Dried Prunes Produced in California; Decreased Assessment Rate

Citation84 FR 49963
Record Number2019-20572
Published date24 September 2019
CourtAgricultural Marketing Service
Federal Register, Volume 84 Issue 185 (Tuesday, September 24, 2019)
[Federal Register Volume 84, Number 185 (Tuesday, September 24, 2019)]
                [Proposed Rules]
                [Pages 49963-49965]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-20572]
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                Proposed Rules
                 Federal Register
                ________________________________________________________________________
                This section of the FEDERAL REGISTER contains notices to the public of
                the proposed issuance of rules and regulations. The purpose of these
                notices is to give interested persons an opportunity to participate in
                the rule making prior to the adoption of the final rules.
                ========================================================================
                Federal Register / Vol. 84, No. 185 / Tuesday, September 24, 2019 /
                Proposed Rules
                [[Page 49963]]
                DEPARTMENT OF AGRICULTURE
                Agricultural Marketing Service
                7 CFR Part 993
                [Doc. No. AMS-SC-19-0056; SC19-993-1 PR]
                Dried Prunes Produced in California; Decreased Assessment Rate
                AGENCY: Agricultural Marketing Service, USDA.
                ACTION: Proposed rule.
                -----------------------------------------------------------------------
                SUMMARY: This proposed rule would implement a recommendation from the
                Prune Marketing Committee (Committee) to decrease the assessment rate
                established for the 2019-20 and subsequent crop years from $0.28 to
                $0.25 per ton of salable dried prunes. The assessment rate would remain
                in effect indefinitely unless modified, suspended, or terminated.
                DATES: Comments must be received by October 24, 2019.
                ADDRESSES: Interested persons are invited to submit written comments
                concerning this proposed rule. Comments must be sent to the Docket
                Clerk, Marketing Order and Agreement Division, Specialty Crops Program,
                AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC
                20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. Comments should reference the document 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, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this
                proposed rule will be included in the record and will be made available
                to the public. Please be advised that the identity of the individuals
                or entities submitting the comments will be made public on the internet
                at the address provided above.
                FOR FURTHER INFORMATION CONTACT: Maria Stobbe, Marketing Specialist, or
                Terry Vawter, Regional Director, California Marketing Field Office,
                Marketing Order and Agreement Division, Specialty Crops Program, AMS,
                USDA; Telephone: (559) 538-1674, Fax: (559) 487-5906, or Email:
                [email protected] or [email protected].
                 Small businesses may request information on complying with this
                regulation by contacting Richard Lower, Marketing Order and Agreement
                Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
                SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
                Fax: (202) 720-8938, or Email: [email protected].
                SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
                proposes to amend regulations issued to carry out a marketing order as
                defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
                Agreement and Order No. 993, as amended (7 CFR part 993), regulating
                the handling of dried prunes produced in California. Part 993 (referred
                to as 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 Committee locally administers the Order
                and is comprised of producers and handlers of dried prunes operating
                within the production area, and a public member.
                 The Department of Agriculture (USDA) is issuing this proposed rule
                in conformance with Executive Orders 13563 and 13175. This action falls
                within a category of regulatory actions that the Office of Management
                and Budget (OMB) exempted from Executive Order 12866 review.
                Additionally, because this proposal does not meet the definition of a
                significant regulatory action, it does not trigger the requirements
                contained in Executive Order 13771. See OMB's Memorandum titled
                ``Interim Guidance Implementing Section 2 of the Executive Order of
                January 30, 2017, titled `Reducing Regulation and Controlling
                Regulatory Costs' '' (February 2, 2017).
                 This proposed rule has been reviewed under Executive Order 12988,
                Civil Justice Reform. Under the 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 will be applicable to all assessable dried prunes
                beginning on August 1, 2019, and continue until amended, suspended, or
                terminated.
                 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 a marketing order may file with USDA a
                petition stating that the marketing order, any provision of the
                marketing order, or any obligation imposed in connection with the
                marketing order is not in accordance with law and request a
                modification of the marketing order or to be exempted therefrom. Such
                handler is afforded the opportunity for a hearing on the petition.
                After the hearing, USDA 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 USDA's ruling on the petition,
                provided an action is filed not later than 20 days after the date of
                the entry of the ruling.
