[Federal Register Volume 76, Number 119 (Tuesday, June 21, 2011)]
[Rules and Regulations]
[Pages 35957-35959]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-15446]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Doc. No. AMS-FV-10-0115; FV11-932-1 FIR]


Olives Grown in California; Decreased Assessment Rate

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 decreases the assessment 
rate established for the California Olive Committee (Committee) for 
2011 and subsequent fiscal years from $44.72 to $16.61 per ton of 
olives handled. The Committee locally administers the marketing order 
which regulates the handling of olives grown in California. Assessments 
upon olive handlers are used by the Committee to fund reasonable and 
necessary expenses of the program. The fiscal year began January 1 and 
ends December 31. The assessment rate will remain in effect 
indefinitely unless modified, suspended, or terminated.

DATES: Effective June 22, 2011.

FOR FURTHER INFORMATION CONTACT: Jerry L. Simmons, 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: [email protected] or 
[email protected].
    Small businesses may request information on complying with this and 
other marketing order and/or agreement regulations by viewing a guide 
at the following Web site: http://

[[Page 35958]]

www.ams.usda.gov/MarketingOrdersSmallBusinessGuide; or by contacting 
Laurel May, 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 by 7 CFR 
part 932. California olive handlers are subject to assessments. Prior 
to this change handlers were assessed $44.72 per ton of olives handled.
    The Committee met on December 15, 2010, and unanimously recommended 
an assessment rate of $16.61 per ton of olives. The assessment rate of 
$16.61 is $28.11 per ton lower than the rate currently in effect. The 
Committee recommended the lower assessment rate because of a 
substantial increase in assessable olives for the 2011 fiscal year.
    The assessment rate established in this rule will be applicable to 
all assessable olives beginning on January 1, 2011, and 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 year to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate.
    In an interim rule published in the Federal Register on March 4, 
2011, and effective on March 5, 2011 (76 FR 11937, Doc. No. AMS-FV-10-
0115, FV11-932-1 IR), Sec. Sec.  932.230 was amended by decreasing the 
assessment rate from $44.72 to $16.61 per ton of olives handled.

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 approximately 1,000 producers of California 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 (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 $7,000,000.
    Based upon information from the industry and the California 
Agricultural Statistics Service (CASS), the average grower price for 
2010 was approximately $811 per ton and total grower production was 
around 165,000 tons. Based on production, producer prices, and the 
total number of California olive producers, the average annual producer 
revenue is less than $750,000. Thus, the majority of olive producers 
may be classified as small entities. Both of the handlers may be 
classified as large entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2011 and subsequent 
fiscal years from $44.72 to $16.61 per ton of olives. The Committee 
unanimously recommended 2011 expenditures of $2,203,909 and an 
assessment rate of $16.61 per ton. The recommended assessment rate of 
$16.61 is $28.11 lower than the 2010 rate. Income generated from the 
$16.61 per ton assessment rate should be adequate to meet this year's 
expenses when combined with funds from the authorized reserve and 
interest income.
    The major expenditures recommended by the Committee for the 2011 
fiscal year include $1,093,009 for Research Programs, $700,000 for 
Marketing Programs, $335,900 for General Administration, and $75,000 
for Inspection Equipment Development. Budgeted expenses for these items 
in 2010 were $300,000, $255,000, $324,923, and $50,000, respectively.
    The Committee recommended the lower assessment rate because of a 
substantial increase in assessable olives for the 2011 fiscal year. The 
fiscal year 2011 olives as reported by CASS total 164,984 tons, as 
compared to 23,033 tons reported for the 2010 fiscal year.
    The Committee reviewed and unanimously recommended 2011 
expenditures of $2,203,909, which included increases in administrative 
expenses, marketing programs, equipment development and research 
programs. Prior to arriving at this budget, the Committee considered 
information from various sources, such as the Executive Subcommittee, 
Marketing Subcommittee, Inspection Subcommittee, and the Research 
Subcommittee. Alternative expenditure levels were discussed by these 
groups, based upon the relative value of various projects to the olive 
industry. The assessment rate of $16.61 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 and preliminary information 
indicates that grower price could range between approximately $811 per 
ton and $1,105 per ton. Therefore, the estimated assessment revenue for 
the 2011 fiscal year as a percentage of total grower revenue could 
range between 1.5 and 2 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.
    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.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule.
    Comments on the interim rule were required to be received on or 
before May 3, 2011. 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.

[[Page 35959]]

    To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-10-0115-0001.
    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 (76 FR 11937, March 4, 2011) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 932

    Olives, Marketing agreements, Reporting and recordkeeping 
requirements.

PART 932--[AMENDED]

0
Accordingly, the interim rule that amended 7 CFR part 932 and that was 
published at 76 FR 11937 on March 4, 2011, is adopted as a final rule, 
without change.

    Dated: June 15, 2011.
Ellen King,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2011-15446 Filed 6-20-11; 8:45 am]
BILLING CODE 3410-02-P