Rule2021-27467
Lamb Promotion, Research, and Information Order; Activity Changes
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
December 22, 2021
Effective
January 21, 2022
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This rulemaking revises the Lamb Promotion, Research, and Information Order (Order), requiring market agencies (e.g., commission merchant, auction market, livestock market) in the business of receiving lambs to collect and remit on behalf of the producer, feeder, or seedstock producer, the "live-weight" assessment on ovine animals sold and the "price-per-head" assessment owed by the first handler when lambs are sold through these channels. Market agencies are required to remit the full assessment to the American Lamb Board (also known as the Lamb, Promotion, Research, and Information Board (Board)) when ovine animals are sold. This rulemaking includes technical amendments to the Order, correcting references to assessment rates that were inadvertently not updated during the previous amendment to the Order.
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[Federal Register Volume 86, Number 243 (Wednesday, December 22, 2021)]
[Rules and Regulations]
[Pages 72507-72516]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-27467]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 86, No. 243 / Wednesday, December 22, 2021 /
Rules and Regulations
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1280
[Document No. AMS-LP-19-0093]
RIN 0581-AC06
Lamb Promotion, Research, and Information Order; Activity Changes
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rulemaking revises the Lamb Promotion, Research, and
Information Order (Order), requiring market agencies (e.g., commission
merchant, auction market, livestock market) in the business of
receiving lambs to collect and remit on behalf of the producer, feeder,
or seedstock producer, the ``live-weight'' assessment on ovine animals
sold and the ``price-per-head'' assessment owed by the first handler
when lambs are sold through these channels. Market agencies are
required to remit the full assessment to the American Lamb Board (also
known as the Lamb, Promotion, Research, and Information Board (Board))
when ovine animals are sold. This rulemaking includes technical
amendments to the Order, correcting references to assessment rates that
were inadvertently not updated during the previous amendment to the
Order.
DATES:
Effective date: January 21, 2022.
Delayed enforcement date: Enforcement of the market agency
assessment remittance procedures is delayed until March 22, 2022.
FOR FURTHER INFORMATION CONTACT: Jason Julian, Agricultural Marketing
Specialist, Research and Promotion Division, Livestock and Poultry
Program, AMS, USDA; Telephone: (202) 731-2149; or Email:
<a href="/cdn-cgi/l/email-protection#6903081a060747031c05000807291c1a0d08470e061f"><span class="__cf_email__" data-cfemail="432922302c2d6d29362f2a222d03363027226d242c35">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: Under the Order (7 CFR part 1280), which
became effective April 11, 2002, the Board administers a nationally
coordinated program of research, development, and promotion activities
designed to strengthen the position of, and to develop and expand the
markets for, ovine animals and ovine products. The program is financed
by producers, feeders, and seedstock producers (i.e., producers) who
pay an assessment of seven-tenths of a cent ($0.007) per pound on all
live lambs sold. Additionally, first handlers or exporters, pay $0.42
per head on ovine animals purchased for slaughter.
The Order currently mandates that assessments be collected from
producers or feeders for the sale of live lambs, and that the
assessment be forwarded to the subsequent purchaser (if applicable)
until remitted by a first handler or exporter. That first handler or
exporter is responsible for submitting both the producer or feeder's
assessment and the first handler or exporter's assessment and volume
report to the Board. The collection process is known as a ``pass-
through'' assessment. Since the initial Order was established, industry
markets have evolved; non-traditional first handlers, such as ethnic
processors (butcher shops) and farmers market processors now
participate to a larger degree in the purchasing and processing of lamb
and lamb products. However, based on information about lamb sales from
market agencies, the Board believes many non-traditional first handlers
are not remitting assessments, as required by the Order. The Board, in
turn, is not capturing all assessments paid by producers and feeders.
Over the years, Board staff has worked to collect the owed lamb
assessments from the nontraditional buyers, with limited success.
On January 23, 2019, the Board approved a motion to request the
Secretary of Agriculture (Secretary) amend the assessment collection
procedures and update corresponding sections of the Order. The
revisions to the assessment collection procedures require market
agencies to collect the full assessment, including the first handler
assessment portion, for remittance to the Board. The assessment
collection change only impacts lambs sold through market agencies.
Other modes of sale, such as traditional markets (e.g., first handler
purchases from a producer or feeder, independent of a market agency)
will continue to use the pass-through assessment collection process.
Examples 1 and 2 below show the current assessment collection processes
when lambs are sold through a market agency:
Example 1--Existing Procedures--Producer sells lambs at market
agency to a first handler: The producer pays the assessment to the
market agency who passes the assessment through to the first handler.
The first handler remits the live-weight (LW) and price-per-head (PH)
assessments to the Board along with a Remittance Report form. This
example is depicted in Figure 1.
BILLING CODE P
[[Page 72508]]
[GRAPHIC] [TIFF OMITTED] TR22DE21.005
Example 2--Existing Procedures--Producer sells lambs at market
agency to a feeder. At a later date, the feeder sells the same lambs to
a first handler (via traditional sales/non-market agency): The producer
pays the live-weight assessment (LW) to the market agency, who passes
the assessment through to the feeder. At a later date, the feeder sells
the same lambs to a first handler, where the LW assessment passes-
through to the first handler, who remits the LW assessment and the PH
assessment to the Board. This example is depicted in Figure 2.
