[Federal Register Volume 62, Number 180 (Wednesday, September 17, 1997)]
[Rules and Regulations]
[Pages 48749-48751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-24689]
[[Page 48749]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 997 and 998
[Docket No. FV97-998-3 IFR]
Amended Assessment Rate for Domestically Produced Peanuts Handled
by Persons Not Subject to 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.
-----------------------------------------------------------------------
SUMMARY: This rule decreases the administrative assessment rate
established for the Peanut Administrative Committee (Committee) under
Marketing Agreement No. 146 (agreement) for the 1997-98 and subsequent
crop years. The Committee is responsible for local administration of
the 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. The agreement is effective
under the Agricultural Marketing Agreement Act of 1937, as amended
(Act). The Act also requires the Department of Agriculture (Department)
to impose the same administrative assessment rate on assessable peanuts
received or acquired by handlers who have not signed the agreement. The
1997-1998 crop year covers the period July 1 through June 30. The
assessment rate will continue in effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective September 18, 1997. Comments received by October 17,
1997, 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
2525-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: Tammie M. Bryant, Program Assistant,
or Jim Wendland, Marketing Specialist, Marketing Order Administration
Branch, Fruit and Vegetable Division, DC Marketing Field Office, AMS,
USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-6456;
telephone: (202) 720-1755, 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 pursuant to the
requirements of the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674), hereafter referred to as the ``Act''; and
under Marketing Agreement No. 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 12988, 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
Sec. 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, 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. There are no administrative
procedures which must be exhausted prior to any judicial challenge to
the provisions of this rule.
This rule decreases the assessment rate established for the
Committee for the 1997-98 and subsequent crop years from $0.70 to $0.35
per net ton.
The 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 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 voluntarily
signed the agreement authorizing the expenses that may be incurred and
the imposition of assessments.
For the 1997-98 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 April 30, 1997, and unanimously recommended
1997-98 administrative expenditures of $525,000, and an administrative
assessment rate of $0.35 per net ton of assessable farmers' stock
peanuts received or acquired by handlers. The Committee also 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 1997-
98 crop year. In comparison, last year's budgeted administrative
expenditures were $1,025,500. Major expenditures recommended by the
Committee for the 1997-98 crop year compared with those budgeted for
1996-97 (in parentheses)include: $55,000 for executive salaries
($112,450), $50,000 for clerical salaries ($131,500), $125,000 for
field representatives (3 compliance officers rather than 7 fieldmen)
salaries ($296,700), $18,000 for payroll taxes ($42,000), $65,000 for
employee benefits, ($148,000), $40,000 for committee members travel
($40,000), $5,000 for staff travel ($5,000), $60,000 for field
representatives travel ($110,000), $9,800 for insurance and bonds
($9,800), $19,000 for office rent and parking ($46,200), $10,000 for
office supplies and stationery ($14,000), $10,400 for postage and
mailing ($13,200), $11,000 for telephone and telegraph ($15,000),
$6,000 for repairs and maintenance agreements ($6,000), $10,400 for the
audit fee ($10,400), and $15,800 for the contingency reserve ($10,250).
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
handlers signatory to the agreement, other than
[[Page 48750]]
from those described in Sec. 998.31 (c) and (d), are subject to the
assessments. Farmers' stock peanuts received or acquired by non-
signatory handlers by law are subject to the same assessment rate.
Assessments are due on the 15th of the month following the month in
which the farmers' stock peanuts are received or acquired. Peanut
receipts and acquisitions for the year under the agreement are
estimated at 1,500,000 tons, which should provide $525,000 in
assessment income. Approximately 95 percent of the domestically
produced peanut crop is marketed by handlers who are signatory to the
agreement. The remaining 5 percent of the U.S. peanut crop is marketed
by non-signer handlers.
The Act provides for mandatory assessment of farmer's stock peanuts
acquired by non-signatory peanut handlers. Section 608b of the Act
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.
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
1997-98 budget and those for subsequent crop years 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 initial 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. There are approximately
80 peanut handlers who are subject to regulation under the agreement or
the non-signer program and approximately 25,000 peanut producers in the
16-State production area. Small agricultural service firms, which
include handlers, have been defined by the Small Business
Administration (13 CFR 121.601) as those whose annual receipts are less
than $5,000,000, and small agricultural producers are defined as those
having annual receipts of less than $500,000. Approximately 25 percent
of the signatory handlers, virtually all of the non-signer handlers,
and most of the producers may be classified as small entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 1997-98 and subsequent
crop years from $0.70 to $0.35 per net ton. The recommended assessment
rate is $0.35 less than the rate currently in effect.
The Committee discussed alternatives to this rule, including
alternative expenditure levels. The Committee also discussed the
alternative of not decreasing the assessment rate. However, it decided
against this course of action. The peanut industry has been in a state
of economic decline since 1991, with the Committee attempting to cut
costs where possible. The Committee's budget for 1997-98 is $525,000;
this is $500,500 less than the amount budgeted for 1996-97. Based on an
estimated 1,500,000 net tons of assessable peanuts, income derived from
handler assessments during 1997-98 will be adequate to cover budgeted
expenses.
This action will reduce the assessment obligation imposed on
handlers. While this rule will impose some costs on handlers, the costs
are minimal and in the form of a uniform assessment on all handlers.
Some of these costs may be passed on to producers. However, these costs
will be offset by the benefits derived from the operation of the
agreement. This administrative assessment is required by law to also be
applied uniformly to all non-signatory handlers and should be of
benefit to all. In addition, the Committee's meeting was widely
publicized throughout the peanut industry and all interested persons
were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the April 30,
1997, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons are invited to submit information on the regulatory and
informational impacts of this action on small businesses.
This action will not impose any additional reporting or
recordkeeping requirements on either small or large peanut handlers. As
with all Federal marketing agreement and 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. 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) This action reduces the current assessment rate; (2) the
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis; (3) the Act requires the Department to
impose an administrative assessment on assessable peanuts received or
acquired for the account of signatory and non-signatory handlers; (4)
the 1997-98 crop year began on July 1, 1997, and the agreement and the
Act require that the rate of assessment for each crop year apply to all
assessable peanuts received or acquired during such crop year; (5)
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 (6) 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.
[[Page 48751]]
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.
PART 997--PROVISIONS REGULATING THE QUALITY OF DOMESTICALLY
PRODUCED PEANUTS HANDLED BY PERSONS NOT SUBJECT TO THE PEANUT
MARKETING AGREEMENT
Sec. 997.101 [Amended]
2. Section 997.101 is amended by removing ``July 1, 1996,'' and
adding in its place ``July 1, 1997,'' and by removing ``$0.70'' and
adding in its place ``$0.35.''
PART 998--MARKETING AGREEMENT REGULATING THE QUALITY OF
DOMESTICALLY PRODUCED PEANUTS
Sec. 998.409 [Amended]
3. Section 998.409 is amended by removing ``July 1, 1996,'' and
adding in its place ``July 1, 1997,'' and by removing ``$0.70'' and by
adding in its place ``$0.35.''
Dated: September 12, 1997.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 97-24689 Filed 9-16-97; 8:45 am]
BILLING CODE 3410-02-P
