[Federal Register Volume 64, Number 247 (Monday, December 27, 1999)]
[Rules and Regulations]
[Pages 72265-72267]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-33508]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 955

[Docket No. FV99-955-1 FIR]


Vidalia Onions Grown in Georgia; Fiscal Period Change

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 
changing the fiscal period under the Vidalia onion marketing order 
(order) to January 1-December 31 from September 16-September 15. It 
also extends the current fiscal period which began September 16, 1998, 
through December 31, 1999. The order is administered locally by the 
Vidalia Onion Committee (Committee), which recommends its program 
expenses on a fiscal period basis. An assessment rate, levied on fresh 
Vidalia onion shipments, is established to pay those expenses. When the 
former fiscal period was established, it coincided with the Vidalia 
onion marketing season which ran from April through June. Due largely 
to the use of Controlled Atmosphere (CA) storage, Vidalia onions are 
now shipped through the fall. This action will continue to make the 
fiscal period consistent with the current marketing season.

EFFECTIVE DATE: December 28, 1999.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast 
Marketing Field Office, F&V, 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 (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 of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
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. 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 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 in effect modifications to the language in the 
order's administrative rules and regulations which changed the fiscal 
period to January 1 through December 31, making it consistent with the 
current Vidalia onion marketing season. It also continues to extend the 
1998-99 fiscal period, formerly September 16, 1998, through September 
15, 1999, through December 31, 1999. Therefore, this rule better 
reflects current industry practice. These changes were unanimously 
recommended by the Committee at its November 19, 1998, meeting.
    Section 955.40 of the order provides authority for the Committee to 
incur expenses that are reasonable and necessary to operate the 
program. The order also provides that these expenses be paid by 
assessments levied on fresh shipments of Vidalia onions. The Committee 
prepares an annual budget of expenses and recommends an appropriate 
assessment rate on a fiscal year basis. Section 955.13 of the order 
defines ``fiscal period'' to mean September 16 through September 15 of 
the following year, or such other period that may be recommended by the 
Committee and approved by the Secretary.
    When the order was first issued in 1989, the harvesting and 
marketing season for Vidalia onions ran from April through June. The 
September 16 through September 15 fiscal period thus covered the entire 
marketing season and was appropriate for budget planning purposes. Over 
the past decade, changes in the industry have extended the marketing 
season. In particular, the adoption of Controlled Atmosphere (CA) 
storage by three-fourths of the handlers has allowed them to 
economically store Vidalia onions

[[Page 72266]]

