as described in 14 CFR
11.35, the FAA will post all comments
received, without change, to
regulations.gov, including any personal
information you provide. The agency
will also post a report summarizing each
substantive verbal contact received
about this NPRM.
Confidential Business Information
CBI is commercial or financial
information that is both customarily and
actually treated as private by its owner.
Under the Freedom of Information Act
(FOIA) (5 U.S.C. 552), CBI is exempt
from public disclosure. If your
comments responsive to this NPRM
contain commercial or financial
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Agencies
[Federal Register Volume 88, Number 237 (Tuesday, December 12, 2023)]
[Proposed Rules]
[Pages 86066-86069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27213]
========================================================================
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.
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Federal Register / Vol. 88, No. 237 / Tuesday, December 12, 2023 /
Proposed Rules
[[Page 86066]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[Doc. No. AMS-SC-23-0033]
Onions Grown in Certain Designated Counties in Idaho and Malheur
County, Oregon; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
Idaho-Eastern Oregon Onion Committee (Committee) to increase the
assessment rate established for the 2023-2024 and subsequent fiscal
periods. The proposed assessment rate would remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by January 11, 2024.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments can be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments can also be submitted to the Docket Clerk electronically by
Email: [email protected] or via the internet at: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register.
Comments submitted in response to this proposed rule will be included
in the record and will be made available to the public and can be
viewed at: https://www.regulations.gov. 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: Josh Wilde, Marketing Specialist, or
Gary Olson, Chief, West Region Branch, Market Development Division,
Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, or
Email: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Market Development Division,
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP
0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, 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 No. 130 and Marketing Order No. 958, both as amended (7 CFR
part 958), regulating the handling of onions grown in certain counties
in Idaho, and Malheur County, Oregon. Part 958 (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 onions operating within the area of
production, and a public member.
The Agricultural Marketing Service (AMS) is issuing this proposed
rule in conformance with Executive Orders 12866, 13563, and 14094.
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. Executive
Order 14094 reaffirms, supplements, and updates Executive Order 12866
and further directs agencies to solicit and consider input from a wide
range of affected and interested parties through a variety of means.
This proposed action 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 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires Federal agencies to consider whether their rulemaking actions
would have Tribal implications. AMS has determined that this proposed
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 proposed rule has been reviewed under Executive Order 12988--
Civil Justice Reform. Under the Order now in effect, Idaho-Eastern
Oregon onion handlers 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 Idaho-Eastern
Oregon onions for the 2023-2024 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 the U.S. Department
of Agriculture (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.
This proposed rule would increase the assessment rate for Idaho-
Eastern Oregon onions handled under the Order from $0.05 per
hundredweight, the rate that was established for the 2015-2016 and
subsequent fiscal periods, to $0.07 per hundredweight for the 2023-2024
and subsequent fiscal periods.
The Order authorizes the Committee, with the approval of AMS, to
formulate an annual budget of expenses and
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collect assessments from handlers to administer the program. The
members of the Committee are familiar with the Committee's needs and
with the costs of goods and services in their local area and are able
to formulate an appropriate budget and assessment rate. The assessment
rate is formulated and discussed in a public meeting, and all directly
affected persons have an opportunity to participate and provide input.
For the 2015-2016 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.05 per
hundredweight of Idaho-Eastern Oregon onions within the production
area. That rate continues in effect from fiscal period to fiscal period
until modified, suspended, or terminated by AMS upon recommendation and
information submitted by the Committee or other information available
to AMS.
The Committee met on June 27, 2023, and recommended 2023-2024
fiscal period expenditures of $1,039,785 and an assessment rate of
$0.07 per hundredweight of Idaho-Eastern Oregon onions handled for the
2023-2024 and subsequent fiscal periods with a vote of 7 in favor and
none opposed. In comparison, last fiscal period's budgeted expenditures
were $819,435. The proposed assessment rate of $0.07 per hundredweight
is $0.02 higher than the rate currently in effect. The Committee
recommended increasing the assessment rate to more fully fund the
Committee's operations without relying on its financial reserve funds.
