Pears Grown in Oregon and Washington; Increased Assessment Rate for Processed Pears, 25775-25778 [2024-07809]
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Federal Register / Vol. 89, No. 72 / Friday, April 12, 2024 / Rules and Regulations
months in duration, with management
and/or technical responsibilities
consistent with the PMF’s IDP.
(ii) The developmental assignment
may be within the PMF’s organization,
in another component of the agency, or
in another Federal agency as permitted
by the employing agency. These
assignments should generally be in a
different work unit led by a supervisor
other than the usual supervisor of the
PMF’s current position.
(iii) Developmental assignments must
provide challenging work experience of
a caliber appropriate for a participant in
the Federal Government’s flagship
leadership development program.
Examples of appropriate developmental
assignments may include projects
implementing a new Executive order or
major piece of legislation, agency
reorganization, or cross-agency
collaboration on a major administration
initiative.
(5) The PMF may receive other shortterm rotational assignments of 1 to 6
months in duration, at the agency’s
discretion. A short-term rotational
assignment may take place within the
PMF’s organization, in another
component of the agency, or in another
Federal agency as permitted by the
employing agency.
*
*
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*
(d) * * *
(2)(i) The ERB must notify the PMF of
its decision regarding certification of
successful completion.
(ii) A PMF who receives successful
certification is eligible for conversion in
accordance with § 362.409.
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*
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(4) * * *
(iii) A PMF who is not approved for
certification and whose appeal to OPM
is denied is not eligible for conversion
in accordance with § 362.409.
■ 21. Amend § 362.409 by revising
paragraph (b) and adding paragraph (c)
to read as follows:
§ 362.409
service.
Conversion to the competitive
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(b) An agency may convert, without a
break in service, an ERB-certified PMF
to a competitive service term or
permanent appointment in any position
for which they are qualified.
(c) A PMF who is being converted to
a permanent or term position at a
different agency is subject to the
following conditions:
(1) The employing (or losing) agency
must be unable to convert the PMF to
a term or permanent position in the
competitive service in the current
organizational unit of the employing
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Jkt 262001
agency or another component within the
same Department or agency. These
reasons for conversion at another agency
may include unforeseen budgetary
constraints; reorganizations;
abolishment of positions; or other
appropriate reasons. Such a conversion
to another agency may not be due to
issues related to failure to obtain
certification from the agency’s Executive
Resources Board, misconduct, poor
performance, or suitability;
(2) Conversion must occur on or
before the end of the agency prescribed
Program period, plus any agencyapproved extension; and
(3) The position at the new agency
must have a full performance level that
is equivalent to or less than the position
to which the PMF would have been
converted at the losing agency.
PART 410—TRAINING
22. The authority citation for part 410
continues to read as follows:
■
Authority: 5 U.S.C. 1103(c), 2301, 2302,
4101, et seq.; E.O. 11348, 3 CFR, 1967 Comp.,
p. 275, E.O. 11478, 3 CFR 1966–1970 Comp.,
page 803, unless otherwise noted, E.O.
13087; and E.O. 13152.
23. Amend § 410.306 by revising
paragraph (c) to read as follows:
■
§ 410.306 Selecting and assigning
employees to training.
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(c) Subject to the prohibitions of
§ 410.308(a), an agency may pay all or
part of the training expenses of students
hired under the Pathways Internship
Program (see 5 CFR part 362, subpart B).
[FR Doc. 2024–06810 Filed 4–11–24; 8:45 am]
BILLING CODE 6325–39–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS–SC–23–0037]
Pears Grown in Oregon and
Washington; Increased Assessment
Rate for Processed Pears
Agricultural Marketing Service,
Department of Agriculture (USDA).
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the Processed
Pear Committee (Committee) to increase
the assessment rate established for the
2023–2024 fiscal period and subsequent
fiscal periods. The assessment rate will
remain in effect indefinitely unless
modified, suspended, or terminated.
SUMMARY:
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DATES:
25775
Effective May 13, 2024.
