[Federal Register Volume 59, Number 169 (Thursday, September 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21673]


  Federal Register / Vol. 59, No. 169 / Thursday, September 1, 1994 /
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[[Page Unknown]]

[Federal Register: September 1, 1994]


                                                   VOL. 59, NO. 169

                                        Thursday, September 1, 1994

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV94-916-3FIR]

 

Nectarines and Fresh Peaches Grown in California; Expenses and 
Assessment Rates for the 1994-95 Fiscal Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without changes, the provisions of the interim final rule 
which authorized expenses and established assessment rates for the 
Nectarine Administrative Committee and the Peach Commodity Committee 
(Committees) under Marketing Order (M.O.) Nos. 916 and 917 for the 
1994-95 fiscal year. Authorization of these budgets enable the 
Committees to incur expenses that are reasonable and necessary to 
administer their programs. Funds to administer these programs are 
derived from assessments on handlers.

EFFECTIVE DATES: March 1, 1994, through February 28, 1995.

FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, Room 2523-S, Washington, D.C. 20090-6456, telephone: (202) 
720-5127; or Terry Vawter, California Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 2202 Monterey Street, Suite 102 B, 
Fresno, California 93721, telephone: (209) 487-5901.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement and Order No. 916 [7 CFR Part 916] regulating the handling of 
nectarines grown in California and Marketing Agreement and Order No. 
917 [7 CFR Part 917] regulating the handling of fresh peaches grown in 
California. The agreements and orders 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 of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This final rule has been reviewed under Executive Order 12778, 
Civil Justice Reform. Under the marketing order provisions now in 
effect, nectarines and peaches grown in California are subject to 
assessments. It is intended that the assessment rates specified herein 
will be applicable to all assessable nectarines and peaches handled 
during the 1994-95 fiscal year, which began March 1, 1994, through 
February 28, 1995. This 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 608c(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 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 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 300 handlers of nectarines and peaches 
regulated under the marketing orders each season and approximately 
1,800 producers of these fruits in California. 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 these handlers and 
producers may be classified as small entities.
    The nectarine and peach marketing orders, administered by the 
Department, require that the assessment rates for a particular fiscal 
year apply to all assessable nectarines and peaches handled from the 
beginning of such year. Annual budgets of expenses are prepared by the 
Committees, the agencies responsible for local administration of their 
respective marketing order, and submitted to the Department for 
approval. The members of the Committees are nectarine and peach 
handlers and producers. They are familiar with the Committees' needs 
and with the costs for goods, services, and personnel in their local 
area, and are thus in a position to formulate appropriate budgets. The 
Committees' budgets are formulated and discussed in public meetings. 
Thus, all directly affected persons have an opportunity to participate 
and provide input.
    The assessment rates recommended by the Committees are derived by 
dividing the anticipated expenses by expected shipments of nectarines 
and peaches. Because these rates are applied to actual shipments, they 
must be established at rates which will provide sufficient income to 
pay the Committees' expected expenses.
    The Nectarine Administrative Committee met on May 4, 1994, and 
unanimously recommended total expenses of $3,844,635 for the 1994-95 
fiscal year. In comparison, the 1993-94 fiscal year expenses amount was 
$3,804,962, representing a $39,673 increase in expenses from the 1993-
94 fiscal year.
    The Committee also unanimously recommended an assessment rate of 
$0.1825 per 25-pound container or equivalent for the 1994-95 fiscal 
year, which is the same assessment rate that was approved for the 1993-
94 fiscal year. The assessment rate, when applied to anticipated 
shipments of 18,144,000 25-pound containers or equivalent of nectarines 
would yield $3,311,280 in assessment income. Adequate funds exist in 
the Committee's reserve to cover additional expenses.
    Major expense categories for the 1994-95 nectarine budget include 
$447,118 for salaries and benefits, $1,402,000 for domestic market 
development, and $1,000,000 for inspection. Funds in the reserve at the 
end of the 1994-95 fiscal year, estimated at $363,483, will be within 
the maximum permitted by the order of one fiscal year's expenses.
    The Peach Commodity Committee also met May 4, 1994, and unanimously 
recommended total expenses of $3,967,335, for the 1994-95 fiscal year. 
In comparison, this is $113,790 more than the $3,853,545 expense amount 
that was recommended for the 1993-94 fiscal year.
    The Committee also unanimously recommended an assessment rate of 
$0.19 per 25-pound container or equivalent for the 1994-95 fiscal year, 
which is the same assessment rate that was approved for the previous 
fiscal year. The assessment rate, when applied to anticipated shipments 
of 17,571,000 25-pound containers or equivalent of peaches, would yield 
$3,338,490 in assessment income. Adequate funds exist in the 
Committee's reserve fund to cover additional expenses.
    Major expense categories for the 1994-95 fiscal period are $447,118 
in salaries and benefits, $1,402,000 for domestic market development, 
and $950,000 for inspection. Funds in the reserve at the end of the 
1994-95 fiscal year, estimated at $578,639, will be within the maximum 
permitted by the order of one fiscal year's expenses.
    An interim final rule was published in the Federal Register [59 FR 
33897, July 1, 1994] and provided a 30-day comment period for 
interested persons. No comments were received.
    While this action will impose some additional costs on handlers, 
the costs are in the form of uniform assessments on all handlers. Some 
of the additional costs may be passed on to producers. However, these 
costs should be significantly offset by the benefits derived from the 
operation of the marketing orders. 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.
    It is found that the specified expenses for the marketing order 
covered in this rule are reasonable and likely to be incurred and that 
such expenses and the specified assessment rate to cover such expenses 
will tend to effectuate the declared policy of the Act.
    It is further found that good cause exists for not postponing the 
effective date of this action until 30 days after publication in the 
Federal Register [5 U.S.C. 553] because the Committee needs to have 
sufficient funds to pay its expenses which are incurred on a continuous 
basis. The 1994-95 fiscal year for the program began March 1, 1994. The 
marketing order requires that the rate of assessment apply to all 
assessable nectarines and fresh peaches handled during the fiscal year. 
In addition, handlers are aware of this action which was recommended by 
the Committee at a public meeting and published in the Federal Register 
as an interim final rule. No comments were received concerning the 
interim final rule that is adopted in this action as a final rule 
without change.

List of Subjects

7 CFR Part 916

    Marketing agreements, Nectarines, Reporting and recordkeeping 
requirements.

7 CFR Part 917

    Marketing agreements, Pears, Peaches, Reporting and recordkeeping 
requirements.

    For the reason set forth in the preamble, 7 CFR Parts 916 and 917 
are amended as follows:

PART 916--NECTARINES GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR Part 916 which 
was published at 59 FR 33897 on July 1, 1994, is adopted as a final 
rule without change.

PART 917--FRESH PEARS AND PEACHES GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR Part 917 which 
was published at 59 FR 33897 on July 1, 1994, is adopted as a final 
rule without change.

    Dated: August 25, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-21673 Filed 8-31-94; 8:45 am]
BILLING CODE 3410-02-P