Rule2022-13005
Amendments to the Marketing Order of Grapes Grown in Southeastern California
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
June 16, 2022
Effective
July 18, 2022
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule amends Marketing Order No. 925, which regulates the handling of grapes grown in a designated area of southeastern California. The amendments change the California Desert Grape Administrative Committee's (Committee) size, and its quorum and voting requirements.
Full Text
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<title>Federal Register, Volume 87 Issue 116 (Thursday, June 16, 2022)</title>
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[Federal Register Volume 87, Number 116 (Thursday, June 16, 2022)]
[Rules and Regulations]
[Pages 36211-36213]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13005]
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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. 87, No. 116 / Thursday, June 16, 2022 / Rules
and Regulations
[[Page 36211]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 925
[Doc. No.: AMS-SC-21-0049; SC21-925-2]
Amendments to the Marketing Order of Grapes Grown in Southeastern
California
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule amends Marketing Order No. 925, which
regulates the handling of grapes grown in a designated area of
southeastern California. The amendments change the California Desert
Grape Administrative Committee's (Committee) size, and its quorum and
voting requirements.
DATES: Effective July 18, 2022.
FOR FURTHER INFORMATION CONTACT: Pushpa Kathir, Marketing Specialist,
Rulemaking Services Branch, Market Development Division, Specialty
Crops Program, AMS, USDA, 1400 Independence Avenue SW, Stop 0237,
Washington, DC 20250-0237; Telephone: (202) 720-2491,
<a href="/cdn-cgi/l/email-protection#94c4e1e7fce4f5badff5e0fcfde6d4e1e7f0f5baf3fbe2"><span class="__cf_email__" data-cfemail="055570766d75642b4e64716d6c7745707661642b626a73">[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#9ccef5fff4fdeef8b2d0f3ebf9eedce9eff8fdb2fbf3ea"><span class="__cf_email__" data-cfemail="80d2e9e3e8e1f2e4aecceff7e5f2c0f5f3e4e1aee7eff6">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
finalizes amendments to 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. 925, as amended (7 CFR part 925), regulating the
handling of grapes grown in a designated area of southeastern
California. Part 925 (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 grape producers and handlers
operating within the area of production, and a public member.
Section 8c(17) of the Act (7 U.S.C 608c (17)) and the applicable
rules of practice and procedure governing the formulation of marketing
agreements and orders (7 CFR part 900) authorize amendment of the Order
through this informal rulemaking action.
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.
In addition, 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 Agriculture
Marketing Service (AMS) has determined this final rule is unlikely to
have substantial direct effects on one or more Indian tribes, on the
relationship between the Federal Government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian tribes.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule shall not be deemed to preclude, preempt, or supersede any
State program covering grapes grown in a designated area of
southeastern California.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 8c(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. A handler is afforded the opportunity for a hearing
on the petition. After the hearing, USDA would rule on the petition.
The Act provides that the district court of the United States in any
district in which the handler is an inhabitant, or has his or her
principal place of business, has jurisdiction to review USDA's ruling
on the petition, provided an action is filed no later than 20 days
after the date of entry of the ruling.
Section 1504 of the Food, Conservation, and Energy Act of 2008
(2008 Farm Bill) (Pub. L. 110-246) amended section 8c(17) of the Act,
which in turn required the addition of supplemental rules of practice
to 7 CFR part 900 (73 FR 49307; August 21, 2008). The amendment of
section 8c(17) of the Act and the supplemental rules of practice
authorize the use of informal rulemaking (5 U.S.C. 553) to amend
Federal fruit, vegetable, and nut marketing agreements and orders. USDA
may use informal rulemaking to amend marketing orders depending upon
the nature and complexity of the proposed amendments, the potential
regulatory and economic impacts on affected entities, and any other
relevant matters.
AMS has considered the nature and complexity of the amendments, the
potential regulatory and economic impacts on affected entities, and
other relevant matters, and determined that amending the Order as
proposed by the Committee could appropriately be accomplished through
informal rulemaking.
The Committee unanimously recommended the amendments following
deliberations at the public meeting held on April 13, 2021. This final
rule will amend the Order by changing the Committee's size, as well as
its quorum and voting requirements.
AMS published the initial proposed rule in the Federal Register on
August 13, 2021 (86 FR 44644) to solicit comments on the proposals.
