[Federal Register Volume 86, Number 153 (Thursday, August 12, 2021)]
[Rules and Regulations]
[Pages 44257-44259]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-17237]



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 Rules and Regulations
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  Federal Register / Vol. 86, No. 153 / Thursday, August 12, 2021 / 
Rules and Regulations  

[[Page 44257]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Doc. No. AMS-SC-20-0102; SC21-932-1 FR]


Olives Grown in California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This final rule implements a recommendation from the 
California Olive Committee to increase the assessment rate for the 2021 
fiscal year. The assessment rate will remain in effect indefinitely 
unless modified, suspended, or terminated.

DATES: Effective September 13, 2021.

FOR FURTHER INFORMATION CONTACT: Bianca Bertrand, Management and 
Program Analyst, or Gary D. Olson, Regional Director, California 
Marketing Field Office, 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, or 
email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
implements an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This 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 California Olive Committee (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 rule in 
conformance with Executive Orders 12866 and 13563. Executive Orders 
12866 and 13563 direct agencies to assess all costs and benefits of 
available regulatory alternatives and, if regulation is necessary, to 
select regulatory approaches that maximize net benefits (including 
potential economic, environmental, public health and safety effects, 
distributive impacts and equity). Executive Order 13563 emphasizes the 
importance of quantifying both costs and benefits, reducing costs, 
harmonizing rules, and promoting flexibility. This action falls within 
a category of regulatory actions that the Office of Management and 
Budget (OMB) exempted from Executive Order 12866 review.
    This rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which 
requires agencies to consider whether their rulemaking actions would 
have tribal implications. AMS has determined this rule is unlikely to 
have substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian tribes.
    This 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 
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 not later than 20 days after the date of 
the entry of the ruling.
    This rule increases the current assessment rate from $15.00 per ton 
of assessable olives to $30.00 per ton of assessable olives for the 
2021 fiscal year and subsequent fiscal years. The marketing year runs 
August 1 through July 31.
    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. Members are familiar with the 
Committee's needs and with the costs of goods and services in their 
local area and are thus 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 fiscal year and subsequent fiscal years, the Committee 
recommended, and USDA approved, an assessment rate of $15.00 per ton of 
assessable olives. That assessment rate will continue in effect until 
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 fiscal year and subsequent 
fiscal years. In comparison, last year's budgeted expenditures were 
$1,035,406. The 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.

[[Page 44258]]

    The Committee recommended increasing the assessment rate due to the 
smaller crop. The assessment rate and funds from the Committee's 
authorized financial reserve is expected to cover the Committee's 
budgeted expenses for the 2021 fiscal year. Funds in the reserve are 
expected to remain within the maximum permitted by the Order.
    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.
    Actual crop year receipts, along with the proposed budget, are used 
to determine the assessment rate for the following fiscal year. Olives 
are an alternate-bearing crop, with a small crop followed by a large 
crop. Therefore, the Committee expects fluctuations in the assessment 
rate.
    Major expenditures recommended by the Committee for the 2021 fiscal 
year include $531,300 for general administration expenses, $334,532 for 
research, $238,000 for marketing expenses, and $48,000 for inspection 
expenses. Budgeted expenses for these items for the 2020 fiscal year 
were $631,300, $225,606, $123,500, and $55,000, 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, will be adequate to cover 
budgeted expenses of $1,151,832 for the 2021 fiscal year.
    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 will 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. 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 would 
be undertaken as necessary. The Committee's 2021 fiscal year budget, 
and those for subsequent fiscal years, will be reviewed and, as 
appropriate, approved by USDA.

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 rule 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 
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 2 handlers subject to 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. Thus, the majority of olive producers may be 
classified 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. Both handlers may be classified as large 
entities under the SBA's definition because their annual receipts are 
greater than $30,000,000.
    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 rule increases the assessment rate collected from handlers for 
the 2021 fiscal year 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 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 crop year is estimated to be 23,193 
tons. Thus, the $30.00 per ton assessment rate should 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, should be adequate 
to cover budgeted expenses for the 2021 fiscal year.
    Major expenditures recommended by the Committee for the 2021 fiscal 
year include $531,300 for general administration expenses, $334,532 for 
research, $238,000 for marketing expenses, and $48,000 for inspection 
expenses. Budgeted expenses for these items in the 2020 fiscal year 
were $631,300, $225,606, $123,500, and $55,000, 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 programs under their purview. Subcommittees deliberated 
alternatives relative to their needs and the costs of the programs they 
oversee. The Research subcommittee, for example, discussed production 
research proposals, their relative values, whether costs associated 
with each project was appropriate, whether the project was appropriate 
in scale, and whether the project met industry's needs. These types of 
deliberations are part of the annual discussion held by each

[[Page 44259]]

subcommittee. Subcommittees then report their conclusions and 
recommendations to the Committee.
    Given all the information available to the Committee and its own 
deliberations, the Committee made a recommendation to USDA on the 
assessment rate and the proposed budget.
    This rule increases the assessment obligation imposed on handlers. 
Assessments are applied uniformly on all handlers, and some portion of 
assessments may be passed on to producers. However, these costs are 
expected to be offset by benefits derived by the operation of the 
Order.
    Various subcommittees' meetings and the Committee's meeting were 
widely publicized throughout the California olive industry. All 
interested persons were invited to attend meetings and encouraged to 
participate in deliberations. Like all meetings, 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 scale, were able to express views on this issue. Finally, 
interested persons were invited to submit comments on this rule, 
including 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 are 
necessary as a result of this rule. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small- or large-scale 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. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this final rule.
    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.
    A proposed rule concerning this action was published in the Federal 
Register on April 8, 2021 (86 FR 18216). Copies of the proposal were 
provided by the Committee to members and handlers. Finally, the 
proposed rule was made available through the internet by USDA and the 
Office of the Federal Register. A 45-day comment period ending May 24, 
2021, was provided to allow interested persons to respond to the 
proposal. No comments were received. Accordingly, no changes were made 
to the rule proposed.
    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.
    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 will tend to 
effectuate the declared policy of the Act.

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 
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.

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-17237 Filed 8-11-21; 8:45 am]
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