Rule2024-07809
Pears Grown in Oregon and Washington; Increased Assessment Rate for Processed Pears
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
April 12, 2024
Effective
May 13, 2024
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This rule implements a recommendation from the Processed Pear Committee (Committee) to increase the assessment rate established for the 2023-2024 fiscal period and subsequent fiscal periods. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 89 Issue 72 (Friday, April 12, 2024)</title>
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[Federal Register Volume 89, Number 72 (Friday, April 12, 2024)]
[Rules and Regulations]
[Pages 25775-25778]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-07809]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS-SC-23-0037]
Pears Grown in Oregon and Washington; Increased Assessment Rate
for Processed Pears
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Final rule.
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SUMMARY: This rule implements a recommendation from the Processed Pear
Committee (Committee) to increase the assessment rate established for
the 2023-2024 fiscal period and subsequent fiscal periods. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective May 13, 2024.
FOR FURTHER INFORMATION CONTACT: Dale Novotny, Marketing Specialist, or
Barry Broadbent, Acting 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#eda98c8188a7c3a3829b82998394ad989e898cc38a829b"><span class="__cf_email__" data-cfemail="91d5f0fdf4dbbfdffee7fee5ffe8d1e4e2f5f0bff6fee7">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#35775447474c1b77475a545157505b4175404651541b525a43"><span class="__cf_email__" data-cfemail="f9bb988b8b80d7bb8b96989d9b9c978db98c8a9d98d79e968f">[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#37655e545f564553197b58405245774244535619505841"><span class="__cf_email__" data-cfemail="98caf1fbf0f9eafcb6d4f7effdead8edebfcf9b6fff7ee">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
implements an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This rule is issued under Marketing
Order No. 927, as amended (7 CFR part 927), regulating the handling of
pears grown in Oregon and Washington. Part 927 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 growers, handlers, and processors of pears operating within the area
of production, and a public member.
The Agricultural Marketing Service (AMS) is issuing this 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 action
falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Order 12866 review.
This rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires Federal
[[Page 25776]]
agencies to consider whether their rulemaking actions would have Tribal
implications. The AMS has determined that this 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 rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the Order now in effect, pear handlers are
subject to assessments. Funds to administer the Order are derived from
such assessments. It is intended that the assessment rate will be
applicable to all assessable ``summer/fall'' pears for canning 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 8c(15)(A) of the
Act (7 U.S.C. 608c(15)(A)), any handler subject to an order may file
with the United States 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 rule increases the assessment rate for ``summer/fall''
varieties of pears for canning handled under the Order from $7.15 per
ton, the rate that was established for the 2018-2019 fiscal period and
subsequent fiscal periods, to $7.50 per ton for the 2023-2024 fiscal
period and subsequent fiscal periods.
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 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 2018-2019 fiscal period and subsequent fiscal periods, the
Committee recommended, and AMS approved, an assessment rate of $7.15
per ton of ``summer/fall'' varieties of pears for canning handled (83
FR 62451). 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 8, 2023, and unanimously recommended
2023-2024 fiscal period expenditures of $607,532 and an assessment rate
of $7.50 per ton of ``summer/fall'' varieties of pears for canning
handled for the 2023-2024 fiscal period and subsequent fiscal periods.
In comparison, last year's budgeted expenditures were $594,130. The
increased assessment rate of $7.50 per ton is $0.35 higher than the
rate currently in effect. The Committee recommended increasing the
assessment rate to better fund operations using assessment revenue and
to reduce the reliance on reserve funds. The Committee has drawn down
its financial reserve in recent years to cover Committee expenses and
to reduce the reserve so as to not exceed approximately one fiscal
period's budgeted expenses, in conformance with the Order (7 CFR
927.42(a)). The Committee projects handler receipts of 78,000 tons of
assessable ``summer/fall'' varieties of pears for canning for the 2023-
2024 fiscal period, which is 7,288 more than was projected for the
2022-2023 fiscal period.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $492,595 for marketing, promotions, and paid
advertising; $73,337 for research; $25,000 for promotion management
fees; and $16,600 for Committee administrative expenses. Budgeted
expenditures for the 2022-2023 fiscal period were $483,300, $66,530,
$25,000, and $21,396, respectively.