Dale
Novotny, Marketing Specialist, or Barry
Broadbent, Acting Chief, West Region
Branch, Market Development Division,
Specialty Crops Program, AMS, USDA;
Telephone: (503) 326–2724, or Email:
DaleJ.Novotny@usda.gov or
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) 720–8085, or Email:
Richard.Lower@usda.gov.
SUPPLEMENTARY INFORMATION: This
action, pursuant to 5 U.S.C. 553,
implements an amendment to
regulations issued to carry out a
marketing order as defined in 7 CFR
900.2(j). This rule is issued under
Marketing Order No. 927, as amended (7
CFR part 927), regulating the handling
of pears grown in Oregon and
Washington. Part 927 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 growers,
handlers, and processors of pears
operating within the area of production,
and a public member.
The Agricultural Marketing Service
(AMS) is issuing this 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 action falls
within a category of regulatory actions
that the Office of Management and
Budget (OMB) exempted from Executive
Order 12866 review.
This rule has been reviewed under
Executive Order 13175—Consultation
and Coordination with Indian Tribal
Governments, which requires Federal
FOR FURTHER INFORMATION CONTACT:
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Federal Register / Vol. 89, No. 72 / Friday, April 12, 2024 / Rules and Regulations
agencies to consider whether their
rulemaking actions would have Tribal
implications. The 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 rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the Order now in effect,
pear handlers are subject to
assessments. Funds to administer the
Order are derived from such
assessments. It is intended that the
assessment rate will be applicable to all
assessable ‘‘summer/fall’’ pears for
canning 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 8c(15)(A) of the Act (7 U.S.C.
608c(15)(A)), any handler subject to an
order may file with the United States
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 rule increases the assessment
rate for ‘‘summer/fall’’ varieties of pears
for canning handled under the Order
from $7.15 per ton, the rate that was
established for the 2018–2019 fiscal
period and subsequent fiscal periods, to
$7.50 per ton for the 2023–2024 fiscal
period and subsequent fiscal periods.
The Order authorizes the Committee,
with the approval of AMS, to formulate
an annual budget of expenses and
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 can 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.
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For the 2018–2019 fiscal period and
subsequent fiscal periods, the
Committee recommended, and AMS
approved, an assessment rate of $7.15
per ton of ‘‘summer/fall’’ varieties of
pears for canning handled (83 FR
62451). 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 8, 2023,
and unanimously recommended 2023–
2024 fiscal period expenditures of
$607,532 and an assessment rate of
$7.50 per ton of ‘‘summer/fall’’ varieties
of pears for canning handled for the
2023–2024 fiscal period and subsequent
fiscal periods. In comparison, last year’s
budgeted expenditures were $594,130.
The increased assessment rate of $7.50
per ton is $0.35 higher than the rate
currently in effect. The Committee
recommended increasing the assessment
rate to better fund operations using
assessment revenue and to reduce the
reliance on reserve funds. The
Committee has drawn down its financial
reserve in recent years to cover
Committee expenses and to reduce the
reserve so as to not exceed
approximately one fiscal period’s
budgeted expenses, in conformance
with the Order (7 CFR 927.42(a)). The
Committee projects handler receipts of
78,000 tons of assessable ‘‘summer/fall’’
varieties of pears for canning for the
2023–2024 fiscal period, which is 7,288
more than was projected for the 2022–
2023 fiscal period.
The major expenditures
recommended by the Committee for the
2023–2024 fiscal period include
$492,595 for marketing, promotions,
and paid advertising; $73,337 for
research; $25,000 for promotion
management fees; and $16,600 for
Committee administrative expenses.
Budgeted expenditures for the 2022–
2023 fiscal period were $483,300,
$66,530, $25,000, and $21,396,
respectively.
Processed pears for canning are
marketed throughout the calendar year.
