[Federal Register Volume 59, Number 101 (Thursday, May 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12883]


[[Page Unknown]]

[Federal Register: May 26, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 953

[Docket No. FV94-953-1IFR]

 

Southeastern Potatoes; Expenses and Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule authorizes expenditures and 
establishes an assessment rate under Marketing Order No. 953 for the 
1994-95 fiscal period. Authorization of this budget enables the 
Southeastern Potato Committee (Committee) to incur expenses that are 
reasonable and necessary to administer the program. Funds to administer 
this program are derived from assessments on handlers.

DATES: Effective June 1, 1994, through May 31, 1995. Comments received 
by June 27, 1994, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, 
room 2523-S, Washington, DC 20090-6456, FAX 202-720-5698. Comments 
should reference the docket number and the date and page number of this 
issue of the Federal Register and will be available for public 
inspection in the Office of the Docket Clerk during regular business 
hours.

FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone 202-720-
9918.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 104 and Order No. 953, both as amended (7 CFR part 953), 
regulating the handling of Irish potatoes grown in Southeastern States 
(Virginia and North Carolina). The marketing agreement and order are 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the Act.
    The Department is issuing this rule in conformance with Executive 
Order 12866.
    This interim final rule has been reviewed under Executive Order 
12778, Civil Justice Reform. Under the marketing order now in effect, 
Virginia-North Carolina potato handlers are subject to assessments. It 
is intended that the assessment rate as issued herein will be 
applicable to all assessable potatoes during the 1994-95 fiscal period, 
which begins June 1, 1994, and ends May 31, 1995. This interim final 
rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 8c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary 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 requesting 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 the Secretary 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 in equity to review 
the Secretary's ruling on the petition, provided a bill in equity is 
filed not later than 20 days after the date of the entry of the ruling.
    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA), the Administrator of the Agricultural Marketing 
Service (AMS) has considered the economic impact of this rule on small 
entities.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business 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. Thus, both statutes have small 
entity orientation and compatibility.
    There are approximately 150 producers of Southeastern potatoes 
under this marketing order, and approximately 60 handlers. Small 
agricultural producers have been defined by the Small Business 
Administration (13 CFR 121.601) as those having annual receipts of less 
than $500,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $5,000,000. The majority of 
Southeastern potato producers and handlers may be classified as small 
entities.
    The budget of expenses for the 1994-95 fiscal period was prepared 
by the Southeastern Potato Committee, the agency responsible for local 
administration of the marketing order, and submitted to the Department 
for approval. The members of the Committee are producers and handlers 
of Southeastern potatoes. They are familiar with the Committee's needs 
and with the costs of goods and services in their local area and are 
thus in a position to formulate an appropriate budget. The budget was 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have had an opportunity to participate and provide 
input.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Southeastern 
potatoes, based on last season's crop of approximately 1,335,000 
hundredweight. Because that rate will be applied to actual shipments, 
it must be established at a rate that will provide sufficient income to 
pay the Committee's expenses.
    The Committee met April 20, 1994, and unanimously recommended a 
1994-95 budget of $11,000, the same as last year. Major expense items 
include $6,800 for Committee staff salaries and $900 for travel 
expenses.
    The Committee also recommended an assessment rate of $0.0075 per 
hundredweight, $0.0025 less than last season's rate. Planting for the 
1994-95 crop season has not been completed. However, the manager 
estimates shipments will generate about $7,000 in assessment income. 
This, along with funds from the Committee's $15,000 reserve, will be 
adequate to cover the expenses incurred. Funds remaining at the end of 
the 1994-95 fiscal period should be about the maximum permitted by the 
order of approximately one fiscal period's expenses.
    While this action will impose some additional costs on handlers, 
the costs are in the form of uniform assessments on handlers. Some of 
the additional costs may be passed on to producers. However, these 
costs will be offset by the benefits derived by the operation of the 
marketing order. Therefore, the Administrator of the AMS has determined 
that this action will not have a significant economic impact on a 
substantial number of small entities.
    After consideration of all relevant matter presented, including the 
information and recommendations submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and that good cause exists for not postponing the effective date 
of this action until 30 days after publication in the Federal Register 
because: (1) The Committee needs to have sufficient funds to pay its 
expenses which are incurred on a continuous basis; (2) the fiscal 
period begins on June 1, 1994, and the marketing order requires that 
the rate of assessment for the fiscal period apply to all assessable 
Irish potatoes handled during the fiscal period; (3) handlers are aware 
of this action which was unanimously recommended by the Committee at a 
public meeting and is similar to other budget actions issued in past 
years; and (4) this interim final rule provides a 30-day comment 
period, and all comments timely received will be considered prior to 
finalization of this action.

List of Subjects in 7 CFR Part 953

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 953 is 
amended as follows:

PART 953--IRISH POTATOES GROWN IN SOUTHEASTERN STATES

    1. The authority citation for 7 CFR part 953 continues to read as 
follows:

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

    2. A new Sec. 953.251 is added to read as follows:

    Note: This section will not appear in the Code of Federal 
Regulations.


Sec. 953.251  Expenses and assessment rate.

    Expenses of $11,000 by the Southeastern Potato Committee are 
authorized, and an assessment rate of $0.0075 per hundredweight of 
assessable potatoes is established for the fiscal period ending May 31, 
1995. Unexpended funds may be carried over as a reserve.

    Dated: May 20, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-12883 Filed 5-25-94; 8:45 am]
BILLING CODE 3410-02-P