Pears Grown in Oregon and Washington; Marketing Order Approval Requirement, 92569-92571 [2024-27383]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 89, Number 226 (Friday, November 22, 2024)]
[Rules and Regulations]
[Pages 92569-92571]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-27383]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 89, No. 226 / Friday, November 22, 2024 / 
Rules and Regulations

[[Page 92569]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 927

[Doc. No. AMS-SC-22-0079]


Pears Grown in Oregon and Washington; Marketing Order Approval 
Requirement

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rulemaking amends Marketing Order No. 927, which 
regulates the handling of pears grown in Oregon and Washington. The 
amendment revises the Fresh Pear Committee's (Committee) approval 
requirement for recommending modifications to the marketing order's 
fresh pear handling regulations from 80 to 75 percent.

DATES: This rule is effective December 23, 2024.

FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing 
Specialist, or Matthew Pavone, Chief, Rulemaking Services Branch, 
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] 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, 
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. 
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 and 
handlers of pears 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 Order 12866 review.
    This final rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which 
requires agencies to consider whether their rulemaking actions would 
have Tribal implications. AMS has determined 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. This rule shall not be deemed to preclude, 
preempt, or supersede any State program covering pears grown in Oregon 
and Washington.
    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 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. A handler is 
afforded the opportunity for a hearing on the petition. After the 
hearing, USDA would rule on the petition. The Act provides that the 
district court of the United States in any district in which the 
handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed no later than 20 days after the date of 
entry of the ruling.
    Section 1504 of the Food, Conservation, and Energy Act of 2008 
(2008 Farm Bill) (Pub. L. 110-246) amended section 8c(17) of the Act, 
which in turn required the addition of supplemental rules of practice 
to 7 CFR part 900 (73 FR 49307; August 21, 2008). The amendment of 
section 8c(17) of the Act and the supplemental rules of practice 
authorize the use of informal rulemaking (5 U.S.C. 553) to amend 
Federal fruit, vegetable, and nut marketing agreements and orders. USDA 
may use informal rulemaking to amend marketing orders depending upon 
the nature and complexity of the proposed amendment, the potential 
regulatory and economic impacts on affected entities, and any other 
relevant matters.
    AMS has considered these factors and has determined that the 
amendment in this final rule is not unduly complex, and the nature of 
the amendment is appropriate for utilizing the informal rulemaking 
process to amend the Order. This final rule modifies the Committee's 
approval requirement for recommending modifications to the Order's 
fresh pear handling regulations from 80 to 75 percent. During the 
producer referendum, the amendment was favored by 99 percent of pear 
producers voting, who represented 99 percent of the volume of pears 
produced by those voting. A discussion of the potential regulatory and 
economic impacts on affected entities is discussed later in the ``Final 
Regulatory Flexibility Analysis'' section of this final rule. The 
amendment applies equally to all producers and handlers, regardless of

[[Page 92570]]

size. The amendment also has no additional impact on the reporting, 
record-keeping, or compliance costs of small businesses.
    The Committee recommended this amendment to the Order following 
deliberations at a public meeting held on June 2, 2022. The Committee 
recommended this change by vote of nine in favor and two opposed, with 
one abstention. The two opposing voters did not feel the proposed 
change was necessary, and the abstention voter wanted an even lower 
voter approval requirement. The Committee submitted its formal 
recommendation to amend the Order through the informal rulemaking 
process on August 23, 2022, and subsequently provided AMS clarification 
about the recommendation on December 1, 2022.
    A proposed rule soliciting public comments on the proposed 
amendment published in the Federal Register on October 10, 2023 (88 FR 
69888). AMS received one comment in support of the proposal. After 
reviewing the comment, AMS published a proposed rule and referendum 
order in the Federal Register on April 29, 2024 (89 FR 33288). The 
proposed rule and referendum order directed that a referendum among 
Oregon and Washington pear growers be conducted from May 13, 2024, 
through May 27, 2024, to determine whether they favored the proposal. 
To become effective, the amendment had to be approved by either two-
thirds of the producers voting in the referendum or by those 
representing at least two-thirds of the volume of pears grown by those 
voting in the referendum. During the referendum, producers showed 
overwhelming support for the amendment.

