[Federal Register Volume 68, Number 157 (Thursday, August 14, 2003)]
[Rules and Regulations]
[Pages 48529-48531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-20691]



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  Federal Register / Vol. 68, No. 157 / Thursday, August 14, 2003 / 
Rules and Regulations  

[[Page 48529]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[Docket No. FV03-958-01 FR]


Onions Grown in Certain Designated Counties in Idaho, and Malheur 
County, Oregon; Increased Assessment Rate and Defined Fiscal Period

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule increases the assessment rate established for 
the Idaho-Eastern Oregon Onion Committee (Committee) for the 2003-2004 
and subsequent fiscal periods from $0.08 to $0.095 per hundredweight of 
onions handled, and establishes, in the regulatory text, the 
Committee's fiscal period beginning July 1 of each year and ending June 
30 of the following year. The Committee locally administers the 
marketing order that regulates the handling of onions grown in 
designated counties in Idaho, and Malheur County, Oregon. Authorization 
to assess onion handlers enables the Committee to incur expenses that 
are reasonable and necessary to administer the program. The assessment 
rate will remain in effect indefinitely unless modified, suspended, or 
terminated.

EFFECTIVE DATE: August 15, 2003.

FOR FURTHER INFORMATION CONTACT: Susan M. Hiller, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA, 1220 SW. Third Ave., suite 385, 
Portland, OR 97204; Phone: (503) 326-2724; Fax: (503) 326-7440; or 
George Kelhart, Technical Advisor, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, 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 (USDA) 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, 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, 2003, 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 USDA 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 USDA 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 USDA'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 increases the assessment rate established for the 
Committee for the 2003-2004 and subsequent fiscal periods from $0.08 to 
$0.095 per hundredweight of onions handled, and establishes, in the 
regulatory text, the Committee's fiscal period. The fiscal period 
begins July 1 of each year and ends June 30 of the following year.
    The order provides authority for the Committee, with the approval 
of USDA, to establish a fiscal period. The Committee has operated under 
a fiscal period of July 1 through June 30 since its inception in the 
late 1950's, but this period has never been specified in the regulatory 
text. This rule adds to the order's rules and regulations a definition 
of the Committee's fiscal period. The fiscal period will be defined to 
be the 12-month period beginning July 1 and ending June 30 of the 
following year, both dates inclusive.
    The order also provides authority for the Committee, with the 
approval of USDA, 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. 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 2000-2001 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Committee or other information available to USDA.
    The Committee met on April 3, 2003, and in a vote of seven in 
favor, one against, and one abstention, recommended an assessment rate 
of $0.095 per hundredweight of onions handled. The assessment rate of 
$0.095 is $0.015 higher than the rate currently

[[Page 48530]]

in effect. The order authorizes the Committee to establish an operating 
reserve of up to one fiscal period's operational expense. However, the 
Committee has maintained the operating reserve at a level of 
approximately one-half of one fiscal period's operational expenses. The 
Committee, over the last four fiscal periods, has reduced its operating 
reserve to this level. The Committee recommended the $0.015 increase so 
the total of assessment income ($870,200), contributions ($79,800), 
interest income ($6,000), and other income ($1,000) will equal the 
recommended expenses for 2003-2004 of $957,000. With these revenue 
sources, the Committee will not need to access its operating reserve 
and will maintain the reserve at the current level.
    The Committee met on June 12, 2003, and unanimously recommended 
2003-2004 expenditures of $957,000. In comparison, last year's budgeted 
expenditures were $1,044,824. The major expenditures for the 2003-2004 
fiscal period include $10,000 for committee expenses, $148,353 for 
salary expenses, $72,610 for travel/office expenses, $59,170 for 
research expenses, $27,250 for export expenses, $589,617 for promotion 
expenses, and $50,000 for unforeseen marketing order contingencies. 
Budgeted expenses for these items in 2002-2003 were $10,000, $143,814, 
$77,460, $59,550, $54,000, $675,000, and $25,000, respectively.
    The Committee estimates that onion shipments for the 2003-2004 
fiscal period will be approximately 9,160,000 hundredweight, which 
should provide $870,200 in assessment income. Income derived from 
handler assessments, along with contributions ($79,800), interest 
income ($6,000), and other income ($1,000) will equal expenses. The 
Committee estimates that its operating reserve will be approximately 
$434,303 at the beginning of the 2003-2004 fiscal period. Funds in the 
reserve will be kept within the maximum permitted by the order of 
approximately one fiscal year's operational expenses (Sec.  958.44).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
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 USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA 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 2003-2004 budget and those 
for subsequent fiscal periods would be reviewed and, as appropriate, 
approved by USDA.

