[Federal Register Volume 68, Number 192 (Friday, October 3, 2003)]
[Rules and Regulations]
[Pages 57324-57326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-25111]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Docket No. FV03-956-1 FR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Fiscal Period Change

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule changes the fiscal period under the Walla Walla 
sweet onion marketing order from June 1 through May 31 to January 1 
through December 31. This rule was recommended by the Walla Walla Sweet 
Onion Marketing Committee (Committee), the agency responsible for local 
administration of the marketing order regulating the handling of sweet 
onions grown in the Walla Walla Valley of Southeast Washington and 
Northeast Oregon. The June 1 through May 31 fiscal period has been in 
place since the marketing order's inception in 1995. Due to the advance 
planning needed for market promotion, including paid advertising, it 
has been the practice of the Committee to develop its budget of 
expenditures prior to the start of each fiscal period, but delay the 
actual expenditure of funds until after June 1. This made it more 
difficult for the Committee to coordinate the timing of marketing 
promotion activities with the short harvest and marketing season for 
Walla Walla sweet onions. This fiscal period change is expected to help 
the Committee better coordinate its marketing promotion activities with 
the marketing season--mid-June into September.

EFFECTIVE DATE: This final rule becomes effective January 1, 2004.

FOR FURTHER INFORMATION CONTACT: Barry M. Broadbent, 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 E-mail: [email protected].; 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 business 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 final rule is issued under Marketing 
Agreement and Order No. 956, both as amended (7 CFR part 956), 
regulating the handling of Walla Walla sweet onions grown in Southeast 
Washington and Northeast 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 final 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 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. A 
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 final rule changes the fiscal period from June 1 through May 
31 to January 1 through December 31. This rule also makes conforming 
changes to the order's administrative rules and regulations. This 
change was

[[Page 57325]]

unanimously recommended by the Committee at its December 17, 2003, 
meeting.
    Section 956.40 of the order provides authority for the Committee to 
incur expenses that are reasonable and necessary to operate the 
program. Section 956.42 provides that these expenses be paid by 
assessments levied on fresh shipments of Walla Walla sweet onions. 
Further, Sec.  956.41 provides that an annual budget of expenses be 
prepared by the Committee based on the defined fiscal period. Section 
956.13 of the order defines ``fiscal period'' and provides the 
authority for making this fiscal period change.
    Walla Walla sweet onions are traditionally harvested from about 
mid-June through about mid-August, although, in recent years, harvest 
has been extended into September due to an increase in spring planted 
onions and the use of better storage facilities. Walla Walla sweet 
onions have a short shelf life and are therefore generally marketed 
within a relatively short period of time following harvest. During the 
promulgation of the order in 1995, the proponent industry committee--
the organization responsible for drafting the order and presenting it 
during the promulgation hearing--was of the opinion that the new 
order's fiscal period should begin shortly before the marketing season 
began. Testimony during the hearing supported the position that the 
start of the fiscal period should be close to the beginning of the 
season. This was so a minimum of expenses would be incurred prior to 
the time assessment revenue was received by the Committee following the 
sweet onion harvest.
    Experience gained over the last eight years has shown the Committee 
that the June 1 through May 31 fiscal period is not conducive to 
coordinating the timing of its marketing promotion, including paid 
advertising activities, with the short harvest and marketing season for 
Walla Walla sweet onions. The crop is harvested and marketed during a 
four-month period--mid-June into September.
    Due to the advance planning needed for market promotion, including 
paid advertising, it has been the practice of the Committee to develop 
its budget of expenditures prior to the start of each fiscal period, 
but delay the actual expenditure of funds until after June 1. This made 
it more difficult for the Committee to coordinate the timing of its 
promotion activities with the short harvest and marketing season. The 
Committee believes that better timing of marketing promotion activities 
with the harvest and marketing of Walla Walla sweet onions will improve 
the distribution and consumption of sweet onions. To foster better 
timing, the Committee recommended that the fiscal period begin January 
1 and end December 31 each year.
    As previously stated, the Committee has been operating with a 
fiscal period of June 1 through May 31. The Committee formulated a 
budget for the twelve-month period beginning June 1, 2003, and 
submitted it to the USDA for approval. The budget was approved on May 
23, 2003. The Committee began expending funds June 1 for its 2003-2004 
promotion and research plans, as well as for administration costs. With 
the effective date of this fiscal period change being January 1, 2004, 
the Committee will be required to meet prior to that date to 
reformulate and resubmit a new budget for USDA approval for a new 
fiscal period beginning January 1, 2004, and ending December 31, 2004.
    As conforming changes to the fiscal period change, this rule also 
updates language in Sec.  956.142, Interest charges, and Sec.  956.180, 
Reports by removing the words ``of each fiscal period'' wherever they 
appear.

