[Federal Register Volume 61, Number 131 (Monday, July 8, 1996)]
[Rules and Regulations]
[Pages 35593-35595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17196]


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DEPARTMENT OF AGRICULTURE
7 CFR Parts 997 and 998

[Docket No. FV96-998-2IFR]


Assessment Rate for Domestically Produced Peanuts Handled by 
Persons Not Subject to Peanut Marketing Agreement No. 146 and for 
Marketing Agreement No. 146 Regulating the Quality of Domestically 
Produced Peanuts

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule establishes an assessment rate for the 
Peanut Administrative Committee (Committee) under Marketing Agreement 
No. 146 (agreement) for the 1996-97 and subsequent crop years. The 
Committee is responsible for local administration of the marketing 
agreement which regulates the handling of peanuts grown in 16 States. 
Authorization to assess peanut handlers who have signed the agreement 
enables the Committee to incur expenses that are reasonable and 
necessary to administer the program. Public Law 103-66 requires the 
Department of Agriculture (Department) to impose an administrative 
assessment on farmers stock peanuts received or acquired by handlers 
who are not signatory (non-signatory handlers) to the agreement. 
Therefore, this same assessment rate established under the agreement 
will apply to all non-signatory handlers.

DATES: Effective on July 1, 1996. Comments received by August 7, 1996, 
will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. 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, Program Assistant, 
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, FAX 202-720-5698, or William G. Pimental, 
Marketing Specialist, Southeast Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-
2276, telephone 941-299-4770, FAX 941-299-5169.

SUPPLEMENTARY INFORMATION: This rule is issued pursuant to the 
requirements of the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), and as further amended December 12, 1989, 
hereinafter referred to as the ``Act''; public Law 101-220, section 
4(1), (2), 103 Stat. 1878, December 12, 1989; Public Law 103-66, 
section 8b(b)(1), 107 Stat. 312, August 10, 1993; and under Marketing 
Agreement 146 (7 CFR part 998) regulating the quality of domestically 
produced peanuts.
    The Department is issuing this rule in conformance with Executive 
Order 12866.
    This rule has been reviewed under Executive Order 12778, Civil 
Justice Reform. Farmers' stock peanuts received or acquired by non-
signatory handlers and farmers' stock peanuts received or acquired by 
handlers signatory to the agreement, other than from those described in 
Secs. 998.31(c) and (d), are subject to assessments. It is intended 
that the assessment rates issued herein will be applicable to all 
assessable peanuts beginning July 1, 1996, and continuing until 
amended, suspended, or terminated. This rule will not preempt any State 
or local laws, regulations, or policies, unless they present an 
irreconcilable conflict with this rule. There are no administrative 
procedures which must be exhausted prior to any judicial challenge to 
the provisions of this rule.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), 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.
    There are approximately 45 handlers of peanuts who have not signed 
the agreement and, thus, will be subject to the regulations specified 
herein. Also, there are approximately 47,000 producers of peanuts in 
the 16 States covered under the agreement and approximately 32 handlers 
subject to regulation under the agreement. 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. A majority of the producers and the non-
signatory handlers may be classified as small entities, and some of the 
handlers covered under the agreement are small entities.
    The peanut marketing agreement provides authority for the 
Committee, with the approval of the Department, to formulate an annual 
budget of expenses and collect assessments from handlers to administer 
the program. Funds to administer the peanut agreement program are paid 
to the Committee and are derived from signatory handler assessments. 
The members of the Committee are handlers and producers of peanuts. 
They are familiar with the Committee's needs and with the costs for 
goods and services in their local areas and, thus, are in a position to 
formulate an appropriate budget and assessment rate. The assessment 
rate is formulated and discussed in public meetings. Thus, all directly 
affected persons have an opportunity to participate and provide input. 
The handlers of peanuts who are directly affected have signed the 
marketing agreement authorizing the expenses that may be incurred and 
the imposition of assessments.
    The Committee met on March 19, 1996, and unanimously recommended 
1996-97 administrative expenditures of $1,025,500 and an administrative 
assessment rate of $0.70 per net ton of assessable farmers' stock 
peanuts received or acquired by handlers. The Committee met again on 
May 23, 1996, and with 17 favorable votes and one abstention voted not 
to recommend an assessment rate for indemnification for handler losses 
due to aflatoxin contamination. Adequate funds are included in the 
Committee's indemnification reserve for such expenses during the 1996-
97 crop year. In comparison, last year's budgeted administrative 
expenditures were $1,067,500. The assessment rate of $0.70 is the same 
as last year's initially established rate. An interim final rule has 
been published on June 13, 1996 (61 FR 29926) increasing last year's 
administrative assessment rate to $0.83 per ton.
    Major expenditures recommended by the Committee for the 1996-97 
year include $112,450 for executive salaries, $131,500 for clerical 
salaries, $296,700 for field representatives salaries, $42,000 for 
payroll taxes, $148,000 for employee benefits, $40,000 for committee 
members travel, $5,000 for staff travel, $110,000 for field 
representatives travel, $9,800 for insurance and bonds, $46,200 for 
office rent and parking, $14,000 for office supplies and stationery, 
$13,200 for postage and mailing, $15,000 for

