[Federal Register Volume 61, Number 131 (Monday, July 8, 1996)]
[Rules and Regulations]
[Pages 35593-35595]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-17196]
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[[Page 35594]]
DEPARTMENT OF AGRICULTURE
7 CFR Parts 997 and 998
[Docket No. FV96-998-2IFR]
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: Interim final rule with request for comments.
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SUMMARY: This interim final rule establishes 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 of Agriculture (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
will apply to all non-signatory handlers.
DATES: Effective on July 1, 1996. Comments received by August 7, 1996,
will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent in triplicate to the Docket
Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, room
2523-S, Washington, DC 20090-6456, FAX 202-720-5698. Comments should
reference the docket number and the date and page number of this issue
of the Federal Register and will be available for public inspection in
the Office of the Docket Clerk during regular business hours.
FOR FURTHER INFORMATION CONTACT: Martha Sue Clark, Program Assistant,
Marketing Order Administration Branch, Fruit and Vegetable Division,
AMS, USDA, P.O. Box 96456, room 2523-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.
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 12778, 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 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 paid
to the Committee and 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 for
goods and services in their local areas 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 has
been published on June 13, 1996 (61 FR 29926) increasing last year's
administrative assessment rate to $0.83 per ton.
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
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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 farmer's 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.
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 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 upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this action 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) Public Law 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 begins on July 1, 1996, and the marketing
agreement and Public Law 103-66 require that the rate of assessment for
each crop year apply to all peanuts handled during such 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 assessment
rate actions issued in past years; and (5) this interim final rule
provides a 30-day comment period, and all comments timely received will
be considered prior to finalization of this rule.
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.
For the reasons set forth in the preamble, 7 CFR parts 997 and 998
are amended as follows:
1. The authority citation for 7 CFR parts 997 and 998 continues to
read as follows:
Authority: 7 U.S.C. 601-674.
Note: These amendments will appear in the Code of Federal
Regulations.
PART 997--[AMENDED]
2. In part 997, a new undesignated center heading, Assessment
Rates, and Sec. 997.101 are added to read as follows:
Assessment Rates
Sec. 997.101 Assessment rate.
On and after July 1, 1996, an administrative assessment rate of
$0.70 per net ton of assessable farmers stock peanuts received or
acquired by each non-signatory first handler is established for
peanuts.
PART 998--[AMENDED]
3. In part 998, a new undesignated center heading, Assessment
Rates, and Sec. 998.409 are added to read as follows:
Subpart--Assessment Rates
Sec. 998.409 Assessment rate.
On and after July 1, 1996, an administrative assessment rate of
$0.70 per net ton of farmers' stock peanuts received or acquired other
than from those described in Secs. 998.31 (c) and (d) is established
for handlers signatory to the agreement. Assessments are due on the
15th of the month following the month in which the farmers' stock
peanuts are received or acquired.
Dated: June 28, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-17196 Filed 7-5-96; 8:45 am]
BILLING CODE 3410-02-P
