[Federal Register Volume 70, Number 168 (Wednesday, August 31, 2005)]
[Rules and Regulations]
[Pages 51578-51581]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-17269]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[Docket No. FV05-958-1 FIR]


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: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule which decreased the 
assessment rate established for the Idaho-Eastern Oregon Onion 
Committee (Committee) for the 2005-2006 and subsequent fiscal periods 
from $0.105 to

[[Page 51579]]

$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 began July 1 and ends June 30. The assessment rate 
will remain in effect indefinitely unless modified, suspended, or 
terminated.

EFFECTIVE DATE: September 30, 2005.

FOR FURTHER INFORMATION CONTACT: Susan M. Hiller, Northwest Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA; 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.''
    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 continues in effect the action that decreased 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 handled.
    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 assessment rate of $0.10 per 
hundredweight of onions. In comparison, last year's budgeted 
expenditures were $997,442. The assessment rate of $0.10 is $0.005 
lower than the previous rate. 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 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 that 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 $13,482, $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 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

[[Page 51580]]

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.

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 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 continues in effect the action that decreased 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 assessment rate of $0.10 is $0.005 
lower than the rate in effect during the 2004-2005 fiscal period. 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 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 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 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 continues in effect the action that decreased 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.
    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.
    An interim final rule concerning this action was published in the 
Federal Register on June 3, 2005 (70 FR 32481). Copies of that rule 
were made available by the Committee's staff to all producers, 
handlers, and interested persons. In addition, the rule was made 
available through the internet by USDA and the Office of the Federal 
Register. A 60-day comment period was provided for interested persons 
to respond to the interim final rule. The comment period ended on 
August 2, 2005. One response was received, but it was not relevant to 
the assessment rate decrease.
    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

[[Page 51581]]

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.

List of Subjects in 7 CFR Part 958

    Onions, Marketing agreements, Reporting and recordkeeping 
requirements.

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

0
Accordingly, the interim final rule amending 7 CFR part 958 which was 
published at 70 FR 32481 on June 3, 2005, is adopted as a final rule 
without change.

    Dated: August 25, 2005.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 05-17269 Filed 8-30-05; 8:45 am]
BILLING CODE 3410-02-P