Rule2023-04810
Dried Prunes Produced in California; Increased Assessment Rate
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
March 9, 2023
Effective
April 10, 2023
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This rule implements a recommendation from the Prune Marketing Committee (Committee) to increase the assessment rate established for the 2022-23 crop year. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 88 Issue 46 (Thursday, March 9, 2023)</title>
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[Federal Register Volume 88, Number 46 (Thursday, March 9, 2023)]
[Rules and Regulations]
[Pages 14481-14484]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-04810]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 993
[Doc. No. AMS-SC-22-0053]
Dried Prunes Produced in California; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Final rule.
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SUMMARY: This rule implements a recommendation from the Prune Marketing
Committee (Committee) to increase the assessment rate established
[[Page 14482]]
for the 2022-23 crop year. The assessment rate will remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Effective April 10, 2023.
FOR FURTHER INFORMATION CONTACT: Jeremy Sasselli, Marketing Specialist,
or Gary Olson, Chief, Western Region Field Office, Market Development
Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487-
5901, or Email: <a href="/cdn-cgi/l/email-protection#81cbe4f3e4ecf8afd2e0f2f2e4edede8c1f4f2e5e0afe6eef7"><span class="__cf_email__" data-cfemail="f3b99681969e8adda0928080969f9f9ab386809792dd949c85">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#bff8decdc6fb91f0d3ccd0d1ffcaccdbde91d8d0c9"><span class="__cf_email__" data-cfemail="c582a4b7bc81eb8aa9b6aaab85b0b6a1a4eba2aab3">[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#83d1eae0ebe2f1e7adcfecf4e6f1c3f6f0e7e2ade4ecf5"><span class="__cf_email__" data-cfemail="cf9da6aca7aebdabe183a0b8aabd8fbabcabaee1a8a0b9">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This final rule is issued under Marketing Agreement No.
110 and Marketing Order No. 993, both 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 one public
member.
The Agricultural Marketing Service (AMS) is issuing this final rule
in conformance with Executive Orders 12866 and 13563. Executive Orders
12866 and 13563 direct agencies to assess all costs and benefits of
available regulatory alternatives and, if regulation is necessary, to
select regulatory approaches that maximize net benefits (including
potential economic, environmental, public health and safety effects,
distributive impacts and equity). Executive Order 13563 emphasizes the
importance of quantifying both costs and benefits, reducing costs,
harmonizing rules, and promoting flexibility. This action falls within
a category of regulatory actions that the Office of Management and
Budget (OMB) exempted from Executive Order 12866 review.
This final rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires agencies to consider whether their rulemaking actions would
have tribal implications. AMS has determined that 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 final 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. The assessment rate is applicable to all
assessable dried prunes for the 2022-23 crop year and will continue
until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
The Order provides authority for the Committee, with the approval
of AMS, to formulate an annual budget of expenses and collect
assessments from handlers to administer the program. The members are
familiar with the Committee's needs and with the costs of goods and
services in their local area and are thus in a position to formulate an
appropriate budget and assessment rate. The assessment rate is
formulated and discussed in a public meeting. Thus, all directly
affected persons have an opportunity to participate and provide input.
This final rule increases the assessment rate from $0.28 per ton of
assessed dried prunes, the rate that was established for the 2020-21
and subsequent crop years, to $0.33 per ton of assessed dried prunes
for the 2022-23 and subsequent crop years.
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 assessed dried prunes to fund administrative expenses.
In comparison, last year's budgeted expenditures were $26,212. The
assessment rate of $0.33 per ton is $0.05 higher than the rate
currently in effect. 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.
Dried prunes harvested in 2022 will be marketed over the course of
the 2022-23 crop year, which begins on August 1, 2022. The expected
75,000 tons of assessable dried prunes from the 2022 crop should
generate $24,750 in assessment revenue. The $1,950 balance of funds
needed to cover budgeted expenditures will come from funds carried over
from the previous crop year. The 2022-23 crop year assessment rate
increase will be adequate, along with carryover funds, to cover 2022-23
crop year budgeted expenditures.
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 Committee expects
that 2022-23 crop year production will be 75,000 tons of assessable
fruit. The Committee used the projected 75,000-ton production estimate
in determining its assessment rate recommendation 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 reserve for contingencies. Budgeted expenditures
for the 2021-22 crop year were $14,025, $12,000, and $187,
respectively.