The expected 78,000-ton 2023 crop will
generate $585,000 in assessment
revenue at the increased assessment rate
(78,000 tons of assessable ‘‘summer/
fall’’ varieties of pears for canning
multiplied by $7.50 per ton assessment
rate). The remaining $22,532 needed to
cover budgeted expenditures will come
from reserve funds carried over from
previous fiscal periods and $100 in
interest income. The 2023–2024 fiscal
period assessment rate increase will be
appropriate to ensure the Committee has
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sufficient revenue, along with its
reserve, to fully fund its recommended
2023–2024 fiscal period budgeted
expenditures and maintain a level of
reserve funds that the Committee
believes is appropriate.
The Committee derived the
recommended assessment rate by
considering anticipated fiscal period
expenses, an estimated 2023 crop
volume of 78,000 tons of assessable
‘‘summer/fall’’ varieties of pears for
canning, and the amount of funds
available in the authorized reserve.
Income derived from handler
assessments ($585,000) and funds from
the Committee’s authorized reserve
($22,432) along with interest income
($100) will be adequate to cover
budgeted expenses ($607,532).
The assessment rate will 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 will be
in effect for an indefinite period, the
Committee will continue to meet prior
to or during each fiscal period to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
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.
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
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.
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Federal Register / Vol. 89, No. 72 / Friday, April 12, 2024 / Rules and Regulations
There are approximately 1,500
growers of pears for processing in the
production area and approximately 34
handlers of processed pears subject to
regulation under the Order. Small
agricultural growers of processed pears
are defined by the Small Business
Administration (SBA) as those having
annual receipts equal to or less than
$3.5 million (NAICS code 111339, Other
Noncitrus Fruit Farming), and small
agricultural service firms are defined as
those whose annual receipts are equal to
or less than $34 million (NAICS code
115114, Postharvest Crop Activities) (13
CFR 121.201).
According to the National
Agricultural Statistics Service (NASS),
the average annual grower price
received for processed pears in
Washington and Oregon was $361 per
ton (2022). Total production of pears for
canning for the 2022 season was
reported by the Committee to be 74,131
tons. Using the average grower price
from 2022, the most recent years for
which there is NASS data, the total 2022
crop value of pears grown for processing
in Oregon and Washington was
$26,761,291 (74,131 tons multiplied by
$361 per ton). Dividing the crop value
by the estimated number of growers
(1,500) yields an estimated average
receipt per grower of $17,841, which is
well below the SBA threshold for small
growers.
Given the relatively small total
farmgate value of pears for processing
produced in the production area
($26,761,291), it is probable that most,
if not all, of the pear processors
regulated by the Order would be
considered small entities. Dividing the
$26,761,291 estimated crop value by the
number of handlers of processed pears
(34) equals $787,097. AMS has not
identified a direct third-party reference
for estimating processed pear
manufacturing margins. Without direct
third-party information regarding the
industry, determination of the number
of large and small processors using the
SBA’s definition would be difficult.
However, given the low average crop
value of pears for processing ($787,097)
it may be assumed that most, if not all,
of the handlers of processed pears
would have annual receipts below the
SBA threshold for small agricultural
service firms ($34 million). Therefore,
using the above information and
assuming a normal distribution, most of
the growers and handlers of pears for
processing may be classified as small
entities.
This rule increases the assessment
rate collected from handlers for the
2023–2024 fiscal period and subsequent
fiscal periods from $7.15 to $7.50 per
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ton of Oregon and Washington
‘‘summer/fall’’ pears for canning. The
Committee unanimously recommended
2023–2024 fiscal period expenditures of
$607,532 and an assessment rate of
$7.50 per ton of ‘‘summer/fall’’ pears for
canning. The assessment rate of $7.50 is
$0.35 higher than the previous rate. The
Committee expects the industry to
handle 78,000 tons of ‘‘summer/fall’’
varieties of pears for canning during the
2023–2024 fiscal period. Thus, the $7.50
per ton rate will provide approximately
$585,000 in assessment income (78,000
tons multiplied by $7.50). The
Committee also expects to use $22,532
from its financial reserve and $100 in
interest income to cover remaining
expenses. Income derived from handler
assessments, along with reserve funds,
will be adequate to meet budgeted
expenditures for the 2023–2024 fiscal
period.