[GRAPHIC] [TIFF OMITTED] TR22DE21.006
Under the proposed rule, existing procedures in Example 1 above
would stay the same and existing procedures in Example 2 above, would
be replaced as shown in the following three scenarios.
Under this final rule, existing procedures in Example 1 and Example
2 will be replaced as shown in the following three scenarios.
Example 3--Revised Procedure--Producer sells lambs at market agency
to first handler: Under this final rule, the market agency collects the
LW assessment from the producer and the PH assessment from the first
handler and remits both assessments to the Board. This example is
depicted in Figure 3.
[[Page 72509]]
[GRAPHIC] [TIFF OMITTED] TR22DE21.007
Example 4--Revised Procedure--Producer sells lambs at market agency
to a feeder. At a later date, the feeder brings the same lambs to a
market agency to sell to a first handler: The producer pays the LW
assessment to the market agency. The feeder pays the PH assessment to
the market agency, which remits both assessments to the Board (LW and
PH). At a later date, when the feeder sells the same lambs at market
agency, the feeder pays the LW assessment to the market agency, and the
first handler pays the PH assessment to the market agency, which remits
both assessments to the Board (LW and PH). Since the feeder was
initially charged the PH assessment (first handler's assessment) and
then paid the total LW assessment (lambs sold at market agency to the
first handler), the feeder is eligible for a refund on the original PH
assessment (initial first handler's assessment) and the difference
between the total LW assessment and the producer's LW assessment. If
the feeder were to exercise this option to recoup the two assessments,
the feeder completes the Lamb Assessment Refund, form LP-85, and files
with the Board to receive a refund. This example is depicted in Figure
4.
[GRAPHIC] [TIFF OMITTED] TR22DE21.008
Example 5--Revised Procedure--Producer sells lambs at a market
agency to a feeder. At a later date, the feeder sells the lambs to a
first handler (via traditional market/non-market agency sale): The
producer pays the LW assessment to the market agency. Additionally, the
feeder pays the PH assessment to the market agency, which remits both
assessments to the Board (LW and PH). At a later date, when the feeder
sells the lambs to a first handler (via traditional market/non-market
agency sale), the feeder pays the LW assessment to the first handler,
who remits the LW assessment and the PH assessment to the Board. The
feeder is eligible for refunds on the original PH assessment paid
(first handler assessment) and the difference between the total LW
assessment and the producer's original LW assessment. If the feeder
were to exercise this option to recoup the two assessments, the feeder
completes the Lamb Assessment Refund, form LP-85, and files with the
Board to receive a refund. This example is depicted in Figure 5.
[[Page 72510]]
[GRAPHIC] [TIFF OMITTED] TR22DE21.009
BILLING CODE C
The amended collection process is estimated to generate
approximately $500,000 in new revenue, or approximately 20 percent of
the Board's annual budget, based on 2019 production levels (pre-COVID
19). The Board's budget is based on the amount of assessments collected
on an annual basis, voluntary contributions, and revenue derived from
the investment of funds.
This final rule also adds a definition for market agency and makes
technical corrections to the regulations that remove references to
obsolete assessment rates. Finally, references to Order administration
prior to appointment of the Board are removed.
The Commodity Promotion, Research, and Information Act of 1996
(Act) (7 U.S.C. 7413) provides for the creation of, and amendments to,
the Order. The Order provides in Sec. 1280.210 that the Board shall
have the powers and duties to recommend to the Secretary such
amendments to the Order as the Board considers appropriate.
Revisions
This final rule revises Sec. 1280.101 to consolidate definitions
listed in Sec. 1280.101 through Sec. 1280.129 and to establish a
definition for market agency. Sections 1280.102 through 1280.129 are
removed. This change alphabetizes and consolidates the definitions into
one section, to simplify any future revisions to the Definitions
Section.
This final rule revises Sec. 1280.217(a) to reflect the current
assessment rate of seven-tenths of a cent ($.007) per pound of live
lambs sold. This corrects the reference to an obsolete assessment rate.
Additionally, this final rule incorporates the last three sentences
from current Sec. 1280.217(e) into Sec. 1280.217(a), maintaining the
right of the Board to raise or lower the assessment rate. Section
1280.217(e) will be removed.
This final rule revises Sec. 1280.217(c) to reflect the current
first handler assessment rate and make a conforming change to reflect
the elimination of Sec. 1280.217(e). Additionally, a reference in
Sec. 1280.217(c) to the assessment rate in Sec. 1280.217(e) is
revised to reference the assessment rate in corrected Sec.
1280.217(a).
This final rule revises Sec. 1280.217(d) requiring market agencies
to collect and remit the producer, seedstock producer, feeder, or first
handler assessments to the Board. Additionally, Sec. 1280.217(d),
provides that lamb feeder farms who pay assessments twice may request a
refund by completing and submitting the Lamb Assessment Refund, form
LP-85, to the Board. This final rule removes Sec. 1280.217(g), as it
is no longer applicable, and makes conforming changes. Additionally,
this final rule redesignates Sec. 1280.217(f) as Sec. 1280.217(e) and
Sec. 1280.217(h) as Sec. 1280.217(f).
