[Federal Register Volume 86, Number 66 (Thursday, April 8, 2021)]
[Proposed Rules]
[Pages 18216-18218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07218]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 86, No. 66 / Thursday, April 8, 2021 /
Proposed Rules
[[Page 18216]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Doc. No. AMS-SC-20-0102; SC21-932-1 PR]
Olives Grown in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
California Olive Committee (Committee) to increase the assessment rate
established for the 2021 and subsequent fiscal years. The proposed
assessment rate would remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by May 24, 2021.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Specialty Crops Program,
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC
20250-0237; or internet: https://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: https://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: Bianca Bertrand, Management and
Program Analyst, California Marketing Field Office, or Andrew Hatch,
Deputy Director, Marketing Order and Agreement Division, Specialty
Crops Program, AMS, USDA; Telephone: (559) 356-8202 or emails:
[email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, or
email: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
Agreement and Order No. 932, as amended (7 CFR part 932), regulating
the handling of olives grown in California. Part 932 (referred to as
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 Committee locally administers the Order and is
comprised of producers and handlers of olives operating within the
production area.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 13563 and 13175. This proposed
rule falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Order 12866 review.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the Order now in effect, California olive
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the assessment rate
would be applicable to all assessable olives for the 2021 fiscal year
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 a
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 no later than 20 days after the date of the
entry of the ruling.
This proposed rule would increase the assessment rate from $15.00
per ton of assessable olives, the rate that was established for the
2020 and subsequent fiscal years, to $30.00 per ton of assessable
olives for the 2021 and subsequent fiscal years.
The Order authorizes 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 are familiar with the
Committee's needs and with the costs of goods and services in their
local area and are able to formulate an appropriate budget and
assessment rate. The assessment rate is formulated and discussed in a
public meeting and all directly affected persons have an opportunity to
participate and provide input.
For the 2020 and subsequent fiscal years, the Committee
recommended, and USDA approved, an assessment rate of $15.00 per ton of
assessable olives. That assessment rate continues in effect from fiscal
year to fiscal year 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 December 8, 2020, and unanimously recommended
expenditures of $1,151,832, and an assessment rate of $30.00 per ton of
assessable olives handled for the 2021 and subsequent fiscal years. In
comparison, last year's budgeted expenditures were $1,035,406. The
proposed assessment rate of $30.00 is $15.00 higher than the rate
currently in effect. Handlers received 23,193 tons of assessable olives
for the 2020 crop year. This is substantially less than the volume for
the 2019 crop year, which was 81,689 tons of assessable olives.
The Committee recommended increasing the assessment rate due to the
smaller crop. The proposed
[[Page 18217]]
assessment rate and funds from the reserve would cover the Committee's
budgeted expenses for the 2021 fiscal year. Funds in the reserve are
expected to remain within the Order's requirement of no more than
approximately one fiscal year's budgeted expenses.
The Order has both a fiscal year and a crop year that are
independent of each other. The crop year is a 12-month period that
begins on August 1 of each year and ends on July 31 of the following
year. The fiscal year is the 12-month period that begins on January 1
and ends on December 31 of each year.
Olives are an alternate-bearing crop, with a small crop followed by
a large crop. For the Committee, the actual crop year receipts, along
with the proposed budget, are used to determine the assessment rate for
the following fiscal year. The Committee expects fluctuations in the
assessment rate, given the alternate-bearing characteristics of olives.
The major expenditures recommended by the Committee for the 2021
fiscal year include $531,300 for general administration expenses,
$48,000 for inspection expenses, $334,532 for research, and $238,000
for marketing expenses. Budgeted expenses for these items for the 2020
fiscal year were $631,300, $55,000, $225,606, and $123,500
respectively.
The Committee derived the recommended assessment rate by
considering anticipated fiscal year expenses, actual olive tonnage
received by handlers during the 2020 crop year, and the amount of funds
available in the authorized reserve. Income derived from handler
assessments, calculated at $695,790 (23,193 tons assessable olives
multiplied by $30.00 assessment rate), along with funds from the
Committee's authorized reserve of $456,042, would be adequate to cover
budgeted expenses of $1,151,832.
