[Federal Register Volume 80, Number 160 (Wednesday, August 19, 2015)]
[Rules and Regulations]
[Pages 50193-50195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-20444]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 958

[Doc. No. AMS-FV-15-0027; FV15-958-1 IR]


Onions Grown in Certain Designated Counties in Idaho, and Malheur 
County, Oregon; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This rule implements a recommendation from the Idaho-Eastern 
Oregon Onion Committee (Committee) for a decrease in the assessment 
rate established for the 2015-2016 and subsequent fiscal periods from 
$0.10 to $0.05 per hundredweight of onions handled under the marketing 
order (order). The Committee locally administers the order and is 
comprised of producers and handlers of onions operating within the area 
of production. Assessments upon onion handlers are used by the 
Committee to fund reasonable and necessary expenses of the program. The 
fiscal period begins July 1 and ends June 30. The assessment rate will 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective August 20, 2015. Comments received by October 19, 
2015, 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 document 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 the comments will be made public on the internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Sue Coleman, Marketing Specialist, or 
Gary D. Olson, Regional Director, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Fruit and Vegetable Program, 
AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, 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 No. 130 and Order No. 958, both as amended (7 CFR part 958), 
regulating the handling of onions grown in designated counties in 
Idaho, and Malheur 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 Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, Idaho-Eastern 
Oregon onion 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 
onions beginning July 1, 2015, 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 
the entry of the ruling.
    This rule decreases the assessment rate established for the 
Committee for the 2015-2016 and subsequent fiscal periods from $0.10 to 
$0.05 per hundredweight of onions.
    The Idaho-Eastern Oregon onion 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 
Idaho-Eastern Oregon onions. They are familiar with the Committee's 
needs and with the costs for 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.
    For the 2005-2006 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Committee or other information available to USDA. The 
Committee met on April 21, 2015, and recommended 2015-2016 expenditures 
of $705,473 and an assessment rate of $0.05 per hundredweight of 
onions. Ten Committee members voted for this change, one voted against, 
and there were no abstentions.
    In comparison, last year's budgeted expenditures were $1,173,944. 
The assessment rate of $0.05 is $0.05 lower than the rate currently in 
effect. The Committee's recommendation was in response to a request 
from handlers and growers to reduce promotion expenditures from 
$635,000 to $250,000, and to allow handlers to keep $0.05 per 
hundredweight to spend on their own branded promotions.
    The major expenditures recommended by the Committee for the 2015-
2016 year include $6,000 for committee expenses, $115,412 for salary 
expenses, $67,810 for travel/office expenses, $466,251 for domestic and 
export promotions and production research expenses, and $50,000 for 
marketing order contingency. Budgeted expenses for these items in 2014-
2015 were $6,000, $112,124, $107,810, $898,010, and $50,000, 
respectively.
    The Committee based its recommended assessment rate decrease on the 
2015-2016 crop estimates, the 2015-2016 program expenditure needs, and 
the current and projected size of its monetary reserve. The Committee

