[Federal Register Volume 74, Number 147 (Monday, August 3, 2009)]
[Rules and Regulations]
[Pages 38324-38326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-18415]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Doc. No. AMS-FV-08-0105; FV09-932-1 FIR]


Olives Grown in California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim final rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule that changed the assessment 
rate established under the marketing order (order) for olives grown in 
California for the 2009 and subsequent fiscal years. The interim final 
rule increased the assessment rate from $15.60 to $28.63 per assessable 
ton of olives handled. The interim final rule was necessary to provide 
adequate operating funds for the California Olive Committee 
(committee), which administers the order locally.

DATES: Effective Date: Effective August 4, 2009.

FOR FURTHER INFORMATION CONTACT: Jennifer Robinson, Marketing 
Specialist, or Kurt J. Kimmel, Regional Manager, California Marketing 
Field Office, Marketing Order Administration Branch, Fruit and 
Vegetable Programs, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 
487-5906; or e-mail:

[[Page 38325]]

Jen. [email protected] or [email protected].
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide; or 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. 148 and Order No. 932, both as amended (7 CFR part 932), 
regulating the handling of olives grown in California, 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.
    The handling of olives grown in California is regulated under 7 CFR 
part 932. Under the order, California olive handlers are subject to 
assessments, which provide funds to administer the order. Assessment 
rates issued under the order are intended to be applicable to all 
assessable olives for the entire fiscal year, and continue indefinitely 
until amended, suspended, or terminated. The committee's fiscal year 
begins on January 1, and ends on December 31.
    In an interim final rule published in the Federal Register on 
February 20, 2009, and effective on February 21, 2009 (74 FR 7782, Doc. 
No. AMS-FV-08-0105; FV09-932-1 IFR), Sec.  932.230 was amended by 
increasing the assessment rate established for the committee for the 
2009 and subsequent fiscal years from $15.60 to $28.63 per ton of 
assessable olives from the applicable crop years. The increase in the 
per ton assessment rate was deemed necessary because the 2008-2009 
olive crop was significantly smaller than the previous year's crop and 
would not have generated adequate assessment revenues to meet the 
committee's budgeted program needs.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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.
    There are approximately 1,000 producers of olives in the production 
area and 2 handlers subject to regulation under the marketing order. 
Small agricultural producers are defined by the Small Business 
Administration (13 CFR 121.201) as those having annual receipts less 
than $750,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $7,000,000.
    Based upon information from the committee, the majority of olive 
producers may be classified as small entities. Both of the handlers may 
be classified as large entities.
    This rule continues in effect the action that increased the 
assessment rate established for the committee and collected from 
handlers for the 2009 and subsequent fiscal years from $15.60 to $28.63 
per ton of assessable olives. The committee unanimously recommended 
2009 expenditures of $1,482,349 and an assessment rate of $28.63 per 
ton. The assessment rate of $28.63 is $13.03 higher than the 2008 rate. 
The higher assessment rate is necessary because assessable olive 
receipts for the 2008-09 crop year were reported by the CASS to be 
49,067 tons, compared to 108,059 tons for the 2007-08 crop year. Actual 
assessable tonnage for the 2009 fiscal year is expected to be lower 
because some of the receipts may be diverted by handlers to exempt 
outlets on which assessments are not paid.
    Income generated from the $28.63 per ton assessment rate should be 
adequate to meet this year's expenses when combined with funds from the 
authorized reserve and interest income. Funds in the reserve would be 
kept within the maximum permitted by the order of about one fiscal 
year's expenses (Sec.  932.40).
    Expenditures recommended by the committee for the 2009 fiscal year 
include $495,000 for research, $627,800 for marketing activities, and 
$359,549 for administration. Budgeted expenditures for these items in 
2008 were $500,000, $750,000, and $288,552, respectively. The 2009 
marketing and research programs will be scaled back.
    Prior to arriving at this budget, the committee considered 
information from various sources, such as the committee's Executive, 
Market Development, and Research Subcommittees. Alternate spending 
levels were discussed by these groups, based upon the relative value of 
various research and marketing projects to the olive industry and the 
reduced olive production. The assessment rate of $28.63 per ton of 
assessable olives was derived by considering anticipated expenses, the 
volume of assessable olives and additional pertinent factors.
    A review of historical information indicates that the grower price 
for the 2008-09 crop year was approximately $1,109.47 per ton for 
canning fruit and $380.71 per ton for limited-use sizes, leaving the 
balance as unusable cull fruit. Approximately 84 percent of the total 
tonnage of olives received is canning fruit sizes and 11 percent is 
limited use sizes, leaving the balance as unusable cull fruit. Grower 
revenue on 49,067 total tons of canning and limited-use sizes would be 
$49,283,177 given the current grower prices for those sizes. Therefore, 
with an assessment rate increased from $15.60 to $28.63, the estimated 
assessment revenue is expected to be almost 3 percent of grower 
revenue.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
will be offset by the benefits derived by the operation of the 
marketing order. In addition, the committee's meeting was widely 
publicized throughout the California olive industry and all interested 
persons were invited to attend the meeting and participate in committee 
deliberations on all issues. Like all committee meetings, the December 
10, 2008, 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 California olive 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.
    Comments on the interim final rule were required to be received on 
or

[[Page 38326]]

before April 21, 2009. No comments were received. Therefore, for the 
reasons given in the interim final rule, we are adopting the interim 
final rule as a final rule, without change.
    To view the interim final rule, go to http://www.regulations.gov/fdmspublic/component/main?main=DocketDetail&d=AMS-FV-08-0105.
    This action also affirms information contained in the interim final 
rule concerning Executive Orders 12866 and 12988, the Paperwork 
Reduction Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 
101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim final rule, without change, as published in 
the Federal Register (74 FR 7782, February 20, 2009) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 932

    Marketing agreements, Olives, Reporting and recordkeeping 
requirements.

PART 932--OLIVES GROWN IN CALIFORNIA--[AMENDED]

0
Accordingly, the interim final rule that amended 7 CFR part 932 and 
that was published at 74 FR 7782 on February 20, 2009, is adopted as 
final rule, without change.

    Dated: July 28, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-18415 Filed 7-31-09; 8:45 am]
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