Proposed Rule2023-28279
Domestic Dates Produced or Packed in Riverside County, California; Decreased Assessment Rate
Primary source
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Published
December 27, 2023
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the California Date Administrative Committee (Committee) to decrease 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 247 (Wednesday, December 27, 2023)</title>
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[Federal Register Volume 88, Number 247 (Wednesday, December 27, 2023)]
[Proposed Rules]
[Pages 89327-89330]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-28279]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
[Doc. No. AMS-SC-23-0058]
Domestic Dates Produced or Packed in Riverside County,
California; Decreased 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
California Date Administrative Committee (Committee) to decrease 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 January 26, 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#8bc6eaf9e0eeffe2e5ecc4f9efeef9c8e4e6e6eee5ffcbfef8efeaa5ece4fd"><span class="__cf_email__" data-cfemail="327f53405957465b5c557d40565740715d5f5f575c4672474156531c555d44">[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: Bianca Bertrand, 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#a7e5cec6c9c4c6ea89e5c2d5d3d5c6c9c3e7d2d4c3c689c0c8d1"><span class="__cf_email__" data-cfemail="410328202f22200c6f0324333533202f2501343225206f262e37">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#f6b197848fb2d8b99a859998b683859297d8919980"><span class="__cf_email__" data-cfemail="541335262d107a1b38273b3a14212730357a333b22">[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#64360d070c0516004a280b13011624111700054a030b12"><span class="__cf_email__" data-cfemail="01536862696073652f4d6e76647341747265602f666e77">[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. 987, as amended (7 CFR part 987), regulating the handling of
domestic dates produced or packed in Riverside County, California. Part
987 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 producer-
handlers operating within the area of production.
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
[[Page 89328]]
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
supplements and reaffirms Executive Orders 12866 and 13563 and 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 Orders 12866, 13563, and 14094
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 date
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 dates for the 2023-2024 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 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 decrease the assessment rate for dates
handled under the Order from $0.20 per hundredweight, the rate that was
established for the 2020-2021 and subsequent crop years, to $0.15 per
hundredweight for the 2023-2024 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. Therefore, they can 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 2020-2021 and subsequent crop years, the Committee
recommended, and AMS approved, an assessment rate of $0.20 per
hundredweight of dates. 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.
The Committee met on June 27, 2023, and recommended 2023-2024 crop
year expenditures of $75,800 and an assessment rate of $0.15 per
hundredweight of dates handled for the 2023-2024 and subsequent crop
years. In comparison, last year's budgeted expenditures were $77,250.
The proposed assessment rate of $0.15 per hundredweight is $0.05 lower
than the rate currently in effect. The Committee recommended decreasing
the assessment rate to better align assessment revenue with budgeted
expenses and to keep the Committee's financial reserve within the
amount allowed under the Order. The Committee projects that handlers
will handle 426,000 hundredweight of California dates for the 2023-2024
crop year, which is the same quantity that was projected for the 2022-
2023 crop year. The proposed lower rate would provide sufficient funds
to cover most of the 2023-2024 crop year anticipated expenses, with the
balance coming from other income and the Committee's financial reserve.
Assessments on California dates handled would generate approximately
$63,900 in income at the recommended $0.15 per hundredweight assessment
rate.
The Committee's budgeted expenditures for the 2023-2024 crop year
total $75,800. The Committee's expenses include $48,000 for management
services, $16,800 for office administration, and $11,000 for the
financial audit. In comparison, the previous crop year's total budget
was $77,250, with $48,000 for management services, $19,750 for office
administration, and $9,500 for the audit.
The assessment rate recommended by the Committee was derived by
considering anticipated expenses, the expected volume of dates handled,
and the amount of funds available in the operating reserve. Income
derived from handler assessments of $63,900 (426,000 hundredweight
assessed at the proposed rate of $0.15) would be adequate to cover most
of the Committee's budgeted expenses of $75,800, with the balance
covered from $5,100 in surplus allocation income and $6,800 from
reserve funds. After expending $6,800 from the reserve on budgeted
expenses, the ending 2023-2024 crop year balance in the financial
reserve fund is expected to be $49,400, which would be less than the
average of the annual expenses of the preceding five years, as mandated
by the Order in Sec. 987.72(d).
