[Federal Register Volume 78, Number 170 (Tuesday, September 3, 2013)]
[Rules and Regulations]
[Pages 54147-54149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21309]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 78, No. 170 / Tuesday, September 3, 2013 /
Rules and Regulations
[[Page 54147]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
[Docket No. AMS-FV-13-0053; FV13- 987-1 IR]
Domestic Dates Produced or Packed in Riverside County,
California; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
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SUMMARY: This rule decreases the assessment rate established for the
California Date Administrative Committee (Committee) for the 2013-14
and subsequent crop years from $0.90 to $0.40 per hundredweight of
dates handled. The Committee locally administers the marketing order,
which regulates the handling of dates grown or packed in Riverside
County, California. Assessments upon date handlers are used by the
Committee to fund reasonable and necessary expenses of the program. The
crop year begins October 1 and ends September 30. The assessment rate
will remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective October 1, 2013. Comments received by November 4,
2013, will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order and Agreement Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. Comments should reference the docket number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting comments will be made public on the internet at the
address provided above.
FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior Marketing
Specialist, or Martin Engeler, Regional Director, California Marketing
Field Office, Marketing Order and Agreement Division, Fruit and
Vegetable Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559)
487-5906, or Email: [email protected] or
[email protected].
Small businesses may request information on complying with this
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 987, both as amended (7 CFR Part 987),
regulating the handling of dates produced or packed in Riverside
County, 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.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, Riverside
County, California, date 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 dates beginning October 1, 2013, and continue until amended,
suspended, or terminated.
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
entry of the ruling.
This rule decreases the assessment rate established for the
Committee for the 2013-14 and subsequent crop years from $0.90 to $0.40
per hundredweight of dates.
The California date 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
Riverside County, California, dates. They are familiar with the
Committee's needs and with the costs of 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.
The Committee met on June 20, 2013, and unanimously recommended
2013-14 expenditures of $97,700, and an assessment rate of $0.40 per
hundredweight of Riverside County, California, dates. In comparison,
last year's budgeted expenditures were $260,000. The assessment rate of
$0.40 is $0.50 lower than the rate currently in effect.
The Committee recommended a lower assessment rate because of a
significant decrease in its budgeted expenses. The industry will shift
its marketing programs from the Committee to the California Date
Commission, a California State marketing program, beginning October 1,
2013. Thus, the assessment revenue needed under the
[[Page 54148]]
order for the 2013-14 crop year has decreased. Income generated from
the lower assessment rate, combined with cull surplus contributions,
and carry-in funds from the 2012-13 crop year should be sufficient to
cover anticipated 2013-14 expenses.
Proceeds from sales of cull dates are deposited into a surplus
account for subsequent use by the Committee in covering the surplus
pool share of the Committee's expenses. Handlers may also dispose of
cull dates of their own production within their own livestock-feeding
operation; otherwise, such cull dates must be shipped or delivered to
the Committee for sale to non-human food product outlets. Pursuant to
Sec. 987.72(b), the Committee is authorized to temporarily use funds
derived from assessments to defray expenses incurred in disposing of
surplus dates. All such expenses are required to be deducted from
proceeds obtained by the Committee from the disposal of surplus dates.
For the 2013-14 crop year, the Committee estimates that $3,000 from the
surplus account would be needed to temporarily defray expenses incurred
in disposing of surplus dates.
The major expenditures recommended by the Committee for the 2013-14
crop year include: $58,200 for general and administrative expenses,
$20,000 for nutrition and food quality programs, and $19,500 for
contingency funds. Budgeted expenses for the 2012-13 crop year
included: $110,000 for generic marketing promotions, $83,520 for
general and administrative expenses, $43,800 for nutrition marketing
programs, and $12,680 for contingency funds.
The assessment rate of $0.40 per hundredweight of dates handled was
recommended by the Committee after considering several factors: The
anticipated size of the 2013-14 crop, the Committee's estimates of the
incoming reserve, other income, and anticipated expenses. Date
shipments for the year are estimated at 26,500,000 pounds (265,000
hundredweight) which should provide $106,000 in assessment income.
Income derived from handler assessments, along with a $3,000
reimbursement for the cost of disposing of surplus culls, should be
adequate to cover budgeted expenses.
Section 987.72(d) of the order states that the Committee may
maintain a monetary reserve not to exceed 50 percent of the average of
expenses incurred during the most recent 5 preceding crop years, except
that an established reserve need not be reduced to conform to any
recomputed average. The Committee expects to carry a $25,000 reserve
into the 2013-14 crop year. It expects to add $11,300 to the reserve
during the year, for a carryout of approximately $36,300, which is
below the limit specified in the order.
The assessment rate established in this rule 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 to or during each
crop year 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 2013-14 budget and those for subsequent crop years will be
reviewed and, as appropriate, approved by USDA.
Initial 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 initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses 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 70 producers of dates in the production
area and 11 handlers subject to regulation under the marketing order.
The Small Business Administration defines small agricultural producers
as those having annual receipts less than $750,000, and small
agricultural service firms as those whose annual receipts are less than
$7,000,000. (13 CFR 121.201)
According to the National Agricultural Statistics Service (NASS),
data for the most recently completed crop year (2011) shows that about
4.04 tons, or 8,080 pounds, of dates were produced per acre. The 2012
grower price published by NASS was $1,340 per ton, or $0.67 per pound.
