Proposed Rule2021-25160
Pears Grown in Oregon and Washington; 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 19, 2021
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Fresh Pear Committee (Committee) to increase the assessment rate established for the 2021-22 and subsequent fiscal periods. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 86 Issue 221 (Friday, November 19, 2021)</title>
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[Federal Register Volume 86, Number 221 (Friday, November 19, 2021)]
[Proposed Rules]
[Pages 64830-64832]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25160]
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Proposed Rules
Federal Register
________________________________________________________________________
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.
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Federal Register / Vol. 86, No. 221 / Friday, November 19, 2021 /
Proposed Rules
[[Page 64830]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS-SC-21-0069; SC21-927-1 PR]
Pears Grown in Oregon and Washington; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
Fresh Pear Committee (Committee) to increase the assessment rate
established for the 2021-22 and subsequent fiscal periods. The proposed
assessment rate would remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by December 20, 2021.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; or
internet: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 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: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. All comments submitted in
response to this proposed rule will be included in the record and will
be made available to the public. Please be advised that the identity of
individuals or entities submitting comments will be made public on the
internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or
Andrew Hatch, Deputy Director, Market Development Division, Specialty
Crops Program, AMS, USDA; Telephone: (559) 356-8202 or Email:
<a href="/cdn-cgi/l/email-protection#284c49444d420646475e475c4651685d5b4c49064f475e"><span class="__cf_email__" data-cfemail="dbbfbab7beb1f5b5b4adb4afb5a29baea8bfbaf5bcb4ad">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#52133c362037257c1a3326313a12272136337c353d24"><span class="__cf_email__" data-cfemail="0a4b646e786f7d24426b7e69624a7f796e6b246d657c">[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#f2a09b919a938096dcbe9d859780b287819693dc959d84"><span class="__cf_email__" data-cfemail="97c5fef4fff6e5f3b9dbf8e0f2e5d7e2e4f3f6b9f0f8e1">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
proposes to amend regulations issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing
Order No. 927, as amended (7 CFR part 927), regulating the handling of
pears grown in Oregon and Washington. Part 927 (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 growers and handlers of pears operating within the production area,
and a public member.
The Department of Agriculture (USDA) is issuing this proposed 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 proposed 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 proposed 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 proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform.
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 no later than 20 days after the date of the
entry of the ruling.
This proposed rule would increase the assessment rate from $0.463
per 44-pound standard box or equivalent of fresh ``summer/fall'' and
``winter'' pears, the rate that was established for the 2018-19 and
subsequent fiscal periods, to $0.468 per 44-pound standard box or
equivalent of assessable fresh ``summer/fall'' pears and ``winter''
pears for the 2021-22 and subsequent fiscal periods.
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 costs of goods and services in their local
area, and they are 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.
For the 2018-19 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $0.463 per 44-
pound standard box or equivalent of assessable fresh ``summer/fall''
pears and ``winter'' pears. That assessment rate continues in effect
from fiscal period to fiscal period unless
[[Page 64831]]
modified, suspended, or terminated by USDA upon recommendation and
information submitted by the Committee or other information available
to USDA.
The Committee met on June 3, 2021, and unanimously recommended
2021-22 fiscal period expenditures of $8,472,263 and an assessment rate
of $0.468 per 44-pound standard box or equivalent of assessable fresh
``summer/fall'' pears and ``winter'' pears handled for the 2021-22 and
subsequent fiscal periods. In comparison, the previous fiscal period's
budgeted expenditures were $8,901,114. The proposed assessment rate of
$0.468 is $0.005 higher than the rate currently in effect. Due to a
smaller estimated 2021-22 crop, the Committee recommended increasing
the assessment rate to provide adequate income that, along with reserve
funds and interest income, would cover the Committee's budgeted
expenses for the 2021-22 fiscal period.
Expenditures recommended by the Committee for the 2021-22 fiscal
period include $391,047 for contracted administration, $159,540 for
industry development, $964,476 for production research and market
development, $27,200 for miscellaneous expenses, and $6,930,000 for
promotion and paid advertising for ``summer/fall'' and ``winter''
varieties of fresh pears. Budgeted expenses for these items for the
2020-21 fiscal period were $388,520, $172,000, $997,394, $28,200, and
$7,315,000, respectively.
The Committee derived the recommended assessment rate by
considering anticipated expenses, and an estimated 2021 crop of
18,000,000 44-pound standard boxes or equivalent of assessable fresh
``summer/fall'' pears and ``winter'' pears. Income derived from handler
assessments, calculated at $8,424,000 (18,000,000 standard boxes or
equivalent multiplied by $0.468 assessment rate), along with reserve
funds and interest income ($48,263), should be adequate to cover
budgeted expenses of $8,472,263.
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 Committee or other
available information.
Although this assessment rate would be in effect for an indefinite
period, the Committee 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. 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 would 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 2021-22 fiscal period
budget, and those for subsequent fiscal periods, would 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 are unique in that they are brought about through
group action of essentially small entities acting on their own behalf.
There are approximately 708 growers of fresh pears in the
production area and 27 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 2020 average grower price received for fresh pears produced in
Oregon and Washington was $11.39 per standard 44-pound box or
equivalent. Committee data indicates total production was 16,290,225
44-pound standard boxes or equivalent in the 2019-20 fiscal period. The
total 2019-20 fiscal period value of assessable fresh ``summer/fall''
and ``winter'' pears grown in Oregon and Washington was $185,545,663
(16,290,225 44-pound standard boxes or equivalent times $11.39 per box
equals $185,545,663). Dividing the crop value by the estimated number
of growers (708) yields an estimated average receipt per grower of
$262,070.
