Rule2021-25115
Domestic Dates Produced or Packed in Riverside County, 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
November 18, 2021
Effective
December 20, 2021
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This rule implements a recommendation from the California Date Administrative Committee (Committee) to increase the assessment rate for the 2020-21 and subsequent crop years. 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 220 (Thursday, November 18, 2021)</title>
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[Federal Register Volume 86, Number 220 (Thursday, November 18, 2021)]
[Rules and Regulations]
[Pages 64343-64345]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25115]
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Rules and Regulations
Federal Register
________________________________________________________________________
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. 220 / Thursday, November 18, 2021 /
Rules and Regulations
[[Page 64343]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
[Doc. No. AMS-SC-21-0056; SC21-987-1 FR]
Domestic Dates Produced or Packed in Riverside County,
California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule implements a recommendation from the California Date
Administrative Committee (Committee) to increase the assessment rate
for the 2020-21 and subsequent crop years. The assessment rate will
remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective December 20, 2021.
FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing
Specialist, West Region Branch, Market Development Division, Specialty
Crops Program, AMS, USDA; Telephone: (503) 326-2724, or Email:
<a href="/cdn-cgi/l/email-protection#ce8cafbcbcb7e08cbca1afaaacaba0ba8ebbbdaaafe0a9a1b8"><span class="__cf_email__" data-cfemail="da98bba8a8a3f498a8b5bbbeb8bfb4ae9aafa9bebbf4bdb5ac">[email protected]</span></a>.
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Market Development 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#67350e040f061503492b08100215271214030649000811"><span class="__cf_email__" data-cfemail="d587bcb6bdb4a7b1fb99baa2b0a795a0a6b1b4fbb2baa3">[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 Order No.
987, as amended (7 CFR part 987), regulating the handling of domestic
dates produced or packed in Riverside County, California. Part 987,
(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 producer-
handlers operating within the area of production.
The Department of Agriculture (USDA) is issuing this final 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 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. The Agricultural Marketing Service (AMS) has
determined that 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 final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the Order now in effect, California date
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. The assessment rate is applicable to all
assessable dates for the 2020-21 crop year, and will 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 (7 U.S.C. 608(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. 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.
The Order provides authority for the Committee, 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 Committee's needs and with the costs 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. Thus, all directly affected persons have an
opportunity to participate and provide input.
This rule increases the assessment rate from $0.15 per
hundredweight, the rate that was established for the 2018-19 and
subsequent crop years, to $0.20 per hundredweight of dates handled for
the 2020-21 and subsequent crop years. The Committee recommended the
increased assessment rate to compensate for increasing administrative
expenses. The higher assessment rate will provide sufficient funds to
cover most of the 2020-21 crop year anticipated expenses, with the
balance coming from other income and the Committee's financial reserve.
The Committee met on June 25, 2020, and unanimously recommended
increasing the assessment rate from $0.15 per hundredweight to $0.20
per hundredweight to fund necessary administrative expenses and
maintain a sufficient operating reserve. The assessment rate increase
will provide sufficient funds to cover most of the Committee's 2020-21
crop year budgeted expenses, with the balance coming from other revenue
sources and reserve funds.
The Committee estimates the 2020-21 domestic date crop to be
32,000,000 pounds (320,000 hundredweight), which is expected to
generate $64,000 in assessment income at the $0.20 per
[[Page 64344]]
hundredweight assessment rate. The Committee anticipates other income
of approximately $5,000. Total income of $69,000, combined with $6,250
from the financial reserve, will provide enough funds to cover 2020-21
crop year budgeted expenditures. Reserve funds remaining at the end of
the 2020-21 crop year are expected to be $28,750.
The Committee's budget for the 2020-21 crop year is estimated to be
$75,250. The Committee's expenses include $47,000 for management,
$19,250 for office administration, and $9,000 for the financial audit.
In comparison, the previous crop year's total budget was $74,200, and
the administrative expenses were $43,000, $21,200, and $10,000,
respectively.
The assessment rate recommended by the Committee was derived by
considering anticipated expenses, the expected volume of dates handled,
and the amount of funds available in the operating reserve. Income
derived from handler assessments of $64,000 (320,000 hundredweight
assessed at a rate of $0.20 per hundredweight) will be adequate to
cover most of the Committee's budgeted expenses of $75,250, with the
balance covered from $5,000 in other income and $6,250 from reserve
funds. After expending $6,250, the ending 2020-21 crop year balance in
the financial reserve is expected to be $28,750, which would be less
than the average of the annual expenses of the preceding five years as
mandated by Sec. 987.72(d).
The assessment rate established by 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
crop year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Meetings are public and held virtually or in a hybrid style with
participants having a choice whether to attend in person or virtually.
All 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 will be undertaken as necessary. The Committee's
budget 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 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 70 date producers in the production area
and 11 date handlers subject to regulation under the Order. The Small
Business Administration defines small agricultural producers as those
having annual receipts of less than $1,000,000, and small agricultural
service firms as those whose annual receipts are less than $30,000,000.