Although this proposed 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 2023-2024 crop year budget,
and those for subsequent crop years, 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
[[Page 89329]]
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 70 producers of dates in the production
area and 11 handlers subject to regulation under the Order. Small
agricultural producers of dates are defined by the Small Business
Administration (SBA) as those having annual receipts of less than
$3,500,000 (NAICS code 111339), and small agricultural service firms
are defined as those whose annual receipts are less than $34,000,000
(NAICS code 115114) (13 CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
data for the most-recently completed crop year (2022) shows that
California date farmers produced 49,200 tons of dates and that the
producer price for fresh market California dates was $2,840 per ton.
With the estimated 49,200-ton crop, the total farm gate value for
California date producers was approximately $139,728,000 (49,200
multiplied by $2,840). Therefore, the average fresh market date revenue
for the 70 producers within the production area would be about
$1,996,114 ($139,728,000 divided by 70). Thus, it can be concluded that
the many of the date producers within the production area could be
considered small entities.
Furthermore, USDA Market News reported an average terminal market
price of $53.90 per 11-pound carton for the 2021-2022 crop year. With
approximately 98,400,000 pounds handled, the industry would have
shipped an estimated 8,945,454 11-pound cartons (98,400,000 divided by
11-pound carton) of packaged dates for a total value of $482,159,971
(8,945,454 multiplied by $53.90). With 11 date handlers within the
production area, the average revenue per handler is estimated to be
$43,832,724 for the 2021-2022 crop year ($482,159,971 divided by 11).
Thus, most California date handlers could be considered large entities.
This proposal would decrease the assessment rate collected from
handlers for the 2023-2024 and subsequent crop years from $0.20 to
$0.15 per hundredweight of assessable dates. The Committee unanimously
recommended 2023-2024 crop year expenditures of $75,800 and a $0.15 per
hundredweight assessment rate. The Committee expects the industry to
handle 426,000 hundredweight of assessable dates during the 2023-2024
crop year. Thus, at the $0.15 per hundredweight rate, the Committee
anticipates $63,900 in assessment income (426,000 hundredweight
multiplied by $0.15 per hundredweight). The Committee also expects to
utilize surplus allocation ($5,100) and the Committee's monetary
reserve ($6,800) to cover the remaining $11,900 of expenses. Income
derived from all sources are expected to be adequate to meet budgeted
expenditures for the 2023-2024 crop year. The Committee's reserve
balance (approximately $49,400 at the end of the 2023-2024 crop year)
would be maintained at a level that the Committee believes is
appropriate and is compliant with the provisions of the Order.
The Committee's budgeted expenditures for the 2023-2024 crop year
total $75,800. The Committee's expenses include $48,000 for management
services, $16,800 for office administration, and $11,000 for the
financial audit. In comparison, the previous crop year's total budget
was $77,250, with $48,000 for management services, $19,750 for office
administration, and $9,500 for the audit.
Prior to arriving at the budget and proposed assessment rate, the
Committee discussed various alternatives. However, the Committee
determined that the recommended assessment rate would be able to reduce
the financial burden on the industry without drawing down reserves to
an unsustainable rate. The assessment rate of $0.15 per hundredweight
of assessable dates was derived by considering anticipated expenses,
the projected volume of dates handled, the projected monetary balance
held in reserve, and additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2022 crop year was $2,840 per ton ($142.00 per
hundredweight). Utilizing the recommended assessment rate of $0.15 per
hundredweight, the estimated assessment revenue as a percentage of
total producer revenue would be approximately 0.106 percent ($0.15 per
hundredweight divided by $142.00 and multiplied by 100).
This proposed action would decrease 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 California date industry and all other 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 California date
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 987
Dates, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 987 as follows:
[[Page 89330]]
PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY,
CALIFORNIA
0
1. The authority citation for 7 CFR part 987 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise 987.339 to read as follows:
Sec. 987.339 Assessment rate.
On and after October 1, 2023, an assessment rate of $0.15 per
hundredweight is established for dates produced or packed in Riverside
County, California.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-28279 Filed 12-26-23; 8:45 am]
BILLING CODE P
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