Tart Cherries Grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington and Wisconsin; Modification of Assessment Rate
| Published date | 16 December 2020 |
| Citation | 85 FR 81425 |
| Record Number | 2020-27563 |
| Section | Proposed rules |
| Court | Agricultural Marketing Service |
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.
Proposed Rules Federal Register
81425
Vol. 85, No. 242
Wednesday, December 16, 2020
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 930
[Doc. No. AMS–SC–20–0079; SC20–930–4
PR]
Tart Cherries Grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington and
Wisconsin; Modification of
Assessment Rate
AGENCY
: Agricultural Marketing Service,
USDA.
ACTION
: Proposed rule.
SUMMARY
: This proposed rule would
implement a recommendation from the
Cherry Industry Administrative Board
(Board) to decrease the portion of
assessments allocated to research and
promotion activities and increase the
portion allocated to administrative
expenses. The overall assessment rate
would remain unchanged. The proposed
assessment rate would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES
: Comments must be received by
January 15, 2021.
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: https://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: https://
www.regulations.gov. All comments
submitted in response to this 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
:
Thomas Nalepa, Marketing Specialist, or
Christian D. Nissen, Regional Director,
Southeast Marketing Field Office,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 291–8614, or Email:
Thomas.Nalepa@usda.gov or
Christian.Nissen@usda.gov.
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:
Richard.Lower@usda.gov.
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
Agreement and Order No. 930, both as
amended (7 CFR part 930), regulating
the handling of tart cherries produced in
the States of Michigan, New York,
Pennsylvania, Oregon, Utah,
Washington, and Wisconsin. Part 930
(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 Board locally
administers the Order and is comprised
of producers and handlers of tart
cherries 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 proposed rule
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. Under the Order now in
effect, tart cherry handlers are subject to
assessments. Funds to administer the
Order are derived from such
assessments. It is intended that the
assessment rate would be applicable to
all assessable tart cherries for the 2020–
21 crop year 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 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. 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.
This proposed rule would decrease
the portion of the assessment rate
allocated to research and promotion
activities from $0.005 to $0.00275 per
pound of tart cherries and increase the
portion allocated to administrative
expenses from $0.00075 to $0.003 per
pound of tart cherries. The overall
assessment rate established for the
Board for the 2020–21 and subsequent
fiscal periods would remain unchanged
at $0.00575 per pound of tart cherries.
The Order provides authority for the
Board, 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 Board’s
needs and with the costs of goods and
services in their local areas 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.
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81426
Federal Register / Vol. 85, No. 242 / Wednesday, December 16, 2020 / Proposed Rules
For the 2019–20 fiscal period, the
Board recommended, and USDA
approved, an assessment rate of
$0.00575 per pound of tart cherries that
would continue in effect from fiscal
period to fiscal period unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
information available to USDA.
During the September 10, 2020
meeting, the Board recommended 2020–
21 expenditures of $795,000 and an
assessment rate of $0.00575 per pound
of tart cherries. In comparison, last
year’s budgeted expenditures were
$1,956,500. The total assessment rate
remains unchanged by this action.
However, this proposed rule would
decrease the portion of the assessment
rate allocated to research and promotion
activities from $0.005 to $0.00275 per
pound of tart cherries and increase the
portion allocated to administrative
expenses from $0.00075 to $0.003 per
pound of tart cherries. This shift in
allocation would allow the Board to
fund its administrative obligations
while continuing limited research and
promotion activities to help market this
season’s below-average crop. The
revised allocation would ensure the
availability of adequate administrative
funds despite a significant draw-down
in reserves resulting from the 2019–20
crop year assessment rate reduction.
The major expenditures
recommended by the Board for the
2020–21 year include $350,000 for
research and promotion, $255,000 for
salaries and wages, and $130,000 for
other administrative expenses. Budgeted
expenses for these items in 2019–2020
were $1,514,500, $250,000, and
$130,000, respectively.
The Board derived the recommended
assessment rate by considering
anticipated administrative expenses, an
estimated crop of 141.46 million pounds
of tart cherries (down from last year’s
production of 236.3 million pounds),
the current status of reserves, and the
needs of the industry with regards to
research and promotion activities.