This final rule revises Sec. 1280.218 to reference the assessment
rate established in Sec. 1280.217(a). This final rule revises Sec.
1280.218 to change assessment due dates from ``time of export'' to
``the 15th day of the month following the month in which the lambs were
purchased for slaughter and export or live export.'' This aligns with
the current process for the collection of assessments listed in Sec.
1280.220.
This final rule revises Sec. 1280.220(a) and provides that market
agencies, as well as first handlers and exporters, are responsible for
collecting and remitting assessments to the Board.
This final rule makes a conforming change to Sec. 1280.402(b)
requiring market agencies to collect and remit assessments to the
Board, to reflect the revision in Sec. 1280.217(d).
Finally, this final rule revises Sec. 1280.402(e)(1) by removing,
``. . . if a first handler markets lambs or lamb products directly to
consumers, in order to avoid late payment charges.'' This phrase, which
is not applicable here, was placed in this section inadvertently and
should be removed.
Comments
The Agricultural Marketing Service (AMS) received 11 submissions to
the proposed rule, 3 of the submissions contained multiple comments to
the proposed rule.
Comment: One comment from an individual agreed with the proposed
rule.
AMS Response: No response.
Comment: One comment received from an individual stated, ``go
lambs.''
AMS Response: No response.
Comment: One comment received by a livestock sales association was
against the proposed rule, stating that ``. . . requiring only
transactions by marketing agencies, exporters, and first handlers to
collect and remit the assessments, much of the volume currently
conducted by marketing agencies will move away. This volume as well as
volume currently conducted by other entities and individuals, will not
be subject to collection and remittance of checkoff funds.''
AMS Response: Traditional lamb sales (first handler purchases from
a producer or feeder, independent of a market agency) will still be
subject to the current assessment remittance procedures via the pass-
through collection process. Additionally, the Board performs monthly
compliance checks and random onsite audits to determine potential
sellers and buyers who are not remitting their assessments. Lastly, if
the Board is made aware of new processing facilities or individuals who
are selling or buying lambs, they
[[Page 72511]]
will notify such individuals of their requirements to remit assessments
and will perform onsite audits, if needed. These efforts assist in
ensuring that all appropriate entities and individuals who are subject
to collection and remittance of checkoff funds are following the
requirements of the Act and Order.
Comment: One comment received by a national trade association for
livestock auction markets, stated that ``If auction markets are going
to be made mandatory collection points, then all participants should be
made to follow the rules of the checkoff through the pass-through and
remittance requirements. The Board, through their partnership with the
U.S. Department of Agriculture (USDA), AMS, should prioritize finding
solutions to help those currently not participating in the process to
come into compliance.
AMS Response: Anyone who sells or buys domestic lamb or lamb
products in the United States of America, is required by law to pay the
price-per-pound and price-per-head assessments. In order to reduce
assessment delinquency rates or non-payment of assessment rates, the
Board proposed market agencies collect the assessments at the point of
sale/purchase. The collection of assessments at the market agency level
will be a solution to those who do not currently participate in the
assessment remittance process at the market agency level. Individuals
who do not remit their assessments or who are late in the pass-through
remittance process will continue to be subject to the Board's
Compliance Department. Additionally, the Board performs monthly
compliance checks and random onsite audits to determine potential
sellers and buyers who are not remitting their assessments. Lastly, if
the Board is made aware of new processing facilities or individuals who
are selling or buying lambs, they will notify such individuals of their
requirements to remit assessments and will perform onsite audits, if
needed. These efforts assist in ensuring that all appropriate entities
and individuals who are subject to collection and remittance of
checkoff funds are following the requirements of the Act and Order.
Comment: One comment received was concerned that ``If the reason
for making these changes are because first handlers are not remitting
assessments to the Board now, it cannot be assumed they would disclose
to the market agency they are the first handler and have the assessment
deducted after the amendment.''
AMS Response: Under the final rule, anyone purchasing lambs at a
market agency will be required to pay the $0.42 per-head-assessment
rate on ovine animals, regardless if the buyer discloses that they are
a first handler or not. Currently, there is no requirement in the Order
for disclosing first handler status.
Comment: One comment received was concerned with implementation
costs of the proposed rule. Another commenter was concerned with
implementation costs of the proposed rule as well as the technical
training of market agency staff on how to perform assessment collection
procedures.
AMS Response: The Board will cover the costs of upgrades to each
respondent's existing computer software system (at an estimated cost of
$500 per respondent) and provide hands-on training to amend the
collection and remittance process. Once this final rule is implemented,
the Board will perform educational outreach to the market agencies to
educate them on the new collection and remittance process. The outreach
efforts will also consist of mailed educational materials and training
webinars, which is estimated to cost $5 per respondent.
Comment: One commenter asked for flexibility on the frequency of
assessment remittances to ``relieve the burden of constant
documentation and remittance on markets, particularly those who do not
regularly sell small ruminants at their businesses.'' Additionally,
another commenter from an advocacy alliance group stated that ``if
market agencies already have low sales volume, it is the position of
the alliance that AMS ought to be lifting burdens, rather than adding
to them.''