through December. While there are some added storage costs and losses 
due to shrinkage, these costs are more than offset by prices received 
for Vidalia onions during the holiday season (November and December).
    The Committee's budget for 1998-99 (September 16-September 15) was 
$373,577, and the assessment rate was set at 7 cents per 50-pound bag. 
Major expenses included $131,600 for marketing and promotion, $75,000 
for research, $135,127 for administrative expenses, and $31,850 for 
compliance. It is appropriate that the Committee plan and finance its 
activities consistent with the Vidalia onion marketing season.
    The Committee will begin operating under the revised fiscal period 
on January 1, 2000. This rule, therefore, also continues to extend the 
current fiscal period through December 31, 1999. This will provide for 
continuous operation of the program. Based on the interim final rule, 
the Committee increased its budgeted expenses from $373,577 to $475,577 
to cover the 3\1/2\ months being added to the 1998-99 fiscal period. 
Budgeted expenses for the major expenditures during 1998-99 (including 
the 3\1/2\ month extension are $151,127 for administrative costs, 
$37,850 for compliance activities, $161,600 for promotional activities, 
and $125,000 for research projects.
    The fiscal period change is designed to improve the functioning and 
operation of the program. The majority of handlers maintain their 
business records on a calendar year basis. Therefore, this rule will 
better reflect current industry practices.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this action 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 approximately 91 handlers of Vidalia onions who are 
subject to regulation under the order and approximately 133 Vidalia 
onion producers in the regulated area. Small agricultural service firms 
have been defined by the Small Business Administration (SBA) (13 CFR 
121.601) as those having annual receipts of less than $5,000,000, and 
small agricultural producers are defined as those having annual 
receipts of less than $500,000. The change in the number of handlers 
from 86 listed in the interim final rule is based on more recent 
Committee data.
    During the 1996-97 fiscal year, about 14 percent of the handlers 
shipped about 2,771,000 50-pound bags of Vidalia onions, for an average 
of about 197,930 bags. The remaining 86 percent of the handlers shipped 
about 1,262,940 bags, for an average of about 14,685 bags. Using an 
average f.o.b. price of $12.80 per bag, the majority of handlers could 
be considered small businesses under SBA's definition. Likewise, the 
majority of Vidalia onion growers may be classified as small 
businesses.
    Section 955.40 of the order provides authority for the Committee to 
incur expenses that are reasonable and necessary to operate the 
program. The order also provides that these expenses be paid by 
assessments levied on fresh shipments of Vidalia onions. The Committee 
prepares an annual budget of expenses and recommends an appropriate 
assessment rate on a fiscal year basis. Section 955.13 of the order 
defines ``fiscal period'' to mean September 16 through September 15 of 
the following year, or such other period that may be recommended by the 
Committee and approved by the Secretary.
    This rule continues in effect the action which changed the fiscal 
period to January 1 through December 31, making it consistent with the 
current Vidalia onion marketing season. It also continues to extend the 
1998-99 fiscal period, formerly September 16, 1998, through September 
15, 1999, through December 31, 1999. These changes were unanimously 
recommended by the Committee at its November 19, 1998, meeting.
    When the order was first issued in 1989, the harvesting and 
marketing season for Vidalia onions ran from April through June. The 
September 16 through September 15 fiscal period thus covered the entire 
marketing season and was appropriate for budget and planning purposes. 
Over the past decade, changes in the industry have extended the 
marketing season. In particular, the adoption of Controlled Atmosphere 
(CA) storage by three-fourths of the handlers has allowed them to 
economically store Vidalia onions through December. While there are 
some added storage costs and losses due to shrinkage, these costs are 
more than offset by prices received for Vidalia onions during the 
holiday season (November and December).
    The Committee's 1998-99 (September 16-September 15) budget was 
$373,577, and the assessment rate was set at 7 cents per 50-pound bag. 
Major expenses included $131,600 for marketing and promotion, $75,000 
for research, $135,127 for administrative expenses, and $31,850 for 
compliance. Budgeted expenses for these items (including the 3-1/2 
month extension for 1998-99) are $151,127 for administrative costs, 
$37,850 for compliance activities, $161,600 for promotional activities, 
and $125,000 for research activities. It is appropriate that the 
Committee plan and finance its activities consistent with the Vidalia 
onion marketing season.
    The Committee will begin operating under the revised fiscal period 
on January 1, 2000. The interim final rule also extended the current 
fiscal period through December 31, 1999.
    This rule continues in effect the change in the fiscal period which 
better reflects Committee and handler operations and would not impose 
any new requirements on Vidalia onion handlers. It could, on the other 
hand, simplify handler operations by putting the program fiscal period 
on the same basis as handlers' internal reporting and recordkeeping 
procedures.
    The Committee discussed the alternative of leaving the fiscal 
period as it previously existed, but unanimously concluded that this 
change would improve program operations.
    This rule will not impose any 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 sectors. In addition, the Department 
has not identified any relevant Federal rules that duplicate, overlap 
or conflict with this rule.
    Further, 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. Like all 
Committee meetings, the November 19, 1998, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. The Committee itself is composed of nine members: 
eight producers and one public member.
    An interim final rule concerning this action was published in the 
Federal Register on September 3, 1999. Copies of the rule were mailed 
by the Committee's staff to all Committee

[[Page 72267]]

members and Vidalia onion handlers. In addition, the rule was made 
available through the Internet by the Office of the Federal Register. 
That rule provided for a 60-day comment period which ended November 2, 
1999. No comments were received during the comment period.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
finalizing the interim final rule, without change, as published in the 
Federal Register (64 FR 48243, September 3, 1999) 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 
1998-99 fiscal period which began on September 16, 1998, ends on 
December 31, 1999; and (2) Handlers are aware of this action and the 
interim final rule provided a 60-day comment period and no comments 
were received.

List of Subjects in 7 CFR Part 955

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

PART 955--VIDALIA ONIONS GROWN IN GEORGIA

    Accordingly, the interim final rule amending 7 CFR part 955 which 
was published at 64 FR 48243 on September 3, 1999, is adopted as a 
final rule without change.

    Dated: December 20, 1999.
James R. Frazier,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-33508 Filed 12-23-99; 8:45 am]
BILLING CODE 3410-02-P