[Federal Register Volume 69, Number 157 (Monday, August 16, 2004)]
[Rules and Regulations]
[Pages 50278-50283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18616]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV04-916/917-4 IFR]


Nectarines and Peaches Grown in California; Decreased Assessment 
Rates

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

-----------------------------------------------------------------------

SUMMARY: This rule decreases the assessment rates established for the 
Nectarine Administrative Committee and the Peach Commodity Committee 
(committees) for the 2004-05 and subsequent fiscal periods. The 
Nectarine Administrative Committee (NAC) decreased its assessment rate 
from $0.20 to $0.195 per 25-pound container or container equivalent of 
nectarines handled. The Peach Commodity Committee (PCC) decreased its 
assessment rate from $0.20 to $0.19 per 25-pound container or container 
equivalent of peaches handled. The committees locally administer the 
marketing orders which regulate the handling of nectarines and peaches 
grown in California. Authorization to assess nectarine and peach 
handlers enables the committees to incur expenses that are reasonable 
and necessary to administer the programs. The fiscal periods run from 
March 1 through the last day of February. The assessment rates will 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective: August 17, 2004. Comments received by October 15, 
2004, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938, or E-mail: [email protected], 
or Internet:

[[Page 50279]]

http://www.regulations.gov. Comments should reference the docket number 
and the date and page number of this issue of the Federal Register and 
will be available for public inspection in the Office of the Docket 
Clerk during regular business hours, or can be viewed at: http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Toni Sasselli, Program Analyst, 
California Marketing Field Office, Fruit and Vegetable Programs, AMS, 
USDA, 2202 Monterey Street, suite 102B, Fresno, California 93721, (559) 
487-5901, Fax: (559) 487-5906; 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 Nos. 85 and 124 and Order Nos. 916 and 917, both as amended 
(7 CFR parts 916 and 917), regulating the handling of nectarines and 
peaches grown in California, respectively, hereinafter referred to as 
the ``orders.'' The marketing agreements and orders 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 (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 orders now in effect, California 
nectarine and peach handlers are subject to assessments. Funds to 
administer the orders are derived from such assessments. It is intended 
that the assessment rates as issued herein will be applicable to all 
assessable nectarines and peaches beginning on March 1, 2004, 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 decreases the assessment rates established for the NAC 
for the 2004-05 and subsequent fiscal periods from $0.20 to $0.195 per 
25-pound container or container equivalent of nectarines and for the 
PCC for the 2004-05 and subsequent fiscal periods from $0.20 to $0.19 
per 25-pound container or container equivalent of peaches.
    The nectarine and peach marketing orders provide authority for the 
committees, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
programs. The members of the NAC and PCC are producers of California 
nectarines and peaches, respectively. They are familiar with the 
committees' needs, and with the costs for goods and services in their 
local area and are, thus, in a position to formulate appropriate 
budgets and assessment rates. The assessment rates are formulated and 
discussed in public meetings. Thus, all directly affected persons have 
an opportunity to participate and provide input.

NAC Assessment and Expenses

    The NAC recommended, for the 2004-05 fiscal period, and USDA 
approved, an assessment rate of $0.195 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 NAC met on April 28, 2004, and unanimously recommended 2004-05 
fiscal period expenditures of $5,162,866 and an assessment rate of 
$0.195 per 25-pound container or container equivalent of nectarines. In 
comparison, last year's expenditures were initially budgeted at 
$4,173,438. The assessment rate of $0.195 is $0.005 lower than the rate 
currently in effect.
    After the 2003-04 fiscal period budget was formulated and 
recommended to USDA in May 2003, the committee received one Federal and 
two State grants which affected both committees' income and 
expenditures. The NAC also used reserve funds to conduct research on 
the development of a commercial nectarine beverage. The NAC 
subsequently unanimously recommended an amended budget for the 2003-04 
fiscal period. Under this amended budget, the Federal grant of $533,921 
and a State grant of $200,557 were applied to the export market 
development program, and a State grant of $3,667 was applied to the 
research program, along with $45,000 of reserve funds.
    The assessment rate decrease for the 2004-05 fiscal period was 
recommended because excess funds from the 2003-04 fiscal period 
totaling $786,521 were carried into 2004-05. This is substantially 
higher than what the NAC deems satisfactory. Moreover, the 2004 
nectarine crop is expected to be larger than last year's crop. The 
lower assessment rate also addresses the needs of nectarine growers and 
handlers who have been affected by low commodity prices for the last 
few years.
    Total income received for the 2004-05 fiscal period is projected to 
be approximately $5,800,677. Decreasing the assessment rate from $0.20 
to $0.195 per 25-pound container is expected to provide about 
$4,199,453 in assessment revenue, and along with other income, will 
allow the NAC to start the 2005 season with about $499,811 in reserve 
funds.
    The major expenditures recommended by the NAC for the 2004-05 
fiscal period include $219,872 for salaries and benefits, $146,613 for 
general expenses and industry activities, $1,153,676 for inspection, 
$208,568 for research, and $3,161,852 for domestic and export market 
development programs.
    Budgeted expenses for these items in the 2003-04 fiscal period were 
initially estimated to be $226,121 for salaries and benefits, $142,612 
for general expenses and industry activities, $1,210,220 for 
inspection, $138,929 for research, and $2,263,061 for domestic and 
export market development programs.
    The major expenditures under the amended 2003-04 fiscal period 
budget include $226,121 for salaries and benefits, $142,612 for general 
expenses and industry activities, $1,210,220 for inspection, $187,596 
for research, and $2,997,539 for domestic and export market development 
programs.
    The 2004-05 fiscal period NAC assessment rate was derived after

