[Federal Register Volume 59, Number 214 (Monday, November 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-27516]


[[Page Unknown]]

[Federal Register: November 7, 1994]


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


DEPARTMENT OF AGRICULTURE
7 CFR Part 929

[Docket No. FV94-929-2FIR]

 

Expenses and Assessment Rate for the 1994-95 Fiscal Year for the 
Marketing Order Covering Cranberries Grown in States of Massachusetts, 
Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, 
Oregon, Washington, and Long Island in the State of New York

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of the interim final rule 
which authorized expenses and established an assessment rate for the 
Cranberry Marketing Committee (Committee) under Marketing Order No. 929 
for the 1994-95 fiscal year. Authorization of this budget enables the 
Committee to incur expenses that are reasonable and necessary to 
administer the program. Funds to administer this program are derived 
from assessments on handlers.

EFFECTIVE DATE: September 1, 1994, through August 31, 1995.

FOR FURTHER INFORMATION CONTACT: Brenda D. Hill or Mark Hessel, 
Marketing Order Administration Branch, F&V, AMS, USDA, P.O. Box 96456, 
Room 2523-S, Washington, DC 20090-6456; telephone: (202) 720-5127.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement and Order No. 929 [7 CFR Part 929], as amended, regulating 
the handling of cranberries grown in Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York, hereinafter 
referred to as the ``order''. 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 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, cranberries grown in 10 States are subject to assessments. It 
is intended that the assessment rate as issued herein will be 
applicable to all assessable cranberries during the 1994-95 fiscal year 
beginning September 1, 1994, through August 31, 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 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 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 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 30 handlers of cranberries grown in 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York who are subject to regulation under the cranberry marketing 
order and approximately 1,050 producers of cranberries in the regulated 
area. 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 cranberry producers and handlers may be classified as 
small entities.
    The cranberry marketing order, administered by the Department, 
requires that the assessment rate for a particular fiscal year apply to 
all assessable cranberries handled from the beginning of such year. The 
budget of expenses for the 1994-95 fiscal year was prepared by the 
Committee, the agency responsible for local administration of this 
marketing order, and submitted to the Department for approval. The 
members of the Committee are producers of cranberries. They are 
familiar with the Committee's needs and with the costs for goods, 
services, and personnel in their local area and are thus in a position 
to formulate an appropriate budget.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of cranberries. 
Because that rate is applied to actual shipments, it must be 
established at a rate which will produce sufficient income to pay the 
Committee's expected expenses. The recommended budget and rate of 
assessment are usually acted upon by the Committee shortly before a 
season starts, and expenses are incurred on a continuous basis. 
Therefore, the budget and assessment rate approval must be expedited so 
that the Committee will have funds to pay its expenses.
    The Committee conducted a mail vote and unanimously recommended 
1994-95 marketing order expenses of $164,690 and an assessment rate of 
$0.03 per 100-pound barrel of cranberries. In comparison, 1993-94 
budgeted expenses were $155,000, with an approved assessment rate of 
$0.03 per 100-pound barrel of cranberries. This represents an increase 
of $9,690 in expenses recommended for this fiscal year, with the 
assessment rate remaining unchanged.
    Assessment income for 1994-95 is estimated to total $122,580 based 
on anticipated fresh domestic shipments of 4,086,000 barrels of 
cranberries. The assessment income, plus $3,750 in interest income and 
a withdrawal of $38,360 from the Committee's authorized reserve fund 
will be adequate to cover budgeted expenses. Funds in the reserve at 
the end of the 1994-95 fiscal year are estimated to be $150,000. The 
reserve fund will be within the maximum permitted by the order of one 
fiscal year's expenses.
    Major expense categories for the 1994-95 fiscal year include 
$70,110 for operating expenses, $40,500 for travel expenses, and 
$33,241 for administrative expenses.
    An interim final rule was published in the Federal Register [59 FR 
44025, August 26, 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 will be offset by the benefits derived from 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.
    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 September 1, 1994. 
The marketing order requires that the rate of assessment apply to all 
assessable cranberries 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 in 7 CFR Part 929

    Cranberries, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR Part 929 is 
amended as follows:

PART 929--CRANBERRIES GROWN IN STATES OF MASSACHUSETTS, RHODE 
ISLAND, CONNECTICUT, NEW JERSEY, WISCONSIN, MICHIGAN, MINNESOTA, 
OREGON, WASHINGTON, AND LONG ISLAND IN THE STATE OF NEW YORK

    Accordingly, the interim final rule amending 7 CFR Part 929 which 
was published at 59 FR 44025 on August 26, 1994, is adopted as a final 
rule without change.

    Dated: November 1, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-27516 Filed 11-4-94; 8:45 am]
BILLING CODE 3410-02-P