AMS Response: Due to the above comments, AMS reopened the comment
period on two separate occasions [86 FR 10459 and 86 FR 24513] to
encourage additional input on:
1. What level or threshold should AMS consider as a low-volume
market agency that might be eligible for additional flexibility?
2. Approximately how many market agencies would fit into such a
category?
3. How would this type of flexibility reduce regulatory burden for
those market agencies?
Unfortunately, during the two additional comment periods, no data
was provided to AMS to define a low-volume market agency. Should such
data be provided at a later date, AMS would consider defining a low-
volume market agency in hopes of alleviating the burden to said
agencies. However, the final rule does allow for flexibility in the
remittance process as auction markets only need to complete a
remittance form when lambs were sold in the previous month. For those
markets that do not sell lambs each month, this offers flexibility in
the remittance of assessments. For example, seasonal market agencies,
who facilitate the selling and buying of lambs for 3 months out of the
year, will only be required to collect and remit assessments for those
3 months.
Comment: One commenter was concerned that the proposed rule could
``create an incentive for sellers of sheep to choose to market their
livestock outside of a public auction environment through other private
channels (e.g., livestock dealers or direct sales) to skirt around
checkoff requirements.''
AMS Response: Traditional lamb sales (first handler purchases from
a producer or feeder, independent of a market agency) will still be
subject to the current assessment remittance procedures via the pass-
through collection process.
Multiple commenters responding to the proposed rule submitted
comments that were outside the scope of this particular rulemaking. For
example, one commenter suggested that Research and Promotion Programs
should be voluntary in nature, instead of mandatory. Two commenters
responded to the proposed rule in what appeared to be Slovakian
language. When translated, the comments mentioned a cleaning company
and the services they provided. Three commenters made disparaging
remarks about the U.S. Government. Accordingly, AMS is making no
changes to the final rule based on these comments.
Executive Orders 12866 and 13563
AMS is issuing this final rule in conformance with Executive Orders
(E.O.) 12866 and 13563, which 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). E.O. 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 E.O. 12866 review.
Executive Order 12988
This final rule has been reviewed under E.O. 12988, Civil Justice
Reform. It is not intended to have a retroactive
[[Page 72512]]
effect. Section 524 of the Act provides that it shall not affect or
preempt any other Federal or State law authorizing promotion or
research relating to an agricultural commodity.
Under section 519 of the Act (7 U.S.C. 7418), a person subject to
an order may file a written petition with USDA stating that an order,
any provision of an order, or any obligation imposed in connection with
an order, is not established in accordance with the law, and request a
modification of an order or an exemption from an order. Any petition
filed challenging an order, any provision of an order, or any
obligation imposed in connection with an order, shall be filed within 2
years after the effective date of an order, provision, or obligation
subject to challenge in the petition. The petitioner will have the
opportunity for a hearing on the petition. Thereafter, USDA will issue
a ruling on the petition. The Act provides that the district court of
the United States for any district in which the petitioner resides or
conducts business shall have the jurisdiction to review a final ruling
on the petition, if the petitioner files a complaint for that purpose
not later than 20 days after the date of the entry of USDA's final
ruling.
Executive Order 13175
This final rule has been reviewed under E.O. 13175--Consultation
and Coordination with Indian Tribal Governments. E.O. 13175 requires
Federal agencies to consult and coordinate with tribes on a government-
to-government basis on: (1) Policies that have tribal implication
including regulation, legislative comments, or proposed legislation;
and (2) other policy statements or actions that 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.
AMS has assessed the impact of this final rule on Indian tribes and
determined that this rule will not have tribal implications that
require consultation under E.O. 13175. Additionally, AMS hosts a
quarterly teleconference with tribal leaders where matters of mutual
interest regarding the marketing of agricultural products are
discussed. Information about the final rule was shared with tribal
leaders during a quarterly conference call. AMS will continue to work
with the USDA Office of Tribal Relations to ensure meaningful
consultation is provided as needed with regards to the regulations.
Regulatory Flexibility Act
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA) (5 U.S.C. 601 et seq.), AMS has performed a RFA
review regarding the impact of the final rule on small entities. The
purpose of RFA is to fit regulatory actions to the scale of businesses
subject to such actions in order that small businesses will not be
unduly burdened. AMS determined that small businesses will not be
unduly burdened.
The North American Industry Classification System (NAICS) code for
sheep farms is 112410. The Small Business Association (SBA) size
classification for this industry limits the number of employees for a
small business to 100 people. Based on industry response, almost all
lamb farms employ fewer than 100 people; in fact, almost all lamb farms
employ less than 15 people. The majority of lamb farms are considered
small businesses.
According to the 2017 Census of Agriculture (AC-17-A-51), there
were 60,675 farms that sold sheep and lambs. This number includes sheep
and lambs raised for dairy, wool, and meat. This final rule focuses
only on those lambs raised for meat. The census does not break down the
data to the level of lamb feeder farms. Therefore, AMS has worked with
industry stakeholders to understand the makeup of the industry.