[[Page 50280]]

considering the total NAC expenses of $5,162,866; the estimated 
assessable nectarines of 22,245,000 twenty-five-pound containers or 
container equivalents; the estimated income from other sources, such as 
interest and grants; and the need for an adequate financial reserve to 
carry the NAC into the 2004 season. The committee has determined that a 
carry-in of $400,000 is historically necessary to meet its obligations 
in the early part of each season, before handler assessments are billed 
and received. To meet these goals, the NAC recommended an assessment 
rate of $0.195 per 25-pound container or container equivalent. 
According to the committee, that assessment rate will result in an 
adequate carry-in, while maintaining reserves within the maximum 
permitted by the order (approximately one year's expenses; Sec.  
916.42).

PCC Assessment and Expenses

    The PCC recommended, for the 2004-05 fiscal period, and USDA 
approved, an assessment rate of $0.19 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 PCC also met on April 28, 2004, and recommended 2004-05 fiscal 
period expenditures of $5,178,002 and an assessment rate of $0.19 per 
25-pound container or container equivalent of peaches. In comparison, 
last year's expenditures were initially budgeted at $4,086,316. The 
assessment rate of $0.19 is $0.01 lower than the rate currently in 
effect.
    After the 2003-04 fiscal period budget was formulated and 
recommended to USDA in May 2003, the PCC received one Federal and two 
State grants which affected both committee income and expenditures. The 
committee subsequently unanimously recommended an amended budget for 
the 2003-04 fiscal period on June 23, 2004. Under this amended budget, 
the Federal grant of $488,845 and a State grant of $149,667 were 
applied to the export market development program, and a State grant of 
$3,667 was applied to the cultural research program.
    The decrease for the 2004-05 fiscal period was recommended because 
excess funds from 2003-04 totaling $915,375 were carried into the 2004-
05 fiscal period. This is substantially higher than needed by the PCC 
to cover early season expenses. In addition, the 2004 peach crop is 
expected to be higher than last year's crop. The lower assessment rate 
also addresses the needs of peach growers and handlers who have been 
affected by low commodity prices for the last few years.
    Total income received for the 2004-05 fiscal period is projected to 
be approximately $5,883,385. Decreasing the assessment rate from $0.20 
to $0.19 per 25-pound container is expected to provide about $4,153,654 
assessment revenue, and along with other income, will allow the PCC to 
start the 2005 season with about $567,383 in reserve funds.
    The major expenditures recommended by the PCC for the 2004-05 
fiscal period include $219,872 for salaries and benefits, $148,598 for 
general expenses and industry activities, $1,240,520 for inspection, 
$208,570 for research, and $3,188,457 for domestic and export market 
development programs.
    Budgeted expenditures for these items in the 2003-04 fiscal period 
were initially estimated to be $226,121 for salaries and benefits, 
$144,743 for general expenses and industry activities, $1,173,480 for 
inspection, $138,930 for research, and $2,211,346 for domestic and 
export market development programs.
    The major expenditures under the amended budget for 2003-04 fiscal 
period include $226,121 for salaries and benefits, $144,743 for general 
expenses and industry activities, $1,173,480 for inspection, $142,597 
for research, and $2,849,858 for domestic and export market development 
programs.
    The 2004-05 fiscal period PCC assessment rate was derived after 
considering the total PCC expenses of $5,178,002; the estimated 
assessable peaches of 22,601,000 twenty-five-pound container or 
container equivalents; the estimated income from other sources, such as 
interest and grants; and the need for an adequate financial reserve to 
carry the PCC into the 2004 season. The committee has determined that a 
carry-in of $500,000 is historically necessary to meet its obligations 
in the early part of each season, before handler assessments are billed 
and received. To meet these goals, the PCC recommended an assessment 
rate of $0.19 per 25-pound container or container equivalent. According 
to the committee, that assessment rate will result in an adequate 
carry-in, while maintaining reserves within the maximum permitted by 
the order (one year's expenses; Sec.  917.38).

