[Federal Register Volume 63, Number 170 (Wednesday, September 2, 1998)]
[Rules and Regulations]
[Pages 46635-46637]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23516]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 953
[Docket No. FV98-953-1 FIR]
Irish Potatoes Grown in Southeastern States; Increased Assessment
Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (Department) is adopting, as a
final rule, without change, the provisions of an interim final rule
which increased the assessment rate established for the Southeastern
Potato Committee (Committee) under Marketing Order No. 953 for the
1998-99 and subsequent fiscal periods from $0.0075 to $0.01 per
hundredweight of potatoes handled. The Committee is responsible for
local administration of the marketing order which regulates the
handling of Irish potatoes grown in two southeastern States (Virginia
and North Carolina). Authorization to assess potato handlers enables
the Committee to incur expenses that are reasonable and necessary to
administer the program. The fiscal period begins June 1 and ends May
31. The assessment rate will remain in effect indefinitely unless
modified, suspended, or terminated.
EFFECTIVE DATE: October 2, 1998.
FOR FURTHER INFORMATION CONTACT: Jim Wendland, DC Marketing Field
Office, Marketing Order Administration Branch, Fruit and Vegetable
Programs, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; telephone: 202-720-2491, Fax: 202-205-6632; 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: 202-205-6632. Small
businesses may request information on compliance with this regulation
by contacting Jay Guerber, also at the above address, telephone, and
Fax.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 104 and Order No. 953, both as amended (7 CFR part 953),
regulating the handling of Irish potatoes grown in two southeastern
States (Virginia and North Carolina), 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 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, Virginia-North
Carolina potato 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 potatoes beginning June 1, 1998, 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.
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. 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 to review the
Secretary's 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 continues to increase the assessment rate established for
the Committee for the 1998-99 and subsequent fiscal periods from
$0.0075 to $0.01 per hundredweight of potatoes handled.
The Southeastern Potato Marketing Order 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. The members of the Committee are producers and handlers of
Southeastern potatoes. 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
[[Page 46636]]
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 1996-97 and subsequent fiscal periods the Committee
recommended, and the Department approved, an assessment rate of $0.0075
per hundredweight of potatoes handled that would continue in effect
from fiscal period to fiscal period unless modified, suspended, or
terminated by the Secretary upon recommendation and information
submitted by the Committee or other information available to the
Secretary.
The Committee met on April 16, 1998, and unanimously recommended
1998-99 expenditures of $12,000, the same as last year. The major
expenditures include $7,700 for the manager's and secretarial salaries
and $1,000 for travel expenses. These and all other expense items are
budgeted at last year's amounts.
Regarding the assessment rate, after considering several options,
the Committee concluded that the former rate of $0.0075 per
hundredweight would not be adequate for the 1998-99 fiscal period for
the following reasons. The Committee's operating reserve was only
$5,000 and was expected to be quickly exhausted. The reserve was the
lowest ever for any of the Committee's fiscal periods except one. Also,
wet fields caused delayed plantings and unfavorable growing conditions,
resulting in potato plant stands estimated to be 20 percent below
normal. As a result of this and other factors, the Committee projected
that during the industry's brief, predominately June and July, shipping
and assessing period, its total potato volume to be handled would be
down at least 100,000 hundredweight. Therefore, the Committee
unanimously recommended an assessment rate of $0.01 per hundredweight,
$0.0025 higher than the rate formerly in effect.
The assessment rate recommended by the Committee was based on
projected fresh market shipments of 1,200,000 hundredweight (cwt) of
Southeastern potatoes, which should provide $12,000 in assessment
income. However, recent information indicates that these shipments will
only be approximately 900,000 cwt, providing about $9,000 in
assessments. But this income, along with funds from the Committee's
authorized operating reserve, will be adequate to cover budgeted
expenses. Funds in the reserve at the beginning of the 1997-98 fiscal
period were estimated at only $5,000. Funds in the reserve are now
expected to be about $2,000, well within the maximum permitted by the
order of approximately one fiscal period's expenses (Sec. 953.35).
