[Federal Register Volume 70, Number 106 (Friday, June 3, 2005)]
[Rules and Regulations]
[Pages 32481-32483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-11023]



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  Federal Register / Vol. 70, No. 106 / Friday, June 3, 2005 / Rules 
and Regulations  

[[Page 32481]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[Docket No. FV05-958-1 IFR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule decreases the assessment rate established for the 
Idaho-Eastern Oregon Onion Committee (Committee) for the 2005-2006 and 
subsequent fiscal periods from $0.105 to $0.10 per hundredweight of 
onions handled. The Committee locally administers the marketing order 
which 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 fiscal period begins July 
1 and ends June 30. The assessment rate will remain in effect 
indefinitely unless modified, suspended, or terminated.

DATES: Effective June 4, 2005. Comments received by August 2, 2005, 
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; E-mail: [email protected]; or 
Internet: 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: Susan M. Hiller, 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, 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 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 July 1, 2005, 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 rate established for the 
Committee for the 2005-2006 and subsequent fiscal periods from $0.105 
per hundredweight to $0.10 per hundredweight of onions.
    The Idaho-Eastern Oregon onion marketing order 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 members of the Committee are producers and handlers of 
Idaho-Eastern Oregon onions. 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 2004-2005 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 14, 2005, and unanimously recommended 
2005-2006 expenditures of $956,001 and an

[[Page 32482]]

assessment rate of $0.10 per hundredweight of onions. In comparison, 
last year's budgeted expenditures were $997,442. The recommended 
assessment rate of $0.10 is $0.005 lower than the rate currently in 
effect. The decreased assessment rate recommended by the Committee 
reflects the reduction in anticipated expenditures.
    Both producers and handlers in the regulated production area 
expressed a need to decrease the assessment rate to help offset the 
lower prices received by the handlers. The National Agricultural 
Statistics Service (NASS) reported in the Vegetables 2004 Summary, 
published in January 2005, that the 2004 average F.O.B. price for the 
Idaho-Eastern Oregon onions was $8.14 per hundredweight. That price is 
$1.42 below the three year average F.O.B. price of $9.56 per 
hundredweight for this production area. The Committee considered 
assessment rates lower than $0.10 per hundredweight; however, it 
determined the lower rates would not generate the income necessary to 
sustain the current level of programs desired by the industry.
    The major expenditures recommended by the Committee for the 2005-
2006 year include $10,000 for committee expenses, $104,371 for salary 
expenses, $81,160 for travel/office expenses, $62,470 for production 
research expenses, $32,000 for export market development expenses, 
$616,000 for promotion expenses, and $50,000 for unforeseen marketing 
order contingencies. Budgeted expenses for these items in 2004-2005 
were $10,000, $163,482, $81,960, $60,000, $32,000, $600,000, and 
$50,000, respectively.
    The Committee based its recommended assessment rate decrease on the 
2005-2006 crop estimate, the 2005-2006 program expenditure needs, and 
the current and projected size of its monetary reserve. The Committee 
estimated onion shipments for 2005-2006 at 8,464,000 hundredweight 
which should provide $846,400 in assessment income. Income derived from 
handler assessments, along with contributions ($73,600), interest 
income ($7,400), other income ($2,000), and funds from the Committee's 
authorized reserve ($26,601), should be adequate to cover budgeted 
expenses. The Committee estimates that its operating reserve will be 
approximately $596,074 at the end of the 2005-2006 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 is effective 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 2005-2006 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 rule 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 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 233 producers of onions in the production 
area and approximately 37 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration (SBA) (13 CFR 121.201) as those having annual 
receipts of less than $750,000, and small agricultural service firms 
are defined as those whose annual receipts are less than $6,000,000.
    According to the NASS Vegetables 2004 Summary, the total F.O.B. 
value of onions in the regulated production area for 2004 was 
$110,355,000. Therefore, based on an industry of 233 producers and 37 
handlers, it can be concluded that the majority of handlers and 
producers of Idaho-Eastern Oregon onions may be classified as small 
entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2005-2006 and subsequent 
fiscal periods from $0.105 to $0.10 per hundredweight of onions. The 
Committee unanimously recommended 2005-2006 expenditures of $956,001 
and an assessment rate of $0.10 per hundredweight. The recommended 
assessment rate of $0.10 is $0.005 lower than the current rate. The 
quantity of assessable onions for the 2005-2006 year is estimated at 
8,464,000 hundredweight which should provide $846,400 in assessment 
income. Income derived from handler assessments, along with 
contributions ($73,600), interest income ($7,400), other income 
($2,000), and funds from the Committee's authorized reserve ($26,601), 
should be adequate to cover budgeted expenses. The decreased assessment 
rate recommended by the Committee reflects the reduction in anticipated 
expenditures from $997,442 to $956,001.
    Both producers and handlers in the regulated production area 
expressed a need to decrease the assessment rate to help offset the 
lower prices received by the handlers. The NASS reported in the 
Vegetables 2004 Summary, which was published in January 2005, that the 
2004 average F.O.B. price for the Idaho-Eastern Oregon onions was $8.14 
per hundredweight. That price is $1.42 below the three year average 
F.O.B. price of $9.56 per hundredweight for this production area. The 
Committee considered lower assessment rates; however, it determined 
that lower rates would not generate the income necessary to sustain the 
current level of programs desired by the industry.
    The major expenditures recommended by the Committee for the 2005-
2006 year include $10,000 for committee expenses, $104,371 for salary 
expenses, $81,160 for travel/office expenses, $62,470 for production 
research expenses, $32,000 for export market development expenses, 
$616,000 for promotion expenses, and $50,000 for unforeseen marketing 
order contingencies. Budgeted expenses for these items in 2004-2005 
were $10,000, $163,482, $81,960, $60,000, $32,000, $600,000, and 
$50,000, respectively.
    The Committee reviewed and unanimously recommended 2005-2006 
expenditures of $956,001 which includes decreases in salary expenses 
and travel/office expenses, as well as increases in production research 
expenses and promotion expenses. Prior to arriving at this budget, the 
Committee considered information from various

