Irish Potatoes Grown in Washington; Suspension of Reporting and Assessment Requirements

Citation85 FR 64415
Record Number2020-20787
Published date13 October 2020
CourtAgricultural Marketing Service
Federal Register, Volume 85 Issue 198 (Tuesday, October 13, 2020)
[Federal Register Volume 85, Number 198 (Tuesday, October 13, 2020)]
                [Proposed Rules]
                [Pages 64415-64417]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-20787]
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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. 85, No. 198 / Tuesday, October 13, 2020 /
                Proposed Rules
                [[Page 64415]]
                DEPARTMENT OF AGRICULTURE
                Agricultural Marketing Service
                7 CFR Part 946
                [Doc. No. AMS-SC-20-0062; SC20-946-1 PR]
                Irish Potatoes Grown in Washington; Suspension of Reporting and
                Assessment Requirements
                AGENCY: Agricultural Marketing Service, USDA.
                ACTION: Proposed rule.
                -----------------------------------------------------------------------
                SUMMARY: This proposed rule invites comments on a recommendation from
                the State of Washington Potato Committee (Committee) to suspend the
                reporting and assessment requirements prescribed under the marketing
                order regulating Irish Potatoes grown in Washington (Order). In a
                separate action, the Committee also unanimously recommended terminating
                Marketing Order No. 946. This rule would indefinitely suspend the
                reporting and assessment requirements of the Order during the period
                that USDA is processing the termination request.
                DATES: Comments must be received by December 14, 2020.
                ADDRESSES: Interested persons are invited to submit written comments
                concerning this proposal. 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: https://www.regulations.gov.
                All comments should reference the document number and the date and page
                number of this issue of the Federal Register and will be made available
                for public inspection in the Office of the Docket Clerk during regular
                business hours or can be viewed at: https://www.regulations.gov. All
                comments submitted in response to this proposal 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: Gregory A. Breasher, Marketing
                Specialist, or Gary Olson, Regional Director, Northwest Marketing Field
                Office, Marketing Order and Agreement Division, Specialty Crops
                Program, AMS, USDA; Telephone: (503) 326-2724 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 an amendment to regulations issued to carry out a marketing
                order as defined in 7 CFR 900.2(j). This proposed rule is issued under
                Marketing Order No. 946, as amended (7 CFR part 946), regulating the
                handling of Irish potatoes grown in Washington. Part 946 (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 operating within the
                production area.
                 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 proposed rule 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. This proposed rule is not intended to have
                retroactive effect.
                 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. A
                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 Committee meets regularly to consider recommendations for
                modification, suspension, or termination of the Order's regulatory
                requirements. Committee meetings are open to the public and interested
                persons may express their views at these meetings. USDA reviews
                Committee recommendations, including information provided by the
                Committee and from other available sources, and determines whether
                modification, suspension, or termination of the regulatory requirements
                would tend to effectuate the declared policy of the Act.
                 On June 11, 2020, the Committee met and, after much deliberation,
                unanimously recommended that USDA terminate the Order. Additionally,
                the Committee recommended that the Order's reporting and assessment
                requirements--the only regulatory activities of the Order currently in
                effect--be suspended while the recommendation for termination is being
                processed by USDA. The termination would be a separate regulatory
                action from the suspension of requirements as proposed herein.
                 Section 946.41 provides authority for the Committee to assess
                handlers for their pro rata share of the Committee expenses authorized
                each fiscal period. Section 946.70 authorizes the Committee to collect
                reports and other information necessary for the Committee to perform
                its duties under the Order. This proposed rule would
                [[Page 64416]]
                suspend Sec. 946.248, which established a continuing assessment rate
                of $0.0025 per hundredweight, effective for the 2013-2014 and
                subsequent fiscal periods, and Sec. 946.143, which requires monthly
                reporting of fresh potato shipments from the production area.
                 The Order has been in effect since 1949, providing the Washington
                potato industry authority for grade, size, quality, maturity, pack, and
                container requirements, as well as authority for inspection
                requirements. Based on the Committee's recommendation in 2010, USDA
                suspended the Order's handling requirements for Russet potatoes. The
                Committee believed that the costs of inspection outweighed the benefits
                provided from having the Order's regulatory requirements in effect for
                that type potato.
                 In 2013, also upon the recommendation of the Committee, USDA
                suspended handling requirements temporarily, through June 30, 2014, for
                all yellow flesh and white type potatoes. Again, the Committee believed
                that the costs of inspection outweighed the benefits provided from
                regulating these type potatoes.
                 In 2014, the handling requirements for red type potatoes were
                indefinitely suspended. Also in 2014, the temporary suspension for
                yellow flesh and white types was extended indefinitely. The sum of the
                previous actions effectively suspended the handling requirements for
                all types of Washington potatoes after the 2013-2014 marketing year.
                The Committee believed operating without handling regulation offered
                Washington potato handlers a cost savings through the elimination of
                mandatory inspection fees. Also, the Committee had determined that the
                potential negative market impact of operating without mandatory quality
                and inspection requirements was minimal.
                 Following the suspension of the handling requirements in 2014, the
                Committee continued to levy assessments and to maintain its
                administrative function. The Committee believed that it should continue
                to fund its full operational capability, collect industry statistics on
                an ongoing basis, and maintain the program in the event that regulating
                quality was again deemed necessary.