Final Regulatory Flexibility Analysis

    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 approximately 37 handlers of Idaho-Eastern Oregon onions 
who are subject to regulation under the order and approximately 250 
onion producers in the regulated production area. Small agricultural 
service firms are defined by the Small Business Administration (SBA)(13 
CFR 121.201) as those having annual receipts less than $5,000,000, and 
small agricultural producers are defined as those having annual 
receipts less than $750,000.
    The Committee estimates that 32 of the 37 handlers of Idaho-Eastern 
Oregon onions ship under $5,000,000 worth of onions on an annual basis. 
According to the ``Vegetables 2002 Summary'' reported by the National 
Agricultural Statistics Service, the total farm gate value of onions in 
the regulated production area for 2002 was $93,807,000. Therefore, the 
2002 average gross revenue for an onion producer in the regulated 
production area was $375,228. Based on this information, it can be 
concluded that the majority of handlers and producers of Idaho-Eastern 
Oregon onions may be classified as small entities.
    This rule establishes, in the regulatory text, the Committee's 
fiscal period beginning July 1 of each year and ending June 30 of the 
following year, and increases the assessment rate established for the 
Committee for the 2003-2004 and subsequent fiscal periods from $0.08 to 
$0.095 per hundredweight of onions handled. The Committee recommended 
an assessment rate of $0.095 per hundredweight, which is $0.015 higher 
than the rate currently in effect. The quantity of assessable onions 
for the 2003-2004 fiscal period is estimated at 9,160,000 
hundredweight. Thus, the $0.095 rate should provide $870,200 in 
assessment income, which along with anticipated contributions, interest 
income, and other income will cover budgeted expenses expected to total 
about $957,000.
    The major expenditures recommended by the Committee for the 2003-
2004 fiscal period include $10,000 for committee expenses, $148,353 for 
salary expenses, $72,610 for travel/office expenses, $59,170 for 
research expenses, $27,250 for export expenses, $589,617 for promotion 
expenses, and $50,000 for unforeseen marketing order contingencies. 
Budgeted expenses for these items in 2002-2003 were $10,000, $143,814, 
$77,460, $59,550, $54,000, $675,000, and $25,000, respectively.
    The Committee reviewed and unanimously recommended 2003-2004 
expenditures of $957,000. This budget increases the budget line items 
for salary expenses and marketing order contingencies, and decreases 
the budget line items for travel and office expenses, research 
expenses, export expenses, and promotion expenses. Prior to arriving at 
this budget, the Committee considered information from various sources, 
including the Idaho-Eastern Oregon Onion Executive, Research, Export, 
and Promotion Committees. These subcommittees discussed alternative 
expenditure levels, based upon the relative value of various research 
and promotion projects to the Idaho-Eastern Oregon onion industry. The 
assessment rate of $0.095 per hundredweight of assessable onions was 
then determined by taking into consideration the estimated level of 
assessable shipments, other revenue sources, and the Committee's goal 
of not having to use reserve funds during 2003-2004.
    A review of historical information and preliminary information 
pertaining to the upcoming shipping season indicates that the producer 
price for the 2003-2004 season could be about $5.00 per hundredweight. 
Therefore, the estimated assessment revenue for the 2003-2004 fiscal 
period as a percentage of total producer revenue could be about 1.9 
percent.
    This rule increases the assessment obligation imposed on handlers. 
While assessments impose some additional costs on handlers, the costs 
are minimal

[[Page 48531]]

and uniform on all handlers. Some of the additional costs may be passed 
on to producers. However, these costs are offset by the benefits 
derived by the operation of the marketing order. In addition, the 
Committee's meetings were widely publicized throughout the Idaho-
Eastern Oregon onion industry and all interested persons were invited 
to attend the meetings and participate in Committee deliberations on 
all issues. Like all Committee meetings, the April 3, and the June 12, 
2003, meetings were open to the public 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 Idaho-Eastern Oregon 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.
    USDA 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 July 9, 2003 (68 FR 40815). A copy of the rule was provided 
to Committee staff, who in turn made it available to onion producers, 
handlers, and other interested persons. Finally, the rule was made 
available through the Internet by the Office of the Federal Register 
and USDA. A 15-day comment period ending July 24, 2003, was provided to 
allow interested persons to respond to the proposal. No comments were 
received.
    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 the 2003-2004 
fiscal period began on July 1, 2003, and the order requires that the 
rate of assessment for each fiscal period apply to all assessable 
onions handled during such fiscal period. In addition, the Committee 
needs sufficient funds to pay its expenses which are incurred on a 
continuous basis. Further, handlers are aware of this action which was 
recommended by the Committee at a public meeting and is similar to 
other assessment rate actions issued in past years. Also, a 15-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.

0
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

0
1. The authority citation for 7 CFR part 958 continues to read as 
follows:

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


0
2. A new Sec.  958.112 is added to read as follows:


Sec.  958.112  Fiscal period.

    The fiscal period shall begin July 1 of each year and end June 30 
of the following year, both dates inclusive.

0
3. Section 958.240 is revised to read as follows:


Sec.  958.240  Assessment rate.

    On and after July 1, 2003, an assessment rate of $0.095 per 
hundredweight is established for Idaho-Eastern Oregon onions.

    Dated: August 8, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-20691 Filed 8-13-03; 8:45 am]
BILLING CODE 3410-02-P