[Federal Register Volume 65, Number 128 (Monday, July 3, 2000)]
[Rules and Regulations]
[Pages 40967-40970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-16741]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[Docket No. FV00-958-1 FR]


Onions Grown in Certain Designated Counties in Idaho, and Malheur 
County, OR; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule decreases the assessment rate established for the 
Idaho-Eastern Oregon Onion Committee (Committee) under Marketing Order 
No. 958 for the 2000-2001 and subsequent fiscal periods from $0.09 to 
$0.08 per hundredweight of onions handled. The

[[Page 40968]]

Committee is responsible for local administration of the marketing 
order which regulates the handling of onions grown in designated 
counties in Idaho, and Malheur County, Oregon. Authorization to assess 
Idaho-Eastern Oregon onion handlers enables the Committee to incur 
expenses that are reasonable and necessary to administer the program. 
The fiscal period begins July 1 and ends June 30. The assessment rate 
will remain in effect indefinitely unless modified, suspended, or 
terminated.

EFFECTIVE DATE: July 5, 2000.

FOR FURTHER INFORMATION CONTACT: Robert J. Curry, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA, 1220 SW Third Avenue, suite 385, 
Portland, Oregon 97204-2807; telephone: (503) 326-2724, Fax: (503) 326-
7440; or George Kelhart, 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, room 2525-S, P.O. Box 
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202) 
720-5698, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 130 and Marketing Order No. 958, both as amended (7 CFR 
part 958), regulating the handling of onions grown in certain 
designated counties in Idaho, and Malheur County, Oregon, 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 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. Under the order now in effect, Idaho-Eastern Oregon 
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 
onions beginning on July 1, 2000, 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 decreases the assessment rate established for the 
Committee for the 2000-2001 and subsequent fiscal periods from $0.09 
per hundredweight to $0.08 per hundredweight of onions handled.
    The 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 
Committee consists of six producer members, four handler members and 
one public member, each of whom is 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 budget and assessment rate were discussed at a public meeting 
and all directly affected persons had an opportunity to participate and 
provide input.
    For the 1998-99 and subsequent fiscal periods, the Committee 
recommended, and the Department approved, an assessment rate of $0.09 
per hundredweight 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.
    The Committee met on April 6, 2000, and unanimously recommended 
2000-2001 expenditures of $1,047,637 and an assessment rate of $0.08 
per hundredweight of onions handled during the 2000-2001 and subsequent 
fiscal periods. The Committee estimated that the 2000-2001 onion crop 
will approximate 9,600,000 hundredweight of onions. In comparison, the 
1999-2000 fiscal period budget was established at $1,133,785 on an 
estimated assessable onion crop of 9,200,000 hundredweight of onions. 
The Committee recommended the decreased assessment rate to help offset 
the negative effects of the currently depressed onion market.
    The Committee anticipates that assessment income during the 2000-
2001 fiscal period will be approximately $768,000, which is $60,000 
less than the $828,000 assessment income estimated for its 1999-2000 
budget. The Committee now projects a total income of approximately 
$944,372 and expenditures of about $1,025,098 by June 30, 2000. At the 
time the 1999-2000 fiscal period budget was recommended, the Committee 
had estimated that it would draw up to $260,785 from its operating 
reserve. However, since current assessment income is greater than 
anticipated and expenditures are less than budgeted, the operating 
reserve may actually be depleted by about $80,726. Thus, the Committee 
has estimated that its operating reserve will be approximately $859,793 
on July 1, 2000, and, if it requires an estimated $234,637 from its 
monetary reserve as budgeted during the 2000-2001 fiscal period, 
approximately $625,156 on July 1, 2001. Lower assessment rates were 
considered, but not recommended because they would not generate the 
income necessary to administer the program with an adequate operating 
reserve.
    The major expenditures recommended by the Committee for the 2000-
2001 fiscal period include $235,105 for marketing order administration, 
which includes salary, office, travel and Committee expenses, $58,532 
for production research, $675,000 for market promotion including paid 
advertising, $54,000 for export market development, and $25,000 for 
marketing order contingencies. Budgeted expenses for these items in the 
1999-2000 fiscal period were $224,685, $69,100, $750,000, $60,000, and 
$30,000, respectively.
    The Committee has based its recommended assessment rate decrease on 
the 2000-2001 crop estimate and fiscal period expenditures estimate, 
the current condition of the onion market, and the current and 
projected size of its monetary reserve. The decreased assessment rate 
should provide $768,000 in income, which, when combined with interest 
income of $45,000 and operating reserve funds of $234,637, would be 
adequate to cover budgeted expenses. As noted above, the

[[Page 40969]]

