[Federal Register Volume 64, Number 187 (Tuesday, September 28, 1999)]
[Rules and Regulations]
[Pages 52216-52219]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25091]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 955
[Docket No. FV98-955-1 FIR]
Vidalia Onions Grown in Georgia; Decreased Assessment Rate
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
which decreases the assessment rate established for the Vidalia Onion
Committee (Committee) for the 1998-99 and subsequent fiscal periods
from
[[Page 52217]]
$0.10 per 50-pound bag or equivalent to $0.07 per 50-pound bag or
equivalent of Vidalia onions handled. The Committee is responsible for
local administration of the marketing order which regulates the
handling of Vidalia onions grown in Georgia. Authorization to assess
Vidalia onion handlers enables the Committee to incur expenses that are
reasonable and necessary to administer the program. The current fiscal
period began September 16 and ends December 31. The assessment rate
will remain in effect indefinitely unless modified, suspended, or
terminated.
EFFECTIVE DATE: October 28, 1999.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Southeast Marketing
Field Office, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 2276,
Winter Haven, FL 33883-2276; telephone: (941) 299-4770, Fax: (941) 299-
5169; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, room
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202)
720-2491, Fax: (202) 720-5698. Small businesses may request information
on complying with this regulation by contacting Jay Guerber, Marketing
Order Administration Branch, Fruit and Vegetable Programs, AMS, USDA,
P.O. Box 96456, room 2525-S, Washington, DC 20090-6456; telephone:
(202) 720-2491, Fax: (202) 720-5698 or E-mail: Jay.G[email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 955, both as amended (7 CFR part 955),
regulating the handling of Vidalia onions grown in Georgia, hereinafter
referred to as the ``order.'' 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 rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, Vidalia onion
handlers are subject to assessments. Funds to administer the order are
derived from such assessments. It is intended that the assessment rate
as issued herein will be applicable to all assessable Vidalia onions
beginning September 16, 1998, and continue 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.
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. 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 to review the
Secretary's ruling on the petition, provided an action is filed not
later than 20 days after the date of the entry of the ruling.
This rule continues to decease the assessment rate established for
the Committee for the 1998-99 and subsequent fiscal periods from $0.10
per 50-pound bag or equivalent to $0.07 per 50-pound bag or equivalent
of Vidalia onions.
The Vidalia onion marketing order 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. The members of the Committee are producers and handlers of
Vidalia onions. They are familiar with the Committee's needs and with
the costs for goods and services in their local area and are thus in a
position to formulate an appropriate budget and assessment rate. The
assessment rate is formulated and discussed in a public meeting. Thus,
all directly affected persons have an opportunity to participate and
provide input.
For the 1996-97 and subsequent fiscal periods, the Committee
recommended, and the Department approved, an assessment rate of $0.10
per 50-pound bag or equivalent that would continue in effect from
fiscal period to fiscal period unless modified, suspended, or
terminated by the Secretary upon recommendation and information
submitted by the Committee or other information available to the
Secretary.
An interim final rule decreasing the assessment rate to $0.07 per
50-pound bag or equivalent was published in the Federal Register on
September 25, 1998 (63 FR 51269). Since then, another interim final
rule was published in the Federal Register on September 3, 1999 (64 FR
48243), which changed the fiscal period under the Vidalia marketing
order to January 1-December 31 from September 16-September 15. The
September 3, 1999, rule also extended the fiscal period which began
September 15, 1998, through December 31, 1999. The rulemaking action
changing the fiscal period does not affect the assessment rate
decrease, which continues to apply unless modified, suspended, or
terminated.
The Committee met on July 28, 1998, and unanimously recommended
1998-99 expenditures of $373,577 and an assessment rate of $0.07 per
50-pound bag or equivalent of Vidalia onions. In comparison, last
year's budgeted expenditures were $429,800. The assessment rate of
$0.07 is $0.03 lower than the rate previously in effect. For the past
two seasons, the Committee elected to refund excess funds to the
handlers to reduce their costs. The Committee unanimously elected to
reduce the assessment rate rather than continue the practice of
refunding excess funds.
The major expenditures recommended by the Committee for the 1998-99
fiscal period include $131,600 for marketing and promotion, $75,000 for
research, $135,127 for program administration, and $31,850 for
compliance. Budgeted expenses for these items in 1997-98 were $158,000,
$108,300, $137,500, and $26,000, respectively. Any changes recommended
by the Board in the budgeted expenses for 1998-99 due to adding 3\1/2\
months to the fiscal period will be reviewed, and if appropriate,
approved by the Department.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Vidalia onions.
Vidalia onion shipments for 1998-99 are estimated at 3,300,000 50-pound
bags or equivalents for the year, 15,000 50-pound bags or equivalents
of green Vidalias, 1,385,000 50-pound bags or equivalents of storage
Vidalias, and 100,000 50-pound bags or equivalents of storage onions
from the previous season, which should provide $336,000 in assessment
income. Income derived from handler assessments, along with interest
income and funds from the Committee's authorized reserve, will be
adequate to cover budgeted expenses. Funds in the reserve (currently
$174,073) will be kept within the maximum permitted by the order
(approximately three fiscal periods' budgeted expenses; Sec. 955.44).
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by the Secretary upon recommendation
and information submitted by the
[[Page 52218]]
Committee or other available information.
Although this assessment rate is effective for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period 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
1998-99 budget and those for subsequent fiscal periods will be reviewed
and, as appropriate, approved by the Department.
