Proposed Rule2022-24172
Dried Prunes Produced in California; Increased Assessment Rate
Primary source
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Published
November 7, 2022
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Prune Marketing Committee (Committee) to increase the assessment rate established for the 2022-23 crop year and subsequent fiscal years. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 87 Issue 214 (Monday, November 7, 2022)</title>
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[Federal Register Volume 87, Number 214 (Monday, November 7, 2022)]
[Proposed Rules]
[Pages 66958-66960]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24172]
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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. 87, No. 214 / Monday, November 7, 2022 /
Proposed Rules
[[Page 66958]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Doc. No. AMS-SC-22-0053; SC22-993-1 PR]
Dried Prunes Produced in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
Prune Marketing Committee (Committee) to increase the assessment rate
established for the 2022-23 crop year and subsequent fiscal years. The
proposed assessment rate would remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by December 7, 2022.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be submitted to the Docket
Clerk electronically by Email: <a href="/cdn-cgi/l/email-protection#0c416d7e67697865626b437e68697e4f6361616962784c797f686d226b637a"><span class="__cf_email__" data-cfemail="a7eac6d5ccc2d3cec9c0e8d5c3c2d5e4c8cacac2c9d3e7d2d4c3c689c0c8d1">[email protected]</span></a> or via
the internet at: <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. Comments submitted in response to this proposed rule
will be included in the record and will be made available to the public
and can be viewed at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Please be advised
that the identity of the individuals or entities submitting the
comments will be made public on the internet at the address provided
above.
FOR FURTHER INFORMATION CONTACT: Jeffery Rymer, Marketing Specialist,
or Gary Olson, Regional Director, Western Region Branch, Market
Development Division, Specialty Crops Program, AMS, USDA; Telephone:
(559) 487-5901, or Email: <a href="/cdn-cgi/l/email-protection#470d22212122353e2a69153e2a2235073234232669202831"><span class="__cf_email__" data-cfemail="de94bbb8b8bbaca7b3f08ca7b3bbac9eabadbabff0b9b1a8">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#da9dbba8a39ef495b6a9b5b49aafa9bebbf4bdb5ac"><span class="__cf_email__" data-cfemail="d394b2a1aa97fd9cbfa0bcbd93a6a0b7b2fdb4bca5">[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#90c2f9f3f8f1e2f4bedcffe7f5e2d0e5e3f4f1bef7ffe6"><span class="__cf_email__" data-cfemail="affdc6ccc7ceddcb81e3c0d8caddefdadccbce81c8c0d9">[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. 993, as amended (7 CFR part 993), regulating the handling of
dried prunes grown in California. Part 993 (referred to as the
``Order'') is effective under the Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as the
``Act.'' The Committee locally administers the Order and is comprised
of producers and handlers of dried prunes operating within the area of
production, and a public member.
The Agricultural Marketing Service (AMS) 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 that 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. Under the Order now in effect, California prune
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the assessment rate
would be applicable to all assessable dried prunes for the 2022-23 crop
year, and continue until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with Department of
Agriculture (USDA) a petition stating that the order, any provision of
the order, or any obligation imposed in connection with the order is
not in accordance with law and request a modification of the order or
to be exempted therefrom. Such handler is afforded the opportunity for
a hearing on the petition. After the hearing, USDA would rule on the
petition. The Act provides that the district court of the United States
in any district in which the handler is an inhabitant, or has his or
her principal place of business, has jurisdiction to review USDA's
ruling on the petition, provided an action is filed not later than 20
days after the date of the entry of the ruling.
This proposed rule would increase the assessment rate from $0.28
per ton of salable dried prunes, the rate that was established for the
2020-21 and subsequent crop years, to $0.33 per ton of salable dried
prunes for the 2022-23 and subsequent crop years.
The Order authorizes the Committee, with the approval of AMS, to
formulate an annual budget of expenses and collect assessments from
handlers to administer the program. The members of the Committee are
familiar with the Committee's needs and with the costs of goods and
services in their local area and are able to formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in a public meeting, and all directly affected persons have
an opportunity to participate and provide input.