According to USDA Market News data, the reported average terminal
price for 2020 Oregon and Washington fresh pears was $34.87 per 44-
pound standard box or equivalent (data reported in \4/5\ bushel).
Multiplying the Committee-reported 2019-20 Oregon and Washington total
production of 16,290,225 44-pound standard boxes or equivalent by the
estimated average price per box or equivalent of $34.87 equals
$568,040,146. Dividing this figure by 27 regulated handlers yields
estimated average annual handler receipts of $21,038,524.
Therefore, using the above data, the majority of growers of Oregon
and Washington fresh pears may be classified as small entities.
Assuming a normal distribution, the majority of handlers of Oregon and
Washington fresh pears may also be classified as small entities.
As noted above, the average price received by growers in 2020 was
$11.39 per 44-pound standard box or equivalent of assessable fresh
``summer/fall'' pears and ``winter'' pears. Given the Committee-
estimated production of 18,000,000 44-pound standard boxes or
equivalent of assessable fresh pears for the 2021-22 fiscal period, the
total grower revenue is estimated to be $205,020,000. The total
assessment revenue is expected to be $8,424,000 (18,000,000 boxes
multiplied by $0.468 per box). Thus, the total assessment revenue
compared to total grower revenue is 4.1 percent ($8,424,000 divided by
$205,020,000).
This proposal would increase the assessment rate collected from
handlers for the 2021-22 and subsequent fiscal periods from $0.463 to
$0.468 per 44-pound standard box or equivalent of assessable fresh
``summer/fall'' pears and ``winter'' pears. The Committee unanimously
recommended 2021-22 fiscal period expenditures of $8,472,263 and an
assessment rate of $0.468 per 44-pound standard box or equivalent of
assessable fresh ``summer/fall'' pears and ``winter'' pears handled.
The proposed assessment rate of $0.468 per 44-pound standard box or
equivalent of assessable fresh ``summer/fall'' pears and ``winter''
pears is $0.005 higher than the current rate. The volume of assessable
fresh ``summer/fall'' pears and ``winter'' pears in the production area
for the 2021-22 fiscal period is estimated to be 18,000,000 44-pound
standard boxes or equivalent. Thus, the $0.468 per 44-pound standard
box or equivalent of assessable fresh ``summer/fall'' pears and
``winter'' pears should provide $8,424,000 in assessment income
(18,000,000 multiplied by $0.468). Income derived from handler
assessments, along with reserve funds and interest income, should be
adequate to cover budgeted expenses of for the 2021-22 fiscal period.
Major expenditures recommended by the Committee for the 2021-22
fiscal
[[Page 64832]]
period include $391,047 for contracted administration, $159,540 for
industry development, $964,476 for production research and market
development, and $6,930,000 for promotion and paid advertising for
``summer/fall'' and ``winter'' varieties of fresh pears. Budgeted
expenses for these items for the 2020-21 fiscal period were $388,520,
$172,000, $997,394, and $7,315,000, respectively.
Due to a smaller estimated 2021-22 crop, the Committee recommended
increasing the assessment rate to provide adequate income that, along
with reserve funds and interest income, would cover the Committee's
budgeted expenses for the 2021-22 fiscal period. Prior to arriving at
this budget and assessment rate recommendation, the Committee discussed
various alternatives, including maintaining the current assessment rate
and, alternatively, increasing the assessment rate by a different
amount. However, the Committee determined that the recommended
assessment rate, along with reserve funds and interest income, should
adequately fund budgeted expenses.
This proposed rule would increase the assessment obligation imposed
on handlers. Assessments are applied uniformly on all handlers, and
some of the costs may be passed on to growers. However, these costs
would be offset by the benefits derived by the operation of the Order.
The Committee's meeting was widely publicized throughout the Oregon
and Washington pear industry. All interested persons were invited to
attend the meeting and encouraged to participate in Committee
deliberations on all issues. Like all Committee meetings, the June 3,
2021, meeting was a public meeting, and all entities, both large and
small, were able to express views on this issue. Interested persons are
invited to submit comments on this proposed 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 OMB and assigned OMB No. 0581-0189, Fruit Crops.
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 Oregon and
Washington pear 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:
<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.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered before a final determination is made on this matter.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears, Reporting and recordkeeping
requirements.
For reasons set forth in the preamble, 7 CFR part 927 is proposed
to be amended as follows:
PART 927--PEARS GROWN IN OREGON AND WASHINGTON
0
1. The authority citation for 7 CFR part 927 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 927.236, revise the introductory text and paragraphs (a)
and (b) to read as follows:
Sec. 927.236 Fresh pear assessment rate.
On and after July 1, 2021, the following base rates of assessment
for fresh pears are established for the Fresh Pear Committee:
(a) $0.468 per 44-pound net weight standard box or container
equivalent for any or all varieties or subvarieties of fresh pears
classified as ``summer/fall'';
(b) $0.468 per 44-pound net weight standard box or container
equivalent for any or all varieties or subvarieties of fresh pears
classified as ``winter''; and
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-25160 Filed 11-18-21; 8:45 am]
BILLING CODE P
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