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 action on small entities. Accordingly, AMS has prepared this final 
regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act are unique in that they are brought about through 
group action of essentially small entities acting on their own behalf.
    There are approximately 700 growers of fresh pears in the 
production area and 27 handlers subject to regulation under the Order. 
At the time this analysis was prepared, small agricultural producers of 
pears are defined by the Small Business Administration (SBA) as those 
having annual receipts equal to or less than $3,500,000 (North American 
Industry Classification System code 111339, Other Non-citrus Fruit 
Farming), and small agricultural service firms are defined as those 
whose annual receipts are equal to or less than $34,000,000 (North 
American Industry Classification System Code 115114, Postharvest Crop 
Activities) (13 CFR 121.201).
    According to the National Agricultural Statistics Service (NASS), 
the 2024 average grower price received for fresh pears produced in 
Oregon and Washington was $28.13 per 44-pound standard box or 
equivalent. Committee data indicates total production was 14,857,887 
44-pound standard boxes or equivalent in the 2022-23 fiscal period. The 
total 2022-23 fiscal period value of assessable fresh ``summer/fall'' 
and ``winter'' pears grown in Oregon and Washington was roughly 
$417,952,361 (14,857,887 44-pound standard boxes or equivalent 
multiplied by $28.13 per box equals $417,952,361). Dividing the crop 
value by the estimated number of growers (700), yields an estimated 
average receipt per grower of roughly $597,075.
    According to USDA Market News data, the reported average terminal 
price for 2024 Oregon and Washington fresh pears are roughly $39.24 per 
44-pound standard box or equivalent (data reported in \4/5\ bushel). 
Multiplying the Committee-reported 2022-23 Oregon and Washington total 
production of 14,857,887 44-pound standard boxes or equivalent by the 
estimated average price per box or equivalent of $39.24 equals roughly 
$583,023,486. Dividing this figure by 27 regulated handlers yields 
estimated average annual handler receipts of roughly $21,593,462. Using 
the above data, the majority of growers and handlers of Oregon and 
Washington fresh pears may be classified as small entities.
    AMS has determined that the amendment, as effectuated by this final 
rule, will not have a significant impact on a substantial number of 
small businesses. Rather, large and small entities alike would be 
expected to benefit from the Board's improved ability to address 
important issues of interest to all on a timely basis. No small 
businesses are unduly or disproportionately burdened.
    This final rule revises a provision in the Order's subpart 
regulating handling of pears grown in Oregon and Washington. This 
change aligns the approval requirement for recommending modifications 
to the Order's fresh pear handling regulations, with all other 
Committee voting requirements within the Order. The revised voting 
requirements will result in less confusion for some Committee members, 
which can disrupt Committee operations.
    The Committee considered the benefits and costs of maintaining the 
status quo as an alternative to this action. However, the Committee 
believes it is necessary to bring all voting requirements in-line for 
clarity and understanding to ensure the efficient execution of the 
Order.

Paperwork Reduction Act

    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 are necessary because of this action. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This final rule does not impose additional reporting or 
recordkeeping requirements on either small or large 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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this action.
    The Committee's meetings are widely publicized throughout the pear 
production area. All interested persons were invited to attend the 
meetings and encouraged to participate in Committee deliberations on 
all issues. Like all Committee meetings, the meeting held on June 2, 
2022, was open to the public, and all entities, both large and small, 
were encouraged to express their views on the proposed amendment.
    A proposed rule concerning this action published in the Federal 
Register on October 10, 2023 (88 FR 69888). A copy of the rule was sent 
via email to Committee staff for distribution to all Committee members 
and Oregon and Washington pear growers and handlers. The proposed rule 
was also made available by USDA through the internet and the Office of 
the Federal Register. A

[[Page 92571]]

60-day comment period ending December 11, 2023, was provided to allow 
interested persons an opportunity to respond to the proposal. AMS 
received one comment in support of the proposed amendment during the 
comment period. Based on all the information available to AMS, 
including the comment received in response to the proposed rule, no 
substantive changes were made to the amendment as proposed.
    A proposed rule and referendum order was then published on April 
29, 2024 (89 FR 33288). That document directed that a referendum among 
Oregon and Washington pear producers be conducted from May 13, 2024, 
through May 27, 2024, to determine whether they favored the proposal. 
To become effective, the amendment had to be approved by either two-
thirds of the producers voting in the referendum or by those 
representing at least two-thirds of the volume of pears grown by those 
voting in the referendum. The referendum results show the amendment was 
supported by 99 percent of producers voting, who represented 99 percent 
of the volume of pears produced by those voting.
    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.