For the 2021-22 and subsequent crop years, the Committee
recommended, and AMS approved, an assessment rate that would continue
in effect from fiscal
[[Page 66959]]
year to fiscal year unless modified, suspended, or terminated by AMS
upon recommendation and information submitted by the Committee or other
information available to AMS.
The Committee met on June 28, 2022, and unanimously recommended
2022-23 crop year expenditures of $26,700 and an assessment rate of
$0.33 per ton of salable dried prunes handled for the 2022-23 and
subsequent crop years. In comparison, last year's budgeted expenditures
were $26,212. The proposed assessment rate of $0.33 per ton is $0.05
higher than the rate currently in effect. The Committee recommended
increasing the assessment rate due to a lower than normal crop size
produced in the 2021-22 crop year and a projected lower crop size again
for the 2022-23 crop year. The Committee projects handler receipts of
75,000 tons of assessable dried prunes from the 2022-23 crop year,
which is the same level that was projected for the 2021-22 crop year.
The major expenditures recommended by the Committee for the 2022-23
crop year include $14,935 for personnel costs, $11,125 for operating
expenses, and $640 for contingencies. Budgeted expenditures for the
2021-22 crop year were $14,025, $12,000, and $187, respectively.
Dried prunes harvested in 2022 will be marketed over the course of
the 2022-23 crop year, which begins on August 1, 2022. The crop year is
a 12-month period that begins on August 1 of each year and ends on July
31 of the following year. The expected 75,000 tons of assessable dried
prunes from the 2022-23 crop would generate $24,750 (75,000 tons
salable dried prunes multiplied by $0.33 assessment rate) in assessment
revenue at the proposed assessment rate. The $1,950 balance of funds
needed to cover budgeted expenditures would come from funds carried
over from the previous crop year. The 2022-23 crop year assessment rate
increase should be appropriate to ensure the Committee has sufficient
revenue to fund its recommended 2022-23 crop year budgeted
expenditures.
The Committee derived the recommended assessment rate by
considering anticipated crop year expenses, actual prune tonnage
received by handlers during the 2021-2022 crop year, an estimated 2022-
23 crop of 75,000 tons of salable dried prunes, and the anticipated
funds that will be carried over into the new crop year. Income derived
from handler assessments ($24,750),and the balance carried over from
the previous crop year ($1,950) are expected to be adequate to cover
budgeted expenses ($26,700).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by AMS 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 would continue to meet prior to or during each
crop year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or AMS.
Committee meetings are open to the public and interested persons may
express their views at these meetings. AMS 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 2022-23 budget and those
for subsequent crop years would be reviewed and, as appropriate,
approved by AMS.
Initial 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 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, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 600 producers of dried prunes in the
production area and 27 handlers subject to regulation under the Order.
Small agricultural producers of prunes are defined by the Small
Business Administration (SBA) as those having annual receipts of less
than $3,000,000, and small agricultural service firms are 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 average producer price for California dried prunes for the 2021-22
crop was $2,000 per ton. NASS further reported 2021-22 crop year
production for California dried prunes was 74,000 tons. The estimated
total 2021-22 crop year value of California dried punes is $148,000,000
(74,000 tons times $2,000 per ton equals $148,000,000). Dividing the
estimated total crop value by the estimated number of producers (600)
yields an estimated average receipt per producer of $246,667
($148,000,000 divided by 600), so the majority of producers would have
annual receipts less than the $3,000,000 SBA small agricultural
producer threshold for prunes.
In addition, according to AMS Market News data, the reported
average terminal market price for 2021 for California dried prunes was
$38.93 per 28-pound carton. Dividing the average carton price by the
28-pound carton size yields an estimated price per pound of $1.39
($38.93 average price per 28-pound carton divided by 28 pounds). The
handler price for prunes is $2,780 per ton ($1.39 per pound multiplied
by 2,000 pounds per ton equals $2,780 per ton). Multiplying the 2021-22
California dried prune estimated production of 74,000 tons by the
estimated average price per ton of $2,780 equals $205,720,000.
