Proposed Rule2023-25247
Raisins Produced From Grapes Grown in California; Increased Assessment Rate
Primary source
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Published
November 16, 2023
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
The Agricultural Marketing Service (AMS) proposes to implement a recommendation from the Raisin Administrative Committee (Committee) to increase the assessment rate established for the 2023-2024 and subsequent crop 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 88 Issue 220 (Thursday, November 16, 2023)</title>
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[Federal Register Volume 88, Number 220 (Thursday, November 16, 2023)]
[Proposed Rules]
[Pages 78679-78681]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-25247]
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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. 88, No. 220 / Thursday, November 16, 2023 /
Proposed Rules
[[Page 78679]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[Doc. No. AMS-SC-23-0038]
Raisins Produced From Grapes Grown in California; Increased
Assessment Rate
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Proposed rule.
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SUMMARY: The Agricultural Marketing Service (AMS) proposes to implement
a recommendation from the Raisin Administrative Committee (Committee)
to increase the assessment rate established for the 2023-2024 and
subsequent crop years. The proposed assessment rate would remain in
effect indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by December 18, 2023.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rulemaking. Comments may be sent to the Docket
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237.
Comments can also be submitted to the Docket Clerk electronically by
Email: <a href="/cdn-cgi/l/email-protection#87cae6f5ece2f3eee9e0c8f5e3e2f5c4e8eaeae2e9f3c7f2f4e3e6a9e0e8f1"><span class="__cf_email__" data-cfemail="276a46554c42534e4940685543425564484a4a424953675254434609404851">[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
date and page number of this issue of the Federal Register. Comments
submitted in response to this proposed rulemaking will be included in
the record, 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: Kathie Notoro, Marketing Specialist,
or Gary Olson, Chief, West Region Branch, Market Development Division,
Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5901 or Email:
<a href="/cdn-cgi/l/email-protection#bdf6dcc9d5d4d893f3d2c9d2cfd2fdc8ced9dc93dad2cb"><span class="__cf_email__" data-cfemail="602b01140809054e2e0f140f120f20151304014e070f16">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#d790b6a5ae93f998bba4b8b997a2a4b3b6f9b0b8a1"><span class="__cf_email__" data-cfemail="074066757e4329486b746869477274636629606871">[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) 720-8085, or Email:
<a href="/cdn-cgi/l/email-protection#5d0f343e353c2f397311322a382f1d282e393c733a322b"><span class="__cf_email__" data-cfemail="41132822292033256f0d2e36243301343225206f262e37">[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 rulemaking is issued under
Marketing Agreement and Order No. 989, as amended (7 CFR part 989),
regulating the handling of raisins produced from grapes grown in
California. Part 989 (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
raisins operating within the area of production, and a public member.
AMS is issuing this proposed rulemaking in conformance with
Executive Orders 12866, 13563, and 14094. Executive Orders 12866,
13563, and 14094 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. Executive Order 14094
directs agencies to conduct proactive outreach to engage interested and
affected parties through a variety of means, such as through field
offices, and alternative platforms and media. 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 rulemaking 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
rulemaking 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 rulemaking has been reviewed under Executive Order
12988, Civil Justice Reform. Under the order now in effect, California
raisin handlers are subject to assessments. Funds to administer the
order are derived from such assessments. It is intended that the
proposed assessment rate would be applicable to all assessable raisins
beginning on August 1, 2023, 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 the U.S. 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.
Section 989.79 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
[[Page 78680]]
and discussed in a public meeting. Thus, all directly affected persons
have an opportunity to participate and provide input.
For the 2018-2019 and subsequent crop years, an assessment rate of
$22 per assessable ton of raisins handled (84 FR 2049) was in place.
That rate continues in effect from crop year to crop year until
modified, suspended, or terminated by AMS upon recommendation and
information submitted by the Committee or other information available
to AMS.
This proposed rulemaking would increase the assessment rate from
$22 per ton to $24 per ton of assessable raisins for the 2023-2024 and
subsequent crop years. Prior to arriving at this proposed assessment
rate, the Committee considered information from its Audit Subcommittee
(Subcommittee), which met on June 21, 2023. The Subcommittee discussed
alternative spending levels before making a recommendation to the full
Committee. On June 28, 2023, the full Committee discussed the
recommendation of the Subcommittee and voted unanimously to recommend a
budget of $5,241,000 and an assessment rate of $24 per ton as
reasonable and necessary to properly administer the Order.
The Committee last amended the assessment rate in 2019 to $22 per
ton, which continues to remain in effect; however, California raisin
acreage and volume have steadily declined since 2019. The Committee
determined the level of assessment revenue under the current rate as
now insufficient to meet the rising costs of program operations given a
production estimate of 192,000 tons of assessable raisins for the 2023-
2024 crop year.
The proposed assessment rate of $24 is $2 higher than the rate
currently in effect and is expected to generate assessment income of
approximately $4,608,000 ($24 per ton multiplied by 192,000 assessable
tons) for the 2023-2024 crop year. This assessment revenue, combined
with other Committee income and monetary reserves is sufficient to
cover the balance of $633,000 ($5,241,000 minus $4,608,000).
