Sweet Onions Grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon; Amendments to Marketing Order 956
| Published date | 05 April 2019 |
| Citation | 84 FR 13513 |
| Record Number | 2019-06701 |
| Section | Rules and Regulations |
| Court | Agricultural Marketing Service |
Federal Register, Volume 84 Issue 66 (Friday, April 5, 2019)
[Federal Register Volume 84, Number 66 (Friday, April 5, 2019)]
[Rules and Regulations]
[Pages 13513-13516]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06701]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 956
[Doc. No.: AMS-SC-18-0028; SC-18-956-1]
Sweet Onions Grown in the Walla Walla Valley of Southeast
Washington and Northeast Oregon; Amendments to Marketing Order 956
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends Marketing Order No. 956, which
regulates the handling of sweet onions grown in the Walla Walla Valley
of Southeast Washington and Northeast Oregon. The three amendments,
which were proposed by the Walla Walla Sweet Onion Marketing Committee
(Committee), were approved by producers in a referendum. This action
also updates the term of office and staggered term limits for producers
and handlers.
DATES: This rule is effective May 6, 2019.
FOR FURTHER INFORMATION CONTACT: Geronimo Quinones, Marketing
Specialist, or Patty Bennett, Director, 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] 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,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This rule is issued under Marketing Order No. 956, as
amended (7 CFR part 956), regulating the handling of sweet onions grown
in the Walla Walla Valley of Southeast Washington and Northeast Oregon.
Part 956 (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, which is
responsible for the local administration of the Order, is comprised of
sweet onion producers and handlers operating within the area of
production and a public member. Section 608c(17) of the Act and the
applicable rules of practice and procedure governing the formulation of
marketing agreements and orders (7 CFR part 900) authorize amendment of
the Order through this informal rulemaking action.
The Department of Agriculture (USDA) is issuing this 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 final 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 rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This 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 8c(15)(A) of the
Act (7 U.S.C. 608c(15)(A)), any handler subject to an order may file
with USDA 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. 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 no later than 20 days
after the date of entry of the ruling.
Section 1504 of the Food, Conservation, and Energy Act of 2008
(2008 Farm Bill) (Pub. L. 110-246) amended section 8c(17) of the Act (7
U.S.C. 608c(17), which in turn required the addition of supplemental
rules of practice to 7 CFR part 900 (73 FR 49307; August 21, 2008). The
amendment of section 8c(17) of the Act and additional supplemental
rules of practice authorize the use of informal rulemaking (5 U.S.C.
553) to amend Federal fruit, vegetable, and nut marketing agreements
and orders. USDA may use informal rulemaking to amend marketing orders
based on the nature and complexity of the proposed amendments, the
potential regulatory and economic impacts on affected entities, and any
other relevant matters.
The USDA's Agricultural Marketing Service (AMS) considered these
factors and has determined that amending the Order as proposed could
appropriately be accomplished through informal rulemaking.
The proposed amendments were unanimously recommended by the
Committee following deliberations at two public meetings held on
November 14, 2017, and March 3, 2018. A proposed rule soliciting
comments on the amendment was issued on July 19, 2018, and published in
the Federal Register on July 24, 2018 (83 FR 34953). One comment in
support of the amendments was received. As a result, no changes to the
proposed rule were made. A proposed rule and referendum order was then
issued on December 11, 2018, and published in the Federal Register on
December 14, 2018 (83 FR 64296). This document directed that a
referendum among Walla Walla sweet
[[Page 13514]]
onion producers be conducted December 17, 2018, through December 31,
2018, to determine whether they favored the proposals. To become
effective, the amendments had to be approved by two-thirds of producers
voting or by those producers voting in the referendum who represented
at least two-thirds of the volume of Walla Walla sweet onions.
The amendments were favored by 100 percent of the producers voting
and by 100 percent of the volume represented; both exceed the two-
thirds requirement.
The amendments in this final rule change the Committee's size,
quorum, and voting requirements. The amendments also change the term of
office and stagger term limits for producers and handlers.
Final Regulatory Flexibility Analysis
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601-612), AMS has considered the
economic impact of this action 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
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 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 eight handlers of Walla Walla sweet onions subject to
regulation under the Order and approximately 15 producers in the
regulated production area. Small agricultural service firms are defined
by the Small Business Administration (SBA) as those having annual
receipts of less than $7,500,000, and small agricultural producers are
defined as those having annual receipts of less than $750,000 (13 CFR
121.201).
The Committee reported that approximately 390,000 50-pound bags or
equivalents of Walla Walla sweet onions were shipped into the fresh
market in 2017. Based on information reported by USDA's Market News
Service, the average 2017 marketing year f.o.b. shipping point price
for the Walla Walla sweet onions was $14.90 per 50-pound equivalent.