Processed pears for canning are marketed throughout the calendar
year. The expected 78,000-ton 2023 crop will generate $585,000 in
assessment revenue at the increased assessment rate (78,000 tons of
assessable ``summer/fall'' varieties of pears for canning multiplied by
$7.50 per ton assessment rate). The remaining $22,532 needed to cover
budgeted expenditures will come from reserve funds carried over from
previous fiscal periods and $100 in interest income. The 2023-2024
fiscal period assessment rate increase will be appropriate to ensure
the Committee has sufficient revenue, along with its reserve, to fully
fund its recommended 2023-2024 fiscal period budgeted expenditures and
maintain a level of reserve funds that the Committee believes is
appropriate.
The Committee derived the recommended assessment rate by
considering anticipated fiscal period expenses, an estimated 2023 crop
volume of 78,000 tons of assessable ``summer/fall'' varieties of pears
for canning, and the amount of funds available in the authorized
reserve. Income derived from handler assessments ($585,000) and funds
from the Committee's authorized reserve ($22,432) along with interest
income ($100) will be adequate to cover budgeted expenses ($607,532).
The assessment rate 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
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.
Final 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 rule on small entities. Accordingly, AMS 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.
[[Page 25777]]
There are approximately 1,500 growers of pears for processing in
the production area and approximately 34 handlers of processed pears
subject to regulation under the Order. Small agricultural growers of
processed pears are defined by the Small Business Administration (SBA)
as those having annual receipts equal to or less than $3.5 million
(NAICS code 111339, Other Noncitrus Fruit Farming), and small
agricultural service firms are defined as those whose annual receipts
are equal to or less than $34 million (NAICS code 115114, Postharvest
Crop Activities) (13 CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
the average annual grower price received for processed pears in
Washington and Oregon was $361 per ton (2022). Total production of
pears for canning for the 2022 season was reported by the Committee to
be 74,131 tons. Using the average grower price from 2022, the most
recent years for which there is NASS data, the total 2022 crop value of
pears grown for processing in Oregon and Washington was $26,761,291
(74,131 tons multiplied by $361 per ton). Dividing the crop value by
the estimated number of growers (1,500) yields an estimated average
receipt per grower of $17,841, which is well below the SBA threshold
for small growers.
Given the relatively small total farmgate value of pears for
processing produced in the production area ($26,761,291), it is
probable that most, if not all, of the pear processors regulated by the
Order would be considered small entities. Dividing the $26,761,291
estimated crop value by the number of handlers of processed pears (34)
equals $787,097. AMS has not identified a direct third-party reference
for estimating processed pear manufacturing margins. Without direct
third-party information regarding the industry, determination of the
number of large and small processors using the SBA's definition would
be difficult. However, given the low average crop value of pears for
processing ($787,097) it may be assumed that most, if not all, of the
handlers of processed pears would have annual receipts below the SBA
threshold for small agricultural service firms ($34 million).
Therefore, using the above information and assuming a normal
distribution, most of the growers and handlers of pears for processing
may be classified as small entities.
