Proposed Rule2023-27213
Onions Grown in Certain Designated Counties in Idaho and Malheur County, Oregon; 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
December 12, 2023
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Idaho-Eastern Oregon Onion Committee (Committee) to increase the assessment rate established for the 2023-2024 and subsequent fiscal periods. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 237 (Tuesday, December 12, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 237 (Tuesday, December 12, 2023)]
[Proposed Rules]
[Pages 86066-86069]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-27213]
========================================================================
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.
========================================================================
Federal Register / Vol. 88, No. 237 / Tuesday, December 12, 2023 /
Proposed Rules
[[Page 86066]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 958
[Doc. No. AMS-SC-23-0033]
Onions Grown in Certain Designated Counties in Idaho and Malheur
County, Oregon; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Idaho-Eastern Oregon Onion Committee (Committee) to increase the
assessment rate established for the 2023-2024 and subsequent fiscal
periods. The proposed assessment rate would remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by January 11, 2024.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments can 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#0c416d7e67697865626b437e68697e4f6361616962784c797f686d226b637a"><span class="__cf_email__" data-cfemail="5b163a29303e2f32353c14293f3e29183436363e352f1b2e283f3a753c342d">[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: Josh Wilde, Marketing Specialist, or
Gary Olson, Chief, West Region Branch, Market Development Division,
Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, or
Email: <a href="/cdn-cgi/l/email-protection#32785d415a47531c601c655b5e565772474156531c555d44"><span class="__cf_email__" data-cfemail="b2f8ddc1dac7d39ce09ce5dbded6d7f2c7c1d6d39cd5ddc4">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#d89fb9aaa19cf697b4abb7b698adabbcb9f6bfb7ae"><span class="__cf_email__" data-cfemail="367157444f7218795a455958764345525718515940">[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#73211a101b1201175d3f1c04160133060017125d141c05"><span class="__cf_email__" data-cfemail="65370c060d0417014b290a12001725101601044b020a13">[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
Agreement No. 130 and Marketing Order No. 958, both as amended (7 CFR
part 958), regulating the handling of onions grown in certain counties
in Idaho, and Malheur County, Oregon. Part 958 (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 onions 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, 13563, and 14094.
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. Executive
Order 14094 reaffirms, supplements, and updates Executive Order 12866
and further directs agencies to solicit and consider input from a wide
range of affected and interested parties through a variety of means.
This proposed 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 Federal 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, Idaho-Eastern
Oregon onion 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 Idaho-Eastern
Oregon onions for the 2023-2024 fiscal period, 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.
This proposed rule would increase the assessment rate for Idaho-
Eastern Oregon onions handled under the Order from $0.05 per
hundredweight, the rate that was established for the 2015-2016 and
subsequent fiscal periods, to $0.07 per hundredweight for the 2023-2024
and subsequent fiscal periods.
The Order authorizes the Committee, with the approval of AMS, to
formulate an annual budget of expenses and
[[Page 86067]]
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 2015-2016 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.05 per
hundredweight of Idaho-Eastern Oregon onions within the production
area. That rate continues in effect from fiscal period to fiscal period
until 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 27, 2023, and recommended 2023-2024
fiscal period expenditures of $1,039,785 and an assessment rate of
$0.07 per hundredweight of Idaho-Eastern Oregon onions handled for the
2023-2024 and subsequent fiscal periods with a vote of 7 in favor and
none opposed. In comparison, last fiscal period's budgeted expenditures
were $819,435. The proposed assessment rate of $0.07 per hundredweight
is $0.02 higher than the rate currently in effect. The Committee
recommended increasing the assessment rate to more fully fund the
Committee's operations without relying on its financial reserve funds.