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estimated onion shipments for 2015-2016 at 8,800,000 hundredweight 
which should provide $440,000 in assessment income. Income derived from 
handler assessments, along with contributions ($7,000), interest income 
($1,750), other income $(5,000), grant income ($34,500), and funds from 
the Committee's authorized reserve ($217,223), should be adequate to 
cover budgeted expenses. The Committee estimates that its operating 
reserve will be approximately $340,344 at the end of the 2015-2016 
fiscal period. Funds in the reserve will be kept within the maximum 
permitted by the order of approximately one fiscal year's operational 
expenses (Sec.  958.44).
    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 
fiscal period 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 2015-2016 budget and those 
for subsequent fiscal periods 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 250 producers of onions in the production 
area and approximately 31 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration 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 (13 CFR 121.201).
    According to the National Agricultural Statistics Service, as 
reported in the Vegetables 2014 Summary, the total F.O.B. value of 
onions in the regulated production area for 2014 was $100,951,000. 
Based on an industry estimate of 31 handlers, the average value of 
onions handled per handler is $3,256,484, well below the SBA threshold 
for defining small agricultural service firms. In addition, based on an 
industry estimate of 250 producers, the average F.O.B. value of onions 
produced in the production area is $403,804 per producer. Therefore, it 
can be concluded that the majority of handlers and producers of Idaho-
Eastern Oregon onions may be classified as small entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2015-2016 and subsequent 
fiscal periods from $0.10 to $0.05 per hundredweight of onions handled. 
The Committee recommended 2015-2016 expenditures of $705,473 and an 
assessment rate of $0.05 per hundredweight. The assessment rate of 
$0.05 is $0.05 lower than the 2014-2015 rate. The quantity of 
assessable onions for the 2015-2016 fiscal period is estimated at 
8,800,000 hundredweight. Thus, the $0.05 rate should provide $440,000 
in assessment income. Assessment income, along with interest and other 
income, contributions and grants, and funds from the Committee's 
authorized reserve ($217,223), should be adequate to cover budgeted 
expenses of $705,473.
    The major expenditures recommended by the Committee for the 2015-
2016 year include $6,000 for committee expenses, $115,412 for salary 
expenses, $67,810 for travel/office expenses, $466,251 for program 
expenses, and $50,000 for marketing order contingency. Budgeted 
expenses for these items in 2014-2015 were $6,000, $112,124, $107,810, 
$898,010, and $50,000, respectively.
    The Committee's recommendation to decrease the assessment was in 
response to a request from handlers and growers to reduce promotion 
expenditures from $635,000 to $250,000 and to allow handlers to keep 
$0.05 per hundredweight to spend on their own branded promotions.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Executive, Research, Export, and Promotion Sub-Committees, grower 
associations, and industry leaders. Alternative expenditure levels were 
discussed by these groups, based upon the relative value of various 
activities to the onion industry. The Committee ultimately determined 
that income derived from handler assessments, along with interest and 
other income, contributions and grants, and funds from the Committee's 
authorized reserve will be adequate to cover 2015-2016 budgeted 
expenses of $705,473.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the producer 
price for the 2015-2016 fiscal period could range between $8.00 and 
$8.50 per hundredweight of onions. Utilizing these estimates and the 
assessment rate of $0.05 per hundredweight, estimated assessment 
revenue as a percentage of total grower revenue could range between 
0.59 and 0.63 percent for the 2015-2016 fiscal period.
    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 Idaho-Eastern Oregon onion industry and all 
interested persons were invited to attend the meeting and participate 
in Committee deliberations on all issues. Like all Committee meetings, 
the April 21, 2015, meeting was a public meeting and all entities, both 
large and small, were able to express views on this issue. Finally, 
interested persons are invited to submit comments on this interim rule, 
including the regulatory and informational impacts of this action on 
small businesses.

Paperwork Reduction Act

    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 Crops. No changes 
in those requirements as a result of this action are necessary. Should 
any changes become necessary,

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they would be submitted to OMB for approval.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large Idaho-Eastern Oregon onion 
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 2015-2016 fiscal period begins on July 1, 
2015, and the marketing order requires that the rate of assessment for 
each fiscal period apply to all assessable onions handled during such 
fiscal period; (2) the action decreases the assessment rate for 
assessable onions beginning with the 2015-2016 fiscal period; (3) 
handlers are aware of this action which was recommended by the 
Committee at a public meeting; 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 958

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 958 is 
amended as follows:

PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND 
MALHEUR COUNTY, OREGON

0
1. The authority citation for 7 CFR part 958 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

0
2. Section 958.240 is revised to read as follows:

Sec.  958.240  Assessment rate.

    On and after July 1, 2015, an assessment rate of $0.05 per 
hundredweight is established for Idaho-Eastern Oregon onions.

    Dated: August 13, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-20444 Filed 8-18-15; 8:45 am]
BILLING CODE P