Committee estimates it will have approximately $859,793 in its 
operating reserve at the end of the 1999-2000 fiscal period, which 
should be adequate to cover any income shortages. This amount is within 
the maximum permitted by the order of approximately one fiscal period's 
expenditures (Sec. 958.44).
    The assessment rate 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 this assessment rate will be in effect 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 and are locally published. 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.
    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, the 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 34 handlers of Idaho-Eastern Oregon onions 
who are subject to regulation under the order and approximately 270 
onion producers in the regulated production area. Small agricultural 
service firms are defined by the Small Business Administration (13 CFR 
121.201) 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 Committee estimates that all of the handlers of Idaho-Eastern 
Oregon onions ship under $5,000,000 worth of onions on an annual basis. 
In addition, based on acreage, production, and producer prices reported 
by the National Agricultural Statistics Service, and the total number 
of onion producers in the regulated production area, the average gross 
annual producer revenue from onions is about $230,000. Based on this 
information, it can be concluded that the majority of Idaho-Eastern 
Oregon onion handlers and producers may be classified as small 
entities, excluding receipts from other sources.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2000-2001 and subsequent 
fiscal periods from $0.09 per hundredweight to $0.08 per hundredweight 
of onions handled. Both the $0.08 assessment rate and the 2000-2001 
budget of $1,047,637 were unanimously recommended by the Committee at 
its April 6, 2000, meeting. The $0.08 assessment rate is $0.01 lower 
than the 1999-2000 rate. The Committee recommended a decreased 
assessment rate to help offset the negative effects of the currently 
depressed onion market. The anticipated 2000-2001 crop of 9,600,000 
hundredweight is approximately 400,000 hundredweight larger than the 
crop estimate used to establish the 1999-2000 budget. The $0.08 rate 
should provide $768,000 in assessment income, which, when combined with 
estimated interest income of $45,000 and up to $234,637 from the 
operating reserve, should be adequate to meet the 2000-2001 fiscal 
period's budgeted expenses.
    The Committee reviewed and unanimously recommended 2000-2001 
expenditures of $1,047,637 which include increases in administrative 
expenses, salaries, and committee expenses, and decreases in production 
research, market promotion, export market development, and contingency 
fund expenses. Prior to recommending this budget, the Committee 
considered information from various sources, including the Idaho-
Eastern Oregon Onion Executive, Research, Promotion and Export Market 
Development Committees. Alternative expenditure levels were discussed 
and rejected by these subcommittees, and ultimately by the full 
Committee, based upon the relative value of various research and 
promotion projects to the Idaho-Eastern Oregon onion industry.
    The major expenditures recommended by the Committee for the 2000-
2001 fiscal period include $235,105 for marketing order administration, 
which includes salary, office, travel and Committee expenses, $58,532 
for production research, $675,000 for market promotion including paid 
advertising, $54,000 for export market development, and $25,000 for 
marketing order contingencies. Budgeted expenses for these items in the 
1999-2000 fiscal period were $224,685, $69,100, $750,000, $60,000, and 
$30,000, respectively.
    A review of historical information and preliminary information 
pertaining to the upcoming season indicates that the F.O.B. price for 
the 2000-2001 onion season could average $5.50 per hundredweight of 
onions. Therefore, the estimated assessment revenue for the 2000-2001 
fiscal period ($768,000) as a percentage of the projected total F.O.B. 
revenue ($52,800,000) would be 0.0145 percent. This figure indicates 
that the $0.08 assessment rate will have a relatively insignificant 
impact on the Idaho-Eastern Oregon onion industry.
    This action decreases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
would be offset by the benefits derived by the operation of the order. 
In addition, the Committee's meeting was widely publicized throughout 
the Idaho-Eastern Oregon 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 April 6, 
2000, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large 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.
    A proposed rule concerning this action was published in the Federal 
Register on May 15, 2000 (65 FR 30920). A copy of the proposed rule was 
mailed to the Committee office, which in turn notified Committee 
members and industry members. The proposed rule was also made available 
on the Internet by the Office of the Federal Register. A 30-day comment 
period ending June 14, 2000, was provided for interested persons to 
respond to the proposal. No comments were received.

[[Page 40970]]

    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 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.
    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) the 2000-2001 fiscal period begins 
on July 1, 2000, and the order requires that the rate of assessment for 
each fiscal period apply to all assessable onions handled during such 
fiscal period; (3) handlers are aware of this action which was 
unanimously recommended by the Committee at a public meeting; and (4) a 
30-day comment period was provided for in the proposed rule, and no 
comments were received.

List of Subjects in 7 CFR Part 958

    Onions, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 958 is 
amended as follows:

PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND 
MALHEUR COUNTY, OREGON

    1. The authority citation for 7 CFR part 958 continues to read as 
follows:

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


    2. Section 958.240 is revised to read as follows:


Sec. 958.240  Assessment rate.

    On and after July 1, 2000, an assessment rate of $0.08 per 
hundredweight is established for Idaho-Eastern Oregon onions.

    Dated: June 27, 2000.
Robert C. Keeney
Deputy Administrator, Fruit and Vegetable Programs
[FR Doc. 00-16741 Filed 6-30-00; 8:45 am]
BILLING CODE 3410-02-P