[Federal Register Volume 61, Number 228 (Monday, November 25, 1996)]
[Rules and Regulations]
[Pages 59822-59824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30035]


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DEPARTMENT OF AGRICULTURE
7 CFR Parts 997 and 998

[Docket No. FV96-998-2 FIR]


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: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
that established 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 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 
also must be applied to all non-signatory handlers.

EFFECTIVE DATE: Effective on July 1, 1996.

FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Program Assistant, 
Marketing Order Administration Branch, Fruit and Vegetable Division, 
AMS, USDA, P.O. Box 96456, room 2525-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. Small businesses may 
request information on compliance with this regulation by contacting: 
Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456, telephone 202-720-2491, FAX 202-720-5698.

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 12988, 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

[[Page 59823]]

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 
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 of goods and services in their 
local area 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 was 
published on June 13, 1996 (61 FR 29926) increasing last year's 
administrative assessment rate to $0.83 per ton.
    The finalization of that rule was published on August 20, 1996 (61 
FR 42993).
    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 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 farmers' 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.
    An interim final rule regarding this action was published in the 
July 8, 1996, issue of the Federal Register (61 FR 35594). That interim 
final rule added Secs. 997.101 and 998.409 to establish assessment 
rates for the Committee and non-signatory handlers. That rule provided 
that interested persons could file comments through August 7, 1996. 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 
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

[[Page 59824]]

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 that good 
cause exists for not postponing the effective date of this rule 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) Pub. L. 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 began on July 1, 1996, and the marketing agreement and Pub. 
L. 103-66 require that the rate of assessment for the crop year apply 
to all peanuts handled during the 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 budget actions issued in past 
years; and (5) an interim final rule was published on this action which 
provided a 30-day comment period, and no comments were received.

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.

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

    Accordingly, the interim final rule amending 7 CFR parts 997 and 
998 which was published at 61 FR 35594 on July 8, 1996, is adopted as a 
final rule without change.

    Dated: November 19, 1996.
Sharon Bomer Lauritsen,
Acting Director Fruit and Vegetable Division.
[FR Doc. 96-30035 Filed 11-22-96; 8:45 am]
BILLING CODE 3410-02-P