After reviewing the comments, AMS republished the proposed rule without
[[Page 36212]]
change along with the referendum order in the Federal Register on
January 25, 2022 (87 FR 3699). That document directed that a referendum
among grape producers in southeastern California be conducted February
14, 2022, through March 4, 2022, to determine whether they favored the
proposals. To become effective, the amendments had to be approved by
either two-thirds of the producers voting in the referendum or by those
representing at least two-thirds of the volume of table grapes produced
by those voting in the referendum.
The results of the referendum show that 100 percent of the eligible
producers who voted and 100 percent of the volume voted favored both
amendments. Thus, both amendments were passed and will change the
Committee's size, and quorum and voting requirements.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this final rule on small entities. Accordingly, AMS has prepared this
final regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses subject to such actions so that small businesses will not be
unduly or disproportionately burdened. Marketing Orders issued pursuant
to the Act, and rules issued thereunder, are unique in that they are
brought about through group action of essentially small entities acting
on their behalf.
Small agricultural producers have been defined by the Small
Business Administration (SBA) (13 CFR 121.201) as those having annual
receipts of no more than $1,000,000. Small agricultural service firms
(handlers) are defined as those with annual receipts of no more than
$30,000,000.
The Committee reports that there are 18 producers and 10 handlers
of table grapes in the marketing order production region. The Committee
packout reports show that average annual packout for 2018 through 2020
was 3.2127 million 18-pound containers, equivalent to 28,914 tons. The
3-year average of California fresh table grape prices was $1,267 per
ton. Multiplying quantity times price yields an annual average crop
value estimate of $36.634 million. Dividing the average crop value
estimate by the number of producers (18) yields an average crop value
per producer of $2.035 million, well below the SBA small farm size
threshold of $3,500,000. Therefore, using the estimated prices, packout
volume, and number of producers, and 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.
Dividing the average crop value of $36.634 million by the number of
handers (10) yields a per-handler estimate of $3.663 million, well
below the SBA small business threshold of $30,000,000 in annual
receipts. However, that computation measures handler annual receipts
using producer-level crop value data, since AMS is unable to locate an
estimate of a hander margin. A range of handler margin estimates would
be 30 to 40 percent above the grower price. Applying those two
percentages, a range of handler annual receipts estimates would be $4.8
to $5.1 million, still well below $30,000,000. Therefore, using these
estimated prices, utilization volume, handler margin estimates and
number of handlers, and assuming a normal bell-curve distribution of
receipts among handlers, AMS estimates that the majority of handlers
would meet the SBA definition of small businesses.
AMS has determined that the amendments, as effectuated by this
final rule, will not have a significant impact on a substantial number
of small businesses. Rather, large and small entities alike are
expected to benefit from the Committee's improved ability to address
important issues of interest to all on a timely basis. The reduced
number of seats on the Committee, and the reduced quorum and voting
requirements, will not require any significant changes in producer or
handler business operations, and no significant industry educational
effort will be needed. Producers and handlers, large and small alike,
will incur no additional costs. No small businesses will be unduly or
disproportionately burdened.
The amendments to the California desert grape marketing order
reduces the number of member and alternate seats on the California
Desert Grape Administrative Committee from 12 to 10 and reduces the
quorum and voting requirements from 8 to 6 members. The amendments are
necessary to reflect the industry's consolidation. Since the
promulgation of the marketing order in 1980, the California desert
grape industry has lost roughly 55 percent of its producers and 58
percent of the registered handlers. No economic impact is expected from
these amendments because they will not establish any new regulatory
requirements on handlers, nor will they have any assessment or funding
implications. There will be no change in financial costs, reporting, or
recordkeeping requirements as a result of this action.
Alternatives to this action, including making no changes at this
time, were considered by the Committee. Due to changes in the industry,
AMS believes the action is justified and necessary to ensure the
Committee's ability to locally administer the program. Reducing the
size of the Committee will enable it to satisfy membership and quorum
requirements fully, thereby ensuring a more efficient and orderly flow
of business.
Paperwork Reduction Act
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 are necessary because of this action.
Should any changes become necessary, they would be submitted to OMB for
approval.
This action will impose no additional reporting or recordkeeping
requirements on either small or large grape handlers in southeastern
California. 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 action.
The Committee's meetings are widely publicized throughout the
southeastern California table grape production area. All interested
persons are invited to attend the meetings and encouraged to
participate in Committee deliberations on all issues. Like all
Committee meetings, the April 13, 2021, meeting was public, and all
entities, both large and small, were encouraged to express their views
on the proposals.
A proposed rule concerning this action was published in the Federal
Register on August 13, 2021 (86 FR 44644). Copies of the rule were
mailed to all table grapes handlers in southeastern California. The
proposed rule was made available through the internet by USDA and the
Office of the Federal Register. A 60-day comment period ending October
12, 2021, was provided to allow interested persons to
[[Page 36213]]
respond to the proposal. Two comments were received during the comment
period, both of which were in support of the proposed amendments.