According to lamb industry estimates, of those 60,675 farms, 500 farms
are considered feeder farms that raise lambs for meat. Additionally,
the lamb industry estimates that of those 500 feeder farms,
approximately 10 percent, or 50 of those feeder farms, could
potentially purchase/sell their lambs at market agencies. The remainder
of the feeder farms sell lambs directly to a first handler. Therefore,
AMS has concluded that the number of feeder farms that raise lambs for
meat that will be financially impacted by this final rule will not be
considered substantial.
This final rule does not increase the assessment rates under the
Order, thus no new economic burden is placed on producers, feeders,
seedstock producers, or first handlers for sales that take place
outside of market agencies, as that process for paying assessments will
not change. When a sale takes place at a market agency, no new burden
will be placed on producers or seedstock producers, regardless of size,
as they will continue to pay their assessments to the market agency. No
new burden will be placed on first handlers of any size as they will
remit assessments to the market agency instead of the Board.
However, the final rule will place a burden on feeder farms who pay
assessments twice, having to seek reimbursement for two assessments
paid for the same lambs by filling out a Lamb Assessment Refund form.
However, AMS concluded that this impact will not be considered
substantial. Under this final rule, a lamb feeder farm could
potentially pay assessments twice in scenarios 4 and 5 described above
and will need to fill out a refund form after selling the lambs through
a market agency to recoup the twice-paid assessment. This paperwork
burden is described in detail in the Paperwork Reduction Act section of
this final rule. During the initial 60-day comment period [85 FR
62617], AMS sought comments on whether the limited data available is
representative of industry lamb numbers and what alternative data
sources, if any, were available to further refine this analysis.
Unfortunately, no data existed.
This final rule does require market agencies to report and collect
assessments from producers, feeders, seedstock producers, and first
handlers; and remit to the Board, thus placing a new burden on market
agencies to collect and remit assessments for the sale and purchase of
lambs.
NAICS code for marketing agencies is 424520. Firms in the 424-
sector classification are defined as large or small depending on the
number of employees rather than sales values. SBA size classification
for this industry limits the number of employees for a small business
to 100. Data on employee numbers for this industry is available from
the U.S. Department of Commerce, Census Bureau. The most recent
available data to determine the size of firms in the industry is from
the 2012 Economic Census. According to the data, the vast majority of
the firms (666 of 668 total firms) are small businesses. According to
industry, of the 666 existing firms, approximately 300 market agencies
that sell lambs will be impacted by this final rule. Currently, 50
full-time market agencies are voluntarily collecting and remitting
producer assessments to the Board; however, they are not collecting and
remitting first handler assessments. Additionally, 250 seasonal market
agencies are not collecting and remitting either of the assessments to
the Board.
The Board provided AMS an estimate that all 50 full-time market
agencies currently utilize computer software in their information
collection and billing processes. Therefore, implementation costs will
consist of upgrades to each respondent's existing computer software
system and hands-on training to amend
[[Page 72513]]
the collection and remittance process, at an estimated cost of $500 per
respondent that will be paid for by the Board. Thus, lessening the
burden on the markets. Additionally, the Board has provided an estimate
to AMS that a large majority of the 250 seasonal market agencies
currently perform their information collection and billing process
utilizing computer software programs. Due to seasonal sales and low
sheep volume sales per respondent, AMS anticipates that the seasonal
markets will be able to utilize existing computer software systems or
existing hard-copy tracking procedures for the new collection and
remittance process. Once this final rule is implemented, the Board will
perform educational outreach to the seasonal market agencies to educate
them on the new collection and remittance process. The outreach efforts
will consist of mailed educational materials and training webinars to
limit the burden on auction managers to train personnel, which is
estimated will cost $5 per respondent. Once the computer software is
installed and the outreach efforts have been completed, the physical
submission of the assessments to the Board will be the only burden on
market agencies, which is considered a minor burden. However, the
option to electronically remit the owed assessments to the Board is
available, which will further reduce the burden. AMS considered the
economic effect of this action on small entities and has determined
that this final rule, while imposing new administrative burdens on
market agencies and some feeder farms, will not have a significant
economic impact on a substantial number of small entities.
Paperwork Reduction Act
The information collection and recordkeeping requirements that are
imposed by the Order have been approved previously under OMB control
number 0581-0093. In accordance with the Paperwork Reduction Act of
1995 (44 U.S.C. Chapter 35, subchapter I).
The existing form (LP-81) will be amended to require data for the
total lambs sold/slaughtered, to effectively carry out the requirements
of the program, and its use is necessary to fulfill the intent of the
Act. The Board will supply such information for data processing
software and/or technical expertise to train market agency staff on how
to complete the information collection and remittance process. The lamb
information collection and remittance form will be simple, easy to
understand, and will place as small a burden as possible on the person
required to file the information.
The timing and frequency of collecting the revised information are
intended to meet the needs of the industry while minimizing the amount
of work necessary to fill out the required reports. In addition, the
information that will be included on this form is not available from
other sources because such information relates specifically to
individual market agencies who are reporting information subject to the
provisions of the Act. There is no practical method for collecting the
required information without the use of these forms.
Information collection requirements that are in this proposal
include:
Title: LP-81--Lamb Promotion, Research, and Information Board
Remittance Report form.
OMB Number: 0581-0093.
Type of Request: Amended collection.
Abstract: The information collection requirements are essential to
carry out this rule.