The major expenditures recommended by the Committee for the 2023-
2024 crop year include $3,303,000 for marketing promotion; $1,205,000
for salaries and employee-related costs; $658,000 for administrative
expenses; $55,000 for compliance activities; and $20,000 for research
and studies. Budgeted expenditures for the 2022-2023 crop year were
$3,592,000; $1,232,000; $703,900; $55,000; and $45,000, respectively.
The proposed assessment rate increase would help cover the expenditures
for the 2023-2024 crop year, while reducing the amount of money needing
to be expended from reserves.
This 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 budget 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), the AMS has considered the economic
impact of this proposed rulemaking 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 1,700 producers of California raisins and
approximately 17 handlers subject to regulation under the marketing
order. Small agricultural producers of raisins are defined by the Small
Business Administration (SBA) as those having annual receipts equal to
or less than $4.0 million (NAICS code 111332, Grape Vineyards) and
small agricultural service firms are defined as those whose annual
receipts are equal to or less than $34.0 million (NAICS code 115114,
Postharvest Crop Activities) (13 CFR 121.201).
Using USDA National Agricultural Statistics Service (NASS) data,
the 2022 season average value of utilized production of California
processed raisin-type grapes (most of which are dried into raisins) is
$376.618 million. Dividing that figure by 1,700 producers yields an
annual average revenue per producer of $221,540, well below the SBA
large farm size threshold of $4.0 million. Therefore, in terms of
average annual sales of processed raisin-type grapes, the majority of
California raisin producers may be classified as small entities.
To make a similar computation for handlers, the first step is to
estimate a representative handler price received per pound for packaged
raisins. Recent USDA purchases under the Commodity Procurement Program
provide such an estimate. For the most recent raisin crop year used by
the RAC (August 2022-July 2023) the average price paid for packaged
raisins purchased by the USDA for feeding programs was $1.56 per pound.
For that time period, the RAC provided a list of quantities delivered
by handlers. When multiplied by the $1.56 price per pound, the results
showed that 5 handlers had annual raisin receipts greater than $34
million, the SBA threshold level for a large handler. The remaining 12
handlers out of 17 are small handlers, using the SBA criterion.
This proposed rulemaking would increase the assessment rate
collected from handlers for the 2023-2024 and subsequent crop years
from $22 to $24 per ton of assessable raisins acquired by handlers. The
Committee reviewed its ongoing activities and determined the expenses
that would be reasonable and necessary to continue program operations
for the 2023-2024 crop year. Additionally, the Committee considered
that California raisin acreage and volume have steadily declined.
Consequently, the revenue collected from assessments also decreased,
while program operating costs have continued to increase. Ultimately,
the Committee recommended budget totals $5,241,000 for the 2023-2024
crop year. With the current assessment of $22 a ton, and an operating
budget of $5,241,000, the Committee would face a deficit of over $1MM.
At the recommended assessment rate of $24 per ton, the anticipated
assessment income would be $4,608,000 and would help reduce the
estimated deficit by approximately $384,000.
The major expenditures recommended by the Committee for the 2023-
2024 crop year include $3,303,000 for marketing promotion; $1,205,000
for salaries and employee-related costs; $658,000 for administrative
expenses;
[[Page 78681]]
$55,000 for compliance activities; and $20,000 for research and
studies. Budgeted expenditures for the 2022-2023 crop year were
$3,592,000; $1,232,000; $703,900; $55,000; and $45,000, respectively.
The increased assessment rate is necessary to help cover the
expenditures for the 2023-2024 crop year, while reducing the amount of
money needing to be expended from reserves.
The Order provides authority for the Committee to formulate an
annual budget of expenses and propose an assessment rate to cover such
expenses authorized by AMS. Prior to arriving at this budget and
assessment rate, the Committee considered alternative spending levels
at its June 28, 2023, meeting but ultimately decided that the
recommended budget and assessment rate were reasonable and necessary to
properly administer the Order.
This proposed rulemaking would increase the assessment obligation
imposed on handlers. While the increased assessment rate would impose
some additional costs on handlers, the costs are minimal and applied
uniformly on all handlers. Some of the additional costs may be passed
on to producers. However, these costs would be offset by the benefits
derived by the industry from the operation of the Order.
The Committee's meetings are widely publicized throughout the
production area. The raisin 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,
2023, meeting was public meeting and all entities, both large and
small, were able to express views on this issue. In addition,
interested persons are invited to submit comments on this proposed
rulemaking, 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 are necessary as
a result of this action. Should any changes become necessary, they
would be submitted to OMB for approval.
This proposed rulemaking would not impose any additional reporting
or recordkeeping requirements on either small or large California
raisin 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 rulemaking.
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, USDA has determined that this proposed
rulemaking is consistent with and will effectuate the purposes of the
Act.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rulemaking. All written comments timely
received will be considered before a final determination is made on
this proposed rule.
List of Subjects in 7 CFR Part 989
Grapes, Marketing agreements, Raisins, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 989 as follows:
PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA
0
1. The authority citation for 7 CFR part 989 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 989.347 is revised to read as follows:
Sec. 989.347 Assessment rate.
On and after August 1, 2023, an assessment rate of $24 per ton is
established for assessable raisins produced from grapes in California.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-25247 Filed 11-15-23; 8:45 am]
BILLING CODE P
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