The Committee has drawn down its financial reserve in recent years to
cover Committee expenses as unfavorable growing conditions have caused
the volume of assessable onion shipments to fall well below what the
Committee had expected. Therefore, actual assessment income collected
for the 2021-2022 and 2022-2023 fiscal periods was significantly less
than projected. The Committee is cautiously optimistic that conditions
would improve, projecting handler shipments of 10,000,000 hundredweight
of assessable Idaho-Eastern Oregon onions for the 2023-2024 fiscal
period, which is the same as initially projected for the 2022-2023
fiscal period.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $190,000 for research; $175,000 for
promotion; $21,000 for export initiatives; $118,529 in salary expenses;
$55,270 for travel/office expenses; $15,000 for marketing order
contingency; and $6,000 for Committee expenses. By comparison, for the
2022-2023 fiscal period, budgeted expenses for research, promotion,
export initiatives, salaries, travel/office, and marketing order
contingency were $263,061; $200,000; $126,000; $103,004; $96,370;
$25,000; and $6,000, respectively. The Committee's 2023-2024 budget
also includes a separate line-item expense of $458,986 for ``grant
expenses'' which refers to other research and development projects
funded with reimbursable Specialty Crop Block Grant Program funds. This
category reflects the total grant amount awarded for approved research,
promotion, and export activities. In previous budgets, these funds were
allocated to the individual programs where those funds would be
utilized (e.g., research, promotion, and export). However, the
Committee felt that holding these expenditures as a separate expense
category for the 2023-2024 fiscal period helped differentiate
activities funded exclusively through assessment income from those
funded through reimbursable grants. The Committee submits each project
under the Specialty Crop Block Grant to the State of Idaho for
evaluation and approval prior to reimbursement.
The expected 10,000,000 hundredweight of Idaho-Eastern Oregon
onions from the 2023-2024 crop would generate $700,000 in assessment
revenue at the proposed assessment rate (10,000,000 hundredweight of
onions multiplied by $0.07 assessment rate). The 2023-2024 fiscal
period assessment rate increase should be appropriate to ensure the
Committee has sufficient revenue, along with an anticipated $458,986 in
funds awarded through the Specialty Crop Block Grant Program and
$23,850 in other income, to fully fund its recommended 2023-2024 fiscal
period budgeted expenditures and begin replenishing the Committee's
reserve funds to a level that the Committee believes is appropriate.
The Committee derived the recommended assessment rate by
considering anticipated fiscal period expenses and the estimated 2023
crop volume of 10,000,000 hundredweight of assessable Idaho-Eastern
Oregon onions. Income derived from handler assessments ($700,000),
Specialty Crop Block Grants ($458,986), and other sources including
interest income and voluntary contributions ($23,850), should be more
than adequate to cover budgeted expenses ($1,039,785). The Committee
projects a positive net difference between 2023-2024 fiscal period
income and expenses of $143,051. This amount would help replenish the
Committee's reserve fund from an estimated $230,351 on July 1, 2023, to
an estimated $373,402 on July 1, 2024, a figure much more closely
aligned with the Committee's preferred reserve balance of approximately
half of one year's operational expenses.
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 fiscal period 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 2023-2024
fiscal period budget, and those for subsequent fiscal periods, will 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 190 producers of Idaho-Eastern Oregon
onions in the production area and 30 handlers subject to regulation
under the Order. Small agricultural producers of onions are defined by
the Small Business Administration (SBA) as those having annual receipts
of less than $3,750,000, 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 annual producer price
[[Page 86068]]
received for dry fresh market onions in Idaho and Malheur County,
Oregon, in 2021, the most recent year for which there is NASS data, was
$21.10 per hundredweight. Total production of Idaho-Eastern Oregon
onions for the 2021 season was reported by the Committee to be
9,281,912 hundredweight. Using the average producer price from 2021,
the total 2021-2022 crop value of Idaho-Eastern Oregon onions could
therefore be estimated to be $195,848,343 (9,281,912 hundredweight
times $21.10 per hundredweight). Dividing the crop value by the
estimated number of producers (190) yields an estimated average receipt
per producer of $1,030,780, which is well below the SBA threshold for
small producers.
In addition, according to AMS Market News data, the reported
average free on board (FOB) price for onions from Idaho-Eastern Oregon
over the 2021-2022 fiscal period was between $15.00 and $20.00 per 50-
pound carton, depending upon variety, size and grade, and shipping
date. Assuming an average of $17.50 for the fiscal period and
multiplying this figure by 2 (to adjust to hundredweight) yields an
average FOB price of $35.00 per hundredweight for the 2021-2022 fiscal
period. Multiplying the 2021-2022 Idaho-Eastern Oregon onion production
of 9,281,912 hundredweight by the estimated average price per
hundredweight of $35.00 equals $324,866,920. Dividing this figure by
the 30 regulated handlers yields estimated average annual handler
receipts of $10,828,897 ($324,866,920 divided by 30 handlers), which is
below the SBA threshold for small agricultural service firms.
