Rule2021-17237
Olives Grown in California; Increased Assessment Rate
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 12, 2021
Effective
September 13, 2021
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements a recommendation from the California Olive Committee to increase the assessment rate for the 2021 fiscal year. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 86 Issue 153 (Thursday, August 12, 2021)</title>
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[Federal Register Volume 86, Number 153 (Thursday, August 12, 2021)]
[Rules and Regulations]
[Pages 44257-44259]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17237]
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Rules and Regulations
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 86, No. 153 / Thursday, August 12, 2021 /
Rules and Regulations
[[Page 44257]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 932
[Doc. No. AMS-SC-20-0102; SC21-932-1 FR]
Olives Grown in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule implements a recommendation from the
California Olive Committee to increase the assessment rate for the 2021
fiscal year. The assessment rate will remain in effect indefinitely
unless modified, suspended, or terminated.
DATES: Effective September 13, 2021.
FOR FURTHER INFORMATION CONTACT: Bianca Bertrand, Management and
Program Analyst, or Gary D. Olson, Regional Director, California
Marketing Field Office, Marketing Order and Agreement Division,
Specialty Crops Program, AMS, USDA; Telephone: (559) 356-8202 or email:
<a href="/cdn-cgi/l/email-protection#2b69424a45484a6605694e595f594a454f6b5e584f4a054c445d"><span class="__cf_email__" data-cfemail="6a28030b04090b2744280f181e180b040e2a1f190e0b440d051c">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#cc8badbeb588e283a0bfa3a28cb9bfa8ade2aba3ba"><span class="__cf_email__" data-cfemail="561137242f1278193a253938162325323778313920">[email protected]</span></a>.
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, or
email: <a href="/cdn-cgi/l/email-protection#47152e242f263523690b28302235073234232669202831"><span class="__cf_email__" data-cfemail="67350e040f061503492b08100215271214030649000811">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
implements an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This rule is issued under Marketing
Agreement and Order No. 932, as amended (7 CFR part 932), regulating
the handling of olives grown in California. Part 932 (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 California Olive Committee (Committee) locally
administers the Order and is comprised of producers and handlers of
olives operating within the production area.
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Orders 12866 and 13563. Executive Orders
12866 and 13563 direct agencies to assess all costs and benefits of
available regulatory alternatives and, if regulation is necessary, to
select regulatory approaches that maximize net benefits (including
potential economic, environmental, public health and safety effects,
distributive impacts and equity). Executive Order 13563 emphasizes the
importance of quantifying both costs and benefits, reducing costs,
harmonizing rules, and promoting flexibility. This action falls within
a category of regulatory actions that the Office of Management and
Budget (OMB) exempted from Executive Order 12866 review.
This rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires agencies to consider whether their rulemaking actions would
have tribal implications. AMS has determined this rule is unlikely to
have substantial direct effects on one or more Indian tribes, on the
relationship between the Federal Government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian tribes.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the Order now in effect, California olive
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the assessment rate
be applicable to all assessable olives for the 2021 fiscal 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 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.
This rule increases the current assessment rate from $15.00 per ton
of assessable olives to $30.00 per ton of assessable olives for the
2021 fiscal year and subsequent fiscal years. The marketing year runs
August 1 through July 31.
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. Members are familiar with the
Committee's needs and with the costs of goods and services in their
local area and are thus able to formulate an appropriate budget and
assessment rate. The assessment rate is formulated and discussed in a
public meeting and all directly affected persons have an opportunity to
participate and provide input.
For the 2020 fiscal year and subsequent fiscal years, the Committee
recommended, and USDA approved, an assessment rate of $15.00 per ton of
assessable olives. That assessment rate will continue in effect until
modified, suspended, or terminated by USDA upon recommendation and
information submitted by the Committee, or other information available
to USDA.
The Committee met on December 8, 2020, and unanimously recommended
expenditures of $1,151,832 and an assessment rate of $30.00 per ton of
assessable olives handled for the 2021 fiscal year and subsequent
fiscal years. In comparison, last year's budgeted expenditures were
$1,035,406. The assessment rate of $30.00 is $15.00 higher than the
rate currently in effect. Handlers received 23,193 tons of assessable
olives for the 2020 crop year. This is substantially less than the
volume for the 2019 crop year, which was 81,689 tons of assessable
olives.
[[Page 44258]]
The Committee recommended increasing the assessment rate due to the
smaller crop. The assessment rate and funds from the Committee's
authorized financial reserve is expected to cover the Committee's
budgeted expenses for the 2021 fiscal year. Funds in the reserve are
expected to remain within the maximum permitted by the Order.
The Order has both a fiscal year and a crop year that are
independent of each other. The crop year is a 12-month period that
begins on August 1 of each year and ends on July 31 of the following
year. The fiscal year is the 12-month period that begins on January 1
and ends on December 31 of each year.
Actual crop year receipts, along with the proposed budget, are used
to determine the assessment rate for the following fiscal year. Olives
are an alternate-bearing crop, with a small crop followed by a large
crop. Therefore, the Committee expects fluctuations in the assessment
rate.
Major expenditures recommended by the Committee for the 2021 fiscal
year include $531,300 for general administration expenses, $334,532 for
research, $238,000 for marketing expenses, and $48,000 for inspection
expenses. Budgeted expenses for these items for the 2020 fiscal year
were $631,300, $225,606, $123,500, and $55,000, respectively.