The major expenditures
recommended by the Committee for the
2023–2024 fiscal period include
$492,595 for marketing, promotions,
and paid advertising; $73,337 for
research; $25,000 for promotion
management fees; and $16,600 for
Committee administrative expenses.
Budgeted expenditures for the 2022–
2023 fiscal period were $483,300,
$66,530, $25,000, and $21,396,
respectively.
In recent years, the Committee has
utilized reserve funds to partially fund
its budgeted expenditures. The
Committee recommended increasing the
assessment rate to better fund 2023–
2024 fiscal period budgeted
expenditures and refrain from
excessively drawing down the funds
held in its reserve. This action will
maintain the Committee’s reserve
balance at a level that the Committee
believes is appropriate and is compliant
with the provisions of the Order.
Prior to arriving at this budget and the
increased assessment rate, the
Committee discussed various
alternatives, including maintaining the
previous assessment rate of $7.15 per
ton and increasing the assessment rate
by different amounts. However, the
Committee determined that the
recommended assessment rate will be
able to fund most of the budgeted
expenses and avoid drawing down
reserves at an unsustainable rate. The
assessment rate of $7.50 per ton of
Oregon and Washington ‘‘summer/fall’’
pears for canning was derived by
considering anticipated expenses, the
projected volume of assessable pears for
canning, the projected monetary balance
held in reserve, and additional pertinent
factors.
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25777
A review of NASS information
indicates that the average grower price
for the 2022–2023 fiscal period was
$361 per ton. Utilizing the assessment
rate of $7.50 per ton, assessment
revenue for the 2022–2023 fiscal period,
as a percentage of total grower revenue,
would have been approximately 2.08
percent ($7.50 per ton divided by $361
multiplied by 100).
This action 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
the benefits derived by the operation of
the Order.
The Committee’s meetings are widely
publicized throughout the production
area. The processed pear 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 8,
2023, meeting was a 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 this rule,
including the regulatory and
information collection impacts of this
action on small businesses. One
comment was received during the
comment period. The comment was
seeking clarity on pear varieties and
weight specifications, which was not
relevant to the subject matter of the rule.
Accordingly, AMS made no changes to
the rule based on the comment received.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order’s information
collection requirements have been
previously approved by OMB and
assigned OMB No. 0581–0189, Fruit
Crops. No changes in those
requirements will be necessary because
of this rule. Should any changes become
necessary, they would be submitted to
OMB for approval.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
processed pear 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. 89, No. 72 / Friday, April 12, 2024 / Rules and Regulations
AMS 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 December 1, 2023 (88 FR
83870). Copies of the proposed rule
were provided to all processed pear
handlers. The proposal was also made
available through the internet by USDA
and the Office of the Federal Register. A
30-day comment period ending January
2, 2024, was provided for interested
persons to respond to the proposal. One
comment was received during the
comment period. The comment was
seeking clarity on pear varieties and
weight specifications, which was not
relevant to the subject matter of the
proposed rule. Accordingly, AMS made
no changes to the 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/rulesregulations/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 final rule is
consistent with and will effectuate the
purposes of the Act.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, the Agricultural Marketing
Service amends 7 CFR part 927 as
follows:
PART 927—PEARS GROWN IN
OREGON AND WASHINGTON
1. The authority citation for 7 CFR
part 927 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Amend § 927.237 by revising the
introductory text and paragraph (a) to
read as follows:
■
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§ 927.237
rate.
Processed pear assessment
On and after July 1, 2023, the
following base rates of assessment for
pears for processing are established for
the Processed Pear Committee:
(a) $7.50 per ton for any or all
varieties or subvarieties of pears for
canning classified as ‘‘summer/fall’’
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excluding pears for other methods of
processing;
*
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Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2024–07809 Filed 4–11–24; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
[Doc. No. AMS–SC–23–0058]
Domestic Dates Produced or Packed in
Riverside County, California;
Decreased Assessment Rate
Agricultural Marketing Service,
Department of Agriculture (USDA).
