[Federal Register Volume 61, Number 228 (Monday, November 25, 1996)]
[Rules and Regulations]
[Pages 59822-59824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30035]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 997 and 998
[Docket No. FV96-998-2 FIR]
Assessment Rate for Domestically Produced Peanuts Handled by
Persons Not Subject to Peanut Marketing Agreement No. 146 and for
Marketing Agreement No. 146 Regulating the Quality of Domestically
Produced Peanuts
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, without change, the provisions of an interim final rule
that established an assessment rate for the Peanut Administrative
Committee (Committee) under Marketing Agreement No. 146 (agreement) for
the 1996-97 and subsequent crop years. The Committee is responsible for
local administration of the marketing agreement which regulates the
handling of peanuts grown in 16 States. Authorization to assess peanut
handlers who have signed the agreement enables the Committee to incur
expenses that are reasonable and necessary to administer the program.
Public Law 103-66 requires the Department to impose an administrative
assessment on farmers' stock peanuts received or acquired by handlers
who are not signatory (non-signatory handlers) to the agreement.
Therefore, this same assessment rate established under the agreement
also must be applied to all non-signatory handlers.
EFFECTIVE DATE: Effective on July 1, 1996.
FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Program Assistant,
Marketing Order Administration Branch, Fruit and Vegetable Division,
AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-6456,
telephone 202-720-9918, FAX 202-720-5698, or William G. Pimental,
Marketing Specialist, Southeast Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, P.O. Box 2276, Winter Haven, FL 33883-
2276, telephone 941-299-4770, FAX 941-299-5169. Small businesses may
request information on compliance with this regulation by contacting:
Jay Guerber, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456, telephone 202-720-2491, FAX 202-720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued pursuant to the
requirements of the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), and as further amended December 12, 1989,
hereinafter referred to as the ``Act''; Public Law 101-220, section
4(1),(2), 103 Stat. 1878, December 12, 1989; Public Law 103-66, section
8b(b)(1), 107 Stat. 312, August 10, 1993; and under Marketing Agreement
146 (7 CFR part 998) regulating the quality of domestically produced
peanuts.
The Department is issuing this rule in conformance with Executive
Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Farmers' stock peanuts received or acquired by non-
signatory handlers and farmers' stock peanuts received or acquired by
handlers signatory to the agreement, other than from those described in
Secs. 998.31(c) and (d), are subject to assessments. It is intended
that the assessment rates issued herein
[[Page 59823]]
will be applicable to all assessable peanuts beginning July 1, 1996,
and continuing 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. There are no
administrative procedures which must be exhausted prior to any judicial
challenge to the provisions of this rule.
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.
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.
There are approximately 45 handlers of peanuts who have not signed
the agreement and, thus, will be subject to the regulations specified
herein. Also, there are approximately 47,000 producers of peanuts in
the 16 States covered under the agreement and approximately 32 handlers
subject to regulation under the agreement. Small agricultural producers
have been defined by the Small Business Administration (13 CFR 121.601)
as those having annual receipts of less than $500,000, and small
agricultural service firms are defined as those whose annual receipts
are less than $5,000,000. A majority of the producers and the non-
signatory handlers may be classified as small entities, and some of the
handlers covered under the agreement are small entities.
The peanut marketing agreement provides authority for the
Committee, with the approval of the Department, to formulate an annual
budget of expenses and collect assessments from handlers to administer
the program. Funds to administer the peanut agreement program are
derived from signatory handler assessments. The members of the
Committee are handlers and producers of peanuts. They are familiar with
the Committee's needs and with the costs of goods and services in their
local area and, thus, are in a position to formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in public meetings. Thus, all directly affected persons have
an opportunity to participate and provide input. The handlers of
peanuts who are directly affected have signed the marketing agreement
authorizing the expenses that may be incurred and the imposition of
assessments.
The Committee met on March 19, 1996, and unanimously recommended
1996-97 administrative expenditures of $1,025,500 and an administrative
assessment rate of $0.70 per net ton of assessable farmers' stock
peanuts received or acquired by handlers. The Committee met again on
May 23, 1996, and with 17 favorable votes and one abstention voted not
to recommend an assessment rate for indemnification for handler losses
due to aflatoxin contamination. Adequate funds are included in the
Committee's indemnification reserve for such expenses during the 1996-
97 crop year. In comparison, last year's budgeted administrative
expenditures were $1,067,500. The assessment rate of $0.70 is the same
as last year's initially established rate. An interim final rule was
published on June 13, 1996 (61 FR 29926) increasing last year's
administrative assessment rate to $0.83 per ton.
The finalization of that rule was published on August 20, 1996 (61
FR 42993).
