[Federal Register Volume 62, Number 185 (Wednesday, September 24, 1997)]
[Rules and Regulations]
[Pages 49905-49907]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-25275]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 62, No. 185 / Wednesday, September 24, 1997 /
Rules and Regulations
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Docket No. FV97-993-1 FIR]
Dried Prunes Produced in California; Increased Assessment Rate
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
which increased the assessment rate for the Prune Marketing Committee
(Committee) under Marketing Order No. 993 for the 1997-98 and
subsequent crop years. The Committee is responsible for local
administration of the marketing order which regulates the handling of
dried prunes grown in California. Authorization to assess dried prune
handlers enables the Committee to incur expenses that are reasonable
and necessary to administer the program. The 1997-98 crop year covers
the period August 1 through July 31. The assessment rate will continue
in effect indefinitely unless modified, suspended, or terminated.
EFFECTIVE DATE: October 24, 1997.
FOR FURTHER INFORMATION CONTACT: Richard P. Van Diest, Marketing
Specialist, or Diane Purvis, Marketing Assistant, California Marketing
Field Office, Fruit and Vegetable Division, AMS, USDA, 2202 Monterey
Street, Suite 102B, Fresno, California 93721; telephone: (209) 487-
5901, Fax: (209) 487-5906; or George Kelhart, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, Room
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202)
720-2491, Fax: (202) 720-5698. Small businesses may request information
on compliance with this regulation by contacting Jay Guerber, Marketing
Order Administration Branch, Fruit and Vegetable Division, AMS, USDA,
Room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone:
(202) 720-2491, Fax: (202) 720-5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement and Order No. 993, both as amended (7 CFR part 993),
regulating the handling of dried prunes grown in California,
hereinafter referred to as the ``order.'' The marketing 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 was reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, California
dried prune 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 be applicable to all assessable dried
prunes beginning August 1, 1997, 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 in effect the assessment rate of $1.60 per
salable ton of dried prunes established for the Committee for the 1997-
98 and subsequent crop years. The assessment rate had been $1.50 per
ton of salable dried prunes.
The California dried prune 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 California dried prunes. 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 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 crop years, the Committee
recommended, and the Department approved, an assessment rate that would
continue in effect from crop year to crop year indefinitely 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 June 24, 1997, and unanimously recommended
1997-98 expenditures of $331,960 and an assessment rate of $1.60 per
salable ton of dried prunes. In comparison, last year's budgeted
expenditures were $283,500; and the assessment rate was $1.50 per
salable ton. The 1997-98 crop year assessment rate is increased $0.10.
The primary reason for the higher budget is a comprehensive acreage
survey of all California's producing counties. This acreage survey will
help the industry estimate dried prune production and fulfill marketing
plans.
The major expenditures recommended by the Committee for the 1997-98
crop year include: $176,300 for salaries, wages, and benefits; $30,000
for research and development; $23,000 for office rent; $21,000 for
travel; $20,000 for acreage survey; $8,060 for the reserve for
contingency; $5,000 for office supplies; $9,000 for rental of
equipment; and $8,000 for data processing. Budgeted expenses for major
items in 1996-97 were $142,120,
[[Page 49906]]
$30,000, $22,000, $20,000, $11,000, $8,430, $6,500, $3,800, and $6,500,
respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by its estimate of assessable California
dried prunes for 1997-98. Assessable tonnage for the year is estimated
at 207,475 salable tons which should provide $331,960 in assessment
income. Income derived from handler assessments and interest income
will be adequate to cover budgeted expenses. Any funds not expended by
the Committee during a crop year may be used, pursuant to
Sec. 993.81(c), for a period of five months subsequent to that crop
year. At the end of such period, the excess funds are returned or
credited to handlers.