The assessment rate proposed in this rule would 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 would be in effect 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. 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 would evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2021 fiscal year budget,
and those for subsequent fiscal years, would 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 proposed 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 800 producers of olives in the production
area and two handlers subject to the regulation under the Order. Small
agricultural producers are defined by the Small Business Administration
(SBA) as those having annual receipts of less than $1,000,000, and
small agricultural service firms have been defined as those whose
annual receipts are less than $30,000,000 (13 CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
the national average producer price for olives for the 2020 crop year
was $791.00 per ton, and total assessable volume for the 2020 crop year
was 23,193 tons. The total 2020 value of the olive crop was $18,345,663
(23,193 tons times $791.00 per ton). Dividing the crop value by the
estimated number of producers (800) yields an estimated average receipt
per producer of $22,932, which classifies all olive producers as small
agricultural producers.
Based on information from the Committee regarding the volume
handled by each handler, neither handler can be classified as a small
agricultural service firm.
As noted above, the average price received per ton by producers in
the preceding crop year was $791.00 per ton of assessable olives. Given
the total crop received by handlers of 23,193 tons, the total producer
revenue is expected to be $18,345,663. The total assessment revenue is
expected to be $695,790 (23,193 tons times $30.00 per ton). Thus, the
total assessment revenue compared to total producer revenue is 0.038
percent.
This proposal would increase the assessment rate collected from
handlers for the 2021 and subsequent fiscal years from $15.00 to $30.00
per ton of assessable olives. The Committee unanimously recommended
2021 expenditures of $1,151,832 and an assessment rate of $30.00 per
ton of assessable olives. The proposed assessment rate of $30.00 per
ton of assessable olives is $15.00 higher than the current rate. The
volume of assessable olives from the 2020 fiscal year is 23,193 tons.
Thus, the $30.00 per ton assessment rate would provide $695,790 in
assessment income (23,193 tons assessable olives multiplied by $30.00
assessment rate). Income derived from handler assessments, along with
funds from the Committee's authorized reserve, would be adequate to
cover budgeted expenses for the 2021 fiscal year.
The major expenditures recommended by the Committee for the 2021
fiscal year include $531,300 for general administration expenses,
$48,000 for inspection expenses, $334,532 for research, and $238,000
for marketing expenses. Budgeted expenses for these items in the 2020
fiscal year were $631,300, $55,000, $225,606, and $123,500
respectively.
The Committee recommended increasing the assessment rate to provide
adequate income to cover the Committee's budgeted expenses for the 2021
fiscal year while maintaining its financial reserve within the
requirements of the Order.
Prior to arriving at this budget and assessment rate
recommendation, the Committee received information from its Executive,
Marketing, and Research subcommittees. At each subcommittee meeting,
the members discussed various alternatives to both the assessment rate
and the programs under their purview. The subcommittees deliberated the
alternatives relative to their needs and the costs of the programs they
oversee. The Research subcommittee, for example, discussed the
production research proposals, their relative values, whether the costs
associated with each project was appropriate, whether the project was
appropriate in scale, and whether the project met the industry's needs.
These types of deliberations are part of the annual discussion held by
each subcommittee. The subcommittees then report their conclusions and
recommendations to the Committee.
[[Page 18218]]
Given all the information available to the Committee and its own
deliberations, the Committee makes a recommendation to USDA on the
assessment rate and the proposed budget.
This proposed rule would increase 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, these costs
would be offset by the benefits derived by the operation of the Order.
The various subcommittees' meetings and the Committee's meeting
were widely publicized throughout the California olive industry. All
interested persons were invited to attend the meetings and encouraged
to participate in any deliberations on all issues. Like all meetings,
the subcommittee meetings held on November 5, 2020, and the full
Committee meeting held on December 8, 2020, were public meetings and
all entities, both large and small, were able to express views on this
issue. Interested persons are invited to submit comments on this
proposed rule, including the regulatory and information collection
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 OMB and assigned OMB No. 0581-0178,
Vegetable and Specialty Crops. No changes in those requirements would
be necessary as a result of this proposed rule. Should any changes
become necessary, they would be submitted to OMB for approval.
This proposed rule would not impose any 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 proposed rule.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any
questions about the compliance guide should be sent to Richard Lower at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 45-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 932 is
proposed to be amended as follows:
PART 932--OLIVES GROWN IN CALIFORNIA.
0
1. The authority citation for 7 CFR part 932 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 932.230 is revised to read as follows:
Sec. 932.230 Assessment rate.
On and after January 1, 2021, an assessment rate of $30.00 per ton
is established for California olives.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2021-07218 Filed 4-7-21; 8:45 am]
BILLING CODE P