Major expenditures recommended by the Committee for the 1996-97
year include $112,450 for executive salaries, $131,500 for clerical
salaries, $296,700 for field representatives salaries, $42,000 for
payroll taxes, $148,000 for employee benefits, $40,000 for Committee
members travel, $5,000 for staff travel, $110,000 for field
representatives travel, $9,800 for insurance and bonds, $46,200 for
office rent and parking, $14,000 for office supplies and stationery,
$13,200 for postage and mailing, $15,000 for telephone and telegraph,
$6,000 for repairs and maintenance agreements, $10,400 for the audit
fee, and $10,250 for the contingency reserve. Budgeted expenses for
these items in 1995-96 were $145,051, $138,856, $304,344, $44,000,
$148,000, $40,000, $5,000, $110,000, $9,500, $44,360, $14,000, $13,200,
$15,000, $6,000, $10,400, and $4,789, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected receipts and acquisitions of
farmers' stock peanuts. Farmers' stock peanuts received or acquired by
non-signatory handlers and farmers' stock peanuts received or acquired
by handlers signatory to the agreement, other than from those described
in Secs. 998.31 (c) and (d), are subject to the assessments.
Assessments are due on the 15th of the month following the month in
which the farmers' stock peanuts are received or acquired. Peanut
shipments for the year under the agreement are estimated at 1,465,000
tons, which should provide $1,025,500 in assessment income.
Approximately 95 percent of the domestically produced peanut crop is
marketed by handlers who are signatory to the agreement.
Public Law 101-220 amended section 608b of the Act to require that
all peanuts handled by persons who have not entered into the agreement
(non-signers) be subject to quality and inspection requirements to the
same extent and manner as are required under the agreement.
Approximately 5 percent of the U.S. peanut crop is marketed by non-
signer handlers.
Public Law 103-66 (107 Stat. 312) provides for mandatory assessment
of farmers' stock peanuts acquired by non-signatory peanut handlers.
Under this law, paragraph (b) of section 1001, of the Agricultural
Reconciliation Act of 1993, specifies that: (1) Any assessment (except
indemnification assessments) imposed under the agreement on signatory
handlers also shall apply to non-signatory handlers, and (2) such
assessment shall be paid to the Secretary.
An interim final rule regarding this action was published in the
July 8, 1996, issue of the Federal Register (61 FR 35594). That interim
final rule added Secs. 997.101 and 998.409 to establish assessment
rates for the Committee and non-signatory handlers. That rule provided
that interested persons could file comments through August 7, 1996. No
comments were received.
While this action will impose some additional costs on handlers,
the costs are in the form of uniform assessments on all handlers
signatory to the agreement. Some of the additional costs may be passed
on to producers. However, these costs will be significantly offset by
the benefits derived from the operation of the marketing agreement.
This administrative assessment is required by law to be applied
uniformly to all non-signatory handlers and should be of benefit to
all. Therefore, the AMS has determined that this rule will not have a
significant economic impact on a substantial number of small entities.
The assessment rates established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by the
Secretary upon recommendation and information submitted by the
Committee or other available information.
Although these assessment rates are effective 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
[[Page 59824]]
are available from the Committee or the Department. Committee meetings
are open to the public and interested persons may express their views
at these meetings. The Department 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 1996-97 budget and those
for subsequent crop years will be reviewed and, as appropriate,
approved by the Department.
After consideration of all relevant matter 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 is 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: (1) The
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis; (2) Pub. L. 103-66 requires the
Department to impose an administrative assessment on peanuts received
or acquired for the account of non-signatory handlers; (3) the 1996-97
crop year began on July 1, 1996, and the marketing agreement and Pub.
L. 103-66 require that the rate of assessment for the crop year apply
to all peanuts handled during the crop year; (4) handlers are aware of
this action which was unanimously recommended by the Committee at a
public meeting and is similar to other budget actions issued in past
years; and (5) an interim final rule was published on this action which
provided a 30-day comment period, and no comments were received.
List of Subjects
7 CFR Part 997
Food grades and standards, Peanuts, Reporting and recordkeeping
requirements.
7 CFR Part 998
Marketing agreements, Peanuts, Reporting and recordkeeping
requirements.
Note: These sections will appear in the Code of Federal
Regulations.
Accordingly, the interim final rule amending 7 CFR parts 997 and
998 which was published at 61 FR 35594 on July 8, 1996, is adopted as a
final rule without change.
Dated: November 19, 1996.
Sharon Bomer Lauritsen,
Acting Director Fruit and Vegetable Division.
[FR Doc. 96-30035 Filed 11-22-96; 8:45 am]
BILLING CODE 3410-02-P