                 The Order authorizes the Committee, with the approval of USDA, to
                formulate an annual budget of expenses and collect assessments from
                handlers to administer the program. The members are familiar with the
                costs of goods and services in their local area and can formulate an
                appropriate budget and assessment rate. The Committee formulates and
                discusses the assessment rate in a public meeting where all directly
                affected persons have an opportunity to participate and provide input.
                 This proposed rule would decrease the assessment rate for the 2019-
                20 and subsequent crop years from $0.28 to $0.25 per ton of salable
                dried prunes handled for the 2019-20 and subsequent crop years.
                 The Order's assessment rate of $0.28 had been in effect since the
                2013-14 crop year. The Committee met on June 20, 2019, and unanimously
                recommended 2019-20 crop year expenditures of $24,500 and an assessment
                rate of $0.25 per ton of salable dried prunes. In comparison, last
                year's budgeted expenditures were $20,470. The assessment rate of $0.25
                is $0.03 lower than the rate currently in effect. The Committee
                recommended decreasing the assessment rate to reflect an anticipated
                larger crop, which is expected to result in assessment
                [[Page 49964]]
                revenue greater than anticipated expenses.
                 The major expenditures recommended by the Committee for the 2019-20
                year include $13,300 for personnel, and $11,200 for operating expenses.
                In comparison, budgeted expenses for these items in 2018-19 were
                $10,490, and $9,980, respectively.
                 The assessment rate recommended by the Committee was derived by
                considering anticipated expenses and expected shipments of 110,000 tons
                of salable dried prunes. Income derived from proposed reduced handler
                assessment estimated to be $27,500 (110,000 x $0.25), along with
                interest income, would be adequate to cover budgeted expenses of
                $24,500.
                 The assessment rate proposed in this rule would continue in effect
                indefinitely unless modified, suspended, or terminated by USDA upon
                recommendation and information submitted by the Committee or other
                available information.
                 Although this assessment rate would be 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 USDA.
                Committee meetings are open to the public and interested persons may
                express their views at these meetings. USDA would 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 2019-20 crop year budget
                and those for subsequent crop years would be reviewed and, as
                appropriate, approved by USDA.
                Initial Regulatory Flexibility Analysis
                 Pursuant to requirements set forth in the Regulatory Flexibility
                Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
                has considered the economic impact of this proposed 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
                businesses subject to such actions in order that small businesses will
                not be unduly or disproportionately burdened. Marketing orders issued
                pursuant to the Act are unique in that they are brought about through
                group action of essentially small entities acting on their own behalf.
                 There are approximately 800 producers of dried prunes in the
                production area and 20 handlers subject to regulation under the Order.
                Small agricultural producers are defined by the Small Business
                Administration (SBA) as those having annual receipts less than
                $750,000, and small agricultural service firms are defined as those
                whose annual receipts are less than $7,500,000 (13 CFR 121.201).
                 According to Committee data, the average price for California dried
                prunes during the 2017-18 season was approximately $1,980 per ton with
                a total production of 105,000 tons. Using the average price and
                shipment information, the number of handlers (20), and assuming a
                normal distribution, the majority of handlers would have average annual
                receipts of greater than $7,500,000. Thus, the majority of California
                dried prune handlers may be classified as large business entities.
                 In addition, and assuming a normal distribution, dividing the
                average prune crop value for 2017 reported by the National Agricultural
                Statistics Service (NASS) of $206,084,000, by the number of producers
                (800) yields an average annual producer revenue estimate of about
                $257,605. Based on the foregoing, the majority of producers of
                California dried prunes may be classified as small entities.
                 This proposed rule would decrease the assessment rate collected
                from handlers for the 2019-20 and subsequent crop years from $0.28 to
                $0.25 per ton of salable California dried prunes. The Committee
                unanimously recommended 2019-20 expenditures of $24,500 and an
                assessment rate of $0.25 per ton of salable dried prunes handled. The
                proposed assessment rate of $0.25 is $0.03 lower than the rate
                currently in effect. The quantity of assessable dried prunes for the
                2019-20 crop year is estimated at 110,000 tons. Thus, the proposed
                $0.25 rate should provide $27,500 in assessment income (110,000 x
                $0.25). Income derived from handler assessments, along with interest
                income, would be adequate to cover budgeted expenses.