The assessment rate 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 this assessment rate is effective for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period 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
1998-99 budget and those for subsequent fiscal periods will be reviewed
and, as appropriate, approved by the Department.
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 85 producers of Southeastern potatoes in
the production area and approximately 40 handlers subject to regulation
under the marketing order. 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 Southeastern potato producers and handlers
may be classified as small entities.
This rule continues to increase the assessment rate established for
the Southeastern Potato Committee and collected from handlers for the
1998-99 and subsequent fiscal periods from $0.0075 per hundredweight to
$0.01 per hundredweight of potatoes handled. Both the $0.01 assessment
rate and the 1998-89 budget of $12,000 were unanimously recommended by
the Committee at its April 16, 1998, meeting. The assessment rate
continued in effect by this action is $0.0025 higher than the 1997-98
rate. The Committee recommended an increased assessment rate to help
offset the smaller projected crop of assessable Southeastern potatoes
in 1998. Recent information indicates these shipments will only be
approximately 900,000 hundredweight (cwt), about 400,000 cwt less than
the 1997 crop, to provide about $9,000 in assessments. But this income,
along with funds from the Committee's authorized operating reserve,
will be adequate to meet the 1998-99 fiscal period's budgeted expenses.
Funds in the reserve at the beginning of the 1997-98 fiscal period were
approximately $5,000. Funds in the reserve are now expected to be only
about $2,000, well within the maximum permitted by the order of
approximately one fiscal period's expenses (Sec. 953.35). The Committee
discussed leaving the assessment at the previous $0.0075 rate but
determined that the significantly smaller crop would not generate
enough income to meet budgeted expenses without exhausting the $5,000
operating reserve, and this was not acceptable.
The major expenditures recommended by the Committee for the 1998-99
fiscal period include $7,700 for the manager's and secretarial salaries
and $1,000 for travel expenses. These and all other expense items are
budgeted at last year's amounts.
A review of historical information and recent preliminary
information indicate that the grower price for the 1998-99 Southeastern
potato crop could average approximately $7.00 to $8.00 per
hundredweight. With fresh market shipments in 1998 of approximately
900,000 hundredweight, the estimated assessment revenue for the 1998-99
fiscal period ($9,000) as a percentage of the projected fresh market
crop value ($7,200,000) could be 0.005 percent.
While assessments impose some additional costs on handlers, the
costs are minimal and uniform on all handlers. Some of the additional
costs may be passed on to producers. However, these costs will be
offset by the benefits derived by the operation of the order. In
addition, the Committee's meeting was widely publicized throughout the
Southeastern potato industry and all interested persons were invited to
attend the meeting and
[[Page 46637]]
participate in Committee deliberations on all issues. Like all
Committee meetings, the April 16, 1998, meeting was a public meeting
and all entities, both large and small, were able to express views on
this issue.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Southeastern potato 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 Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
An interim final rule concerning this action was published in the
Federal Register on June 17, 1998, (63 FR 32966). Copies of that rule
were also mailed or sent via facsimile to all Southeastern potato
handlers. Finally, the interim final rule was made available through
the Internet by the Office of the Federal Register. A 30-day comment
period was provided for interested persons to respond to the interim
final rule. The comment period ended on July 17, 1998, and no comments
were received.
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.
List of Subjects in 7 CFR Part 953
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 953 is
amended as follows:
PART 953--IRISH POTATOES GROWN IN SOUTHEASTERN STATES
Accordingly, the interim final rule amending 7 CFR part 953 which
was published at 63 FR 32966 on June 17, 1998, is adopted as a final
rule without change.
Dated: August 26, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit & Vegetable Programs.
[FR Doc. 98-23516 Filed 9-1-98; 8:45 am]
BILLING CODE 3410-02-P