[[Page 35595]]

telephone and telegraph, $6,000 for repairs and maintenance agreements, 
$10,400 for the audit fee, and $10,250 for the contingency reserve. 
Budgeted expenses for these items in 1995-96 were $145,051, $138,856, 
$304,344, $44,000, $148,000, $40,000, $5,000, $110,000, $9,500, 
$44,360, $14,000, $13,200, $15,000, $6,000, $10,400, and $4,789, 
respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected receipts and acquisitions of 
farmers' stock peanuts. Farmers' stock peanuts received or acquired by 
non-signatory handlers and farmers' stock peanuts received or acquired 
by handlers signatory to the agreement, other than from those described 
in Secs. 998.31(c) and (d), are subject to the assessments. Assessments 
are due on the 15th of the month following the month in which the 
farmers' stock peanuts are received or acquired. Peanut shipments for 
the year under the agreement are estimated at 1,465,000 tons, which 
should provide $1,025,500 in assessment income. Approximately 95 
percent of the domestically produced peanut crop is marketed by 
handlers who are signatory to the agreement.
    Public Law 101-220 amended section 608b of the Act to require that 
all peanuts handled by persons who have not entered into the agreement 
(non-signers) be subject to quality and inspection requirements to the 
same extent and manner as are required under the Agreement. 
Approximately 5 percent of the U.S. peanut crop is marketed by non-
signer handlers.
    Public Law 103-66 (107 Stat. 312) provides for mandatory assessment 
of farmer's stock peanuts acquired by non-signatory peanut handlers. 
Under this law, paragraph (b) of section 1001, of the Agricultural 
Reconciliation Act of 1993, specifies that: (1) Any assessment (except 
indemnification assessments) imposed under the Agreement on signatory 
handlers also shall apply to non-signatory handlers, and (2) such 
assessment shall be paid to the Secretary.
    While this action will impose some additional costs on handlers, 
the costs are in the form of uniform assessments on all handlers 
signatory to the agreement. Some of the additional costs may be passed 
on to producers. However, these costs will be significantly offset by 
the benefits derived from the operation of the marketing agreement. 
This administrative assessment is required by law to be applied 
uniformly to all non-signatory handlers and should be of benefit to 
all. Therefore, the AMS has determined that this rule will not have a 
significant economic impact on a substantial number of small entities.
    The assessment rates established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by the 
Secretary upon recommendation and information submitted by the 
Committee or other available information.
    Although these assessment rates are effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
crop year 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 the 
Department. Committee meetings are open to the public and interested 
persons may express their views at these meetings. The Department will 
evaluate Committee recommendations and other available information to 
determine whether modification of the assessment rate is needed. 
Further rulemaking will be undertaken as necessary. The Committee's 
1996-97 budget and those for subsequent crop years will be reviewed 
and, as appropriate, approved by the Department.
    After consideration of all relevant matter presented, including the 
information and recommendation 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) Public Law 103-
66 requires the Department to impose an administrative assessment on 
peanuts received or acquired for the account of non-signatory handlers; 
(3) the 1996-97 crop year begins on July 1, 1996, and the marketing 
agreement and Public Law 103-66 require that the rate of assessment for 
each crop year apply to all peanuts handled during such crop year; (4) 
handlers are aware of this action which was unanimously recommended by 
the Committee at a public meeting and is similar to other assessment 
rate actions issued in past years; and (5) this interim final rule 
provides a 30-day comment period, and all comments timely received will 
be considered prior to finalization of this rule.

List of Subjects

7 CFR Part 997

    Food grades and standards, Peanuts, Reporting and recordkeeping 
requirements.

7 CFR Part 998

    Marketing agreements, Peanuts, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR parts 997 and 998 
are amended as follows:
    1. The authority citation for 7 CFR parts 997 and 998 continues to 
read as follows:

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

    Note: These amendments will appear in the Code of Federal 
Regulations.

PART 997--[AMENDED]

    2. In part 997, a new undesignated center heading, Assessment 
Rates, and Sec. 997.101 are added to read as follows:

Assessment Rates


Sec. 997.101  Assessment rate.

    On and after July 1, 1996, an administrative assessment rate of 
$0.70 per net ton of assessable farmers stock peanuts received or 
acquired by each non-signatory first handler is established for 
peanuts.

PART 998--[AMENDED]

    3. In part 998, a new undesignated center heading, Assessment 
Rates, and Sec. 998.409 are added to read as follows:

Subpart--Assessment Rates


Sec. 998.409  Assessment rate.

    On and after July 1, 1996, an administrative assessment rate of 
$0.70 per net ton of farmers' stock peanuts received or acquired other 
than from those described in Secs. 998.31 (c) and (d) is established 
for handlers signatory to the agreement. Assessments are due on the 
15th of the month following the month in which the farmers' stock 
peanuts are received or acquired.

    Dated: June 28, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-17196 Filed 7-5-96; 8:45 am]
BILLING CODE 3410-02-P