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, and the
anticipated funds that will be carried over into the new crop year.
Income derived from handler assessments and the balance carried over
from the previous crop year is expected to be adequate to cover
budgeted expenses. The assessment rate established in this rule will
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 will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
crop year to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings
[[Page 14483]]
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 will 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 budget for subsequent crop years would be
reviewed and, as appropriate, approved by AMS.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this 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 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.
The SBA threshold for producers and handlers changed after the
publication of the proposed rule. Thus, AMS changed the thresholds to
reflect the new SBA thresholds in this final rule. The changes do not
impact AMS's ultimate determination regarding the impact of the rule on
small entities. Small agricultural producers of prunes are defined by
the Small Business Administration (SBA) as those having annual receipts
less than $3,500,000, and small agricultural service firms are defined
as those whose annual receipts are less than $34,000,000 (13 CFR
121.201).
According to the National Agricultural Statistics Service (NASS),
the average producer price for California dried prunes for the 2021
crop was $2,000 per ton. NASS further reported 2021 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, which is
considerably lower than the $3,500,000 SBA small agricultural producer
threshold.
In addition, according to USDA Market News data, the reported
average terminal market price for 2021 for California dried prunes was
$38.93 per 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 divided by 28 pounds). Multiplying $1.39 per pound by
2,000 pounds yields $2,780 per ton, which, when multiplied by total
estimated 2021 production of 74,000 tons, yields estimated total
handler receipts of $205,720,000. Dividing this figure by the 27
regulated handlers yields estimated average annual handler receipts of
$7,619,259, well below the $34 million 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 final rule increases the assessment rate collected from
handlers for the 2022-23 and subsequent crop years from $0.28 to $0.33
per ton of assessable dried prunes. The Committee unanimously
recommended 2022-23 crop year expenditures of $26,700 and an assessment
rate of $0.33 per ton. The assessment rate of $0.33 is $.05 higher than
the assessment rate currently established. The Committee expects the
industry to handle 75,000 tons during the 2022-23 crop year. Income
derived from the $0.33 per ton assessment rate, along with funds
carried over from the previous crop year, should be adequate to meet
the 2022-23 crop year's budgeted expenditures. The Committee expects
$1,950 to be carried over into the 2022-23 crop year, which begins
August 1, 2022.
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 reserve. Budgeted expenses for these
items during the 2021-22 crop year were $14,025 for personnel costs,
$12,000 for operating expenses, and $187 for contingency reserve. The
Committee deliberated the 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 fewer 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.
Prior to arriving at this budget and 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 assessable 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
is 74,000 tons, which yields a total estimated producer revenue of
$148,000,000 ($2,000 multiplied by 74,000 tons). Therefore, utilizing
the increased assessment rate of $.33 per ton, assessment revenue for
the 2021-22 crop year, as a percentage of total producer revenue, will
be approximately 1.65 percent ($0.33 multiplied by 74,000 tons divided
by $148,000,000 multiplied by 100).
This final rule increases 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 are
expected to be offset by the benefits derived by the operation of the
Order.
The Committee's meetings are 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. In addition,
interested persons were invited to submit comments on the proposed
rule, including the regulatory and information collection impacts of
this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
Chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0178 Vegetable and
Specialty Crops. No changes in those requirements as a result of this
action are necessary. Should any changes become necessary, they would
be submitted to OMB for approval.
This final rule would not impose any additional reporting or
recordkeeping requirements on either small or large
[[Page 14484]]
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 has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this final rule.
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.
A proposed rule concerning this action was published in the Federal
Register on November 7, 2022 (87 FR 66958). Copies of the proposed rule
were also mailed or sent via email to all handlers of prunes produced
in California. The proposal was made available through the internet by
AMS and <a href="https://www.regulations.gov">https://www.regulations.gov</a>. A 30-day comment period ending
December 7, 2022, was provided for interested persons to respond to the
proposal. One comment in favor of the proposal was received.
Accordingly, no changes will be made to the rule as proposed.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
<a href="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.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, it is hereby found that this rule will
tend to effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 993
Marketing agreements, Plum, Prunes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 993 is
amended as follows:
PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA
0
1. The authority citation for 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. 2023-04810 Filed 3-8-23; 8:45 am]
BILLING CODE 3410-02-P
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