Continuance of Assessment Rates

    The assessment rates established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the committees or 
other available information.
    Although these assessment rates will be in effect for an indefinite 
period, the committees 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 rates. The dates and 
times of committee meetings are available from the committees' Web site 
or USDA. Committee meetings are open to the public and interested 
persons may express their views at these meetings. USDA will evaluate 
the committees' recommendations and other available information to 
determine whether modification of the assessment rate for each 
committee is needed. Further rulemaking will be undertaken as 
necessary. The committee's 2004-05 budget and those for subsequent 
fiscal periods will be reviewed and, as appropriate, approved by USDA.

Initial 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 initial 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 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.

Industry Information

    There are approximately 250 California nectarine and peach handlers 
subject to regulation under the orders covering nectarines and peaches 
grown in California, and about 1,800 producers of these fruits in 
California. The Small Business Administration [13 CFR 121.201] defines 
small agricultural service firms as those whose annual receipts are 
less than $5,000,000. The Small Business Administration also defines 
small agricultural producers as those having annual receipts of less 
than $750,000. A majority of these handlers and producers may be 
classified as small entities.
    The committees' staff has estimated that there are less than 20 
packers in the industry who could be defined as other than small 
entities. In the 2003 season,

[[Page 50281]]

the average handler price received was $7.00 per container or container 
equivalent of nectarines or peaches. A handler would have to ship at 
least 714,286 containers to have annual receipts of $5,000,000. Given 
data on shipments maintained by the committees' staff and the average 
handler price received during the 2003 season, the committees' staff 
estimates that small packers represent approximately 94 percent of all 
the packers within the industry.
    The committees' staff has also estimated that less than 20 percent 
of the producers in the industry could be defined as other than small 
entities. In the 2003 season, the average producer price received was 
$4.00 per container or container equivalent for nectarines and peaches. 
A producer would have to produce at least 187,500 containers of 
nectarines and peaches to have annual receipts of $750,000. Given data 
maintained by the committees' staff and the average producer price 
received during the 2003 season, the committees' staff estimates that 
small producers represent more than 80 percent of the producers within 
the industry.
    The nectarine and peach marketing orders provide authority for the 
committees, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
programs. The members of the NAC and PCC are producers of California 
nectarines and peaches, respectively.
    This rule decreases the assessment rates established for the NAC 
for the 2004-05 and subsequent fiscal periods from $0.20 to $0.195 per 
25-pound container or container equivalent of nectarines and for the 
PCC for the 2004-05 and subsequent fiscal periods from $0.20 to $0.19 
per 25-pound container or container equivalent of peaches.
    The NAC recommended 2004-05 fiscal period expenditures of 
$5,162,866 for nectarines and an assessment rate of $0.195 per 25-pound 
container or container equivalent of nectarines. The assessment rate of 
$0.195 is $0.005 lower than the current rate. The PCC recommended 
expenditures of $5,178,002 for peaches and an assessment rate of $0.19 
per 25-pound container or container equivalent of peaches. The 
assessment rate of $0.19 is $0.01 lower than the current rate.