(13 CFR 121.201)
According to the National Agricultural Statistics Service (NASS),
data for the most-recently completed crop year (2019) shows that the
producer price for fresh market California dates was $4,130 per ton.
With the estimated 16,000-ton crop, the total farm gate value for
California date producers was approximately $66,080,000 (16,000 times
$4,130). Therefore, the average fresh market date revenue for the 70
producers within the production area is approximately $944,000
($66,080,000 divided by 70). Thus, assuming a normal bell-curve
distribution of receipts among producers, AMS estimates the majority of
producers would qualify as small businesses under the SBA definition.
Furthermore, USDA Market News reported an average terminal market
price of $50.88 per 11-pound carton for the 2019-20 crop year. With
approximately 32,000,000 pounds handled, the industry would have
shipped an estimated 2,909,091 11-pound cartons (32,000,000 divided by
11) of packaged dates for a total value of $148,014,550 (2,909,091
times $50.88). With 11 date handlers within the production area, the
average revenue per handler is estimated to be $13,455,868 for the
2019-20 crop year ($148,014,550 divided by 11). Thus, most California
date handlers would be considered small businesses under the SBA
definition.
This final rule increases the assessment rate collected from
handlers for the 2020-21 and subsequent crop years from $0.15 to $0.20
per hundredweight of dates handled. The Committee unanimously
recommended 2020-21 crop year expenditures of $75,250 and an assessment
rate of $0.20 per hundredweight of dates, which is $0.05 higher than
the rate currently in effect. The quantity of assessable dates for the
2020-21 crop year is estimated to be 32,000,000 pounds (320,000
hundredweight). The $0.20 per hundredweight assessment rate is expected
to provide $64,000 in assessment income. Income derived from handlers'
assessments, plus $5,000 of other income and $6,250 from the
Committee's authorized reserve, will be adequate to cover the
Committee's budgeted expenses for the 2020-21 crop year.
The total budget recommended by the Committee for the 2020-21 crop
year is $75,250, compared to $74,200 for the 2019-20 crop year. The
Committee recommended the higher assessment rate to fully fund ongoing
program expenses without depleting its operating reserve.
The income generated from the higher assessment rate, combined with
other income and a small amount from the financial reserve, will be
sufficient to cover anticipated 2020-21 expenses and to maintain a
financial reserve within the limit specified by the Order.
Section 987.72(d) states that the Committee may maintain an
operating monetary reserve not to exceed the average of one year's
expenses incurred during the most recent five preceding crop years,
except that an established reserve need not be reduced to conform to
any recomputed average. The Committee estimated that funds in its
reserve were approximately $35,000 at the beginning of the 2020-21 crop
year. It expects to utilize $6,250 of the reserve during the year,
leaving a reserve of approximately $28,750 to start the 2021-22 crop
year, which would be within the limit specified in the Order.
The Committee reviewed and unanimously recommended 2020-21 crop
year expenditures of $75,250. The Committee considered several factors
before making its recommendation, including the size of the anticipated
2020-21 crop, the Committee's estimated 2020-21 reserve carry-in, other
sources of income, and its anticipated expenses. Further, the Committee
considered several alternative expenditure levels and assessment rates,
including not changing the assessment rate or adjusting expenses.
Ultimately, the Committee recommended the $0.20 per hundredweight
assessment rate to fund
[[Page 64345]]
the program's expenses and maintain its reserve at a reasonable level.
A review of historical and preliminary information pertaining to
the upcoming crop year indicates that the producer price for the 2020-
21 crop year is estimated to be $201.50 per hundredweight of dates.
Utilizing that price, the estimated crop size, and the $0.20 per
hundredweight assessment rate, the estimated assessment revenue for the
2020-21 crop year as a percentage of total producer revenue is
approximately 0.1 percent ($0.20 per hundredweight divided by $201.50
per hundredweight).
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
are offset by the benefits derived by the operation of the Order. In
addition, the Committee meetings were widely publicized throughout the
California date industry. All interested persons were invited to attend
the meetings and encouraged to participate in Committee deliberations
on all issues. The June 25, 2020 Committee meeting was a virtually held
public meeting and all entities, both large and small, were able to
express views on this issue. 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 the Office of Management and Budget (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.
This final rule will not impose any additional reporting or
recordkeeping requirements on either small or large California date
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 final rule.
A proposed rule concerning this action was published in the Federal
Register on August 26, 2021 (86 FR 47599). 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
Federal Register. A 15-day comment period ending September 10, 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="http://www.ams.usda.gov/rules-regulations/moa/small-businesses">http://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 987
Dates, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 987 is
amended as follows:
PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE,
CALIFORNIA
0
1. The authority citation for part 987 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 987.339 is revised to read as follows:
Sec. 987.339 Assessment rate.
On and after October 1, 2020, an assessment rate of $0.20 per
hundredweight is established for dates produced or packed in Riverside
County, California.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-25115 Filed 11-17-21; 8:45 am]
BILLING CODE 3410-02-P
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