[Federal Register: November 9, 2001 (Volume 66, Number 218)]
[Rules and Regulations]
[Page 56602-56604]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. FV01-993-3 FR]
Dried Prunes Produced in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule increases the assessment rate from $2.00 to $2.80
per ton of salable dried prunes established for the Prune Marketing
Committee (Committee) under Marketing Order No. 993 for the 2001-02 and
subsequent crop years. The Committee locally administers the marketing
order which regulates the handling of dried prunes grown in California.
Authorization to assess dried prune handlers enables the Committee to
incur expenses that are reasonable and necessary to administer the
program. The crop year begins August 1 and ends July 31. The assessment
rate will remain in effect indefinitely unless modified, suspended, or
terminated.
EFFECTIVE DATE: November 13, 2001.
FOR FURTHER INFORMATION CONTACT: Toni Sasselli, Program Assistant or
Richard P. Van Diest, Marketing Specialist, California Marketing Field
Office, Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street,
suite 102B, Fresno, California 93721; telephone: (559) 487-5901; Fax
(559) 487-5906; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, room
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202)
720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202)
720-8938, or e-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 993, both as amended (7 CFR part 993),
regulating the handling of dried prunes grown in California,
hereinafter referred to as the ``order.'' The marketing agreement and
order are effective under the Agricultural Marketing Agreement Act of
1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the
``Act.''
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing 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 as issued herein will be applicable to all assessable
dried prunes beginning on August 1, 2001, and continue until amended,
suspended, or terminated. This rule will not preempt any State or local
laws, regulations, or policies, unless they present an irreconcilable
conflict with this rule.
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 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 assessment rate established for the
Committee for the 2001-02 and subsequent crop years from $2.00 per ton
to $2.80 per ton of salable dried prunes.
The California dried prune marketing order provides authority for
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 of the Committee are producers and handlers of
California dried prunes. They are familiar with the Committee's needs
and with the costs for goods and services in their local area and are
thus 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 1999-2000 and subsequent crop years, the Committee
recommended, and USDA approved, an assessment rate that would continue
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 June 28, 2001, and unanimously recommended
2001-02 expenditures of $403,200 and an assessment rate of $2.80 per
ton of salable dried prunes. In comparison, last year's budgeted
expenditures were $388,000. The recommended assessment rate of $2.80
per ton is $.80 higher than the rate currently in effect. The $0.80 per
ton increase in the assessment rate will allow the Committee to meet
its 2001-02 expenses. The primary reason for the increased assessment
rate is an estimated reduction in 2001-02 crop year production. The
Committee estimates a 150,000 ton crop during the 2001-02 crop year. A
total of 6,000 tons are not expected to be salable because of size or
quality, leaving a balance of 144,000 salable tons. This is a 28
percent decrease in salable tonnage from last year and caused the
Committee to recommend increasing its assessment rate to meet expenses.
The following table compares major budget expenditures recommended
by the Committee on June 28, 2001, and major budget expenditures in the
revised 2000-01 budget recommended on April 5, 2001.
[[Page 56603]]
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2000-01
Budget expense categories (revised) 2001-02
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Salaries, Wages & Benefits.................... $225,850 $226,315
Research & Development........................ 30,000 30,000
Office Rent................................... 28,000 23,300
Travel........................................ 21,000 20,000
Reserve (Contingencies)....................... 28,550 53,185
Equipment Rental.............................. 8,000 9,000
Data Processing............................... 5,000 4,000
Stationery & Printing......................... 5,500 4,500
Office Supplies............................... 5,000 4,500
Postage & Messenger........................... 7,000 6,000
Other Expenses................................ 24,100 22,400
------------------------------------------------------------------------
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by the estimated salable tons of
California dried prunes. Production of dried prunes for the year is
estimated at 144,000 salable tons which should provide $403,200 in
assessment income. Income derived from handler assessments will be
adequate to cover budgeted expenses. Interest income also will be
available if assessment income is reduced for some reason. The
Committee is authorized to use excess assessment funds from the 2000-01
crop year (currently estimated at $51,005) for up to 5 months beyond
the end of the crop year to meet 2001-02 crop year expenses. At the end
of the 5 months, the Committee refunds or credits excess funds to
handlers (Sec. 993.81(c)).
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
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. The USDA will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2001-02 budget and those
for subsequent crop years would be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), 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
business 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 1,205 producers of dried prunes in the
production area and approximately 22 handlers subject to regulation
under the marketing order. Small agricultural producers are defined by
the Small Business Administration (13 CFR 121.201) as those having
annual receipts less than $750,000, and small agricultural service
firms are defined as those whose annual receipts are less than
$5,000,000. The standard for producers has been increased from $500,000
to $750,000 since the proposed rule was published.
