99-25091. Vidalia Onions Grown in Georgia; Decreased Assessment Rate  

  • [Federal Register Volume 64, Number 187 (Tuesday, September 28, 1999)]
    [Rules and Regulations]
    [Pages 52216-52219]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-25091]
    
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 955
    
    [Docket No. FV98-955-1 FIR]
    
    
    Vidalia Onions Grown in Georgia; Decreased 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 decreases the assessment rate established for the Vidalia Onion 
    Committee (Committee) for the 1998-99 and subsequent fiscal periods 
    from
    
    [[Page 52217]]
    
    $0.10 per 50-pound bag or equivalent to $0.07 per 50-pound bag or 
    equivalent of Vidalia onions handled. The Committee is responsible for 
    local administration of the marketing order which regulates the 
    handling of Vidalia onions grown in Georgia. Authorization to assess 
    Vidalia onion handlers enables the Committee to incur expenses that are 
    reasonable and necessary to administer the program. The current fiscal 
    period began September 16 and ends December 31. The assessment rate 
    will remain in effect indefinitely unless modified, suspended, or 
    terminated.
    
    EFFECTIVE DATE: October 28, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Southeast Marketing 
    Field Office, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 2276, 
    Winter Haven, FL 33883-2276; telephone: (941) 299-4770, Fax: (941) 299-
    5169; 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) 720-5698. Small businesses may request information 
    on complying with this regulation by contacting Jay Guerber, 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) 720-5698 or E-mail: Jay.Guerber@usda.gov.
    
    SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
    Agreement and Order No. 955, both as amended (7 CFR part 955), 
    regulating the handling of Vidalia onions grown in Georgia, 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 rule has been reviewed under Executive Order 12988, Civil 
    Justice Reform. Under the marketing order now in effect, Vidalia onion 
    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 Vidalia onions 
    beginning September 16, 1998, and continue 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 decease the assessment rate established for 
    the Committee for the 1998-99 and subsequent fiscal periods from $0.10 
    per 50-pound bag or equivalent to $0.07 per 50-pound bag or equivalent 
    of Vidalia onions.
        The Vidalia onion 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 
    Vidalia onions. 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 fiscal periods, the Committee 
    recommended, and the Department approved, an assessment rate of $0.10 
    per 50-pound bag or equivalent 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.
        An interim final rule decreasing the assessment rate to $0.07 per 
    50-pound bag or equivalent was published in the Federal Register on 
    September 25, 1998 (63 FR 51269). Since then, another interim final 
    rule was published in the Federal Register on September 3, 1999 (64 FR 
    48243), which changed the fiscal period under the Vidalia marketing 
    order to January 1-December 31 from September 16-September 15. The 
    September 3, 1999, rule also extended the fiscal period which began 
    September 15, 1998, through December 31, 1999. The rulemaking action 
    changing the fiscal period does not affect the assessment rate 
    decrease, which continues to apply unless modified, suspended, or 
    terminated.
        The Committee met on July 28, 1998, and unanimously recommended 
    1998-99 expenditures of $373,577 and an assessment rate of $0.07 per 
    50-pound bag or equivalent of Vidalia onions. In comparison, last 
    year's budgeted expenditures were $429,800. The assessment rate of 
    $0.07 is $0.03 lower than the rate previously in effect. For the past 
    two seasons, the Committee elected to refund excess funds to the 
    handlers to reduce their costs. The Committee unanimously elected to 
    reduce the assessment rate rather than continue the practice of 
    refunding excess funds.
        The major expenditures recommended by the Committee for the 1998-99 
    fiscal period include $131,600 for marketing and promotion, $75,000 for 
    research, $135,127 for program administration, and $31,850 for 
    compliance. Budgeted expenses for these items in 1997-98 were $158,000, 
    $108,300, $137,500, and $26,000, respectively. Any changes recommended 
    by the Board in the budgeted expenses for 1998-99 due to adding 3\1/2\ 
    months to the fiscal period will be reviewed, and if appropriate, 
    approved by the Department.
        The assessment rate recommended by the Committee was derived by 
    dividing anticipated expenses by expected shipments of Vidalia onions. 
    Vidalia onion shipments for 1998-99 are estimated at 3,300,000 50-pound 
    bags or equivalents for the year, 15,000 50-pound bags or equivalents 
    of green Vidalias, 1,385,000 50-pound bags or equivalents of storage 
    Vidalias, and 100,000 50-pound bags or equivalents of storage onions 
    from the previous season, which should provide $336,000 in assessment 
    income. Income derived from handler assessments, along with interest 
    income and funds from the Committee's authorized reserve, will be 
    adequate to cover budgeted expenses. Funds in the reserve (currently 
    $174,073) will be kept within the maximum permitted by the order 
    (approximately three fiscal periods' budgeted expenses; Sec. 955.44).
        The assessment rate will continue in effect indefinitely unless 
    modified, suspended, or terminated by the Secretary upon recommendation 
    and information submitted by the
    
    [[Page 52218]]
    