The Order authorizes the collection of assessments from lamb
producers, feeders, seedstock producers, and first handlers. Under this
final rule, market agencies are required to collect and remit
assessments, while the collection and remittance process remains
unchanged for lamb sales independent of market agencies. This final
rule requires assessment-related records, including the Remittance
Report form, be retained for at least 2 years beyond the fiscal year of
their applicability. This is consistent with the current recordkeeping
requirements of the program. Two hundred fifty of the 300 market agency
respondents operate on a seasonal basis. It is estimated that these
market agencies will complete three responses per respondent, as
assessments are submitted monthly and a typical season consists of 3
months. The additional 50 market agency respondents operate on a full-
time basis. These market agencies will complete an estimated 12
responses per year per respondent, as assessments are submitted
monthly.
The design of this form has been carefully reviewed and every
effort has been made to minimize any unnecessary recordkeeping costs or
requirements, including efforts to utilize information already
submitted under other lamb programs administered by USDA. The form will
be available through the Board or USDA. The information collection will
be used only by authorized Board employees and representatives of USDA,
including AMS staff.
(1) The request for approval of the amended information collection
is as follows: Form LP-81, Lamb Promotion, Research, and Information
Board Remittance Report form.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 1 hour per lamb sale or purchase
via market agency.
Respondents: Lamb Market Agencies.
Estimated Number of Respondents: 800 (includes 300 new
respondents--50 monthly and 250 seasonal).
Estimated Number of Responses per new Respondent per year: 12
(monthly respondents 12 x 550 = 6,600 responses; and seasonal
respondents 1 x 250 = 250 responses).
Estimated Total Annual Burden on Respondents: 6,850 hours (includes
850 new burden hours annually).
The total annual estimated cost for market agencies in providing
the information to the Board is $125,150 (Increase in response total
850 x $18.27 = $15,529.50; grand total is 6,850 x $18.27 =
$125,149.50). This total has been estimated by multiplying 850 total
burden hours by $18.27, the estimated wage rate of respondents. AMS
used the hourly wage of farmworkers, farm, ranch, and aquaculture
animals as obtained from the U.S. Bureau of Labor Statistics,
Occupational Employment and Wages, published May 2018. This publication
can be found at the following website: <a href="https://www.bls.gov/oes/current/oes_nat.htm">https://www.bls.gov/oes/current/oes_nat.htm</a>.
The average hourly wage rate of $13.87 with an additional 31.7
percent to account for benefits and compensations, for an hourly wage
of $18.27, was used to calculate annual cost. Costs of benefits and
compensation guidance were provided by Bureau of Labor Statistics News
Release issued December 14, 2018.
To offset startup costs associated with the new collection and
remittance process, the Board will allocate approximately $500 per
full-time market agency respondent to upgrade their computer software
programs and to provide staff training for the new collection and
remittance procedures (50 full-time market agencies x $500 = $25,000).
Additionally, the Board will provide educational training materials and
will host training webinars with seasonal market agency staff on the
new collection and remittance process. The Board will allocate
approximately $5 for the educational materials and webinar training
costs per seasonal market agency respondent (250 seasonal market
agencies x $5 = $1,250).
This final rule also announces that AMS sought approval for a new
information collection and recordkeeping requirement that is imposed
under the Order. The new
[[Page 72514]]
information collection has been submitted to OMB for approval.
The ``Lamb Feeder Checkoff Refund'' form will require the minimum
information necessary to effectively carry out the requirements of the
program, and its use is necessary to fulfill the intent of the Act.
Such information can be supplied without data processing equipment or
outside technical expertise. In addition, there are no additional
training requirements for individuals filling out reports and
requesting a refund from the Board. The form will be simple, easy to
understand, and place as small a burden as possible on the person
required to file the information.
The timing and frequency of collecting information are intended to
meet the needs of the industry while minimizing the amount of work
necessary to fill out the required reports. In addition, the
information to be included on this form is not available from other
sources because such information relates specifically to individual
market agencies who are subject to the provisions of the Act.
Therefore, there is no practical method for collecting the required
information without the use of these forms.
Information collection requirements that are included in this
proposal include:
Title: LP-85--Lamb Assessment Refund Form.
OMB Number: 0581-0325.
Type of Request: New collection.
Abstract: The information collection requirements are essential to
carry out this final rule.
The Order authorizes the collection of assessments from lamb
producers, feeders, seedstock producers, and first handlers. Under this
final rule, market agencies are required to collect and remit
assessments for the purchase and sale of lambs, while the collection
and remittance process remain unchanged when sales occur independent of
market agencies. This final rule requires assessment-related records to
be retained for at least 2 years beyond the fiscal year of their
applicability. This is consistent with the current recordkeeping
requirements of the program. According to the 2017 Census of
Agriculture (AC-17-A-51), there were 60,675 farms that sold lambs. The
census does not breakdown the data to the level of feeder farms.