Analysis of NAC budget

    The quantity of assessable nectarines for the 2004-05 fiscal period 
is estimated at 22,245,000 twenty-five-pound containers or container 
equivalents. Thus, the $0.195 rate should provide $4,337,775 in 
assessment income. Income derived from handler assessments and other 
sources will be adequate to cover budgeted expenses and permit an 
adequate reserve.
    The NAC met on April 28, 2004, and recommended 2004-05 fiscal 
period expenditures of $5,162,866 and an assessment rate of $0.195 per 
25-pound container or container equivalent of peaches. In comparison, 
last year's expenditures were initially budgeted at $4,173,438. The 
assessment rate of $0.19 is $0.005 lower than the rate currently in 
effect.
    The major expenditures recommended by the NAC for the 2004-05 
fiscal period include $219,872 for salaries and benefits, $146,613 for 
general expenses and industry activities, $1,153,676 for inspection, 
$208,568 for research, and $3,161,852 for domestic and export market 
development programs.
    Budgeted expenses for these items in the 2003-04 fiscal period were 
initially estimated to be $226,121 for salaries and benefits, $142,612 
for general expenses and industry activities, $1,210,220 for 
inspection, $138,929 for research, and $2,263,061 for domestic and 
export market development programs.
    After the 2003-04 fiscal period budget was formulated and 
recommended to USDA in May 2003, the committee received one Federal and 
two State grants which affected both committee income and expenditures. 
The NAC also conducted research to test a commercial nectarine drink, 
using reserve funds. The committee subsequently unanimously recommended 
an amended budget for the 2003-04 fiscal period. Under this amended 
budget, the Federal grant of $533,921 and a State grant of $200,557 
were applied to the export marketing development program, and a State 
grant of $3,667 was applied to the research program, along with $45,000 
from the committee's reserves for the nectarine drink.
    The major expenditures under the 2003-04 fiscal period amended 
budget include $226,121 for salaries and benefits, $142,612 for general 
expenses and industry activities, $1,210,220 for inspection, $187,596 
for research, and $2,997,539 for domestic and export market development 
programs.
    The lower assessment rate is possible because of the $915,375 in 
excess funds carried into the 2004-05 fiscal period. This will provide 
adequate funds at the beginning of the 2005 season before assessment 
collections begin. A financial reserve carry-in is desirable because 
major expense outlays for seasonal promotions and other activities 
occur before assessments are received.
    The 2004-05 fiscal period assessment rate for the NAC was derived 
after considering the total NAC expenses of $5,162,866; the estimated 
assessable nectarines of 22,245,000 twenty-five-pound containers or 
container equivalents; the estimated income from other sources, such as 
interest; and the need for an adequate financial reserve to carry the 
NAC into the 2005 season. The committee has determined that a carry-in 
of $400,000 is historically necessary to meet its obligations in the 
early part of each season, before handler assessments are billed and 
received.
    To meet this goal, the NAC recommended an assessment rate of $0.195 
per 25-pound container or container equivalent. According to the 
committee, that assessment rate will result in an adequate carry-in, 
while carrying reserves within the maximum permitted by the order (one 
year's expenses; Sec.  916.42).

Analysis of PCC budget

    The quantity of assessable peaches for the 2004-05 fiscal period is 
estimated at 22,601,000 twenty-five-pound containers or container 
equivalents. Thus, the $0.19 rate should provide $4,294,190 in 
assessment income. Income derived from handler assessments and other 
sources will be adequate to cover budgeted expenses and permit a small 
increase in reserves.
    The PCC also met on April 28, 2004, and recommended 2004-05 fiscal 
period expenditures of $5,178,002 and an assessment rate of $0.19 per 
25-pound container or container equivalent of peaches. In comparison, 
last year's expenditures were initially budgeted at $4,086,316. The 
assessment rate of $0.19 is $0.01 lower than the rate currently in 
effect.
    The major expenditures recommended by the PCC for the 2004-05 
fiscal period include $219,872 for salaries and benefits, $148,598 for 
general expenses and industry activities, $1,240,520 for inspection, 
$208,570 for research, and $3,188,457 for domestic and export market 
development programs.
    The major expenditures initially recommended by the PCC for the 
2003-04 fiscal period include $226,121 for salaries and benefits, 
$144,743 for general expenses and industry activities, $1,173,480 for 
inspection, $138,930 for research, and $2,211,346 for domestic and 
export market development programs.
    After the 2003-04 fiscal period budget was formulated and 
recommended to USDA in May 2003, the committee received one Federal and 
two State grants which affected both committee

[[Page 50282]]

income and expenditures. The committee subsequently unanimously 
recommended an amended budget for the 2003-04 fiscal period. Under this 
amended budget, the Federal grant of $488,845 and a State grant of 
$149,667 were applied to the export market development, and a State 
grant of $3,667 was applied to the cultural research program.
    The major expenditures under the amended budget for the 2003-04 
fiscal period include $226,121 for salaries and benefits, $144,743 for 
general expenses and industry activities, $1,173,480 for inspection, 
$142,597 for research, and $2,849,858 for domestic and export market 
development programs.
    The lower assessment rate is possible because of the carry-in of 
$915,375 in excess funds from the 2003-04 fiscal period into the 2004-
05 fiscal period. This is substantially higher than the PCC needs for 
early season expenses before assessment collections begin. A financial 
reserve carry-in of approximately $500,000 is desirable because major 
expense outlays for seasonal promotions and other activities occur 
before assessments are received.
    The 2004-05 fiscal period assessment rate for the PCC was derived 
after considering the total PCC expenses of $5,178,002; the estimated 
assessable peaches of 22,601,000 twenty-five-pound containers or 
container equivalents; the estimated income from other sources, such as 
interest and grants; and the need for an adequate financial reserve to 
carry the PCC into the 2005 season. The committee has determined that a 
carry-in of $500,000 is historically necessary to meet its obligations 
in the early part of each season, before handler assessments are billed 
and received.
    To meet this goal, the PCC recommended an assessment rate of $0.19 
per 25-pound container or container equivalent. According to the 
committee, that assessment rate will result in an adequate carry-in, 
while keeping reserves within the maximum permitted by the order (one 
year's expenses; Sec.  917.38).