However, one commentor was concerned that the restructuring of the
Committee might limit the participation of interested parties in the
industry. Further, the commentor suggested adding a requirement for
periodic review of the Committee structure to the regulations.
A proposed rule and referendum order were then published on January
25, 2022 (87 FR 3699). That document directed that a referendum among
table grape producers in southeastern California be conducted during
the period of February 14, 2022, through March 4, 2022, to determine
whether they favored the proposed amendments to the Order. To become
effective, the amendments had to be approved by at least two-thirds of
the growers voting, or two-thirds of the volume of table grapes
represented by voters in the referendum. The results show that 100
percent of the eligible producers who voted and 100 percent of the
volume voted favored both amendments.
The producer vote met the requirement of being favored by two-
thirds of the producers voting, or by two-thirds of the volume voted in
the referendum for both amendments. Both amendments were passed.
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.
Order Amending the Order Regulating the Handling of Table Grapes Grown
in Southeastern California
Findings and Determinations
The findings hereinafter set forth are supplementary to the
findings and determinations which were previously made in connection
with the issuance of Marketing Order 925; and all said previous
findings and determinations are hereby ratified and affirmed, except
insofar as such findings and determinations may be in conflict with the
findings and determinations set forth herein.
1. Marketing Order 925, as amended, and as hereby further amended
and all the terms and conditions thereof, will tend to effectuate the
declared policy of the Act;
2. Marketing Order 925, as amended, and as hereby further amended,
regulates the handling of grapes grown in southeastern California and
is applicable only to persons in the respective classes of commercial
and industrial activity specified in the Order;
3. Marketing Order 925, as amended, as hereby further amended, is
limited in application to the smallest regional production area, which
is practicable, consistent with carrying out the declared policy of the
Act, and the issuance of several marketing orders applicable to
subdivisions of the production area would not effectively carry out the
declared policy of the Act;
4. Marketing Order 925, as amended, and as hereby further amended,
prescribes, insofar as practicable, such different terms applicable to
different parts of the production area as are necessary to give due
recognition to the differences in the production and marketing of
grapes produced or packed in the production area; and
5. All handling of grapes produced or packed in the production
area, as defined in Marketing Order 925, is in the current of
interstate or foreign commerce, or directly burdens, obstructs, or
affects such commerce.
It is hereby determined that:
1. The issuance of this amendatory Order, amending the aforesaid
Order, is favored, or approved by producers representing at least two-
thirds of the volume of table grapes produced by those voting in a
referendum on the question of approval and who, during the period of
January 1, 2021, through December 31, 2021, have been engaged within
the production area in the production of such table grapes.
2. The issuance of this amendatory Order advances the interests of
growers of table grapes in the production area pursuant to the declared
policy of the Act.
Order Relative to Handling
It is therefore ordered, that on and after the effective date
hereof, all handling of grapes grown in Southeastern California shall
be in conformity to, and in compliance with, the terms and conditions
of the said Order as hereby proposed to be amended as follows:
The provisions amending the Order contained in the proposed rule
and referendum order, published in the Federal Register (87 FR 3699) on
January 25, 2022, will be and are the terms and provisions of this
order amending the Order and are set forth in full herein.
List of Subjects in 7 CFR Part 925
Grapes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service is amending 7 CFR part 925 as follows:
PART 925--GRAPES GROWN IN A DESIGNATED AREA OF SOUTHEASTERN
CALIFORNIA
0
1. The authority citation for 7 CFR part 925 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 925.20, revise paragraph (a) to read as follows:
Sec. 925.20 Establishment and membership.
(a) There is hereby established a California Desert Grape Committee
consisting of 10 members, each of whom shall have an alternate who
shall have the same qualifications as the member. Four of the members
and their alternates shall be producers, or officers or employees of
producers (producer members). Four of the members and their alternates
shall be handlers, or officers or employees of handlers (handler
members). One member and alternate shall be either a producer or
handler, or an officer or employee thereof. One member and alternate
shall represent the public.
* * * * *
0
3. In Sec. 925.30, revise paragraph (a) to read as follows:
Sec. 925.30 Procedure.
(a) Six members of the committee shall constitute a quorum,
including at a minimum one producer member and one handler member, and
any action of the committee shall require at least six concurring
votes;
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-13005 Filed 6-15-22; 8:45 am]
BILLING CODE 3410-02-P
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