[Federal Register Volume 87, Number 98 (Friday, May 20, 2022)]
[Rules and Regulations]
[Pages 30767-30769]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10855]



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 Rules and Regulations
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  Federal Register / Vol. 87, No. 98 / Friday, May 20, 2022 / Rules and 
Regulations  

[[Page 30767]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 927

[Doc. No. AMS-SC-21-0069; SC21-927-1 FR]


Pears Grown in Oregon and Washington; Increased Assessment Rate 
for Fresh Pears

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule implements a recommendation from the Fresh Pear 
Committee (Committee) to increase the assessment rate established for 
the 2021-22 and subsequent fiscal periods. The assessment rate will 
remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective June 21, 2022.

FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or 
Gary Olson, Regional Director, Western Region Branch, Market 
Development Division, Specialty Crops Program, AMS, USDA; Telephone: 
(503)326-2724, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Market Development 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, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This rule is issued under Marketing Order No. 927, as 
amended (7 CFR part 927), regulating the handling of pears grown in 
Oregon and Washington. Part 927 (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 growers and 
handlers of pears operating within the production area, and a public 
member.
    The Agricultural Marketing Service (AMS) 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, Oregon and Washington 
fresh pear 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 fresh pears for the 
2021-22 fiscal period, and continue unless 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 Department of 
Agriculture (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.
    The Order authorizes the Committee, with the approval of AMS, 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 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.
    This final rule increases the assessment rate from $0.463 per 44-
pound standard box or equivalent of fresh ``summer/fall'' and 
``winter'' pears, the rate that was established for the 2018-19 and 
subsequent fiscal periods, to $0.468 per 44-pound standard box or 
equivalent of assessable fresh ``summer/fall'' pears and ``winter'' 
pears for the 2021-22 and subsequent fiscal periods.
    For the 2018-19 and subsequent fiscal periods, the Committee 
recommended, and AMS approved, an assessment rate of $0.463 per 44-
pound standard box or equivalent of assessable fresh ``summer/fall'' 
pears and ``winter'' pears. That assessment rate continued in effect 
from fiscal period to fiscal period unless modified, suspended, or 
terminated by AMS upon recommendation and information submitted by the 
Committee or other information available to AMS.
    The Committee met on June 3, 2021, and unanimously recommended 
expenditures of $8,472,263 and an assessment rate of $0.468 per 44-
pound standard box or equivalent of assessable fresh ``summer/fall'' 
pears and ``winter'' pears handled for the 2021-22 and subsequent 
fiscal periods. In comparison, last year's budgeted expenditures were 
$8,901,114. The

[[Page 30768]]

assessment rate of $0.468 is $0.005 higher than the rate previously in 
effect. The Committee recommended increasing the assessment rate due to 
a smaller estimated 2021 crop and to provide adequate income, along 
with reserve funds and interest income, to cover all of the Committee's 
budgeted expenses for the 2021-22 fiscal period.
    Major expenditures recommended by the Committee for the 2021-22 
fiscal period include $391,047 for contracted administration, $159,540 
for industry development, $964,476 for production research and market 
development, $27,200 for miscellaneous expenses, and $6,930,000 for 
promotion and paid advertising for ``summer/fall'' and ``winter'' 
varieties of fresh pears. Budgeted expenses for these items for the 
2020-21 fiscal period were $388,520, $172,000, $997,394, $28,200, and 
$7,315,000, respectively.
    The Committee derived the recommended assessment rate by 
considering anticipated expenses, and an estimated 2021 crop of 
18,000,000 44-pound standard boxes or equivalent of assessable fresh 
``summer/fall'' pears and ``winter'' pears. Income derived from handler 
assessments, calculated at $8,424,000 (18,000,000 standard boxes or 
equivalent multiplied by $0.468 assessment rate), along with reserve 
funds and interest income ($48,263), will be adequate to cover budgeted 
expenses of $8,472,263.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by AMS 
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 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 AMS. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. AMS 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 2021-22 fiscal period 
budget, and those for subsequent fiscal periods, will be reviewed and, 
as appropriate, approved by AMS.