The assessment rate 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 this assessment rate is 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
1997-98 budget was approved by the Department on August 4, 1997, and
those for subsequent crop years will be reviewed each year 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 1,400 producers of dried prunes in
California and approximately 21 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 less than $500,000, and small agricultural service
firms are defined as those whose annual receipts are less than
$5,000,000.
Currently, as a percentage, about 34 percent of the handlers
shipped over $5,000,000 worth of dried prunes and 66 percent of the
handlers shipped under $5,000,000 worth of prunes. In addition, based
on acreage, production, producer prices provided by the Committee, and
the total number of dried prune producers, the average annual producer
revenue is approximately $136,000. The majority of handlers and
producers of California dried prunes may be classified as small
entities.
This rule continues the assessment rate of $1.60 per salable ton
for the 1997-98 and subsequent crop years. The Committee unanimously
recommended 1997-98 expenditures of $331,960 and an assessment rate of
$1.60 per salable ton of California dried prunes. The assessment rate
of $1.60 is $0.10 more than the 1996-97 rate. The Committee estimated
assessable dried prunes in 1997-98 at 207,475 salable tons. Thus, the
prior crop year assessment rate of $1.50 would only have provided
$311,212 in revenue, which would not have been adequate to meet the
Committee's 1997-98 budgeted expenses. The $1.60 rate should provide
$331,960 in assessment income and be adequate to meet this year's
expenses.
The Committee's increase from $283,500 to $331,960 in budgeted
expenses for 1997-98 results primarily from increases in the following
line item categories--total personnel (salaries, wages, and benefits),
rental of equipment, data processing, and acreage survey. Expenses for
these items for 1997-98, with last year's budgeted expenses in
parenthesis, are: total personnel--$176,300 ($142,120); rental of
equipment--$9,000 ($3,800); data processing--$8,000 ($6,500); and
acreage survey--$20,000 ($11,000). The increase will provide wage and
benefit increases for the staff. The increase in acreage survey will
allow the Committee to conduct a more comprehensive dried prune acreage
survey than last year. The Committee considered the alternative of
conducting a smaller scale survey at less cost, but decided that a
survey of all California's producing counties was needed to help the
industry make production and marketing plans. The Committee feels that
all of the expense levels are appropriate and reasonable.
Recent price information indicates that the grower price for the
1997-98 season should average $800 per salable ton of dried prunes.
Based on estimated shipments of 207,475 salable tons, the estimated
assessment revenue for the 1997-98 crop year is less than 1 percent of
the total expected grower revenue.
Any funds not expended by the Committee during a crop year may be
used, pursuant to Sec. 993.81(c), for a period of five months
subsequent to that crop year. At the end of such period, the excess
funds are returned or credited to handlers.
While this rule imposes some additional costs on handlers, the
costs are minimal and 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 by the
operation of the marketing order. In addition, the Committee's meeting
was widely publicized throughout the California dried prune industry
and all interested persons were invited to attend the meeting and
participate in Committee deliberations on all issues. Like all
Committee meetings, the June 24, 1997, meeting was a public meeting and
all entities, both large and small, were able to express views on this
issue.
This rule does not impose any additional reporting or recordkeeping
requirements on either small or large California dried prune 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 final rule.
An interim final rule concerning this action was issued by the
Department on July 29, 1997, put on display at the Office of the
Federal Register on August 3, 1997, and published in the Federal
Register on August 4, 1997 (62 FR 41808). Copies of the rule were
mailed or sent via facsimile to all Committee members and dried prune
handlers. Finally, the rule was made available through the Internet by
the Office of the Federal Register. A 30-day comment period was
provided. No comments on the interim rule were received.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
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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 993
Dried prunes, Marketing agreements, Reporting and recordkeeping
requirements.
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
Accordingly, the interim final rule amending 7 CFR part 993 which
was published at 62 FR 41808 on August 4, 1997, is adopted as a final
rule without change.
Dated: September 17, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-25275 Filed 9-23-97; 8:45 am]
BILLING CODE 3410-02-P
