[Federal Register Volume 59, Number 52 (Thursday, March 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6146]
[[Page Unknown]]
[Federal Register: March 17, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 927
[Docket No. FV93-927-1FR; Amendment 1]
Increase in Expenses; Winter Pears Grown in Oregon, Washington,
and California
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule; amendment.
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SUMMARY: This document amends a final rule to authorize an increase in
expenses for the Winter Pear Control Committee (Committee) under
Marketing Order No. 927 for the 1993-94 fiscal year. This final rule
amendment will enable the Committee to incur increased expenses that
are reasonable and necessary to administer the program. Funds to
administer the program are derived from assessments on handlers.
EFFECTIVE DATE: July 1, 1993, through June 30, 1994.
FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, D.C. 20090-6456, telephone: (202)
720-5127; or Teresa L. Hutchinson, Northwest Marketing Field Office,
Fruit and Vegetable Division, AMS, USDA, 1220 SW. Third Avenue, room
369, Portland, Oregon 97204, telephone: (503) 326-2724.
SUPPLEMENTARY INFORMATION: This final rule amendment is issued under
Marketing Agreement and Order No. 927 (7 CFR part 927) regulating the
handling of winter pears grown in Oregon and Washington. The 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 is issuing this rule in conformance with Executive
Order 12866.
This final rule amendment has been reviewed under Executive Order
12778, Civil Justice Reform. Under the marketing order provisions now
in effect, winter pears grown in Oregon, Washington, and California are
subject to assessments. It is intended that the assessment rates
specified herein will be applicable to all assessable pears handled
during the 1993-94 fiscal year, which began July 1, 1993, through June
30, 1994. This final rule amendment 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 the Secretary 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 requesting 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 the Secretary 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 in equity to review
the Secretary's ruling on the petition, provided a bill in equity is
filed not later than 20 days after date of the entry of the ruling.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Administrator of 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. Marketing orders issued
pursuant to the Act, and 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 90 handlers of winter pears regulated under
the marketing order each season and approximately 1,850 winter pear
producers in Oregon, Washington, and California. Small agricultural
producers have been defined by the Small Business Administration [13
CFR Sec. 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 $3,500,000. The majority of these
handlers and producers may be classified as small entities.
The Oregon, Washington, and California winter pear marketing order,
administered by the Department, requires that the assessment rates for
a particular fiscal year apply to all assessable winter pears handled
from the beginning of such year. Annual budgets of expenses are
prepared by the Committee, the agency responsible for local
administration of this marketing order, and submitted to the Department
for approval. The members of the Committee are handlers and producers
of Oregon, Washington, and California winter pears. They are familiar
with the Committee's needs and with the costs for goods, services, and
personnel in their local area, and are thus in a position to formulate
appropriate budgets. The Committee's budget is formulated and discussed
in public meetings. Thus, all directly affected persons have an
opportunity to participate and provide input.
The assessment rates recommended by the Committee are derived by
dividing the anticipated expenses by expected shipments of pears.
Because these rates are applied to actual shipments, they must be
established at rates which will provide sufficient income to pay the
Committee's expected expenses.
The Winter Pear Control Committee met on June 4, and June 24, 1993,
and unanimously recommended total expenses of $6,933,615 for the 1993-
94 fiscal year. In comparison, the 1992-93 fiscal year expense amount
was $6,716,983, which is $216,632 less than the recommended amount for
this fiscal year.
The Committee also unanimously recommended an assessment rate of
$0.45 per standard box, or equivalent and a supplemental assessment
rate of $0.04 per standard box, or equivalent for Anjou variety pears.
In comparison, the 1992-93 pear assessment rate was $0.43 per standard
box, or equivalent and $0.09 for the supplemental assessment rate on
Anjou variety pears. This represents a $0.02 increase and $0.05
decrease, respectively, in the assessment rates recommended for this
fiscal year because the current rates should generate sufficient income
to cover the increased expenses.
Major expense categories for the 1993-94 fiscal year include
$4,937,803 for advertising, $566,433 for contingency, $422,826 for
Ethoxyquin data research, and $174,775 for salaries and benefits.
Comparable 1992-93 budgeted expenses are $4,562,500, $490,578,
$855,000, and $160,905, respectively.
The Committee's approved 1993-94 fiscal year expenses and
assessment rates were adopted in a final rule and published in the
Federal Register (58 FR 54926, October 25, 1993).
On December 1, 1993, the Committee conducted a mail ballot and on a
vote of 13 in favor and 1 opposed, recommended to increase expenses to
$7,931,925. This is a $998,310 increase in expenses from the previously
approved 1993-94 budget. No changes in the approved assessment rates
were recommended because the current rates should generate sufficient
income to cover the increased expenses.
The increase is deemed necessary by the Committee because the crop
estimate, which is now approximated at 15,250,000 standard boxes of
winter pears was underestimated by nearly 2 million boxes. Due to the
larger crop, additional funding in major categories is needed. This
includes a total of $639,322 for contingency, $5,718,750 for paid
advertising, $305,000 for winter pear improvement, $305,000 for SOPP,
and $484,000 for Ethoxyquin data research which represent increases of
$72,889, $780,947, $41,650; $41,650, and $61,174 respectively, from the
previously approved budget.
This action will not impose additional costs on handlers because
the previously established assessment rates are not being changed.
Further, the increased expenses should benefit the industry by
assisting in marketing a record-large crop. Therefore, the
Administrator of the AMS has determined that this action will not have
a significant economic impact on a substantial number of small
entities.
After consideration of all relevant matter presented, including the
information and recommendations 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 found that the specified expenses
for the marketing order covered in this final rule amendment are
reasonable and likely to be incurred and that such expenses and the
specified assessment rates to cover such expenses will tend to
effectuate the declared policy of the Act.
It is also found and determined upon good cause that it is
impracticable, unnecessary, and contrary to the public interest to give
preliminary notice or to engage in further public procedure prior to
putting this rule into effect and 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 conduct a more aggressive advertising and
promotional program to market the largest crop in the industry's
history; (2) the marketing season is well underway and further delays
in authorizing this increase in expenditures would reduce the program's
effectiveness; (3) handlers are aware of this action and need no
additional time to comply because the assessment rates are not being
changed; (4) no comments were received during the rulemaking proceeding
to establish the assessment rates for the current fiscal year which
remain unchanged by this action; and (5) no useful purpose would be
served by delaying this action.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 927 is
amended as follows:
PART 927--WINTER PEARS GROWN IN OREGON, WASHINGTON, AND CALIFORNIA
1. The authority citation for 7 CFR part 927 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Section 927.233 is revised to read as follows:
Note: This section will not appear in the annual Code of Federal
Regulations.
Sec. 927.233 Expenses and assessment rates.
Expenses of $7,931,925 by the Winter Pear Control Committee are
authorized and an assessment of $0.45 per standard box, or equivalent,
on assessable winter pears and a supplemental assessment of $0.04 per
standard box, or equivalent, on assessable Anjou variety pears are
established for the fiscal year ending June 30, 1994. Unexpended funds
may be carried over as a reserve.
Dated: March 11, 1994.
Robert C. Keeney,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-6146 Filed 3-16-94; 8:45 am]
BILLING CODE 3410-02-P