[[Page 32483]]

sources, such as the Committee's Executive, Promotion, Research, and 
Export subcommittees. These subcommittees discussed alternative 
expenditure levels, based upon the relative value of various research 
and promotion projects to the onion industry. The assessment rate of 
$0.10 per hundredweight of assessable onions was then determined by 
taking into consideration the estimated level of assessable shipments, 
the current market situation, program expenditure needs, and the desire 
to sustain a monetary reserve at a viable level.
    A review of historical information and preliminary information 
pertaining to the upcoming year indicates that the producer price for 
the 2005-2006 season could range between $5.50 and $8.00 per 
hundredweight of onions. Therefore, the estimated assessment revenue 
for the 2005-2006 year as a percentage of total producer revenue could 
range between 1.82 and 1.25 percent.
    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 rate reduces the burden on handlers, and may reduce the 
burden on producers. 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 14, 2005, meeting was a public meeting and all entities, both 
large and small, 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 action 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 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 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 2005-2006 fiscal period begins on July 1, 
2005, and the marketing order requires that the rate of assessment for 
each fiscal period apply to all assessable onions handled during such 
fiscal period; (2) the Committee needs to have sufficient funds to pay 
its expenses which are incurred on a continuous basis; (3) this action 
decreases the assessment rate for assessable onions beginning with the 
2005-2006 fiscal period; (4) handlers are aware of this action which 
was unanimously recommended by the Committee at a public meeting and is 
similar to other assessment rate actions issued in past years; and (5) 
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 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. Section 958.240 is revised to read as follows:


Sec.  958.240  Assessment rate.

    On and after July 1, 2005, an assessment rate of $0.10 per 
hundredweight is established for Idaho-Eastern Oregon onions.

    Dated: May 27, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-11023 Filed 6-2-05; 8:45 am]
BILLING CODE 3410-02-P