[Federal Register Volume 86, Number 90 (Wednesday, May 12, 2021)]
[Proposed Rules]
[Pages 25975-25977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-10018]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Doc. No. AMS-SC-20-0104; SC21-993-1 PR]


Dried Prunes Produced in California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement a recommendation from the 
Prune Marketing Committee (Committee) to increase the assessment rate 
established for the 2020-21 and subsequent crop years. The proposed 
assessment rate would remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Comments must be received by June 11, 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, or Andrew Hatch, Acting Director, Marketing Order and 
Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: 
(559)356-8202 or email: [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, 
Fax: (202) 720-8938, 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. 993, as amended (7 CFR part 993), regulating 
the handling of dried prunes produced in California. Part 993 (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 dried prunes operating 
within the production area, and a public member.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. In accordance 
with Executive Order 13175, AMS has not identified any tribal 
implications as a result of this proposed rule. 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 dried 
prune 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 dried prunes for 
the 2020-21 crop 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 
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 $0.25 
per ton of salable dried prunes, the rate that was established for the 
2019-20 and subsequent crop years, to $0.28 per ton of salable dried 
prunes for the 2020-21 and subsequent crop 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 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 2019-20 and subsequent crop years, the Committee 
recommended, and USDA approved, an assessment rate of $0.25 per ton of 
salable dried prunes. That assessment rate continues in effect from 
crop year to crop 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 10, 2020, and unanimously recommended 
expenditures of $24,550 and an assessment rate of $0.28 per ton of 
salable dried prunes handled for the 2020-21 and subsequent crop years. 
In comparison, last year's budgeted expenditures were $24,500. The 
proposed assessment rate of $0.28 is $0.03 higher than the rate 
currently in effect. The Committee recommended increasing the 
assessment rate due to a smaller crop, and to provide adequate income 
along with carryforward/contingency funds and interest income to cover 
all of the Committee's budgeted expenses for the 2020-21 crop year.
    The major expenditures recommended by the Committee for the 2020-21 
crop year include $13,700 for personnel expenses, and $10,850 for 
operating expenses. Budgeted expenses for these items for the 2019-20 
crop year were $13,300 for personnel expenses, and $11,200 for 
operating expenses.
    The Committee derived the recommended assessment rate by 
considering anticipated expenses, and an estimated crop of 50,000 tons 
of salable dried prunes. Income derived from handler assessments, 
calculated at $14,000 (50,000 tons salable dried prunes multiplied by 
$0.28 assessment rate), along with carryforward/contingency funds and 
interest income ($11,682), would be adequate to cover budgeted expenses 
of $24,550.
    The assessment rate proposed in this rule would continue in effect 
indefinitely unless modified, suspended, or terminated by USDA

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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 
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 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 2020-21 crop year budget, 
and those for subsequent crop 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 dried prunes in the 
production area and 20 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 California dried prunes for the 
2019-20 crop year was $1,510 per ton. Committee data indicates that the 
California dried prune total production was 110,000 tons in the 2019-20 
crop year. The total 2019-20 crop year value of California dried prunes 
was $166,100,000 (110,000 tons times $1,510 per ton equals 
$166,100,000). Dividing the crop value by the estimated number of 
producers (800) yields an estimated average receipt per producer of 
$207,625.
    According to USDA Market News data, the reported terminal price for 
2019 for California dried prunes ranged between $30.02 to $32.59 per 
28-pound carton. The average of this range is $31.31 ($30.02 plus 
$32.59 divided by 2 equals $31.31). Dividing the average value by the 
28-pound carton yields an estimated average price per pound of $1.12 
($31.31 average value for 28-pound carton divided by 28). The handler 
price for prunes is $2,240 per ton ($1.12 per pound multiplied by 2000 
pounds per ton equals $2,240 per ton). Multiplying the 2019-20 
California dried prune total production of 110,000 tons by the 
estimated average price per ton of $2,240 equals $246,400,000.
    Dividing this figure by 20 regulated handlers yields estimated 
average annual handler receipts of $12,320,000. Therefore, using the 
above data, the majority of producers and handlers of California dried 
prunes may be classified as small entities.
    As noted above, the average price received per ton by producers in 
the preceding crop year was $1,510 per ton of salable dried prunes. 
Given the estimated tonnage of 50,000 tons salable dried prunes for the 
2020-21 crop year, the total producer revenue is estimated to be 
$75,500,000. The total assessment revenue is expected to be $14,000 
(50,000 tons multiplied by $0.28 per ton). Thus, the total assessment 
revenue compared to total producer revenue is 0.019 percent.
    This proposal would increase the assessment rate collected from 
handlers for the 2020-21 and subsequent crop years from $0.25 to $0.28 
per ton of salable California dried prunes. The Committee unanimously 
recommended 2020-21 expenditures of $24,550 and an assessment rate of 
$0.28 per ton of salable dried prunes. The proposed assessment rate of 
$0.28 per ton salable dried prunes is $0.03 higher than the current 
rate. The volume of assessable dried prunes for the 2020-21 crop year 
is estimated to be 50,000 tons. Thus, the $0.28 per ton of salable 
dried prunes should provide $14,000 in assessment income (50,000 
multiplied by $0.28). Income derived from handler assessments, along 
with carryforward/contingency funds and interest income, would be 
adequate to cover budgeted expenses for the 2020-21 crop year.
    The major expenditures recommended by the Committee for the 2020-21 
crop year include $13,700 for personnel expenses, and $10,850 for 
operating expenses. Budgeted expenses for these items in the 2019-20 
crop year were $13,300, and $11,200 respectively.
    The Committee recommended increasing the assessment rate due to a 
smaller crop, and to provide adequate income along with carryforward/
contingency funds and interest income to cover the Committee's budgeted 
expenses for the 2020-21 crop year. Prior to arriving at this budget 
and assessment rate recommendation, the Committee discussed various 
alternatives, including maintaining the current assessment rate of 
$0.25 per ton of salable dried prunes, and increasing the assessment 
rate by a different amount. However, the Committee determined that the 
recommended assessment rate, along with carryforward/contingency funds 
and interest income would fund budgeted expenses.
    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 Committee's meeting was widely publicized throughout the 
California prune industry. All interested persons were invited to 
attend the meeting and encouraged to participate in Committee 
deliberations on all issues. Like all Committee meetings, the December 
10, 2020, meeting was a public meeting, 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 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 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.

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    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 30-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 993

    Marketing agreements, Plum, Prunes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 993 is 
proposed to be amended as follows:

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA.

0
1. The authority citation for 7 CFR part 993 continues to read as 
follows:

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

0
2. Section 993.347 is revised to read as follows:


Sec.  993.347  Assessment rate.

    On and after August 1, 2020, an assessment rate of $0.28 per ton of 
salable dried prunes is established for California dried prunes.

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-10018 Filed 5-11-21; 8:45 am]
BILLING CODE 3410-02-P