Order Amending the Order Regulating the Handling of Pears Grown in 
Oregon and Washington 1
---------------------------------------------------------------------------

    \1\ This order shall not become effective unless and until the 
requirements of Sec.  900.14 of the rules of practice and procedure 
governing proceedings to formulate marketing agreements and 
marketing orders have been met.
---------------------------------------------------------------------------

Findings and Determinations

    The findings and determinations hereinafter set forth are 
supplementary to the findings and determinations which were previously 
made in connection with the issuance of Marketing Order 927; and all 
said previous findings and determinations are hereby ratified and 
affirmed, except insofar as such findings and determinations may be in 
conflict with the findings and determinations set forth herein.
    1. Marketing Order 927 as amended, and as hereby amended and all 
the terms and conditions thereof, will tend to effectuate the declared 
policy of the Act;
    2. Marketing Order 927 as amended, and as hereby amended regulates 
the handling of pears grown in Oregon and Washington and is applicable 
only to persons in the respective classes of commercial and industrial 
activity specified in the Order;
    3. Marketing Order 927 as amended, and as hereby amended is limited 
in application to the smallest regional production area, which is 
practicable, consistent with carrying out the declared policy of the 
Act, and the issuance of several marketing orders applicable to 
subdivisions of the production area would not effectively carry out the 
declared policy of the Act;
    4. Marketing Order 927 as amended, and as hereby amended 
prescribes, insofar as practicable, such different terms applicable to 
different parts of the production area as are necessary to give due 
recognition to the differences in the production and marketing of pears 
produced or packed in the production area; and
    5. All handling of pears grown or handled in the production area, 
as defined in Marketing Order 927 is in the current of interstate or 
foreign commerce or directly burdens, obstructs, or affects such 
commerce.
    (b) Determinations.
    It is hereby determined that:
    1. The issuance of this amendatory Order, amending the aforesaid 
Order, is favored or approved by producers representing at least two-
thirds of the volume of pears produced by those voting in a referendum 
on the question of approval and who, during the period of July 1, 2022, 
through June 30, 2023, were engaged within the production area in the 
production of such pears.
    2. The issuance of this amendatory Order advances the interests of 
producers of pears in the production area pursuant to the declared 
policy of the Act.

Order Relative to Handling

    It is therefore ordered, that on and after the effective date 
hereof, all handling of pears grown in Oregon and Washington shall be 
in conformity to, and in compliance with, the terms and conditions of 
the said Order as hereby proposed to be amended as follows:
    The provisions of the proposed marketing order amending the Order 
contained in the proposed rule issued by the Administrator and 
published in the Federal Register (88 FR 69888) on October 10, 2023, 
will be and are the terms and provisions of this order amending the 
Order and are set forth in full herein.

List of Subjects in 7 CFR Part 927

    Marketing agreements, Pears, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, the AMS proposes to 
amend 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.  927.52 by revising paragraph (a) to read as follows:


Sec.  927.52  Prerequisites to recommendations.

    (a) Decisions of the Fresh Pear Committee or the Processed Pear 
Committee with respect to any recommendations to the Secretary pursuant 
to the establishment or modification of a supplemental rate of 
assessment for an individual variety or subvariety of pears shall be 
made by affirmative vote of not less than 75 percent of the applicable 
total number of votes, computed in the manner described in paragraph 
(b) of this section, of all members. Decisions of the Fresh Pear 
Committee pursuant to the provisions of Sec.  927.50 shall be made by 
an affirmative vote of not less than 75 percent of the applicable total 
number of votes, computed in the manner prescribed in paragraph (b) of 
this section, of all members.
* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-27383 Filed 11-21-24; 8:45 am]
BILLING CODE P