ACTION: Final rule.
AGENCY:
This final rule implements a
recommendation from the California
Date Administrative Committee
(Committee) to decrease the assessment
rate established for the 2023–2024 and
subsequent crop years. The assessment
rate will remain in effect indefinitely
unless modified, suspended, or
terminated.
SUMMARY:
DATES:
Effective May 13, 2024.
FOR FURTHER INFORMATION CONTACT:
Bianca Bertrand, Marketing Specialist,
or Barry Broadbent, Acting Chief, West
Region Branch, Market Development
Division, Specialty Crops Program,
AMS, USDA; Telephone: (503) 326–
2724, or Email: BiancaM.Bertrand@
usda.gov or 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 202500237; Telephone:
(202) 720–8085, 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
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
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of producers and producer-handlers
operating within the area of production.
The Agricultural Marketing Service
(AMS) is issuing this final 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 action falls
within a category of regulatory actions
that the Office of Management and
Budget (OMB) exempted from Executive
Orders 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 will have
Tribal implications. 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 date handlers are
subject to assessments. Funds to
administer the Order are derived from
such assessments. It is intended that the
assessment rate will be applicable to all
assessable dates beginning October 1,
2023, and continue until amended,
suspended, or terminated.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order, is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing, USDA would rule on the
E:\FR\FM\12APR1.SGM
12APR1
]]>Agencies
[Federal Register Volume 89, Number 72 (Friday, April 12, 2024)]
[Rules and Regulations]
[Pages 25775-25778]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07809]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS-SC-23-0037]
Pears Grown in Oregon and Washington; Increased Assessment Rate
for Processed Pears
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Final rule.
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SUMMARY: This rule implements a recommendation from the Processed Pear
Committee (Committee) to increase the assessment rate established for
the 2023-2024 fiscal period and subsequent fiscal periods. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective May 13, 2024.
FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or
Barry Broadbent, Acting 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,
implements an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This rule is issued under Marketing
Order No. 927, as amended (7 CFR part 927), regulating the handling of
pears grown in Oregon and Washington. Part 927 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 growers, handlers, and processors of pears operating within the area
of production, and a public member.
The Agricultural Marketing Service (AMS) is issuing this 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 action
falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Order 12866 review.
This rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires Federal
[[Page 25776]]
agencies to consider whether their rulemaking actions would have Tribal
implications. The 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 rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the Order now in effect, pear handlers are
subject to assessments. Funds to administer the Order are derived from
such assessments. It is intended that the assessment rate will be
applicable to all assessable ``summer/fall'' pears for canning 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 8c(15)(A) of the
Act (7 U.S.C. 608c(15)(A)), any handler subject to an order may file
with the United States 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 rule increases the assessment rate for ``summer/fall''
varieties of pears for canning handled under the Order from $7.15 per
ton, the rate that was established for the 2018-2019 fiscal period and
subsequent fiscal periods, to $7.50 per ton for the 2023-2024 fiscal
period and subsequent fiscal periods.
The Order authorizes the Committee, with the approval of AMS, to
formulate an annual budget of expenses and 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 can 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 2018-2019 fiscal period and subsequent fiscal periods, the
Committee recommended, and AMS approved, an assessment rate of $7.15
per ton of ``summer/fall'' varieties of pears for canning handled (83
FR 62451). 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 8, 2023, and unanimously recommended
2023-2024 fiscal period expenditures of $607,532 and an assessment rate
of $7.50 per ton of ``summer/fall'' varieties of pears for canning
handled for the 2023-2024 fiscal period and subsequent fiscal periods.