This rule increases the assessment rate collected from handlers for
the 2023-2024 fiscal period and subsequent fiscal periods from $7.15 to
$7.50 per ton of Oregon and Washington ``summer/fall'' pears for
canning. The Committee unanimously recommended 2023-2024 fiscal period
expenditures of $607,532 and an assessment rate of $7.50 per ton of
``summer/fall'' pears for canning. The assessment rate of $7.50 is
$0.35 higher than the previous rate. The Committee expects the industry
to handle 78,000 tons of ``summer/fall'' varieties of pears for canning
during the 2023-2024 fiscal period. Thus, the $7.50 per ton rate will
provide approximately $585,000 in assessment income (78,000 tons
multiplied by $7.50). The Committee also expects to use $22,532 from
its financial reserve and $100 in interest income to cover remaining
expenses. Income derived from handler assessments, along with reserve
funds, will be adequate to meet budgeted expenditures for the 2023-2024
fiscal period.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $492,595 for marketing, promotions, and paid
advertising; $73,337 for research; $25,000 for promotion management
fees; and $16,600 for Committee administrative expenses. Budgeted
expenditures for the 2022-2023 fiscal period were $483,300, $66,530,
$25,000, and $21,396, respectively.
In recent years, the Committee has utilized reserve funds to
partially fund its budgeted expenditures. The Committee recommended
increasing the assessment rate to better fund 2023-2024 fiscal period
budgeted expenditures and refrain from excessively drawing down the
funds held in its reserve. This action will maintain the Committee's
reserve balance at a level that the Committee believes is appropriate
and is compliant with the provisions of the Order.
Prior to arriving at this budget and the increased assessment rate,
the Committee discussed various alternatives, including maintaining the
previous assessment rate of $7.15 per ton and increasing the assessment
rate by different amounts. However, the Committee determined that the
recommended assessment rate will be able to fund most of the budgeted
expenses and avoid drawing down reserves at an unsustainable rate. The
assessment rate of $7.50 per ton of Oregon and Washington ``summer/
fall'' pears for canning was derived by considering anticipated
expenses, the projected volume of assessable pears for canning, the
projected monetary balance held in reserve, and additional pertinent
factors.
A review of NASS information indicates that the average grower
price for the 2022-2023 fiscal period was $361 per ton. Utilizing the
assessment rate of $7.50 per ton, assessment revenue for the 2022-2023
fiscal period, as a percentage of total grower revenue, would have been
approximately 2.08 percent ($7.50 per ton divided by $361 multiplied by
100).
This action 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 processed pear 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 8,
2023, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons were invited to submit comments on this rule, including the
regulatory and information collection impacts of this action on small
businesses. One comment was received during the comment period. The
comment was seeking clarity on pear varieties and weight
specifications, which was not relevant to the subject matter of the
rule. Accordingly, AMS made no changes to the rule based on the comment
received.
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. 0581-0189, Fruit Crops.
No changes in those requirements will be necessary because of this
rule. Should any changes become necessary, they would be submitted to
OMB for approval.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large processed pear 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 25778]]
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this final rule.
A proposed rule concerning this action was published in the Federal
Register on December 1, 2023 (88 FR 83870). Copies of the proposed rule
were provided to all processed pear handlers. The proposal was also
made available through the internet by USDA and the Office of the
Federal Register. A 30-day comment period ending January 2, 2024, was
provided for interested persons to respond to the proposal. One comment
was received during the comment period. The comment was seeking clarity
on pear varieties and weight specifications, which was not relevant to
the subject matter of the proposed rule. Accordingly, AMS made no
changes to the 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 final rule
is consistent with and will effectuate the purposes of the Act.
List of Subjects in 7 CFR Part 927
Marketing agreements, Pears, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 927 as follows:
PART 927--PEARS GROWN IN OREGON AND WASHINGTON
0
1. The authority citation for 7 CFR part 927 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Amend Sec. 927.237 by revising the introductory text and paragraph
(a) to read as follows:
Sec. 927.237 Processed pear assessment rate.
On and after July 1, 2023, the following base rates of assessment
for pears for processing are established for the Processed Pear
Committee:
(a) $7.50 per ton for any or all varieties or subvarieties of pears
for canning classified as ``summer/fall'' excluding pears for other
methods of processing;
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-07809 Filed 4-11-24; 8:45 am]
BILLING CODE 3410-02-P
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