Therefore, AMS has worked with industry to understand the makeup of the
industry. Of those farms, the lamb industry estimated that 500 are
considered feeder farms. Additionally, the lamb industry estimates that
of those 500 feeder farms, approximately 10 percent, or 50, of those
feeder farms purchase or sell lambs at market agencies. The estimated
time for each respondent to complete the Lamb Feeder Checkoff Refund
form is 15 minutes. The estimated total hours for all respondents to
complete the form is 150 hours (i.e., 50 respondents multiplied by one
quarter of an hour to complete the form per respondent multiplied by 12
forms being filled out per year, per respondent). The estimated total
cost of requesting a refund from the Board, for all respondents, will
be $2,740.50. The total cost has been estimated by multiplying the
total hours for respondents to complete the form (150 hours) by $18.27,
which is what AMS used for the hourly wage of farmworkers, farm, ranch,
and aquaculture animals, as obtained from the U.S. Bureau of Labor
Statistics, Occupational Employment and Wages, published May 2018. This
publication can be found at the following website: <a href="https://www.bls.gov/oes/current/oes_nat.htm">https://www.bls.gov/oes/current/oes_nat.htm</a>.
Based on the average hourly wage rate of $13.87 with an additional
31.7 percent to account for benefits and compensations, for an hourly
wage of $18.27 was used to calculate annual cost. Costs of benefits and
compensation guidance was provided by Bureau of Labor Statistics News
Release issued December 14, 2018.
The design of this form has been carefully reviewed, and every
effort has been made to minimize any unnecessary recordkeeping costs or
requirements, including efforts to utilize information already
submitted under other lamb program administered by USDA. The form will
be available through the Board or USDA. The information collection will
be used only by authorized Board employees and representatives of USDA,
including AMS staff.
(2) The request for approval of the new information collection is
as follows: Form LP-85, Lamb Feeder Checkoff Refund form.
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 15 minutes per lamb purchase/sale
by a feeder at a market agency.
Respondents: Feeder farms who sell lambs at market agencies.
Estimated Number of Respondents: 50.
Estimated Number of Responses per Respondent per Year: 12.
Estimated Total Annual Burden on Respondents: 150 hours.
Total Cost: $2,740.50.
List of Subjects in 7 CFR Part 1280
Administrative practice and procedure, Advertising, Agricultural
research, Meat and meat products, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 1280 as follows:
PART 1280--LAMB PROMOTION, RESEARCH, AND INFORMATION ORDER
0
1. The authority citation for part 1280 continues to read as follows:
Authority: 7 U.S.C. 7411-7425 and 7 U.S.C. 7401.
0
2. Section 1280.101 is revised to read as follows:
Sec. 1280.101 Definitions
Act means the Commodity Promotion, Research, and Information Act of
1996 (7 U.S.C. 7411-7425; Public Law 104- 127; 110 Stat. 1029, as
amended), or any amendments thereto.
Board means the Lamb Promotion, Research, and Information Board
established pursuant to Sec. 1280.201.
Certified organization means any organization which has been
certified by the Secretary pursuant to this part as being eligible to
submit nominations for membership on the Board.
Conflict of interest means a situation in which a member or
employee of a Board has a direct or indirect financial interest in a
person that performs a service for, or enters into a contract with, a
Board for anything of economic value.
Department means the United States Department of Agriculture.
Exporter means any person who exports domestic live lambs from the
United States.
Feeder means any person who acquires ownership of lambs and feeds
such lambs in the U.S. until they reach slaughter weight.
First handler means the packer or other person who buys or takes
possession of lambs from a producer or feeder for slaughter, including
custom slaughter. If a producer or feeder markets lamb products
directly to consumers, the producer or feeder shall be considered a
first handler with respect to such lambs produced by the producer or
feeder.
Fiscal period and marketing year mean the 12-month period ending on
December 31 or such other consecutive 12-month period as shall be
recommended by the Board and approved by the Secretary.
Information means information and programs that are designed to
increase efficiency in producing lambs, to
[[Page 72515]]
maintain and expand existing markets, and to develop new markets,
marketing strategies, increased market efficiency, and activities that
are designed to enhance the image of lamb and lamb products on a
national or international basis. These include:
(1) Consumer information, which means any action taken to provide
information to, and broaden the understanding of, the general public
regarding the consumption, use, and nutritional attributes of lamb and
lamb products; and
(2) Industry information, which means information and programs that
will lead to the development of new markets, new marketing strategies,
or increased efficiency for the lamb industry, and activities to
enhance the image of lamb.
Lamb means ovine animals of any age, including ewes and rams.
Lamb products means products produced in whole or in part from
lamb, including pelts, and excluding wool and wool products.
Market agency means commission merchant, auction market, or
livestock market in the business of receiving lambs or lamb products
for sale or purchase on commission for or on behalf of a producer,
feeder, seedstock producer, or first handler.
Order means an Order issued by the Secretary under Sec. 514 of the
Act that provides for a program of generic promotion, research, and
information regarding agricultural commodities authorized under the
Act.
Part means the Lamb Promotion, Research, and Information Order and
all rules and regulations issued pursuant to the Act and the Order. The
Order shall be a subpart of the Part.
Person means any individual, group of individuals, partnership,
corporation, association, cooperative, or any other legal entity.
Producer means any person who owns and produces lambs in the United
States for sale.
Producer information means activities designed to provide
producers, feeders, and first handlers with information relating to
production or marketing efficiencies, development of new markets,
program activities, or other information that would facilitate an
increase in the demand for lamb or lamb products.