                 The Committee met on June 11, 2020, to discuss the current status
                of the Washington potato industry and the relevance of the Order. The
                Committee determined that the suspension of the Order's handling
                requirements has not negatively impacted the industry and that there is
                no longer a need for the Order. Also, the Committee concluded that the
                collection of information under the Order's authority is redundant, as
                the Washington Potato Commission has similar handler reporting
                requirements and that the statistical information collected by it is
                provided to the industry. Thus, the Committee unanimously recommended
                terminating the Order.
                 In addition, the Committee determined that there is no need to
                continue collecting assessments and requiring reports while USDA
                considers its termination recommendation. Therefore, the Committee also
                unanimously recommended that the assessment and reporting requirements
                of the Order be immediately suspended. This action would relieve
                handlers of the assessment and reporting burden during the pendency of
                the termination process.
                 At the June meeting, the Committee recommended a budget of $41,150
                for the indefinite period leading up to the termination of the Order.
                The budgeted amount was established on the basis of the funds remaining
                in the Committee's monetary reserve and expected future expenses. The
                budget, in its entirety, would provide for such operating expenses as
                are necessary during the termination process, including a final
                financial review and management compensation.
                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, 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.
                 There are approximately 250 producers of Washington potatoes and
                approximately 26 fresh potato handlers in the production area subject
                to regulation by the Order.
                 Small agricultural service firms are defined by the Small Business
                Administration (13 CFR 121.201) as those having annual receipts of less
                than $30,000,000, and small agricultural producers are defined as those
                having annual receipts of less than $1,000,000.
                 According to USDA Market News, the average shipping point price for
                fresh Washington potatoes during the 2019 shipping season was
                approximately $15.79 per hundredweight. The Committee reported 2019-
                2020 marketing year fresh potato shipments were 9,687,170
                hundredweight. Given the number of handlers, average annual handler
                receipts are less than $30,000,000 ($15.79/hundredweight times
                9,687,170 hundredweight equal $152,960,414, divided by 26 handlers
                equals $5,883,093 per handler).
                 In addition, USDA National Agricultural Statistics Service reported
                an average producer price of $8.20 per hundredweight for the 2019 crop.
                Given the number of Washington potato producers, average annual
                producer revenue is below $1,000,000 ($8.20/hundredweight times
                9,687,170 hundredweight equal $79,434,794, divided by 250 producers
                equals $317,739 per producer). Therefore, most handlers and producers
                of fresh Washington potatoes may be classified as small agricultural
                businesses.
                 This proposed rule would suspend the reporting and assessment
                requirements of the Order. The handler reporting requirement that would
                be suspended is the monthly collection of Washington fresh potato
                shipment information. The assessment rate that would be suspended is
                the $0.0025 per hundredweight rate in effect for the 2013 fiscal period
                and continuing to the present day. The Committee also recommended a
                budget of expenditures of $41,150 for the period beginning July 1, 2020
                and ending with termination of the Order. The budget was based on the
                Committee's estimated financial resources on June 30, 2020. Budgeted
                expenditures include administrative expenses and a final financial
                review.
                 The Committee made the recommendation to suspend the reporting and
                assessment requirements as an adjunct to the recommendation to
                terminate the Order. As such, the only other alternative discussed by
                the Committee was to maintain the status quo, continue to assess
                handlers, and to require monthly handling reports. After consideration,
                the Committee determined that the Order is no longer beneficial to the
                industry and that the best recourse was to cease operations and
                terminate the Order.
                 This action would suspend the reporting and assessment obligations
                imposed on handlers. When in effect, assessments are applied uniformly
                on all handlers, and some of those costs may be passed on to producers.
                The suspension of the reporting and assessment requirements would
                reduce the regulatory burden on handlers and
                [[Page 64417]]
                would also be expected to reduce the burden on producers.
                 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 OMB and assigned OMB No. 0581-0178 Vegetable and
                Specialty Crops. No changes are necessary in those requirements as a
                result of this proposed 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 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. In addition, USDA
                has not identified any relevant Federal rules that duplicate, overlap
                or conflict with this proposed rule.
                 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.
                 The Committee's meeting was widely publicized throughout the
                Washington potato 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 11, 2020, meeting was a
                public meeting, and all entities, both large and small, were able to
                express their views on these issues. Interested persons are invited to
                submit comments on this proposed rule, including the regulatory and
                information collection impacts of this proposed action on small
                businesses.
                 A small business guide on complying with fruit, vegetable, and
                specialty crop marketing agreements and orders may be viewed at:
                https://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 60-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 matter.
                List of Subjects in 7 CFR Part 946
                 Marketing agreements, Potatoes, Reporting and recordkeeping
                requirements.
                 For the reasons set forth in the preamble, the Agriculture
                Marketing Services proposes to amend 7 CFR part 946 as follows:
                PART 946--IRISH POTATOES GROWN IN WASHINGTON
                0
                1. The authority citation for 7 CFR part 946 continues to read as
                follows:
                 Authority: 7 U.S.C. 601-674.
                Sec. Sec. 946.143 and 946.248 [Suspended]
                0
                2. Suspend Sec. Sec. 946.143 and 946.248 indefinately.
                Bruce Summers,
                Administrator, Agricultural Marketing Service.
                [FR Doc. 2020-20787 Filed 10-9-20; 8:45 am]
                BILLING CODE P
                

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