Multiplying the $14.90 average price by the shipment quantity of
390,000 50-pound equivalents yields an annual crop revenue estimate of
$5,811,000. The average annual revenue for each of the eight handlers
is therefore calculated to be $726,375 ($5,811,000 divided by eight),
which is less than the SBA threshold of $7,500,000. Consequently, all
the Walla Walla sweet onion handlers could be classified as small
entities.
In addition, based on information provided by the National
Agricultural Statistics Service (NASS), the average producer price for
Walla Walla sweet onions for the 2012 through 2016 marketing years is
$15.27 per 50-pound equivalent. NASS has not released data regarding
the 2017 marketing year at this time. Multiplying the 2012-2016
marketing year average price of $15.27 by the 2017 marketing year
shipments of 390,000 50-pound equivalents yields an annual crop revenue
estimate of $5,955,300. The estimated average annual revenue for each
of the 15 producers is therefore calculated to be approximately
$397,020 ($5,955,300 divided by 15), which is less than the SBA
threshold of $750,000. In view of the foregoing, the majority of Walla
Walla sweet onion producers and all of the Walla Walla sweet onion
handlers may be classified as small entities.
The amendments, which were unanimously recommended by the Committee
at two public meetings on November 14, 2017, and March 3, 2018, will
change the Committee's size, quorum, and voting requirements. They also
change the term of office and stagger term limits so that the term of
office for producers and handlers will be two fiscal periods instead of
three fiscal periods, and one-half instead of one-third of the producer
and handler member terms will expire every year.
These amendments will have no direct economic effect on producers
or handlers. The number of producers and handlers operating in the
industry has decreased, which makes it difficult to find enough members
to fill positions on the Committee. Decreasing the Committee's size
will make it more reflective of today's industry.
Therefore, it is anticipated that both small and large producer and
handler businesses will benefit from these amendments.
The Committee considered alternatives to the proposals, including
making no changes at this time. Due to changes in the industry, AMS
believes the proposals are justified and necessary to ensure the
Committee's ability to locally administer the program. Reducing the
size of the Committee will enable it to fulfill membership and quorum
requirements fully, thereby ensuring a more efficient and orderly flow
of business.
Paperwork Reduction Act
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 in those requirements are necessary as
a result of this action. Should any changes become necessary, they
would be submitted to OMB for approval.
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 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 citizens to access Government information
and services, and for other purposes.
The Committee's meetings were widely publicized throughout the
Walla Walla sweet onion production area. All interested persons were
invited to attend the meetings and encouraged to participate in
Committee deliberations on all issues. The Committee meetings were
public, and all entities, both large and small, were encouraged to
express their views on these proposals.
A proposed rule concerning this action was published in the Federal
Register on July 24, 2018 (83 FR 34953). Copies of the proposed rule
were mailed or sent via facsimile to all Committee members and all
interested parties. The proposed rule was made available through the
internet by USDA and the Office of the Federal Register. A 60-day
comment period ending September 24, 2018, was provided to allow
interested persons to respond to the proposals. One comment was
received. The comment submitted was in support of the proposals;
therefore, no changes were made to the proposed amendments.
A proposed rule and referendum order was then issued on December
11, 2018, and published in the Federal Register on December 14, 2018
(83 FR 64296). This document directed that a referendum among Walla
Walla sweet onion producers be conducted December 17, 2018, through
December 31, 2018, to determine whether they favored the proposals. To
become effective, the amendments had to be approved by two-thirds of
producers voting or by those producers voting in the referendum who
represented at least two-thirds of the volume of Walla Walla sweet
onions.
[[Page 13515]]
The amendments were favored by 100 percent of the producers voting
and by 100 percent of the volume represented; both exceed the two-
thirds requirement.
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/MarketingOrdersSmallBusinessGuide. Any questions
about the compliance guide should be sent to Richard Lower at his
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
Order Amending the Order Regulating the Handling of Sweet Onions Grown
in the Walla Walla Valley of Southeast Washington and Northeast Oregon
1
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\1\ This order shall not become effective unless and until the
requirements of Sec. 900.14 of the rules of practice and procedure
governing proceedings to formulate marketing agreements and
marketing orders have been met.
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Findings and Determinations
(a) Findings and Determinations Upon the Basis of the Rulemaking
Record.
The findings hereinafter set forth are supplementary to the
findings and determinations which were previously made in connection
with the issuance of the Order; and all said previous findings and
determinations are hereby ratified and affirmed, except insofar as such
findings and determinations may be in conflict with the findings and
determinations set forth herein.