In comparison, last year's budgeted expenditures were $594,130. The
increased assessment rate of $7.50 per ton is $0.35 higher than the
rate currently in effect. The Committee recommended increasing the
assessment rate to better fund operations using assessment revenue and
to reduce the reliance on reserve funds. The Committee has drawn down
its financial reserve in recent years to cover Committee expenses and
to reduce the reserve so as to not exceed approximately one fiscal
period's budgeted expenses, in conformance with the Order (7 CFR
927.42(a)). The Committee projects handler receipts of 78,000 tons of
assessable ``summer/fall'' varieties of pears for canning for the 2023-
2024 fiscal period, which is 7,288 more than was projected for the
2022-2023 fiscal period.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $492,595 for marketing, promotions, and paid
advertising; $73,337 for research; $25,000 for promotion management
fees; and $16,600 for Committee administrative expenses. Budgeted
expenditures for the 2022-2023 fiscal period were $483,300, $66,530,
$25,000, and $21,396, respectively.
Processed pears for canning are marketed throughout the calendar
year. The expected 78,000-ton 2023 crop will generate $585,000 in
assessment revenue at the increased assessment rate (78,000 tons of
assessable ``summer/fall'' varieties of pears for canning multiplied by
$7.50 per ton assessment rate). The remaining $22,532 needed to cover
budgeted expenditures will come from reserve funds carried over from
previous fiscal periods and $100 in interest income. The 2023-2024
fiscal period assessment rate increase will be appropriate to ensure
the Committee has sufficient revenue, along with its reserve, to fully
fund its recommended 2023-2024 fiscal period budgeted expenditures and
maintain a level of reserve funds that the Committee believes is
appropriate.
The Committee derived the recommended assessment rate by
considering anticipated fiscal period expenses, an estimated 2023 crop
volume of 78,000 tons of assessable ``summer/fall'' varieties of pears
for canning, and the amount of funds available in the authorized
reserve. Income derived from handler assessments ($585,000) and funds
from the Committee's authorized reserve ($22,432) along with interest
income ($100) will be adequate to cover budgeted expenses ($607,532).
The assessment rate will 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 will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or 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.
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 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.
[[Page 25777]]
There are approximately 1,500 growers of pears for processing in
the production area and approximately 34 handlers of processed pears
subject to regulation under the Order. Small agricultural growers of
processed pears are defined by the Small Business Administration (SBA)
as those having annual receipts equal to or less than $3.5 million
(NAICS code 111339, Other Noncitrus Fruit Farming), and small
agricultural service firms are defined as those whose annual receipts
are equal to or less than $34 million (NAICS code 115114, Postharvest
Crop Activities) (13 CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
the average annual grower price received for processed pears in
Washington and Oregon was $361 per ton (2022). Total production of
pears for canning for the 2022 season was reported by the Committee to
be 74,131 tons. Using the average grower price from 2022, the most
recent years for which there is NASS data, the total 2022 crop value of
pears grown for processing in Oregon and Washington was $26,761,291
(74,131 tons multiplied by $361 per ton). Dividing the crop value by
the estimated number of growers (1,500) yields an estimated average
receipt per grower of $17,841, which is well below the SBA threshold
for small growers.
Given the relatively small total farmgate value of pears for
processing produced in the production area ($26,761,291), it is
probable that most, if not all, of the pear processors regulated by the
Order would be considered small entities. Dividing the $26,761,291
estimated crop value by the number of handlers of processed pears (34)
equals $787,097. AMS has not identified a direct third-party reference
for estimating processed pear manufacturing margins. Without direct
third-party information regarding the industry, determination of the
number of large and small processors using the SBA's definition would
be difficult. However, given the low average crop value of pears for
processing ($787,097) it may be assumed that most, if not all, of the
handlers of processed pears would have annual receipts below the SBA
threshold for small agricultural service firms ($34 million).
Therefore, using the above information and assuming a normal
distribution, most of the growers and handlers of pears for processing
may be classified as small entities.