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 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 26 handlers of Walla Walla sweet onions 
subject to regulation under the order and approximately 35 Walla Walla 
sweet onion producers in the regulated area. Small agricultural service 
firms are defined by the Small Business Administration (SBA)(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 $750,000.
    The Committee estimates that in 2002, 611,955 50-pound units of 
Walla Walla sweet onions were marketed at an average FOB price of about 
$9.00 per unit. The total industry value at shipping point was 
approximately $5,507,595. Thus, a majority of handlers and producers of 
Walla Walla sweet onions may be classified as small entities.
    This final rule changes the current fiscal period from June 1 
through May 31 to January 1 through December 31. The prior fiscal 
period had been in place since the marketing order's inception in 1995. 
Due to the advance planning needed for market promotion, including paid 
advertising, the Committee has previously developed its budget of 
expenditures before June 1, but delayed actual expenditures until that 
date. This made it more difficult for the Committee to coordinate the 
timing of marketing promotion activities with the short harvest and 
marketing season for Walla Walla sweet onions--mid-June into September. 
The Committee believes the January 1 through December 31 fiscal period 
will better facilitate marketing promotion programs and will improve 
the distribution and consumption of Walla Walla sweet onions.
    Section 956.13 of the order defines ``fiscal period'' and provides 
the authority for making this change. This final rule is a change to 
Committee operations that will not impose any new requirements or costs 
on Walla Walla sweet onion handlers or producers. It could, on the 
other hand, simplify the business operations within the Walla Walla 
sweet onion industry by putting the order's fiscal period on the same 
basis as that of normal business recordkeeping practices.
    The Committee discussed the alternative of taking no action on a 
fiscal period change, but unanimously concluded that this change will 
improve program administration.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large Walla Walla sweet 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, USDA has not 
identified any relevant Federal rules that duplicate, overlap or 
conflict with this rule.
    The Committee's meeting was widely publicized throughout the Walla 
Walla sweet onion industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the December 17, 2002, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue.

[[Page 57326]]

    A proposed rule concerning this action was published in the Federal 
Register on April 9, 2003 (68 FR 17325). Copies of the rule were mailed 
or sent via facsimile to all Committee members and Walla Walla sweet 
onion handlers. Finally, the rule was made available through the 
Internet by the Office of the Federal Register and USDA. A 60-day 
comment period ending June 9, 2003, was provided to allow interested 
persons to respond to the proposal. One comment was received but was 
not relevant to the fiscal period change.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ama.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 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.

List of Subjects in 7 CFR Part 956

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

0
For the reasons set forth in the preamble, 7 CFR part 956 is amended as 
follows:

PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST 
WASHINGTON AND NORTHEAST OREGON

0
1. The authority citation for 7 CFR part 956 continues to read as 
follows:

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

0
2. A new Sec.  956.113 is added to subpart ``Rules and Regulations'' to 
read as follows:


Sec.  956.113  Fiscal period.

0
Pursuant to Sec.  956.13, fiscal period shall mean the period beginning 
January 1 and ending December 31 of each year.


Sec.  956.142  [Amended]

0
3. Section 956.142 is amended by removing the words ``of each fiscal 
period'' in the second sentence.


Sec.  956.180  [Amended]

0
4. Section 956.180 is amended by removing the words ``of each fiscal 
period'' in the introductory text.

    Dated: September 29, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-25111 Filed 10-2-03; 8:45 am]
BILLING CODE 3410-02-P