Income derived from handler
assessments is calculated at $813,395
(141.46 million pounds × $0.00575/
pound). The Board anticipates that due
to approved exemptions and loss
adjustments the actual income from
assessments will be closer to $783,992.
Assessment income, along with interest
income and funds from the Board’s
authorized reserve, would be adequate
to cover budgeted expenses of $795,000.
Funds in the reserve are estimated to be
$75,096 at the end of the 2020–21 fiscal
year.
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 Board or other
available information.
Although this assessment rate would
be in effect for an indefinite period, the
Board 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 Board meetings are available from the
Board or USDA. Board meetings are
open to the public and interested
persons may express their views at these
meetings. USDA would evaluate Board
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The Board’s
2020–21 budget and those for
subsequent fiscal periods will 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, 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 approximately 400
producers of tart cherries in the
regulated area and approximately 40
handlers of tart cherries who are subject
to regulation under the Order. Small
agricultural producers are defined by
the Small Business Administration
(SBA) as those having annual receipts of
less than $1,000,000, and small
agricultural service firms have been
defined as those whose annual receipts
are less than $30,000,000 (13 CFR
121.201).
According to the National
Agricultural Statistics Service (NASS)
and Board data, the average annual
grower price for tart cherries during the
2019–20 season was approximately
$0.15 per pound. With total utilization
at 236.3 million pounds, the total 2019–
20 crop value is estimated at $35.45
million. Dividing the crop value by the
estimated number of producers (400)
yields an estimated average receipt per
producer of $88,613. This is well below
the SBA threshold for small producers.
A free on board (FOB) price of $0.82
per pound for processed tart cherries
was derived from USDA’s 2020
purchases of dried tart cherries at an
average price of $4.11 per pound. The
dried cherry price was converted to a
raw product equivalent price at an
industry recognized ratio of five to one.
Based on utilization, this price
represents a good estimate of the price
for processed cherries. Multiplying this
FOB price by total utilization of 236.3
million pounds results in an estimated
handler-level tart cherry value of $193.8
million. Dividing this figure by the
number of handlers (40) yields
estimated average annual handler
receipts of $4.8 million, which is below
the SBA threshold for small agricultural
service firms. Assuming a normal
distribution, the majority of producers
and handlers of tart cherries may be
classified as small entities.
This proposal would decrease the
portion of the assessment rate allocated
to research and promotion activities
from $0.005 to $0.00275 per pound of
tart cherries and increase the portion
allocated to administrative expenses
from $0.00075 to $0.003 per pound of
tart cherries. The overall assessment rate
established for the Board for the 2019–
20 and subsequent fiscal periods would
remain unchanged at $0.00575 per
pound of tart cherries. The volume of
assessable tart cherries for the 2020–21
season is estimated at 141.46 million
pounds. Thus, the $0.00575 rate should
provide $813,395 in assessment income
(141.46 million pounds × $0.00575/
pound). The Board anticipates that due
to approved exemptions and loss
adjustments the total income from
assessments will be $783,992. Income
derived from handler assessments, along
with interest income and funds from the
Board’s authorized reserve, would be
adequate to cover budgeted expenses.
The major expenditures
recommended by the Board for the
2020–21 year include $350,000 for
Research and promotion, $255,000 for
salaries and wages, and $130,000 for
other administrative expenses. Budgeted
expenses for these items in 2019–20
were $1,514,500, $250,000, and
$130,000, respectively.
This proposed rule would shift the
allocation of the assessment rate to
decrease the portion allotted for
research and promotion, while
increasing the amount allocated for
administrative costs. This adjustment
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Federal Register / Vol. 85, No. 242 / Wednesday, December 16, 2020 / Proposed Rules
would provide enough funds for the
Board’s administrative obligations and
decrease the funding for research and
promotion activities to reflect the
significant reduction in the 2020–21
crop.