Promotion means any action, including paid advertising and the
dissemination of culinary and nutritional information and public
relations with emphasis on new marketing strategies, to present a
favorable image of U.S. lamb products to the public for the purpose of
improving the competitive position of U.S. lamb and lamb products in
the marketplace and to stimulate sales.
Referendum means a referendum to be conducted by the Secretary
pursuant to the Act whereby producers, feeders, first handlers, and
exporters shall be given the opportunity to vote to determine whether
the continuance of this subpart is favored by a majority of eligible
persons voting and a majority of volume voting.
Research means any type of test, study, or analysis designed to
advance the image, desirability, use, marketability, production,
product development, or quality of lamb or lamb products.
Secretary means the Secretary of Agriculture of the United States
or any other officer or employee of the Department to whom authority
has heretofore been delegated, or to whom authority may hereafter be
delegated, to act in the Secretary's stead.
Seedstock producer means any lamb producer in the U.S. who engages
in the production and sale of breeding replacement lambs or semen or
embryos.
State means each of the 50 States and the District of Columbia.
Suspend means to issue a rule under Sec. 553 of title 5 U.S.C., to
temporarily prevent the operation of an Order or part thereof during a
particular period of time specified in the rule.
Terminate means to issue a rule under Sec. 553 of title 5 U.S.C.,
to cancel permanently the operation of an Order or part thereof
beginning on a date certain specified in the rule.
Unit means each State, group of States, or class designation
(producers, feeders, first handlers, or seedstock producers) that is
represented on the Board.
United States means collectively the 50 States and the District of
Columbia.
Wool means fiber from the fleece of a lamb.
Wool products mean products produced, in whole or in part, from
wool and products containing wool fiber, excluding pelts.
Sec. Sec. 1280.102 through 1280.129 [Removed and Reserved]
0
3. Remove and reserve Sec. Sec. 1280.102 through 1280.129.
0
4. Section 1280.217 is amended by:
0
a. Revising paragraphs (a), (c), and (d);
0
b. Removing paragraphs (e) and (g); and
0
c. Redesignating paragraphs (f) and (h) as paragraphs (e) and (f),
respectively.
The revisions read as follows:
Sec. 1280.217 Lamb purchases.
(a) Except as prescribed by regulations approved by the Secretary,
each first handler or exporter making payment to a producer, seedstock
producer, or feeder for lambs purchased from such producer, seedstock
producer, or feeder shall collect an assessment from the producer,
seedstock producer, or feeder. Each producer, seedstock producer, or
feeder shall pay such assessment to the first handler or exporter, at
the rate of seven-tenths of a cent ($.007) per pound of live lambs
sold. The rate of assessment may be raised or lowered no more than
twenty-hundredths of a cent ($0.002) in any one year. The Board may
recommend any change in the assessment rate to the Department. Prior to
a change in the assessment rate, the Department will provide notice by
publishing in the Federal Register any proposed changes with interested
parties allowed to provide comment.
* * * * *
(c) Each person processing or causing to be processed lambs or lamb
products of that person's own production and marketing such lambs or
lamb products, shall pay an assessment on such lambs or lamb products
on the live weight of the lamb at the time of slaughter at the rate
established in subparagraph (a) of this section. In addition, pursuant
to Sec. 1280.108, such an individual is considered a first handler and
is required by Sec. 1280.219 to pay an additional assessment of $0.42
per head. As the first handler, the individual must remit the total
amount of assessments to the Board.
(d) A market agency shall collect an assessment from the producer,
seedstock producer, feeder, or first handler and remit the collected
assessment to the Board. Any person who pays more than one assessment
on the same lamb may be eligible for a refund by submitting a request
on a form provided by the Board.
* * * * *
0
5. Section 1280.218 is revised to read as follows:
Sec. 1280.218 Exporter.
Each person exporting live lambs or lamb products, including an
exporter directly exporting his or her own lambs or lamb products,
shall remit to the Board an assessment at the rate established in Sec.
1280.217(a) by the 15th day of the month following the month in which
the live lambs were purchased for slaughter and export or live export.
0
6. Section 1280.220 is amended by revising paragraph (a) to read as
follows:
[[Page 72516]]
Sec. 1280.220 Collections.
(a) Each first handler, market agency, and exporter responsible for
the collection of assessments under this subpart shall remit
assessments to the Board by the 15th day of the month following the
month in which the lambs were purchased for slaughter or export.
* * * * *
0
7. Section 1280.402 is amended by revising paragraphs (b) and (e)(1) to
read as follows:
Sec. 1280.402 Assessments.
* * * * *
(b) Market agency. A market agency will be required to collect an
assessment from the producer, feeder, seedstock producer, or first
handler and remit the collected assessment to the Board.
* * * * *
(e) * * *
(1) Assessments shall be remitted to the Lamb Promotion, Research,
and Information Program, c/o the Secretary at USDA, 23029 Network
Place, Chicago, Illinois 60673-1230, with a ``Monthly Remittance
Report'' form not later than the 15th day of the following month in
which lambs or lamb products were purchased for slaughter or export, or
marketed.
* * * * *
Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-27467 Filed 12-21-21; 8:45 am]
BILLING CODE P
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</html>Indexed from Federal Register on December 22, 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.