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. Accordingly, AMS has
prepared this final regulatory flexibility analysis.
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 currently approximately 136 producers of Vidalia onions
in the production area and approximately 101 handlers subject to
regulation under the marketing order. Small agricultural producers have
been defined by the Small Business Administration (13 CFR 121.601) as
those having annual receipts less than $500,000, and small agricultural
service firms are defined as those whose annual receipts are less than
$5,000,000.
During the 1996-97 fiscal year, as a percentage, approximately 14
percent of the handlers shipped approximately 2,771,000 50-pound bags
or equivalents of Vidalia onions and approximately 86 percent of the
handlers shipped approximately 1,262,940 50-pound bags or equivalents.
Using an average f.o.b. price of $12.80 per 50-pound bag or equivalent,
the majority of handlers could be considered small businesses under
SBA's definition. The majority of Vidalia onion producers may be
classified as small entities.
An interim final rule decreasing the assessment rate was published
in the Federal Register on September 25, 1998 (63 FR 51269). Since
then, another interim final rule was published in the Federal Register
on September 3, 1999 (64 FR 48243), which changed the fiscal period
under the Vidalia marketing order to January 1-December 31 from
September 16-September 15. The September 3, 1999, rule also extended
the fiscal period which began September 15, 1998, through December 31,
1999. The rulemaking action changing the fiscal period does not affect
the assessment rate decrease, which continues to apply unless modified,
suspended, or terminated.
This rule continues to decrease the assessment rate established for
the Committee and collected from handlers for the 1998-99 and
subsequent fiscal periods from $0.10 per 50-pound bag or equivalent to
$0.07 per 50-pound bag or equivalent of Vidalia onions. The Committee
unanimously recommended 1998-99 expenditures of $373,577 and an
assessment rate of $0.07 per 50-pound bag or equivalent. The assessment
rate of $0.07 is $0.03 lower than the 1997-98 rate. The quantity of
assessable Vidalia onions for the 1998-99 season is estimated at
4,800,000 50-pound bags or equivalents. Thus, the $0.07 rate should
provide $336,000 in assessment income. Income derived from handler
assessments, along with interest income and funds from the Committee's
authorized reserve, will be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 1998-99
year include $131,600 for marketing and promotion, $75,000 for
research, $135,127 for program administration, and $31,850 for
compliance. Budgeted expenses for these items in 1997-98 were $158,000,
$108,300, $137,500, and $26,000, respectively. Any changes recommended
by the Board in its budgeted expenses for 1998-99 due to adding 3\1/2\
months to the fiscal period will be reviewed, and if appropriate,
approved by the Department.
For the past two seasons, the Committee had refunded excess funds
to the handlers to reduce their costs. The Committee unanimously
elected to reduce the assessment rate rather than continue the practice
of refunding excess funds.
The Committee reviewed and unanimously recommended 1998-99
expenditures of $373,577 which included decreases in marketing and
promotion and research. Prior to arriving at this budget, the Committee
considered information from various sources, such as the Committee's
Budget Subcommittee. Alternative expenditure levels were discussed by
these groups, based upon the relative value of various research
projects to the Vidalia onion industry. The assessment rate of $0.07
per 50-pound bag or equivalent of assessable Vidalia onions was then
determined by dividing the total recommended budget by the quantity of
assessable Vidalia onions, estimated at 4,800,000 50-pound bags or
equivalents for the 1998-99 season. This is approximately $37,577 below
the anticipated expenses, which the Committee determined to be
acceptable. The difference between assessment income and budgeted
expenses will be covered by income from interest and the Committee's
authorized reserve.
A review of historical information and preliminary information
pertaining to the 1998-99 fiscal period indicates that the f.o.b. price
for the 1998-99 season could range between $12.80 and $15.25 per 50-
pound bag or equivalent of Vidalia onions. Therefore, the estimated
assessment revenue for the 1998-99 fiscal period as a percentage of
total grower revenue could range between .46 and .55 percent.
This action continues to decrease the assessment obligation imposed
on handlers. Assessments are applied uniformly on all handlers, and
some of the costs may be passed on to producers. However, decreasing
the assessment rate reduces the burden on handlers, and may reduce the
burden on producers. In addition, the Committee's meeting was widely
publicized throughout the Vidalia onion industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the July 28,
1998, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Vidalia onion handlers. As with
all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
As mentioned earlier, the interim final rule concerning this action
was published in the Federal Register on September 25, 1998 (63 FR
51269). Copies of that rule were also mailed or sent via facsimile to
all Vidalia onion handlers. Finally, the interim final rule
[[Page 52219]]
was made available through the Internet by the Office of the Federal
Register. A 60-day comment period was provided for interested persons
to respond to the interim final rule. The comment period ended on
November 24, 1998, and no comments were received.
A small business guide on complying with fruit, vegetable, and
speciality crop marketing agreements and orders may be viewed at the
following web site: http://www.ams.usda.gov/fv/moab.html. Any questions
about the compliance guide should be sent to Jay Guerber at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material 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.
List of Subjects in 7 CFR Part 955
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 955 is
amended as follows:
PART 955--VIDALIA ONIONS GROWN IN GEORGIA
Accordingly, the interim final rule amending 7 CFR part 955 which
was published at 63 FR 51269 on September 25, 1998, is adopted as a
final rule without change.
Dated: September 21, 1999.
Larry B. Lace,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-25091 Filed 9-27-99; 8:45 am]
BILLING CODE 3410-02-P