An updated prune industry profile shows that 9 of the 22 handlers
(41 percent) shipped over $5,000,000 of dried prunes and could be
considered large handlers by the Small Business Administration.
Thirteen of the 22 handlers (59 percent) shipped under $5,000,000 of
dried prunes and could be considered small handlers. An estimated 32
producers, or about 2.7 percent of the 1,205 total producers, will be
considered large growers with annual receipts over $750,000. The
majority of handlers and producers of California dried prunes may be
classified as small entities.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2001-2002 and subsequent
crop years from $2.00 per ton to $2.80 per ton of salable dried prunes.
The Committee unanimously recommended 2001-2002 expenditures of
$403,200 and an assessment rate of $2.80 per ton of salable dried
prunes. The assessment rate of $2.80 is $0.80 higher than the
assessment rate (64 FR 50426, September 17, 1999) that has been in
effect since the 1999-2000 crop year. The quantity of assessable dried
prunes for the 2001-02 crop year is now estimated at 144,000 salable
tons. Thus, the $2.80 rate should provide $403,200 in assessment income
and be adequate to meet this year's expenses. Interest income also will
be available to cover budgeted expenses if the 2001-02 expected
assessment income falls short.
The following table compares major budget expenditures recommended
by the Committee on June 28, 2001, with major budget expenditures in
the revised 2000-01 budget recommended on April 5, 2001.
------------------------------------------------------------------------
2000-01
Budget expense categories (revised) 2001-02
------------------------------------------------------------------------
Salaries, Wages & Benefits.................... $225,850 $226,315
Research & Development........................ 30,000 30,000
Office Rent................................... 28,000 23,300
Travel........................................ 21,000 20,000
Reserve (Contingencies)....................... 28,550 53,185
Equipment Rental.............................. 8,000 9,000
Data Processing............................... 5,000 4,000
Stationery & Printing......................... 5,500 4,500
Office Supplies............................... 5,000 4,500
Postage & Messenger........................... 7,000 6,000
Other Expenses................................ 24,100 22,400
------------------------------------------------------------------------
The Committee reviewed and unanimously recommended 2001-02
expenditures of $403,200. Prior to arriving at this budget, the
Committee considered information from various sources, such as the
Committee's Executive Subcommittee. An alternative to this action would
be to continue with the $2.00 per ton assessment rate, but the reduced
anticipated crop size would not be sufficient to generate monies to
fund all the budget items. The assessment rate of $2.80 per ton of
salable dried prunes was determined by dividing the total recommended
budget by the estimated salable dried prunes. The Committee is
authorized to use excess assessment funds from the 2000-01 crop year
(currently estimated at $51,005) for up to 5 months beyond the end of
the crop year to fund 2001-02 crop year expenses. At the end of the 5
months, the Committee refunds or credits excess funds to handlers
(Sec. 993.81(c)). Anticipated assessment income and interest income
during 2001-02 will be adequate to cover authorized expenses.
Recent price information indicates that the grower price for the
2001-02 season should average about $763 per salable ton of dried
prunes. This is $87 less than the $850 figure quoted in the proposed
rule. Based on estimated shipments of 144,000 salable tons, assessment
revenue during the 2001-02 crop year is still expected to be less than
[[Page 56604]]
1 percent of the total expected grower revenue.
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on all
handlers, the costs are minimal and uniform on all handlers. Some of
the additional costs may be passed on to producers. However, these
costs are offset by the benefits derived by the operation of the
marketing order. In addition, the Committee's meeting was widely
publicized throughout the California dried prune industry and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the June 28, 2001, meeting was a public meeting and all entities, both
large and small, were able to express views on this issue.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large California dried 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.
The USDA has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on August 20, 2001 (66 FR 43534). Copies of the proposed rule
were also mailed or sent via facsimile to all prune handlers. Finally,
the proposal was made available through the Internet by the Office of
the Federal Register and USDA. A 30-day comment period ending September
19, 2001, was provided for interested persons to respond to the
proposal. No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/fv/moab/html. Any questions about the compliance
guide should be sent to Jay Guerber 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, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because the 2001-02
crop year begins on August 1, 2001, and the marketing order requires
that the rate of assessment for each crop year apply to all assessable
dried prunes handled during such crop year. Further, handlers are aware
of this action which was recommended at a public meeting. Also, 30-day
comment period was provided for in the proposed rule and no comments
were received.
List of Subjects in 7 CFR Part 993
Plums, Prunes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 993 is
amended as follows:
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
1. The authority citation for 7 CFR part 993 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 993.347 is revised to read as follows:
Sec. 993.347 Assessment rate.
On and after August 1, 2001, an assessment rate of $2.80 per ton is
established for California dried prunes.
Dated: November 5, 2001.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 01-28204 Filed 11-8-01; 8:45 am]
BILLING CODE 3410-02-P
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