[Federal Register Volume 75, Number 207 (Wednesday, October 27, 2010)]
[Rules and Regulations]
[Pages 65937-65938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-27196]



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 Rules and Regulations
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  Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / 
Rules and Regulations  

[[Page 65937]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 924

[Doc. No. AMS-FV-10-0054; FV10-924-2 FIR]


Fresh Prunes Grown in Designated Counties in Washington and in 
Umatilla County, OR; Suspension of Reporting and Assessment 
Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that suspended the reporting and 
assessment requirements prescribed under the Washington-Oregon fresh 
prune marketing order. The marketing order regulates the handling of 
fresh prunes grown in designated counties in Washington and in Umatilla 
County, Oregon, and is administered locally by the Washington-Oregon 
Fresh Prune Marketing Committee (Committee). On June 1, 2010, the 
Committee unanimously voted to terminate Marketing Order No. 924. Since 
the only regulatory actions then in effect were the reporting and 
assessment requirements, the Committee included a recommendation to 
immediately suspend those activities while USDA processes the 
termination request. The reporting and assessment requirements will 
remain suspended until reinstated or permanently terminated.

DATES: Effective October 28, 2010.

FOR FURTHER INFORMATION CONTACT: Robert Curry or Gary Olson, Northwest 
Marketing Field Office, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA; 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 and agreement 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 Antoinette Carter, 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 and Order No. 924 (7 CFR 924), regulating the handling of 
fresh prunes grown in designated counties in Washington and in Umatilla 
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.
    Marketing Order No. 924 has been in effect since 1960 and has 
provided the fresh prune industry in Washington and Oregon with 
authority for grade, size, quality, maturity, pack, and container 
regulations, as well as authority for inspection requirements. The 
order also authorizes production research and marketing research and 
development projects, as well as the necessary reporting and 
recordkeeping functions required for operation. Based on the 
Committee's recommendation, USDA suspended the order's handling 
regulations in May 2006. These handling regulations required that 
certain varieties of fresh prunes meet minimum grade standards. The 
Committee believed that the costs of inspection outweighed the benefits 
provided from having the regulatory requirements in effect.
    Following the regulatory suspension, the Committee continued to 
levy assessments in order to maintain its functionality. The Committee 
felt that it should continue to fund its full operational capability in 
order to gauge the merits of the handling regulation suspension. When 
it recommended suspension of the handling regulations, the Committee 
also recommended the establishment of reporting requirements for the 
purpose of tracking shipments and collecting assessments. Prior to the 
handling regulation suspension, the Committee relied on the Federal-
State Inspection Service to provide it with copies of the certificates 
that accompany each lot of inspected fresh prunes. The inspection 
certificates contained information necessary for the Committee to 
collect assessments from each of the regulated handlers. A new section 
924.160 and Committee form ``Handler Statement for Washington-Oregon 
Fresh Prunes'' were implemented in the Federal Register on May 9, 2006, 
at 71 FR 26817. The Committee used this form to collect fresh prune 
shipment information and to monitor market and crop conditions, thus 
helping it to make a determination regarding the impact of non-
regulation on the industry.
    Based on its analysis that the regulatory suspension has not 
negatively impacted the marketing of fresh prunes over the last four 
years, and the fact that the Washington-Oregon fresh prune industry has 
been decreasing in size and volume in recent years, the Committee 
determined that there is no longer a need for the order, and thus 
recommended termination at the meeting held in Prosser, Washington, on 
June 1, 2010.
    In addition, the Committee determined that there is no need to 
continue collecting assessments and requiring reports for the sole 
purpose of maintaining its functionality, thus recommended that the 
assessment rate and reporting requirements be immediately suspended. 
This action will relieve the industry of the assessment and reporting 
burden during the pendency of the termination process.
    The Committee recommended a budget of $6,085 for the remainder of 
the period leading to order termination. The budgeted amount was 
established on the basis of the amount remaining in the Committee's 
monetary reserve. The budget in its entirety will provide for such 
operating expenses as are necessary during the termination

[[Page 65938]]

process, including a final financial review and management 
compensation.
    In an interim rule published in the Federal Register on July 23, 
2010, and effective on July 24, 2010 (75 FR 43040, Doc. No. AMS-FV-10-
0054, FV10-924-2 IR), Sec. Sec.  924.160 and 924.236 were suspended.

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 action 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 six handlers of Washington-Oregon fresh prunes subject to 
regulation under the order and approximately 56 fresh prune producers 
in the regulated area. Small agricultural service firms are defined by 
the Small Business Administration (SBA) (13 CFR 121.201) as those 
having annual receipts of less than $7,000,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$750,000.
    Based on information compiled by both the Committee and the 
National Agricultural Statistics Service, the average producer price 
for fresh prunes in 2009 was approximately $385 per ton. With 4,260 
tons of fresh prunes shipped from the Washington and Oregon production 
areas in 2009, this equates to average producer revenue of about 
$30,000. In addition, AMS Market News Service reported that 2009 f.o.b. 
prices ranged from $12.00 to $18.00 per 30-pound container, thus the 
entire Washington-Oregon fresh prune industry handled less than 
$7,000,000 worth of prunes last season. In view of the foregoing, the 
majority of Washington-Oregon fresh prune producers and handlers may be 
classified as small entities.
    The Committee made the recommendation to suspend the reporting and 
assessment requirements as an adjunct to the recommendation to 
terminate the order. As such, the only other alternative would have 
been to continue to assess handlers and to require reports, options not 
seriously considered since additional funds are not required.
    This action continues in effect the action that suspended the 
reporting and assessment obligations imposed on handlers. During any 
period when effective, assessments are applied uniformly on all 
handlers and some of the costs may be passed on to producers. This 
suspension of the reporting and assessment requirements reduces the 
burden on handlers and should also reduce the burden on producers.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large prune 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. In addition, USDA has not identified any 
relevant Federal rules that duplicate, overlap or conflict with this 
rule.
    The Committee's meeting was widely publicized throughout the 
Washington-Oregon fresh prune industry and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations. Like all Committee meetings, the June 1, 2010, meeting 
was a public meeting and all entities, both large and small, were able 
to express their views on this issue.
    Comments on the interim rule were required to be received on or 
before September 21, 2010. No comments were received. Therefore, for 
the reasons given in the interim rule, we are adopting the interim rule 
as a final rule, without change.
    To view the interim rule, go to:  http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480b1fd84.
    This action also affirms information contained in the interim 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 rule, without change, as published in the 
Federal Register (75 FR 43039, July 23, 2010) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 924

    Prunes, Marketing agreements, Reporting and recordkeeping 
requirements.

PART 924--FRESH PRUNES GROWN IN DESIGNATED COUNTIES IN WASHINGTON 
AND IN UMATILLA COUNTY, OREGON

0
Accordingly, the interim rule that amended 7 CFR part 924 and was 
published at 75 FR 43039 on July 23, 2010, is adopted as a final rule, 
without change.

    Dated: October 21, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2010-27196 Filed 10-26-10; 8:45 am]
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