1. The Order, as amended, and as hereby further amended, and all of
the terms and conditions thereof, would tend to effectuate the declared
policy of the Act;
2. The Order, as amended, and as hereby further amended, regulates
the handling of sweet onions grown in the Walla Walla Valley of
Southeast Washington and Northeast Oregon in the same manner as, and is
applicable only to, persons in the respective classes of commercial and
industrial activity specified in the Order;
3. The Order, as amended, and as hereby further amended, is limited
in application to the smallest regional production area that is
practicable, consistent with carrying out the declared policy of the
Act, and the issuance of several orders applicable to subdivisions of
the production area would not effectively carry out the declared policy
of the Act;
4. The Order, as amended, and as hereby further amended,
prescribes, insofar as practicable, such different terms applicable to
different parts of the production area as are necessary to give due
recognition to the differences in the production and marketing of
onions produced in the production area; and
5. All handling of onions produced in the production area as
defined in the Order is in the current of interstate or foreign
commerce or directly burdens, obstructs, or affects such commerce.
(b) Determinations.
It is hereby determined that:
1. Handlers (excluding cooperative associations of producers who
are not engaged in processing, distributing, or shipping of onions
covered under the Order) who during the period June 1, 2017, through
May 31, 2018, handled not less than 50 percent of the volume of such
onions covered by said Order, as hereby amended, have signed an amended
marketing agreement; and
2. The issuance of this amendatory order, further amending the
aforesaid Order, is favored or approved by at least two-thirds of the
producers who participated in a referendum on the question of approval
and who, during the period of June 1, 2017, through May 31, 2018, were
engaged within the production area in the production of such onions.
Such producers also produced for market at least two-thirds of the
volume of such commodity represented in the referendum.
3. The issuance of this amendatory order together with a signed
marketing agreement advances the interests of growers of onions in the
production area pursuant to the declared policy of the Act.
Order Relative to Handling
It is therefore ordered, that on and after the effective date
hereof, all handling of sweet onions grown in the Walla Walla Valley of
Southeast Washington and Northeast Oregon shall be in conformity to,
and in compliance with, the terms and conditions of the said Order as
hereby proposed to be amended as follows:
The provisions amending the Order contained in the proposed rule
issued by the Administrator on July 19, 2018, and published in the
Federal Register on July 24, 2018, (83 FR 34953) will be and are the
terms and provisions of this order amending the Order and are set forth
in full herein.
List of Subjects in 7 CFR Part 956
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
Dated: April 2, 2019.
Bruce Summers,
Administrator, Agricultural Marketing Service.
For the reasons set forth in the preamble, 7 CFR part 956 is
amended as follows:
PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST
WASHINGTON AND NORTHEAST OREGON
0
1. The authority citation for 7 CFR part 956 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Amend Sec. 956.20 by revising paragraph (a) to read as follows:
Sec. 956.20 Establishment and membership.
(a) The Walla Walla Sweet Onion Marketing Committee, consisting of
seven members, is hereby established. The Committee shall consist of
four producer members, two handler members, and one public member. Each
member shall have an alternate who shall have the same qualifications
as the member.
* * * * *
0
3. Amend Sec. 956.21 by revising to read as follows:
Sec. 956.21 Term of office.
(a) Except as otherwise provided in paragraph (b) of this section,
the term of office of grower and handler Committee members and their
respective alternates shall be two fiscal periods beginning on June 1
or such other date as recommended by the Committee and approved by the
Secretary. The terms shall be determined so that one-half of the grower
membership and one-half of the handler membership shall terminate each
year. Members and alternates shall serve during the term of office for
which they are selected and have been qualified, or during that portion
thereof beginning on the date on which they qualify during such term of
office and continuing until the end thereof, or until their successors
are selected and have qualified.
(b) The term of office of the initial members and alternates shall
begin as soon as possible after May 6, 2019. One-half of the initial
industry grower and handler members and alternates shall serve for a
one-year term and one-half shall serve for a two-year term. The initial
as well as all successive terms of office of the public member and
alternate member shall be for three years.
(c) The consecutive terms of office for all members shall be
limited to two two-
[[Page 13516]]
year terms. There shall be no such limitation for alternate members.
0
4. Amend Sec. 956.28 by revising paragraph (a) to read as follows:
Sec. 956.28 Procedure.
(a) Four members of the Committee shall constitute a quorum, and
four concurring votes shall be required to pass any motion or approve
any Committee action, except that recommendations made pursuant to
Sec. 956.61 shall require five concurring votes.
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[FR Doc. 2019-06701 Filed 4-4-19; 8:45 am]
BILLING CODE 3410-02-P