Therefore, using the above data and assuming a normal distribution,
most of the producers and handlers of Idaho-Eastern Oregon onions may
be classified as small entities.
This proposal would increase the assessment rate collected from
handlers for the 2023-2024 and subsequent fiscal periods from $0.05 to
$0.07 per hundredweight of Idaho-Eastern Oregon onions. The Committee
unanimously recommended 2023-2024 fiscal period expenditures of
$1,039,785 and an assessment rate of $0.07 per hundredweight of Idaho-
Eastern Oregon onions. The proposed assessment rate of $0.07 is $0.02
higher than the current rate. The Committee expects the industry to
handle 10,000,000 hundredweight of Idaho-Eastern Oregon onions during
the 2023-2024 fiscal period. Thus, the $0.07 per hundredweight rate
should provide $700,000 in assessment income (10,000,000 multiplied by
$0.07). The Committee expects to use an anticipated $458,986 awarded
from the Specialty Crop Block Grant Program to cover remaining
expenses. Income derived from handler assessments, Specialty Crop Block
Grant Program funds, and other sources including interest income and
voluntary contributions, should be more than adequate to cover budgeted
expenses.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $190,000 for research committee, $175,000
for promotion committee, $21,000 for export committee, $118,529 in
salary expenses, $55,270 for travel/office expenses, $15,000 for
marketing order contingency, and $6,000 in committee expenses. By
comparison, for the 2022-2023 fiscal period, budgeted expenses for
research, promotion, export initiatives, salaries, travel/office, and
marketing order contingency were $263,061, $200,000, $126,000,
$103,004, $96,370, $25,000, and $6,000, respectively.
In recent years, the Committee has utilized reserve funds to
partially fund its budgeted expenditures. The Committee recommended
increasing the assessment rate to fully fund 2023-2024 fiscal period
budgeted expenditures and replenish funds held in its reserve. This
action would add an estimated $143,051 to the Committee's financial
reserve fund. The reserve balance would be kept at a level that the
Committee believes is appropriate and which is compliant with the
provisions of the Order.
Prior to arriving at this budget and proposed assessment rate, the
Committee discussed various alternatives, including maintaining the
current assessment rate of $0.05 per hundredweight and increasing the
assessment rate by different amounts. However, the Committee determined
that the recommended assessment rate would fully fund budgeted expenses
and replenish reserves to appropriate levels. The assessment rate of
$0.07 per hundredweight of Idaho-Eastern Oregon onions was derived by
considering anticipated expenses, the projected volume of assessable
Idaho-Eastern Oregon onions, grant funds awarded, the projected
monetary balance held in reserve, and additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2021-2022 fiscal period was $21.10 per hundredweight of
onions in the production area. Further, the Committee reported the
quantity of assessable Idaho-Eastern Oregon onions harvested in the
2021-2022 fiscal period was 9,281,912 hundredweight, which yields
estimated total producer revenue of $195,848,343 ($21.10 per
hundredweight multiplied by 9,281,912). Therefore, utilizing the
assessment rate of $0.07 per hundredweight, assessment revenue for the
2021-2022 fiscal period, as a percentage of total producer revenue,
would be approximately 0.33 percent of total producer revenue ($0.07
multiplied by 9,281,912 per hundredweight divided by $195,848,343 and
multiplied by 100).
This proposed action would increase the assessment obligation
imposed on Idaho-Eastern Oregon onion 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 Idaho-Eastern Oregon onion 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 27, 2023, 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 Idaho-Eastern
Oregon onion 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.
[[Page 86069]]
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.
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
rule 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 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 958
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 958 as follows:
PART 958--ONIONS GROWN IN CERTAIN DESIGNATED COUNTIES IN IDAHO, AND
MALHEUR COUNTY, OREGON
0
1. The authority citation for 7 CFR part 958 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 958.240 to read as follows:
Sec. 958.240 Assessment rate.
On and after July 1, 2023, an assessment rate of $0.07 per
hundredweight is established for Idaho-Eastern Oregon onions.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-27213 Filed 12-11-23; 8:45 am]
BILLING CODE P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 12, 2023.
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.