[Federal Register Volume 74, Number 200 (Monday, October 19, 2009)]
[Rules and Regulations]
[Pages 53400-53402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-25121]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 922

[Doc. No. AMS-FV-09-0038; FV09-922-1 FIR]


Apricots Grown in Designated Counties in Washington; Decreased 
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 which decreased the 
assessment rate established for the Washington Apricot Marketing 
Committee (Committee) for the 2009-2010 and subsequent fiscal periods 
from $2.00 to $1.00 per ton of apricots handled. The Committee locally 
administers the marketing order, which regulates the handling of 
apricots grown in designated counties in Washington. The decreased 
assessment rate is necessary to align the Committee's expected revenue 
with its proposed 2009-2010 budget.

DATES: Effective Date: October 20, 2009.

FOR FURTHER INFORMATION CONTACT: Robert Curry or Gary D. Olson, 
Northwest Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1220 SW. Third Avenue, 
suite 385, Portland, OR 97204; telephone: (503) 326-2724, fax: (503) 
326-7440; or e-mail: [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;

[[Page 53401]]

telephone: (202) 720-2491; fax: (202) 720-8938; or e-mail: 
[email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 922 (7 CFR part 922), regulating the handling 
of apricots grown in designated counties in Washington, 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.
    Under the order, Washington apricot 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 apricots for the entire fiscal period, and continue 
indefinitely until amended, suspended, or terminated. The Committee's 
fiscal period begins on April 1 and ends on March 31.
    In an interim final rule published in the Federal Register on July 
29, 2009, and effective July 30, 2009 (74 FR 37496, Doc. No. AMS-FV-09-
0038; FV09-922-1 IFR), Sec.  922.235 was amended by decreasing the 
assessment rate established for the Committee for the 2009-2010 and 
subsequent fiscal periods from $2.00 to $1.00 per ton of apricots 
handled. Because of the projections of a large crop this season, the 
Committee recommended the assessment rate decrease in order to maintain 
assessment income at a level proportionate to the current budget.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (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 300 producers of fresh apricots in the 
regulated production area and approximately 22 handlers subject to 
regulation under the order. Small agricultural producers are defined by 
the Small Business Administration (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 
$7,000,000.
    Based on information compiled by the National Agricultural 
Statistics Service, the value of Washington's total apricot production 
in 2008 was $6,601,000. Based on 300 apricot producers, the average 
annual producer revenue from the sale of Washington apricots last year 
was approximately $22,000 per producer. In addition, based on Committee 
records and 2008 f.o.b. prices ranging from $20.00 to $26.00 per 24-
pound loose-pack carton as reported by AMS Market News Service, the 
average annual revenue per handler in 2008 was $357,197. Therefore, the 
majority of Washington apricot producers and handlers may be classified 
as small entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2009-2010 and subsequent 
fiscal periods from $2.00 to $1.00 per ton. The Committee unanimously 
recommended 2009-2010 expenditures of $7,843 and the decreased 
assessment rate at the May 21, 2009, meeting. The recommended 
assessment rate is $1.00 less than the rate in effect since the 
beginning of the 2008-2009 fiscal period. With an estimated 2009-2010 
apricot crop of 7,600 tons, assessment income combined with funds from 
the Committee's monetary reserve should be adequate to cover budgeted 
expenses. The Committee recommended decreasing the assessment rate by 
50 percent due to its estimate that the crop this season would 
approximately be twice the size of the crop actually harvested last 
year. With current crop and expense estimates, the Committee estimates 
that its reserve fund at the end of the 2009-2010 fiscal period will be 
about $8,300. This is equal to approximately one fiscal period's 
operational expenses as authorized by the order (Sec.  922.42).
    The major expenditures recommended by the Committee for the 2009-
2010 fiscal period include $4,800 for the management fee and $3,043 for 
operational expenses. In comparison, budgeted expenses for the 2008-
2009 seasons were $4,800 and $2,293, respectively.
    The Committee discussed alternatives to this rule. With the 
potential for a much larger crop this season, assessment rates over 
$1.00 per ton were not seriously considered because of the potential of 
generating too much income and thus increasing the reserve fund to an 
amount higher than program requirements allow.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicates that the producer price 
for the 2009-2010 season could average about $1,000 per ton. Therefore, 
the estimated assessment revenue for the 2009-2010 fiscal period as a 
percentage of total producer revenue could approximate 0.1 percent.
    This rule continues in effect the action that decreased the 
assessment obligation imposed on handlers of Washington apricots. 
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. The Committee's meeting was widely publicized throughout the 
Washington apricot industry and all interested persons were invited to 
attend and participate in the Committee's deliberations on all issues. 
Like all Committee meetings, the May 21, 2009, meeting was a public 
meeting and all entities, both large and small, were able to express 
views on this issue.
    This action does not impose additional reporting or recordkeeping 
requirements on small or large Washington apricot 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. Furthermore, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
rule.
    Comments on the interim final rule were requested by September 28, 
2009. No comments were received. Therefore, for the reasons given in 
the interim final rule, USDA is adopting the interim final rule as a 
final rule without change. To view the interim final rule on the 
Internet, navigate to: http://www.regulations.gov/search/Regs/home.html#documentDetail?R=09000064809fd6a6.
    This action also affirms information contained in the interim final 
rule pertaining to 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 37496, July 29, 2009) will tend to 
effectuate the declared policy of the Act.

[[Page 53402]]

List of Subjects in 7 CFR Part 922

    Apricots, Marketing agreements, Reporting and recordkeeping 
requirements.

PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON

0
Accordingly, the interim final rule amending 7 CFR part 922, which was 
published at 74 FR 37496 on July 29, 2009, is adopted as a final rule 
without change.

    Dated: October 9, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-25121 Filed 10-16-09; 8:45 am]
BILLING CODE 3410-02-P