The Committee derived the recommended assessment rate by
considering anticipated fiscal year expenses, actual olive tonnage
received by handlers during the 2020 crop year, and the amount of funds
available in the authorized reserve. Income derived from handler
assessments, calculated at $695,790 (23,193 tons assessable olives
multiplied by $30.00 assessment rate), along with funds from the
Committee's authorized reserve of $456,042, will be adequate to cover
budgeted expenses of $1,151,832 for the 2021 fiscal year.
The assessment rate established in this rule will 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 will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. 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 will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2021 fiscal year budget,
and those for subsequent fiscal years, will be reviewed and, as
appropriate, approved by USDA.
Final 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 rule 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 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 800 producers of olives in the production
area and 2 handlers 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),
the national average producer price for olives for the 2020 crop year
was $791.00 per ton, and total assessable volume for the 2020 crop year
was 23,193 tons. The total 2020 value of the olive crop was $18,345,663
(23,193 tons times $791.00 per ton). Dividing the crop value by the
estimated number of producers (800) yields an estimated average receipt
per producer of $22,932. Thus, the majority of olive producers may be
classified as small agricultural producers.
Based on information from the Committee regarding the volume
handled by each handler, neither handler can be classified as a small
agricultural service firm. Both handlers may be classified as large
entities under the SBA's definition because their annual receipts are
greater than $30,000,000.
As noted above, the average price received per ton by producers in
the preceding crop year was $791.00 per ton of assessable olives. Given
the total crop received by handlers of 23,193 tons, the total producer
revenue is expected to be $18,345,663. The total assessment revenue is
expected to be $695,790 (23,193 tons times $30.00 per ton). Thus, the
total assessment revenue compared to total producer revenue is 0.038
percent.
This rule increases the assessment rate collected from handlers for
the 2021 fiscal year and subsequent fiscal years from $15.00 to $30.00
per ton of assessable olives. The Committee unanimously recommended
2021 expenditures of $1,151,832 and an assessment rate of $30.00 per
ton of assessable olives. The assessment rate of $30.00 per ton of
assessable olives is $15.00 higher than the current rate. The volume of
assessable olives from the 2020 crop year is estimated to be 23,193
tons. Thus, the $30.00 per ton assessment rate should provide $695,790
in assessment income (23,193 tons assessable olives multiplied by
$30.00 assessment rate). Income derived from handler assessments, along
with funds from the Committee's authorized reserve, should be adequate
to cover budgeted expenses for the 2021 fiscal year.
Major expenditures recommended by the Committee for the 2021 fiscal
year include $531,300 for general administration expenses, $334,532 for
research, $238,000 for marketing expenses, and $48,000 for inspection
expenses. Budgeted expenses for these items in the 2020 fiscal year
were $631,300, $225,606, $123,500, and $55,000, respectively.
The Committee recommended increasing the assessment rate to provide
adequate income to cover the Committee's budgeted expenses for the 2021
fiscal year while maintaining its financial reserve within the
requirements of the Order.
Prior to arriving at this budget and assessment rate
recommendation, the Committee received information from its Executive,
Marketing, and Research subcommittees. At each subcommittee meeting,
the members discussed various alternatives to both the assessment rate
and programs under their purview. Subcommittees deliberated
alternatives relative to their needs and the costs of the programs they
oversee. The Research subcommittee, for example, discussed production
research proposals, their relative values, whether costs associated
with each project was appropriate, whether the project was appropriate
in scale, and whether the project met industry's needs. These types of
deliberations are part of the annual discussion held by each
[[Page 44259]]
subcommittee. Subcommittees then report their conclusions and
recommendations to the Committee.
Given all the information available to the Committee and its own
deliberations, the Committee made a recommendation to USDA on the
assessment rate and the proposed budget.
This rule increases the assessment obligation imposed on handlers.
Assessments are applied uniformly on all handlers, and some portion of
assessments may be passed on to producers. However, these costs are
expected to be offset by benefits derived by the operation of the
Order.
Various subcommittees' meetings and the Committee's meeting were
widely publicized throughout the California olive industry. All
interested persons were invited to attend meetings and encouraged to
participate in deliberations. Like all meetings, subcommittee meetings
held on November 5, 2020 and the full Committee meeting held on
December 8, 2020, were public meetings and all entities, both large and
small scale, were able to express views on this issue. Finally,
interested persons were invited to submit comments on this rule,
including 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 OMB and assigned OMB No. 0581-0178,
Vegetable and Specialty Crops. No changes in those requirements are
necessary as a result of this rule. Should any changes become
necessary, they would be submitted to OMB for approval.
This rule will not impose any additional reporting or recordkeeping
requirements on either small- or large-scale California olive 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. USDA has not
identified any relevant Federal rules that duplicate, overlap, or
conflict with this final 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.
A proposed rule concerning this action was published in the Federal
Register on April 8, 2021 (86 FR 18216). Copies of the proposal were
provided by the Committee to members and handlers. Finally, the
proposed rule was made available through the internet by USDA and the
Office of the Federal Register. A 45-day comment period ending May 24,
2021, was provided to allow interested persons to respond to the
proposal. No comments were received. Accordingly, no changes were made
to the rule proposed.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
<a href="https://www.ams.usda.gov/rules-regulations/moa/small-businesses">https://www.ams.usda.gov/rules-regulations/moa/small-businesses</a>. Any
questions about the compliance guide should be sent to Richard Lower at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule will tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 932
Marketing agreements, Olives, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 932 is
amended as follows:
PART 932--OLIVES GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 932 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 932.230 is revised to read as follows:
Sec. 932.230 Assessment rate.
On and after January 1, 2021, an assessment rate of $30.00 per ton
is established for California olives.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-17237 Filed 8-11-21; 8:45 am]
BILLING CODE P
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