The Committee has drawn down its financial reserve in recent years to
cover Committee expenses as unfavorable growing conditions have caused
the volume of assessable onion shipments to fall well below what the
Committee had expected. Therefore, actual assessment income collected
for the 2021-2022 and 2022-2023 fiscal periods was significantly less
than projected. The Committee is cautiously optimistic that conditions
would improve, projecting handler shipments of 10,000,000 hundredweight
of assessable Idaho-Eastern Oregon onions for the 2023-2024 fiscal
period, which is the same as initially projected for the 2022-2023
fiscal period.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $190,000 for research; $175,000 for
promotion; $21,000 for export initiatives; $118,529 in salary expenses;
$55,270 for travel/office expenses; $15,000 for marketing order
contingency; and $6,000 for Committee expenses. By comparison, for the
2022-2023 fiscal period, budgeted expenses for research, promotion,
export initiatives, salaries, travel/office, and marketing order
contingency were $263,061; $200,000; $126,000; $103,004; $96,370;
$25,000; and $6,000, respectively. The Committee's 2023-2024 budget
also includes a separate line-item expense of $458,986 for ``grant
expenses'' which refers to other research and development projects
funded with reimbursable Specialty Crop Block Grant Program funds. This
category reflects the total grant amount awarded for approved research,
promotion, and export activities. In previous budgets, these funds were
allocated to the individual programs where those funds would be
utilized (e.g., research, promotion, and export). However, the
Committee felt that holding these expenditures as a separate expense
category for the 2023-2024 fiscal period helped differentiate
activities funded exclusively through assessment income from those
funded through reimbursable grants. The Committee submits each project
under the Specialty Crop Block Grant to the State of Idaho for
evaluation and approval prior to reimbursement.
The expected 10,000,000 hundredweight of Idaho-Eastern Oregon
onions from the 2023-2024 crop would generate $700,000 in assessment
revenue at the proposed assessment rate (10,000,000 hundredweight of
onions multiplied by $0.07 assessment rate). The 2023-2024 fiscal
period assessment rate increase should be appropriate to ensure the
Committee has sufficient revenue, along with an anticipated $458,986 in
funds awarded through the Specialty Crop Block Grant Program and
$23,850 in other income, to fully fund its recommended 2023-2024 fiscal
period budgeted expenditures and begin replenishing the Committee's
reserve funds to a level that the Committee believes is appropriate.
The Committee derived the recommended assessment rate by
considering anticipated fiscal period expenses and the estimated 2023
crop volume of 10,000,000 hundredweight of assessable Idaho-Eastern
Oregon onions. Income derived from handler assessments ($700,000),
Specialty Crop Block Grants ($458,986), and other sources including
interest income and voluntary contributions ($23,850), should be more
than adequate to cover budgeted expenses ($1,039,785). The Committee
projects a positive net difference between 2023-2024 fiscal period
income and expenses of $143,051. This amount would help replenish the
Committee's reserve fund from an estimated $230,351 on July 1, 2023, to
an estimated $373,402 on July 1, 2024, a figure much more closely
aligned with the Committee's preferred reserve balance of approximately
half of one year's operational expenses.
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by AMS 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 would 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 AMS. Committee meetings are open to the public and interested
persons may express their views at these meetings. AMS 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 2023-2024
fiscal period budget, and those for subsequent fiscal periods, will be
reviewed and, as appropriate, approved by AMS.
Initial 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 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 190 producers of Idaho-Eastern Oregon
onions in the production area and 30 handlers subject to regulation
under the Order. Small agricultural producers of onions are defined by
the Small Business Administration (SBA) as those having annual receipts
of less than $3,750,000, and small agricultural service firms are
defined as those whose annual receipts are less than $34,000,000 (13
CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
the average annual producer price
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received for dry fresh market onions in Idaho and Malheur County,
Oregon, in 2021, the most recent year for which there is NASS data, was
$21.10 per hundredweight. Total production of Idaho-Eastern Oregon
onions for the 2021 season was reported by the Committee to be
9,281,912 hundredweight. Using the average producer price from 2021,
the total 2021-2022 crop value of Idaho-Eastern Oregon onions could
therefore be estimated to be $195,848,343 (9,281,912 hundredweight
times $21.10 per hundredweight). Dividing the crop value by the
estimated number of producers (190) yields an estimated average receipt
per producer of $1,030,780, which is well below the SBA threshold for
small producers.
In addition, according to AMS Market News data, the reported
average free on board (FOB) price for onions from Idaho-Eastern Oregon
over the 2021-2022 fiscal period was between $15.00 and $20.00 per 50-
pound carton, depending upon variety, size and grade, and shipping
date. Assuming an average of $17.50 for the fiscal period and
multiplying this figure by 2 (to adjust to hundredweight) yields an
average FOB price of $35.00 per hundredweight for the 2021-2022 fiscal
period. Multiplying the 2021-2022 Idaho-Eastern Oregon onion production
of 9,281,912 hundredweight by the estimated average price per
hundredweight of $35.00 equals $324,866,920. Dividing this figure by
the 30 regulated handlers yields estimated average annual handler
receipts of $10,828,897 ($324,866,920 divided by 30 handlers), which is
below the SBA threshold for small agricultural service firms.