Considerations in Determining Expenses and Assessment Rates

    Prior to arriving at these budgets, the committees considered 
information and recommendations from various sources, including, but 
not limited to: the Executive Committee, the Research Subcommittee, the 
International Programs Subcommittee, the Tree Fruit Quality 
Subcommittee, and the Domestic Promotion Subcommittee.
    Each of the committees then reviewed the proposed expenses; the 
total estimated assessable 25-pound containers or container 
equivalents; and the estimated income from other sources, such as 
interest income and grants, prior to recommending a final assessment 
rate. The NAC decided that an assessment rate of $0.195 per 25-pound 
container or container equivalent will allow it to meet its 2004-05 
fiscal period expenses and carry over an operating reserve of about 
$499,811 which is in line with the committee's financial needs. The PCC 
decided that an assessment rate of $0.19 per 25-pound container or 
container equivalent will allow it to meet its 2004-05 fiscal period 
expenses and carry over an operating reserve of $567,383, which is in 
line with the committee's financial needs. The committees then 
unanimously recommended these rates to USDA.
    A review of historical and preliminary information pertaining to 
the upcoming fiscal period indicates that the grower price for the 2004 
crop year for nectarines and peaches could range between $4.00 and 
$6.00 per 25-pound container or container equivalent. Therefore, the 
estimated assessment revenue for the 2004-05 fiscal period as a 
percentage of total grower revenue could range between 4.9 percent and 
3.2 percent for nectarines, and 4.7 percent and 3.2 percent for 
peaches.
    This action decreases 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 rates reduces the burden on handlers, and consequently may 
reduce the burden on producers.
    The committees' meetings were widely publicized throughout the 
California nectarine and peach industries and all interested persons 
were invited to attend the meetings and participate in the committees' 
deliberations on all issues. Like all committee meetings, the April 28, 
2004, meetings were public meetings and entities of all sizes were able 
to express views on this issue. Finally, interested persons are invited 
to submit information on the regulatory and informational impacts of 
this action on small businesses.
    This rule will impose no additional reporting or recordkeeping 
requirements on either small or large 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 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/mb.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.
    A 60-day comment period is provided to allow interested persons to 
respond to this rule. All written comments received will be considered 
before a final decision is made on this matter.
    After consideration of all relevant material presented, including 
the committees' recommendations, and other information, it is found 
that this interim final 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 upon good 
cause that it is impracticable, unnecessary and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and 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 2004-05 fiscal period began on March 1, 2004, and the 
marketing orders require that the rates of assessment for each fiscal 
period apply to all assessable nectarines and peaches handled during 
such fiscal period; (2) the committees need to have sufficient funds to 
pay their expenses which are incurred on a continuous basis; and (3) 
handlers are aware of this action which was recommended by the 
committees at public meetings and is similar to other assessment rate 
actions issued in past years; (4) this interim final rule provides a 
60-day comment period, and all comments timely received will be 
considered prior to finalization of this rule.

List of Subjects

7 CFR Part 916

    Marketing agreements, Nectarines, Reporting and recordkeeping 
requirements.

7 CFR Part 917

    Marketing agreements, Peaches, Pears, Reporting and recordkeeping 
requirements.


0
For the reasons set forth in the preamble, 7 CFR parts 916 and 917 are 
amended as follows:
0
1. The authority citation for 7 CFR parts 916 and 917 continues to read 
as follows:


[[Page 50283]]


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

PART 916--NECTARINES GROWN IN CALIFORNIA

0
2. Section 916.234 is revised to read as follows:


Sec.  916.234  Assessment rate.

    On and after March 1, 2004, an assessment rate of $0.195 per 25-
pound container or container equivalent of nectarines is established 
for California nectarines.

PART 917--PEACHES GROWN IN CALIFORNIA

0
3. Section 917.258 is revised to read as follows:


Sec.  917.258  Assessment rate.

    On and after March 1, 2004, an assessment rate of $0.19 per 25-
pound container or container equivalent of peaches is established for 
California peaches.

    Dated: August 10, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-18616 Filed 8-13-04; 8:45 am]
BILLING CODE 3410-02-P