Prior to arriving at this budget and
assessment rate, the Board considered
production history, crop estimates, its
financial statements, and the need to
meet its administrative obligations and
maintain some marketing efforts to
increase demand for tart cherries. The
Board discussed alternatives, including
raising the assessment rate and
borrowing funds; however, they were
rejected due to the burden of increasing
assessments on handlers and the cost of
debt due to financing. The Board
determined that 2020–21 expenditures
of $795,000 were appropriate, and the
recommended assessment rate and
allocation, along with funds from
interest income, and funds from
reserves, would be adequate to cover the
budgeted expenses.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal year indicates that
the average grower price for the 2020–
21 season should be approximately
$0.19 per pound of tart cherries.
According to NASS statistics, this price
is the average of the past three years.
Therefore, the estimated assessment
revenue for the 2020–21 crop year as a
percentage of total grower revenue
would be approximately 3.0 percent.
This proposed rule would not
increase 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, these costs would
be offset by the benefits derived by the
operation of the marketing order.
The Board’s meeting was widely
publicized throughout the tart cherry
industry. All interested persons were
invited to attend the meeting and
participate in Board deliberations on all
issues. Like all Board meetings, the
September 10, 2020, 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 comments
on this proposed rule, including the
regulatory and informational 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 OMB and
assigned OMB No. 0581–0177, Tart
Cherries Grown in the States of
Michigan, New York, Pennsylvania,
Oregon, Utah, Washington, and
Wisconsin. No changes in those
requirements would be necessary as a
result of this proposed rule. 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 tart cherry 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 proposed rule.
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 30-day comment period is provided
to allow interested persons to respond
to this proposed rule.
List of Subjects in 7 CFR Part 930
Marketing agreements, Reporting and
recordkeeping requirements, Tart
cherries.
For the reasons set forth in the
preamble, 7 CFR part 930 is proposed to
be amended as follows:
PART 930—TART CHERRIES GROWN
IN THE STATES OF MICHIGAN, NEW
YORK, PENNSYLVANIA, OREGON,
UTAH, WASHINGTON, AND
WISCONSIN
■1. The authority citation for 7 CFR
part 930 continues to read as follows:
Authority: 7 U.S.C. 601–674.
■2. Section 930.200 is revised to read
as follows:
§ 930.200 Assessment rate.
On and after October 1, 2020, the
assessment rate imposed on handlers
shall be $0.00575 per pound of tart
cherries grown in the production area
and utilized in the production of tart
cherry products. Included in this rate is
$0.00275 per pound of tart cherries to
cover the cost of the research and
promotion program and $0.003 per
pound of tart cherries to cover
administrative expenses.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2020–27563 Filed 12–15–20; 8:45 am]
BILLING CODE P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2020–1132; Project
Identifier MCAI–2020–01386–R]
RIN 2120–AA64
Airworthiness Directives; Airbus
Helicopters
AGENCY
: Federal Aviation
Administration (FAA), DOT.
ACTION
: Notice of proposed rulemaking
(NPRM).
SUMMARY
: The FAA proposes to
supersede Airworthiness Directive (AD)
2018–15–02, which applies to certain
Airbus Helicopters Model AS350B,
AS350B1, AS350B2, AS350B3,
AS350BA, AS355E, AS355F, AS355F1,
AS355F2, AS355N, and AS355NP
helicopters. AD 2018–15–02 requires
repetitively inspecting the tail rotor (TR)
pitch rod for a damaged elastomeric ball
joint, and corrective action if necessary.
Since the FAA issued AD 2018–15–02,
the FAA determined that the
manufacturer had developed improved
inspection procedures and identified
conditions that would allow the
repetitive inspection intervals specified
in AD 2018–15–02 to be extended to
correspond with the intervals for the
inspection of the TR pitch rod specified
in the airworthiness limitation section
of the applicable helicopter
maintenance manual. This proposed AD
would retain the requirements of AD
2018–15–02 and allow the repetitive
inspection interval to be extended under
certain conditions, as specified in a
European Union Aviation Safety Agency
(EASA) AD, which is proposed for
incorporation by reference. The FAA is
proposing this AD to address the unsafe
condition on these products.
DATES
: The FAA must receive comments
on this proposed AD by February 1,
2021.
ADDRESSES
: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
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