[Federal Register Volume 59, Number 165 (Friday, August 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21086]
[[Page Unknown]]
[Federal Register: August 26, 1994]
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DEPARTMENT OF AGRICULTURE
7 CFR Part 929
[Docket No. FV94-929-2IFR]
Expenses and Assessment Rate for the 1994-95 Fiscal Year for the
Marketing Order Covering Cranberries Grown in States of Massachusetts,
Rhode Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota,
Oregon, Washington, and Long Island in the State of New York
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final authorizes expenses and establishes an
assessment rate for the Cranberry Marketing Committee (Committee) under
Marketing Order No. 929 for the 1994-95 fiscal year. Authorization of
this budget enables the Committee to incur expenses that are reasonable
and necessary to administer the program. Funds to administer this
program are derived from assessments on handlers.
DATES: Effective beginning September 1, 1994, through August 31, 1995.
Comments received by September 26, 1994, will be considered prior to
issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this interim final 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: Britthany Beadle or Mark Hessel,
Marketing Order Administration Branch, F&V, AMS, USDA, P.O. Box 96456,
Room 2523-S, Washington, DC 20090-6456; telephone: (202) 720-5127.
SUPPLEMENTARY INFORMATION: This interim final rule is issued under
Marketing Agreement and Order No. 929 [7 CFR Part 929], as amended,
regulating the handling of cranberries grown in Massachusetts, Rhode
Island, Connecticut, New Jersey, Wisconsin, Michigan, Minnesota,
Oregon, Washington, and Long Island in the State of New York,
hereinafter referred to as the ``order''. 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 Department of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. Under the marketing order provisions now
in effect, cranberries grown in 10 states are subject to assessments.
It is intended that the assessment rate as issued herein will be
applicable to all assessable cranberries during the 1994-95 fiscal year
beginning September 1, 1994, through August 31, 1995. This interim
final 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 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 request a modification of the order or to be exempted
therefrom. A 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 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 30 handlers of cranberries grown in
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin,
Michigan, Minnesota, Oregon, Washington, and Long Island in the State
of New York who are subject to regulation under the cranberry marketing
order and approximately 1,050 producers of cranberries in the regulated
area. 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.
The majority of cranberry producers and handlers may be classified as
small entities.
The cranberry marketing order, administered by the Department,
requires that the assessment rate for a particular fiscal year apply to
all assessable cranberries handled from the beginning of such year. The
budget of expenses for the 1994-95 fiscal year was 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 producers of cranberries. 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 an appropriate budget.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of cranberries.
Because that rate is applied to actual shipments, it must be
established at a rate which will produce sufficient income to pay the
Committee's expected expenses. The recommended budget and rate of
assessment are usually acted upon by the Committee shortly before a
season starts, and expenses are incurred on a continuous basis.
Therefore, the budget and assessment rate approval must be expedited so
that the Committee will have funds to pay its expenses.
The Committee conducted a mail vote and unanimously recommended
1994-95 marketing order expenses of $164,690 and an assessment rate of
$0.03 per 100-pound barrel of cranberries. In comparison, 1993-94
budgeted expenses were $155,000, with an approved assessment rate of
$0.03 per 100-pound barrel of cranberries. This represents an increase
of $9,690 in expenses recommended for this fiscal year, with the
assessment rate remaining unchanged.
Assessment income for 1994-95 is estimated to total $122,580 based
on anticipated fresh domestic shipments of 4,086,000 barrels of
cranberries. The assessment income, plus $3,750 in interest income and
a withdrawal of $38,360 from the Committee's authorized reserve fund
will be adequate to cover budgeted expenses. Funds in the reserve at
the end of the 1994-95 fiscal year are estimated to be $150,000. The
reserve fund will be within the maximum permitted by the order of one
fiscal year's expenses.
Major expense categories for the 1994-95 fiscal year include
$70,110 for operating expenses, $40,500 for travel expenses, and
$33,241 for administrative expenses.
While this action will impose some additional costs on handlers,
the costs are in the form of uniform assessments on all handlers. Some
of the additional costs may be passed on to producers. However, these
costs will be offset by the benefits derived from the operation of the
marketing order. 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 material presented, including
the Committee's recommendation, and other available information, it is
found that this interim final 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) the 1994-95
fiscal year begins September 1, 1994, and the marketing order requires
that the rate of assessment for the fiscal year apply to all assessable
cranberries handled during the fiscal year; and (3) this interim final
rule provides a 30-day comment period, and all comments timely received
will be considered prior to finalization of this action.
List of Subjects in 7 CFR Part 929
Cranberries, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR Part 929 continues
to read as follows:
PART 929--CRANBERRIES GROWN IN STATES OF MASSACHUSETTS, RHODE
ISLAND, CONNECTICUT, NEW JERSEY, WISCONSIN, MICHIGAN, MINNESOTA,
OREGON, WASHINGTON, AND LONG ISLAND IN THE STATE OF NEW YORK
1. The authority citation for 7 CFR Part 929 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. A new Sec. 929.234 is added to read as follows:
Note: This section will not appear in the annual Code of Federal
Regulations.
Sec. 929.234 Expenses and assessment rate.
Expenses of $164,690 by the Cranberry Administrative Committee are
authorized, and an assessment rate of $0.03 per 100-pound barrel
assessable cranberries is established for the 1994-95 fiscal year
ending on August 31, 1995. Unexpended funds may be carried over as a
reserve.
Dated: August 22, 1994.
Eric M. Forman,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 94-21086 Filed 8-25-94; 8:45 am]
BILLING CODE 3410-02-P
