Rule2021-17267
Dried Prunes Produced 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 rule implements a recommendation from the Prune Marketing Committee to increase the assessment rate established for the 2020-21 and subsequent crop years. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
<html>
<head>
<title>Federal Register, Volume 86 Issue 153 (Thursday, August 12, 2021)</title>
</head>
<body><pre>
[Federal Register Volume 86, Number 153 (Thursday, August 12, 2021)]
[Rules and Regulations]
[Pages 44259-44262]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-17267]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Doc. No. AMS-SC-20-0104; SC21-993-1 FR]
Dried Prunes Produced in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the Prune Marketing
Committee to increase the assessment rate established for the 2020-21
and subsequent crop years. 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, Acting Regional Director, California
Marketing Field Office, Marketing Order and Agreement Division,
Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5901 or email:
<a href="/cdn-cgi/l/email-protection#a9ebc0c8c7cac8e487ebccdbdddbc8c7cde9dcdacdc887cec6df"><span class="__cf_email__" data-cfemail="dc9eb5bdb2bfbd91f29eb9aea8aebdb2b89ca9afb8bdf2bbb3aa">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#cd8aacbfb489e382a1bea2a38db8bea9ace3aaa2bb"><span class="__cf_email__" data-cfemail="763117040f3258391a051918360305121758111900">[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#a3f1cac0cbc2d1c78defccd4c6d1e3d6d0c7c28dc4ccd5"><span class="__cf_email__" data-cfemail="88dae1ebe0e9faeca6c4e7ffedfac8fdfbece9a6efe7fe">[email protected]</span></a>.
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 final 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 Prune Marketing Committee (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 crop
year for this Order runs from August 1 to July 31.
The Department of Agriculture (USDA) is issuing this final rule in
conformance with Executive Orders 12866 and 13563. Executive Orders
[[Page 44260]]
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 final 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. Agricultural Marketing Service (AMS) has
determined that this final 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 final 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. The assessment rate is
applicable to all assessable dried prunes for the 2020-21 crop year and
would 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 no later than 20 days after the date of the
entry of the ruling.
This final rule increases the assessment rate from $0.25 per ton of
salable dried prunes, the rate that was established for the 2019-20 and
subsequent crop years, to $0.28 per ton of salable dried prunes for the
2020-21 and subsequent crop years.
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 cost of goods and services in their
local area and can formulate an appropriate budget and assessment rate.
The assessment rate is formulated and discussed in a public meeting.
All directly affected persons have an opportunity to participate and
provide input.
For the 2019-20 and subsequent crop years, the Committee
recommended, and USDA approved, an assessment rate of $0.25 per ton of
salable dried prunes. That assessment rate continues in effect from
crop year to crop year unless 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 10, 2020, and unanimously recommended
expenditures of $24,550 and an assessment rate of $0.28 per ton of
salable dried prunes handled for the 2020-21 and subsequent crop years.
In comparison, last year's budgeted expenditures were $24,500. The
$0.28 per ton assessment rate is $0.03 higher than the rate currently
in effect. The Committee recommended increasing the assessment rate due
to a smaller crop, and to provide adequate income along with
carryforward/contingency funds and interest income to cover all the
Committee's budgeted expenses for the 2020-21 crop year.
Major expenditures recommended by the Committee for the 2020-21
crop year include $13,700 for personnel expenses and $10,850 for
operating expenses. Budgeted expenses for these items for the 2019-20
crop year were $13,300 and $11,200, respectively.
The Committee derived the recommended assessment rate by
considering anticipated expenses and an estimated crop of 50,000 tons
of salable dried prunes. Income derived from handler assessments,
calculated at $14,000 (50,000 tons salable dried prunes multiplied by
$0.28 assessment rate), along with carryforward/contingency funds and
interest income ($11,682), will be adequate to cover budgeted expenses
of $24,550.
The assessment rate established by this rule will continue in
effect indefinitely until 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
crop 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 2020-21 crop year budget,
and those for subsequent crop 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), AMS has considered the economic impact of
this final 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 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 dried prunes in the
production area and 20 handlers subject to the 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 California dried prunes for the
2019-20 crop year was $1,510 per ton. Committee data indicates that the
California dried prune total production was 110,000 tons in the 2019-20
crop year. The total 2019-20 crop year value of California dried prunes
was
[[Page 44261]]
$166,100,000 (110,000 tons times $1,510 per ton equals $166,100,000).