Dividing this figure by the 27 regulated handlers yields estimated
average annual handler receipts of $7,619,259 ($205,720,000 divided by
27 handlers), which is, below the SBA threshold for small agricultural
service firms. Therefore, using the above data, the majority of
producers and handlers of California dried prunes may be classified as
small entities.
This proposal would increase the assessment rate collected from
handlers for the 2022-23 and subsequent crop years from $0.28 to $0.33
per ton of salable dried prunes. The Committee unanimously recommended
2022-23 crop year expenditures of $26,700 and an assessment rate of
$0.33 per ton of salable dried prunes. The proposed assessment rate of
$0.33 is $.05 higher than the current rate. The Committee expects the
industry to handle 75,000 tons of dried prunes during the 2022-23 crop
year. Thus, the $0.33 per ton of salable dried prunes should provide
$24,750 in assessment income (75,000 tons multiplied by $0.33). The
Committee also expects $1,950 to be carried over into the 2022-23 crop
year, which begins August 1, 2022. Income derived from handler
assessments, along with funds carried over from the previous crop year,
should be adequate to meet budgeted expenditures for the 2022-23 crop
year.
The major expenditures recommended by the Committee for the 2022-23
crop year include $14,935 for personnel costs, $11,125 for operating
expenses, and $640 for contingency
[[Page 66960]]
reserve. Budgeted expenses for these items during the 2021-22 crop year
were $14,025, $12,000, and $187, respectively. The Committee
deliberated the proposed budget categories and decreased their budget
for office supplies and expenses to account for the 2022-23 crop year
being a non-election year, therefore requiring less office supplies.
Overall, the 2022-23 crop year budget of $26,700 is $488 more than the
$26,212 budgeted for the 2021-22 crop year.
The Committee recommended increasing the assessment rate due to a
lower than normal crop size produced in the 2021-22 crop year and a
projected lower crop size again for the 2022-23 crop year. At the
current assessment rate, assessment income would equal $21,000 (75,000
tons multiplied $0.28), an amount along with the carry over funds from
the previous year sufficient to cover the Committee's anticipated 2022-
23 expenditures of $26,700.
Prior to arriving at this budget and the proposed assessment rate,
the Committee considered information from various sources including the
Committee's Executive, Marketing, Inspection, and Research
subcommittees. Alternate expenditure levels were discussed by these
groups, based upon the relative value of various projects to the dried
prune industry and the expected dried prune production. The assessment
rate of $0.33 per ton of salable dried prunes was derived by
considering anticipated expenses, the projected volume of assessable
dried prunes, the current monetary balance expected to be carried into
the upcoming crop year, and additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2021-22 crop year was $2,000 per ton, and the estimated
quantity of assessable dried prunes harvested in the 2021-22 crop year
was 74,000 tons, which would yield total producer revenue $148,000,000
($2,000 per ton multiplied by 74,000 tons). Therefore, utilizing the
assessment rate of $0.33 per ton, assessment revenue for the 2021-22
crop year, as a percentage of total producer revenue, would be
approximately 1.65 percent ($0.33 multiplied by 74,000 tons divided by
$148,000,000 multiplied by 100).
This proposed action 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 producers. However, these
costs would be offset by the benefits derived by the operation of the
Order.
The Committee's meetings were widely publicized throughout the
production area. The dried prune industry and all interested persons
are invited to attend the meetings and participate in Committee
deliberations on all issues. Like all Committee meetings, the June 28,
2022, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons are invited to submit comments on this proposed rule, including
the regulatory and information collection impacts of this action on
small businesses.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0178, Vegetable
and Specialty Crops. No changes in those requirements 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 California dried
prune handlers. As with all Federal marketing order programs, reports
and forms are periodically reviewed to reduce information requirements
and duplication by industry and public sector agencies.
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.
AMS 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 rule.
List of Subjects in 7 CFR Part 993
Marketing agreements, Plum, Prunes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 993 as follows:
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
0
1. The authority citation for 7 CFR part 993 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 993.347 is revised to read as follows:
Sec. 993.347 Assessment rate.
On and after August 1, 2022, an assessment rate of $0.33 per ton of
salable dried prunes is established for California dried prunes.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-24172 Filed 11-4-22; 8:45 am]
BILLING CODE P
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