[Federal Register Volume 89, Number 72 (Friday, April 12, 2024)]
[Rules and Regulations]
[Pages 25778-25780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07768]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 987

[Doc. No. AMS-SC-23-0058]


Domestic Dates Produced or Packed in Riverside County, 
California; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, Department of Agriculture 
(USDA).

ACTION: Final rule.

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SUMMARY: This final rule implements a recommendation from the 
California Date Administrative Committee (Committee) to decrease the 
assessment rate established for the 2023-2024 and subsequent crop 
years. The assessment rate will remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Effective May 13, 2024.

FOR FURTHER INFORMATION CONTACT: Bianca Bertrand, Marketing Specialist, 
or Barry Broadbent, Acting Chief, West 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 202500237; Telephone: (202) 720-8085, 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 final rule is issued under Marketing Order No. 
987, as amended (7 CFR part 987), regulating the handling of domestic 
dates produced or packed in Riverside County, California. Part 987 
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 producer-
handlers operating within the area of production.
    The Agricultural Marketing Service (AMS) is issuing this final rule 
in conformance with Executive Orders 12866, 13563, and 14094. 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. Executive Order 14094 
reaffirms, supplements, and updates Executive Order 12866 and further 
directs agencies to solicit and consider input from a wide range of 
affected and interested parties through a variety of means. This action 
falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Orders 12866 
review.
    This final rule has been reviewed under Executive Order 13175, 
Consultation and Coordination with Indian Tribal Governments, which 
requires agencies to consider whether their rulemaking actions will 
have Tribal implications. AMS has determined that this final 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 final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, California date 
handlers are subject to assessments. Funds to administer the Order are 
derived from such assessments. It is intended that the assessment rate 
will be applicable to all assessable dates beginning October 1, 2023, 
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

[[Page 25779]]

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 final rule decreases the assessment rate for dates handled 
under the Order from $0.20 per hundredweight, the rate that was 
established for the 2020-2021 and subsequent crop years, to $0.15 per 
hundredweight for the 2023-2024 and subsequent crop years.
    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. The members of the Committee are 
familiar with the Committee's needs and with the costs of goods and 
services in their local area. Therefore, they can 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 2020-2021 and subsequent crop years, the Committee 
recommended, and AMS approved, an assessment rate of $0.20 per 
hundredweight of dates. That rate continues in effect from crop year to 
crop year until 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 27, 2023, and recommended 2023-2024 crop 
year expenditures of $75,800 and an assessment rate of $0.15 per 
hundredweight of dates handled for the 2023-2024 and subsequent crop 
years. In comparison, last year's budgeted expenditures were $77,250. 
The $0.15 per hundredweight assessment rate is $0.05 lower than the 
rate in effect prior to this action. The Committee recommended 
decreasing the assessment rate to better align assessment revenue with 
budgeted expenses and to keep the Committee's financial reserve within 
the amount allowed under the Order. The Committee projects that 
handlers will handle 426,000 hundredweight of California dates for the 
2023-2024 crop year, which is the same quantity that was projected for 
the 2022-2023 crop year. The lower rate will provide sufficient funds 
to cover most of the 2023-2024 crop year anticipated expenses, with the 
balance coming from other income and the Committee's financial reserve. 
Assessments on California dates handled are expected to generate 
approximately $63,900 in income at the $0.15 per hundredweight 
assessment rate.
    The Committee's budgeted expenditures for the 2023-2024 crop year 
total $75,800. The Committee's expenses include $48,000 for management 
services, $16,800 for office administration, and $11,000 for the 
financial audit. In comparison, the previous crop year's total budget 
was $77,250, with $48,000 for management services, $19,750 for office 
administration, and $9,500 for the financial audit.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, the expected volume of dates handled, 
and the amount of funds available in the operating reserve. Income 
derived from handler assessments of $63,900 (426,000 hundredweight 
assessed at the $0.15 per hundredweight assessment rate) should be 
adequate to cover most of the Committee's budgeted expenses of $75,800, 
with the balance covered from $5,100 in surplus allocation income and 
$6,800 from reserve funds. After expending $6,800 from the reserve on 
budgeted expenses, the ending 2023-2024 crop year balance in the 
financial reserve fund is expected to be $49,400, which would be less 
than the average of the annual expenses of the preceding five years, as 
mandated by the Order in Sec.  987.72(d).
    Although this assessment rate will 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 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 2023-2024 crop year budget, 
and those for subsequent crop years, 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), AMS has considered the economic impact of 
this final 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 70 producers of dates in the production 
area and 11 handlers subject to regulation under the Order. Small 
agricultural producers of dates are defined by the Small Business 
Administration (SBA) as those having annual receipts of less than 
$3,500,000 (NAICS code 111339, Other Noncitrus Fruit Farming), and 
small agricultural service firms are defined as those whose annual 
receipts are less than $34,000,000 (NAICS code 115114, Postharvest Crop 
Activities) (13 CFR 121.201).
    According to the National Agricultural Statistics Service (NASS), 
data for the most-recently completed crop year (2022) shows that 
California date farmers produced 49,200 tons of dates and that the 
producer price for fresh market California dates was $2,840 per ton. 
With the estimated 49,200-ton crop, the total farm gate value for 
California date producers was approximately $139,728,000 (49,200 
multiplied by $2,840). Therefore, the average fresh market date revenue 
for the 70 producers within the production area would be about 
$1,996,114 ($139,728,000 divided by 70). Thus, it can be concluded that 
the many of the date producers within the production area could be 
considered small entities.
    Furthermore, USDA Market News reported an average terminal market 
price of $53.90 per 11-pound carton for the 2021-2022 crop year. With 
approximately 98,400,000 pounds handled, the industry would have 
shipped an estimated 8,945,454 11-pound cartons (98,400,000 divided by 
11) of packaged dates for a total value of $482,159,971 (8,945,454 
multiplied by $53.90). With 11 date handlers within the production 
area, the average revenue per handler is estimated to be $43,832,724 
for the 2021-2022 crop year ($482,159,971 divided by 11). Thus, most 
California date handlers could be considered large entities.
    This final rule decreases the rate of assessment for the 2023-2024 
and subsequent crop years from $0.20 to $0.15 per hundredweight of 
assessable dates. The Committee unanimously recommended 2023-2024 crop 
year