Dividing the crop value by the estimated number of producers (800)
yields an estimated average receipt per producer of $207,625.
According to USDA Market News data, the reported terminal price for
2019 for California dried prunes ranged between $30.02 to $32.59 per
28-pound carton. The average of this range is $31.31 ($30.02 plus
$32.59 divided by 2 equals $31.31). Dividing the average value by the
28-pound carton yields an estimated average price per pound of $1.12
($31.31 average value for 28-pound carton divided by 28).
The handler price for prunes is $2,240 per ton ($1.12 per pound
multiplied by 2,000 pounds per ton equals $2,240 per ton). Multiplying
2019-20 California dried prune total production of 110,000 tons by the
estimated average price per ton of $2,240 equals $246,400,000. Dividing
this figure by 20 regulated handlers yields estimated average annual
handler receipts of $12,320,000. Therefore, using the above data, the
majority of producers and handlers of California dried prunes may be
classified as small entities.
As noted above, the average price received per ton by producers in
the preceding crop year was $1,510 per ton of salable dried prunes.
Given the estimated tonnage of 50,000 tons salable dried prunes for the
2020-21 crop year, the total producer revenue is estimated to be
$75,500,000. The total assessment revenue is expected to be $14,000
(50,000 tons multiplied by $0.28 per ton). Thus, the total assessment
revenue compared to total producer revenue is 0.019 percent.
This final rule increases the assessment rate collected from
handlers for the 2020-21 and subsequent crop years from $0.25 to $0.28
per ton of salable California dried prunes. The Committee unanimously
recommended 2020-21 crop year expenditures of $24,550 and an assessment
rate of $0.28 per ton of salable dried prunes. The $0.28 per ton
assessment rate is $0.03 higher than the current rate. The volume of
assessable dried prunes for the 2020-21 crop year is estimated to be
50,000 tons. Thus, the $0.28 per ton of salable dried prunes should
provide $14,000 in assessment income (50,000 multiplied by $0.28).
Income derived from handler assessments, along with carryforward/
contingency funds and interest income, will be adequate to cover
budgeted expenses for the 2020-21 crop year.
Major expenditures recommended by the Committee for the 2020-21
crop year include $13,700 for personnel expenses and $10,850 for
operating expenses. Budgeted expenses for these items in the 2019-20
crop year were $13,300 and $11,200 respectively.
The Committee recommended increasing the assessment rate due to a
smaller crop and to provide adequate income, along with carryforward/
contingency funds and interest income, to cover the Committee's
budgeted expenses for the 2020-21 crop year. Prior to arriving at this
budget and assessment rate recommendation, the Committee discussed
various alternatives, including maintaining the current assessment rate
of $0.25 per ton of salable dried prunes, and increasing the assessment
rate by a different amount. However, the Committee determined that the
recommended assessment rate, along with carryforward/contingency funds
and interest income, will adequately fund budgeted expenses.
This final rule increases 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 are
expected to be offset by benefits derived by the operation of the
Order.
The Committee's meeting was widely publicized throughout the
California prune industry. Meetings are public and virtual or in a
hybrid style with participants having a choice whether to attend in
person or virtually. All interested persons were invited to attend the
meeting and encouraged to participate in Committee deliberations on all
issues.
The December 10, 2020, meeting was a virtual public meeting, and
all entities, both large and small, were able to express views on this
issue. Finally, interested persons were invited to submit comments on
the 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 OMB and assigned OMB No. 0581-0178, Vegetable
and Specialty Crops. No changes in those requirements will be necessary
as a result of this final rule. Should any changes become necessary,
they would be submitted to OMB for approval.
This final rule will 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. 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 citizen access to Government information
and services, and for other purposes.
A proposed rule concerning this action was published in the Federal
Register on May 12, 2021 (86 FR 25975). 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
Federal Register. A 30-day comment period ending June 11, 2021, was
provided to allow interested persons to respond to the proposal. No
comments were received. Accordingly, no changes will be made to the
rule as 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 993
Marketing agreements, Plum, Prunes, Reporting and recordkeeping
requirements.
For reasons set forth in the preamble, 7 CFR part 993 is 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.
0
2. Section 993.347 is revised to read as follows:
Sec. 993.347 Assessment rate.
On and after August 1, 2020, an assessment rate of $0.28 per ton of
[[Page 44262]]
salable dried prunes is established for California dried prunes.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-17267 Filed 8-11-21; 8:45 am]
BILLING CODE 3410-02-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on August 12, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.