                 The major expenditures recommended by the Committee for the 2019-20
                crop year include $13,300 for personnel, and $11,200 for operating
                expenses. In comparison, budgeted expenses for these items in 2018-19
                were $10,490, and $9,980, respectively.
                 The Committee recommended decreasing the assessment rate, given
                that the increase in crop size and the associated revenue would be
                sufficient to fund its proposed 2019-20 crop year expenses.
                 Prior to arriving at this budget and assessment rate, the Committee
                considered information from various sources, such as the Committee's
                Executive Committee and NASS. Alternative expenditure levels were
                discussed by the Executive Committee, which reviewed the relative value
                of various activities to the prune industry. This committee determined
                that all program activities were adequately funded; thus, no alternate
                expenditure levels were deemed appropriate. Additionally, maintaining
                the current assessment rate of $0.28 per ton of salable dried prunes
                was discussed. However, sufficient funds would be generated at the
                larger crop size ($27,500), even if assessed at the lower assessment
                rate proposed. The proposed rate of $0.25 per ton of salable dried
                prunes may exceed anticipated expenses by $3,000, thereby providing
                contingency funds for unexpected expenses.
                 Based on these discussions and estimated shipments, the recommended
                assessment rate of $0.25 would provide $27,500 in assessment income.
                The Committee determined that assessment revenue and interest income
                would be adequate to cover budgeted expenses for the 2019-20 crop year.
                 A review of historical information and preliminary information
                pertaining to the upcoming crop year indicate that the average grower
                price for the 2019-20 crop year should be approximately $2,000 per ton
                of salable dried prunes. Therefore, the estimated assessment revenue
                for the 2019-20 crop year as a percentage of total grower revenue would
                be about 0.01 percent.
                 This proposed rule would 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. Decreasing the
                assessment rate reduces the burden on handlers and may also reduce the
                burden on producers.
                 The Committee widely publicizes its meetings throughout the
                California prune industry. The Committee's June 20, 2019, meeting was
                open to the public, and all entities, both large and small, were able
                to express views on all issues. Finally, interested persons are invited
                to submit comments on this proposed rule, including the regulatory and
                information collection impacts of this action on small businesses.
                 In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
                Chapter 35), the Order's information collection requirements have been
                previously approved by the Office of Management and Budget (OMB) and
                [[Page 49965]]
                assigned OMB No. 0581-0178 Vegetable and Specialty Crops. No changes in
                those requirements are necessary as a result of this action. Should any
                changes become necessary, they would be submitted to OMB for approval.
                 This proposed rule would not impose any additional reporting or
                recordkeeping requirements on either small or large California 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.
                 AMS is committed to complying with the E-Government Act, to promote
                the use of the internet and other information technologies to provide
                increased opportunities for citizen access to Government information
                and services, and for other purposes.
                 USDA has not identified any relevant Federal rules that duplicate,
                overlap, or conflict with this rule.
                 A small business guide on complying with fruit, vegetable, and
                specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions
                about the compliance guide should be sent to Richard Lower at the
                previously mentioned address in the FOR FURTHER INFORMATION CONTACT
                section.
                 A 30-day comment period is provided to allow interested persons to
                respond to this proposal. All written comments timely received will be
                considered before a final determination is made on this rule.
                List of Subjects in 7 CFR Part 993
                 Marketing agreements, Plum, Prunes, Reporting and recordkeeping
                requirements.
                 For the reasons set forth in the preamble, 7 CFR part 993 is
                proposed to be amended as follows:
                PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
                0
                1. The authority citation for 7 CFR part 993 continues to read as
                follows:
                 Authority: 7 U.S.C. 601-674.
                Sec. 993.347 [Amended]
                0
                2. Amend Sec. 993.347 to read as follows:
                Sec. 993.347 Assessment rate.
                 On and after August 1, 2019, an assessment rate of $0.25 per ton of
                salable dried prunes is established for California dried prunes.
                 Dated: September 18, 2019.
                Bruce Summers,
                Administrator, Agricultural Marketing Service.
                [FR Doc. 2019-20572 Filed 9-23-19; 8:45 am]
                 BILLING CODE 3410-02-P
                

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