Therefore, using the above data and assuming a normal distribution,
most of the producers and handlers of Idaho-Eastern Oregon onions may
be classified as small entities.
This proposal would increase the assessment rate collected from
handlers for the 2023-2024 and subsequent fiscal periods from $0.05 to
$0.07 per hundredweight of Idaho-Eastern Oregon onions. The Committee
unanimously recommended 2023-2024 fiscal period expenditures of
$1,039,785 and an assessment rate of $0.07 per hundredweight of Idaho-
Eastern Oregon onions. The proposed assessment rate of $0.07 is $0.02
higher than the current rate. The Committee expects the industry to
handle 10,000,000 hundredweight of Idaho-Eastern Oregon onions during
the 2023-2024 fiscal period. Thus, the $0.07 per hundredweight rate
should provide $700,000 in assessment income (10,000,000 multiplied by
$0.07). The Committee expects to use an anticipated $458,986 awarded
from the Specialty Crop Block Grant Program to cover remaining
expenses. Income derived from handler assessments, Specialty Crop Block
Grant Program funds, and other sources including interest income and
voluntary contributions, should be more than adequate to cover budgeted
expenses.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $190,000 for research committee, $175,000
for promotion committee, $21,000 for export committee, $118,529 in
salary expenses, $55,270 for travel/office expenses, $15,000 for
marketing order contingency, and $6,000 in committee expenses. By
comparison, for the 2022-2023 fiscal period, budgeted expenses for
research, promotion, export initiatives, salaries, travel/office, and
marketing order contingency were $263,061, $200,000, $126,000,
$103,004, $96,370, $25,000, and $6,000, respectively.
In recent years, the Committee has utilized reserve funds to
partially fund its budgeted expenditures. The Committee recommended
increasing the assessment rate to fully fund 2023-2024 fiscal period
budgeted expenditures and replenish funds held in its reserve. This
action would add an estimated $143,051 to the Committee's financial
reserve fund. The reserve balance would be kept at a level that the
Committee believes is appropriate and which is compliant with the
provisions of the Order.
Prior to arriving at this budget and proposed assessment rate, the
Committee discussed various alternatives, including maintaining the
current assessment rate of $0.05 per hundredweight and increasing the
assessment rate by different amounts. However, the Committee determined
that the recommended assessment rate would fully fund budgeted expenses
and replenish reserves to appropriate levels. The assessment rate of
$0.07 per hundredweight of Idaho-Eastern Oregon onions was derived by
considering anticipated expenses, the projected volume of assessable
Idaho-Eastern Oregon onions, grant funds awarded, the projected
monetary balance held in reserve, and additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2021-2022 fiscal period was $21.10 per hundredweight of
onions in the production area. Further, the Committee reported the
quantity of assessable Idaho-Eastern Oregon onions harvested in the
2021-2022 fiscal period was 9,281,912 hundredweight, which yields
estimated total producer revenue of $195,848,343 ($21.10 per
hundredweight multiplied by 9,281,912). Therefore, utilizing the
assessment rate of $0.07 per hundredweight, assessment revenue for the
2021-2022 fiscal period, as a percentage of total producer revenue,
would be approximately 0.33 percent of total producer revenue ($0.07
multiplied by 9,281,912 per hundredweight divided by $195,848,343 and
multiplied by 100).
This proposed action would increase the assessment obligation
imposed on Idaho-Eastern Oregon onion 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 the
benefits derived by the operation of the Order.
The Committee's meetings are widely publicized throughout the
production area. The Idaho-Eastern Oregon onion industry and all
interested persons are invited to attend the meetings and participate
in Committee deliberations on all issues. Like all Committee meetings,
the June 27, 2023, meeting was a public meeting and all entities, both
large and small, were able to express views on this issue. Finally,
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. 0581-0178, Vegetable
and Specialty 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 Idaho-Eastern
Oregon onion 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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AMS 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.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, USDA has determined that this proposed
rule is consistent with and will effectuate the purposes of the Act.
A 30-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 rule.
List of Subjects in 7 CFR Part 958
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 958 as follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
0
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 958.240 to read as follows:
Sec. 958.240 Assessment rate.
On and after July 1, 2023, an assessment rate of $0.07 per
hundredweight is established for Idaho-Eastern Oregon onions.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-27213 Filed 12-11-23; 8:45 am]
BILLING CODE P