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 to ensure 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 708 growers of fresh pears in the 
production area and 27 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, the 2020 
average grower price received for fresh pears produced in Oregon and 
Washington was $11.39 per standard 44-pound box or equivalent. 
Committee data indicates total production was 16,290,225 44-pound 
standard boxes or equivalent in the 2019-20 fiscal period. The total 
2019-20 fiscal period value of assessable fresh ``summer/fall'' and 
``winter'' pears grown in Oregon and Washington was $185,545,663 
(16,290,225 44-pound standard boxes or equivalent times $11.39 per box 
equals $185,545,663). Dividing the crop value by the estimated number 
of growers (708) yields an estimated average receipt per grower of 
$262,070.
    According to AMS Market News data, the reported average terminal 
price for 2020 Oregon and Washington fresh pears was $34.87 per 44-
pound standard box or equivalent (data reported in 4/5 bushel). 
Multiplying the Committee-reported 2019-20 Oregon and Washington total 
production of 16,290,225 44-pound standard boxes or equivalent by the 
estimated average price per box or equivalent of $34.87 equals 
$568,040,146. Dividing this figure by 27 regulated handlers yields 
estimated average annual handler receipts of $21,038,524. Therefore, 
using the above data, the majority of growers and handlers of Oregon 
and Washington fresh pears may be classified as small entities.
    As noted above, the average price received by growers in the 2019-
20 crop year was $11.39 per 44-pound standard box or equivalent of 
assessable fresh ``summer/fall'' pears and ``winter'' pears. Given the 
Committee-estimated production of 18,000,000 44-pound standard boxes or 
equivalent of assessable fresh pears for the 2021-22 crop year, the 
total grower revenue is estimated to be $205,020,000. The total 
assessment revenue is expected to be $8,424,000 (18,000,000 boxes 
multiplied by $0.468 per box). Thus, the total assessment revenue 
compared to total grower revenue is 4.1 percent ($8,424,000 divided by 
$205,020,000).
    This rule increases the assessment rate collected from handlers for 
the 2021-22 and subsequent fiscal periods from $0.463 to $0.468 per 44-
pound standard box or equivalent of assessable fresh ``summer/fall'' 
pears and ``winter'' pears. The Committee unanimously recommended 2021-
22 fiscal period expenditures of $8,472,263 and an assessment rate of 
$0.468 per 44-pound standard box or equivalent of assessable fresh 
``summer/fall'' pears and ``winter'' pears handled. The assessment rate 
of $0.468 per 44-pound standard box or equivalent of assessable fresh 
``summer/fall'' pears and ``winter'' pears is $0.005 higher than the 
rate previously in effect. The volume of assessable fresh ``summer/
fall'' pears and ``winter'' pears in the production area for the 2021-
22 fiscal period is estimated to be 18,000,000 44-pound standard boxes 
or equivalent. Thus, the $0.468 per 44-pound standard box or equivalent 
of assessable fresh ``summer/fall'' pears and ``winter'' pears 
assessment rate should provide $8,424,000 in assessment income 
(18,000,000 multiplied by $0.468). Income derived from handler 
assessments, along with reserve funds and interest income, will be 
adequate to cover budgeted expenses for the 2021-22 fiscal period.
    Major expenditures recommended by the Committee for the 2021-22 
fiscal period include $391,047 for contracted administration, $159,540 
for industry development, $964,476 for production research and market 
development, $27,200 for miscellaneous expenses, and $6,930,000 for 
promotion and paid advertising for ``summer/fall'' and ``winter'' 
varieties of fresh pears. Budgeted expenses for these items for the 
2020-21 fiscal period were $388,520, $172,000, $997,394, $28,200, and 
$7,315,000, respectively.
    The Committee recommended increasing the assessment rate due to a 
smaller crop and to provide adequate

[[Page 30769]]

income, along with reserve funds and interest income, to cover the 
Committee's budgeted expenses for the 2021-22 fiscal period. Prior to 
arriving at this budget and assessment rate recommendation, the 
Committee discussed various alternatives, including maintaining the 
previous assessment rate and increasing the assessment rate by a 
different amount. However, the Committee determined that the 
recommended assessment rate, along with reserve funds and interest 
income, will adequately fund budgeted expenses.
    This rule increases the assessment obligation imposed on handlers. 
Assessments are applied uniformly on all handlers, and some of the 
costs may be passed on to growers. However, these costs are expected to 
be offset by the benefits derived by the operation of the Order.
    The Committee's meeting was widely publicized throughout the Oregon 
and Washington pear 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 June 3, 
2021, meeting was a public meeting, and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons were invited to submit comments on this 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. 0581-0189, Fruit Crops. 
No changes in those requirements will be 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 Oregon and Washington pear 
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.
    AMS has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this final rule.
    A proposed rule concerning this action was published in the Federal 
Register on November 19, 2021 (86 FR 64830). Copies of the proposed 
rule were also mailed or sent via email to all fresh pear handlers. A 
copy of the proposed rule was made available through internet by AMS 
and Office of the Federal Register. A 30-day comment period ending 
December 20, 2021, was provided for interested persons to respond to 
the proposal. One comment was received in support of the action. 
Accordingly, no changes have been made to the rule as 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 927

    Marketing agreements, Pears, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service amends 7 CFR part 927 as follows:

PART 927--PEARS GROWN IN OREGON AND WASHINGTON

0
1. The authority citation for 7 CFR part 927 continues to read as 
follows:

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

0
2. In Sec.  927.236, revise the introductory text and paragraphs (a) 
and (b) to read as follows:


Sec.  927.236   Fresh pear assessment rate.

    On and after July 1, 2021, the following base rates of assessment 
for fresh pears are established for the Fresh Pear Committee:
    (a) $0.468 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``summer/fall'';
    (b) $0.468 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``winter''; and
* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-10855 Filed 5-19-22; 8:45 am]
BILLING CODE