[[Page 25780]]

expenditures of $75,800 and a $0.15 per hundredweight assessment rate. 
The Committee expects the industry to handle 426,000 hundredweight of 
assessable dates during the 2023-2024 crop year. Thus, at the $0.15 per 
hundredweight rate, the Committee anticipates $63,900 in assessment 
income (426,000 multiplied by $0.15). The Committee also expects to 
utilize surplus allocation ($5,100) and the Committee's monetary 
reserve ($6,800) to cover the remaining $11,900 of expenses. Income 
derived from all sources are expected to be adequate to meet budgeted 
expenditures for the 2023-2024 crop year. The Committee's reserve 
balance (approximately $49,400 at the end of the 2023-2024 crop year) 
will be maintained at a level that the Committee believes is 
appropriate and is compliant with the provisions of the Order.
    The Committee's budgeted expenditures for the 2023-2024 crop year 
total $75,800. The Committee's expenses include $48,000 for management 
services, $16,800 for office administration, and $11,000 for the 
financial audit. In comparison, the previous crop year's total budget 
was $77,250, with $48,000 for management services, $19,750 for office 
administration, and $9,500 for the financial audit.
    Prior to arriving at the budget and assessment rate, the Committee 
discussed various alternatives. However, the Committee determined that 
the assessment rate established herein will be able to reduce the 
financial burden on the industry without drawing down reserves to an 
unsustainable rate. The assessment rate of $0.15 per hundredweight of 
assessable dates was derived by considering anticipated expenses, the 
projected volume of dates handled, the projected monetary balance held 
in reserve, and additional pertinent factors.
    A review of NASS information indicates that the average producer 
price for the 2022 crop year was $2,840 per ton ($142.00 per 
hundredweight). Utilizing the recommended assessment rate of $0.15 per 
hundredweight, the estimated assessment revenue as a percentage of 
total producer revenue will be approximately 0.106 percent ($0.15 
divided by $142.00 and multiplied by 100).
    This final rule 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, these costs are 
expected to be offset by the benefits derived by the operation of the 
Order.
    The Committee's meetings are widely publicized throughout the 
production area. The California date industry and all other interested 
persons are invited to attend the meetings and participate in Committee 
deliberations on all issues. Like all Committee meetings, the June 27, 
2023, 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. 0581-0178, Vegetable 
and Specialty Crops. No changes in those requirements will be necessary 
as a result of this action. Should any changes become necessary, they 
will be submitted to OMB for approval.
    This final rule will not impose any additional reporting or 
recordkeeping requirements on either small or large California date 
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 December 27, 2023 (88 FR 89327). Copies of the proposed 
rule were provided to all California date handlers. The proposal was 
also made available through the internet by USDA and the Office of the 
Federal Register. A 30-day comment period ending January 26, 2024, was 
provided for interested persons to respond to the proposal. No comments 
were received. 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 recommendations submitted by the Committee and 
other available information, USDA has determined that this final rule 
is consistent with and will effectuate the purposes of the Act.

List of Subjects in 7 CFR Part 987

    Dates, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service amends 7 CFR part 987 as follows:

PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY, 
CALIFORNIA

0
1. The authority citation for 7 CFR part 987 continues to read as 
follows:

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


0
2. Revise Sec.  987.339 to read as follows:


Sec.  987.339  Assessment rate.

    On and after October 1, 2023, an assessment rate of $0.15 per 
hundredweight is established for dates produced or packed in Riverside 
County, California.

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-07768 Filed 4-11-24; 8:45 am]
BILLING CODE 3410-02-P