    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 currently approximately 136 producers of Vidalia onions 
    in the production area and approximately 101 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.
        During the 1996-97 fiscal year, as a percentage, approximately 14 
    percent of the handlers shipped approximately 2,771,000 50-pound bags 
    or equivalents of Vidalia onions and approximately 86 percent of the 
    handlers shipped approximately 1,262,940 50-pound bags or equivalents. 
    Using an average f.o.b. price of $12.80 per 50-pound bag or equivalent, 
    the majority of handlers could be considered small businesses under 
    SBA's definition. The majority of Vidalia onion producers may be 
    classified as small entities.
        An interim final rule decreasing the assessment rate was published 
    in the Federal Register on September 25, 1998 (63 FR 51269). Since 
    then, another interim final rule was published in the Federal Register 
    on September 3, 1999 (64 FR 48243), which changed the fiscal period 
    under the Vidalia marketing order to January 1-December 31 from 
    September 16-September 15. The September 3, 1999, rule also extended 
    the fiscal period which began September 15, 1998, through December 31, 
    1999. The rulemaking action changing the fiscal period does not affect 
    the assessment rate decrease, which continues to apply unless modified, 
    suspended, or terminated.
        This rule continues to decrease the assessment rate established for 
    the Committee and collected from handlers for the 1998-99 and 
    subsequent fiscal periods from $0.10 per 50-pound bag or equivalent to 
    $0.07 per 50-pound bag or equivalent of Vidalia onions. The Committee 
    unanimously recommended 1998-99 expenditures of $373,577 and an 
    assessment rate of $0.07 per 50-pound bag or equivalent. The assessment 
    rate of $0.07 is $0.03 lower than the 1997-98 rate. The quantity of 
    assessable Vidalia onions for the 1998-99 season is estimated at 
    4,800,000 50-pound bags or equivalents. Thus, the $0.07 rate should 
    provide $336,000 in assessment income. Income derived from handler 
    assessments, along with interest income and funds from the Committee's 
    authorized reserve, will be adequate to cover budgeted expenses.
        The major expenditures recommended by the Committee for the 1998-99 
    year include $131,600 for marketing and promotion, $75,000 for 
    research, $135,127 for program administration, and $31,850 for 
    compliance. Budgeted expenses for these items in 1997-98 were $158,000, 
    $108,300, $137,500, and $26,000, respectively. Any changes recommended 
    by the Board in its budgeted expenses for 1998-99 due to adding 3\1/2\ 
    months to the fiscal period will be reviewed, and if appropriate, 
    approved by the Department.
        For the past two seasons, the Committee had refunded excess funds 
    to the handlers to reduce their costs. The Committee unanimously 
    elected to reduce the assessment rate rather than continue the practice 
    of refunding excess funds.
        The Committee reviewed and unanimously recommended 1998-99 
    expenditures of $373,577 which included decreases in marketing and 
    promotion and research. Prior to arriving at this budget, the Committee 
    considered information from various sources, such as the Committee's 
    Budget Subcommittee. Alternative expenditure levels were discussed by 
    these groups, based upon the relative value of various research 
    projects to the Vidalia onion industry. The assessment rate of $0.07 
    per 50-pound bag or equivalent of assessable Vidalia onions was then 
    determined by dividing the total recommended budget by the quantity of 
    assessable Vidalia onions, estimated at 4,800,000 50-pound bags or 
    equivalents for the 1998-99 season. This is approximately $37,577 below 
    the anticipated expenses, which the Committee determined to be 
    acceptable. The difference between assessment income and budgeted 
    expenses will be covered by income from interest and the Committee's 
    authorized reserve.
        A review of historical information and preliminary information 
    pertaining to the 1998-99 fiscal period indicates that the f.o.b. price 
    for the 1998-99 season could range between $12.80 and $15.25 per 50-
    pound bag or equivalent of Vidalia onions. Therefore, the estimated 
    assessment revenue for the 1998-99 fiscal period as a percentage of 
    total grower revenue could range between .46 and .55 percent.
        This action continues to decrease the assessment obligation imposed 
    on handlers. Assessments are applied uniformly on all handlers, and 
    some of the costs may be passed on to producers. However, decreasing 
    the assessment rate reduces the burden on handlers, and may reduce the 
    burden on producers. In addition, the Committee's meeting was widely 
    publicized throughout the Vidalia onion industry and all interested 
    persons were invited to attend the meeting and participate in Committee 
    deliberations on all issues. Like all Committee meetings, the July 28, 
    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 Vidalia onion 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.
        As mentioned earlier, the interim final rule concerning this action 
    was published in the Federal Register on September 25, 1998 (63 FR 
    51269). Copies of that rule were also mailed or sent via facsimile to 
    all Vidalia onion handlers. Finally, the interim final rule
    
    [[Page 52219]]
    
    was made available through the Internet by the Office of the Federal 
    Register. A 60-day comment period was provided for interested persons 
    to respond to the interim final rule. The comment period ended on 
    November 24, 1998, and no comments were received.
        A small business guide on complying with fruit, vegetable, and 
    speciality crop marketing agreements and orders may be viewed at the 
    following web site: http://www.ams.usda.gov/fv/moab.html. Any questions 
    about the compliance guide should be sent to Jay Guerber at the 
    previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
    section.
        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 955
    
        Marketing agreements, Onions, Reporting and recordkeeping 
    requirements.
    
        For the reasons set forth in the preamble, 7 CFR part 955 is 
    amended as follows:
    
    PART 955--VIDALIA ONIONS GROWN IN GEORGIA
    
        Accordingly, the interim final rule amending 7 CFR part 955 which 
    was published at 63 FR 51269 on September 25, 1998, is adopted as a 
    final rule without change.
    
        Dated: September 21, 1999.
    Larry B. Lace,
    Acting Deputy Administrator, Fruit and Vegetable Programs.
    [FR Doc. 99-25091 Filed 9-27-99; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Effective Date:
10/28/1999
Published:
09/28/1999
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-25091
Dates:
October 28, 1999.
Pages:
52216-52219 (4 pages)
Docket Numbers:
Docket No. FV98-955-1 FIR
PDF File:
99-25091.pdf
CFR: (1)
7 CFR 955