This rule increases the assessment rate collected from handlers for
the 2023-2024 fiscal period and subsequent fiscal periods from $7.15 to
$7.50 per ton of Oregon and Washington ``summer/fall'' pears for
canning. The Committee unanimously recommended 2023-2024 fiscal period
expenditures of $607,532 and an assessment rate of $7.50 per ton of
``summer/fall'' pears for canning. The assessment rate of $7.50 is
$0.35 higher than the previous rate. The Committee expects the industry
to handle 78,000 tons of ``summer/fall'' varieties of pears for canning
during the 2023-2024 fiscal period. Thus, the $7.50 per ton rate will
provide approximately $585,000 in assessment income (78,000 tons
multiplied by $7.50). The Committee also expects to use $22,532 from
its financial reserve and $100 in interest income to cover remaining
expenses. Income derived from handler assessments, along with reserve
funds, will be adequate to meet budgeted expenditures for the 2023-2024
fiscal period.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $492,595 for marketing, promotions, and paid
advertising; $73,337 for research; $25,000 for promotion management
fees; and $16,600 for Committee administrative expenses. Budgeted
expenditures for the 2022-2023 fiscal period were $483,300, $66,530,
$25,000, and $21,396, respectively.
In recent years, the Committee has utilized reserve funds to
partially fund its budgeted expenditures. The Committee recommended
increasing the assessment rate to better fund 2023-2024 fiscal period
budgeted expenditures and refrain from excessively drawing down the
funds held in its reserve. This action will maintain the Committee's
reserve balance at a level that the Committee believes is appropriate
and is compliant with the provisions of the Order.
Prior to arriving at this budget and the increased assessment rate,
the Committee discussed various alternatives, including maintaining the
previous assessment rate of $7.15 per ton and increasing the assessment
rate by different amounts. However, the Committee determined that the
recommended assessment rate will be able to fund most of the budgeted
expenses and avoid drawing down reserves at an unsustainable rate. The
assessment rate of $7.50 per ton of Oregon and Washington ``summer/
fall'' pears for canning was derived by considering anticipated
expenses, the projected volume of assessable pears for canning, the
projected monetary balance held in reserve, and additional pertinent
factors.
A review of NASS information indicates that the average grower
price for the 2022-2023 fiscal period was $361 per ton. Utilizing the
assessment rate of $7.50 per ton, assessment revenue for the 2022-2023
fiscal period, as a percentage of total grower revenue, would have been
approximately 2.08 percent ($7.50 per ton divided by $361 multiplied by
100).
This action 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 the benefits derived by the operation of the
Order.
The Committee's meetings are widely publicized throughout the
production area. The processed pear 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 8,
2023, meeting was a 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 this rule, including the
regulatory and information collection impacts of this action on small
businesses. One comment was received during the comment period. The
comment was seeking clarity on pear varieties and weight
specifications, which was not relevant to the subject matter of the
rule. Accordingly, AMS made no changes to the rule based on the comment
received.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0189, Fruit Crops.
No changes in those requirements will be necessary because of this
rule. Should any changes become necessary, they would be submitted to
OMB for approval.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large processed pear 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.
[[Page 25778]]
AMS 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 December 1, 2023 (88 FR 83870). Copies of the proposed rule
were provided to all processed pear handlers. The proposal was also
made available through the internet by USDA and the Office of the
Federal Register. A 30-day comment period ending January 2, 2024, was
provided for interested persons to respond to the proposal. One comment
was received during the comment period. The comment was seeking clarity
on pear varieties and weight specifications, which was not relevant to
the subject matter of the proposed rule. Accordingly, AMS made no
changes to the 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 final rule
is consistent with and will effectuate the purposes of the Act.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 927 as follows:
PART 927--PEARS GROWN IN OREGON AND WASHINGTON
0
1. The authority citation for 7 CFR part 927 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Amend Sec. 927.237 by revising the introductory text and paragraph
(a) to read as follows:
Sec. 927.237 Processed pear assessment rate.
On and after July 1, 2023, the following base rates of assessment
for pears for processing are established for the Processed Pear
Committee:
(a) $7.50 per ton for any or all varieties or subvarieties of pears
for canning classified as ``summer/fall'' excluding pears for other
methods of processing;
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-07809 Filed 4-11-24; 8:45 am]
BILLING CODE 3410-02-P