Thus, the value of date production per acre in 2011-12 averaged about
$5,414 (8,080 pounds times $0.67 per pound). At that average price, a
producer would have to farm over 138 acres to receive an annual income
from dates of $750,000 ($750,000 divided by $5,414 per acre equals
138.53 acres). According to Committee staff, the majority of California
date producers farm less than 138 acres. Thus, it can be concluded that
the majority of date producers could be considered small entities. In
addition, according to data from the Committee staff, the majority of
handlers of California dates have receipts of less than $7,000,000 and
may also be considered small entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2013-14 and subsequent
crop years from $0.90 to $0.40 per hundredweight of dates handled. The
Committee unanimously recommended 2013-14 expenditures of $97,700 and
an assessment rate of $0.40 per hundredweight of dates, which is $0.50
lower than the 2012-13 rate currently in effect. The quantity of
assessable dates for the 2013-14 crop year is estimated at 26,500,000
pounds (265,000 hundredweight). Thus, the $0.40 rate should provide
$106,000 in assessment income. Income derived from handler's
assessments, along with the $3,000 contribution from the surplus
program, should be adequate to meet the 2013-14 crop year expenses.
The major expenditures recommended by the Committee for the 2013-14
crop year include: $58,200 for general and administrative expenses,
$20,000 for nutrition and food quality programs, and $19,500 for
contingency funds. Budgeted expenses in the 2012-13 crop year include:
$110,000 for generic marketing promotions, $83,520 for general and
administrative expenses, $43,800 for nutrition marketing programs, and
$12,680 for contingency funds.
The Committee recommended a lower assessment rate because the
industry plans to shift its marketing programs to the State marketing
program, the California Date Commission, beginning October 1, 2013.
Thus, less assessment revenue is needed to fund Committee operations.
Section 987.72(d) of the order states that the Committee may
maintain a monetary reserve not to exceed 50 percent of the average of
expenses incurred during the most recent 5 preceding crop years, except
that an established reserve need not be reduced
[[Page 54149]]
to conform to any recomputed average. The Committee expects to carry a
$25,000 reserve into the 2013-14 crop year. It expects to add $11,300
to the reserve during the year, for a desired carryout of approximately
$36,300, which is below the limit specified in the order.
The Committee reviewed and unanimously recommended 2013-14 crop
year expenditures of $97,700. Prior to arriving at this budget, the
Committee considered information from various sources, such as the
Committee's Marketing Subcommittee and Budget Committee. Alternative
expenditure levels and assessment rates were discussed by these groups,
based upon the relative value of various projects to the date industry.
The assessment rate of $0.40 per hundredweight of dates was then
recommended after consideration of several factors, including the
anticipated 2013-14 crop size, the Committee's estimates of the
incoming reserve funds and other income, and their anticipated
expenses.
A review of historical and preliminary information pertaining to
the upcoming crop year indicates that the grower price for the 2013-14
crop year could range between $45.00 and $55.00 per hundredweight of
dates. Utilizing these estimates and the assessment rate of $0.40 per
hundredweight, the estimated assessment revenue for the 2013-14 crop
year as a percentage of total grower revenue could range between 0.7
and 0.9 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. In addition, the Committee's meeting was widely
publicized throughout the California date industry, and all interested
persons were invited to attend the meeting and encouraged to
participate in Committee deliberations on all issues. Like all
Committee meetings, the June 20, 2013, meeting was a public meeting and
all entities, both large and small, were able to express views on this
issue. Industry members also discussed the various possible assessment
rates, potential crop size, and estimated expenses at the Budget
Committee meeting on June 6, 2013. Finally, interested persons are
invited to submit comments on this interim rule, including the
regulatory and informational impacts of this action on small
businesses.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0178, ``Vegetable and Specialty Crop Marketing
Orders.'' No changes in those requirements as a result of this action
are necessary. Should any changes become necessary, they would be
submitted to OMB for approval.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Riverside County, California date
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.
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/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Jeffrey Smutny 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.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and that good cause exists for not postponing the effective
date of this rule until 30 days after publication in the Federal
Register because: (1) The 2013-14 crop year begins on October 1, 2013,
and the marketing order requires that the rate of assessment for each
crop year apply to all assessable dates handled during such crop year;
(2) the action decreases the assessment rate for assessable dates
beginning with the 2013-14 crop year; (3) handlers are aware of this
action which was unanimously recommended by the Committee at a public
meeting and is similar to other assessment rate actions issued in past
years; and (4) this interim rule provides a 60-day comment period, and
all comments timely received will be considered prior to finalization
of this rule.
List of Subjects in 7 CFR Part 987
Dates, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 987 is
amended as follows:
PART 987--DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, CALIFORNIA
0
1. The authority citation for 7 CFR part 987 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 987.339 is revised to read as follows:
Sec. 987.339 Assessment rate.
On and after October 1, 2013, an assessment rate of $0.40 per
hundredweight is established for Riverside County, California, dates.
Dated: August 27, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-21309 Filed 8-30-13; 8:45 am]
BILLING CODE 3410-02-P