Proposed Rule2024-24773
Pears Grown in Oregon and Washington; Increased Assessment Rate for Fresh Pears
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Published
October 24, 2024
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rulemaking would implement a recommendation from the Fresh Pear Committee (Committee) to increase the assessment rate established for the 2024-2025 and subsequent fiscal periods from $0.468 to $0.516 per 44-pound standard box or equivalent for fresh "summer/ fall" pears and fresh "winter" pears grown in Oregon and Washington. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 89 Issue 206 (Thursday, October 24, 2024)</title>
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[Federal Register Volume 89, Number 206 (Thursday, October 24, 2024)]
[Proposed Rules]
[Pages 84828-84831]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-24773]
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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. 89, No. 206 / Thursday, October 24, 2024 /
Proposed Rules
[[Page 84828]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 927
[Doc. No. AMS-SC-24-0045]
Pears Grown in Oregon and Washington; Increased Assessment Rate
for Fresh Pears
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rulemaking would implement a recommendation from
the Fresh Pear Committee (Committee) to increase the assessment rate
established for the 2024-2025 and subsequent fiscal periods from $0.468
to $0.516 per 44-pound standard box or equivalent for fresh ``summer/
fall'' pears and fresh ``winter'' pears grown in Oregon and Washington.
The proposed assessment rate would remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by November 25, 2024.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rulemaking. 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 sent to the Docket Clerk electronically by Email:
<a href="/cdn-cgi/l/email-protection#d09db1a2bbb5a4b9beb79fa2b4b5a293bfbdbdb5bea490a5a3b4b1feb7bfa6"><span class="__cf_email__" data-cfemail="2a674b58414f5e43444d65584e4f58694547474f445e6a5f594e4b044d455c">[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 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: Joshua R. Wilde, Marketing Specialist,
or Barry Broadbent, Chief, Northwest Region Branch, Market Development
Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-
2724, or Email: <a href="/cdn-cgi/l/email-protection#1d57726e75687c334f334a747179785d686e797c337a726b"><span class="__cf_email__" data-cfemail="feb4918d968b9fd0acd0a997929a9bbe8b8d9a9fd0999188">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#fab89b888883d4b888959b9e989f948eba8f899e9bd49d958c"><span class="__cf_email__" data-cfemail="adefccdfdfd483efdfc2ccc9cfc8c3d9edd8dec9cc83cac2db">[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#6f3d060c070e1d0b412300180a1d2f1a1c0b0e41080019"><span class="__cf_email__" data-cfemail="72201b111a1300165c3e1d05170032070116135c151d04">[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 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 and handlers of pears operating within the
area of production, and a public member.
The Agricultural Marketing Service (AMS) is issuing this proposed
rulemaking 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 supplements and reaffirms 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 rulemaking 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 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, Oregon and
Washington pear 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 Oregon
and Washington fresh pears for the 2024-2025 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 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 rulemaking would increase the assessment rate for
Oregon and Washington fresh ``summer/fall'' pears and ``winter'' pears
handled under the Order from $0.468 per 44-pound standard box or
equivalent, the rate that was established for the 2021-2022 and
subsequent fiscal periods, to $0.516 per
[[Page 84829]]
44-pound standard box or equivalent for the 2024-2025 and subsequent
fiscal periods.
Sections 927.40 and 927.41 of the Order authorize 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 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 2021-2022 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.468 per 44-
pound standard box or equivalent of assessable fresh ``summer/fall''
pears and ``winter'' pears 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 May 29, 2024, and recommended, with a vote of
10 in favor, with 1 opposed, and 1 abstention, 2024-2025 fiscal period
expenditures of $8,167,642 and an assessment rate of $0.516 per 44-
pound standard box or equivalent of fresh ``summer/fall'' and
``winter'' pears for the 2024-2025 fiscal period. In comparison, last
year's budgeted expenditures were $8,364,570. The member voting in
opposition does not support any increase to the assessment rate. The
member who abstained did not provide a justification. The proposed
assessment rate of $0.516 per 44-pound standard box or equivalent is
$0.048 higher than the rate currently in effect. The Committee
recommended increasing the assessment rate due to a smaller estimated
2024 crop and to provide adequate income to cover the Committee's
budgeted expenses for the 2024-2025 fiscal period without needing to
draw from the Committee's financial reserves. The Committee projects
handler receipts of 16,000,000 44-pound standard boxes or equivalent of
assessable fresh pears for the 2024-2025 fiscal period, down from the
approximately 18,000,000 44-pound standard boxes or equivalent that the
Committee initially projected for the 2023-2024 fiscal period.
The major expenditures recommended by the Committee for the 2024-
2025 fiscal period include $6,928,000 for promotion and paid
advertising, $621,148 for production research and market development,
$435,321 for contracted administration and Committee expenses, and
$183,173 for industry development. For comparison, budgeted expenses
for these items during the 2023-2024 fiscal period were $6,930,000,
$843,373, $415,238, and $175,959, respectively.
The Committee derived the recommended assessment rate by
considering anticipated expenses, the estimated volume of assessable
fresh pears, and the amount of funds available in the authorized
reserve. The expected 16,000,000 44-pound standard boxes or equivalent
of assessable fresh ``summer/fall'' and ``winter'' pears would generate
$8,256,000 in assessment revenue at the proposed assessment rate
(16,000,000 44-pound standard boxes or equivalent multiplied by the
$0.516 assessment rate). The income generated from handler assessments,
along with $3,000 expected in interest income, should be sufficient to
meet the Committee's estimated program expenditures of $8,167,642
without needing to draw from the Committee's financial reserves. Funds
available in the financial reserve (currently about $716,365) would be
kept within the maximum permitted by the Order (approximately one
fiscal period's expenses as authorized in Sec. 927.42).
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 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 2024-2025
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 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 27 handlers subject to regulation under the
Order and approximately 700 growers of fresh pears in the production
area. At the time this analysis was prepared, the Small Business
Administration (SBA) defined small agricultural service firms as those
having annual receipts of less than $34,000,000 (North American
Industry Classification System (NAICS) code 115114, Postharvest Crop
Activities), and small agricultural producers of fresh pears as those
having annual receipts of less than $3,500,000 (NAICS code 111339,
Other Noncitrus Fruit Farming) (13 CFR 121.201).
Data from USDA's National Agricultural Statistics Service (NASS),
indicate a three-year average grower price for Oregon and Washington
fresh pears of approximately $11.92 per 44-pound standard box or
equivalent for the most recent seasons for which data is available
(2020-2021 through 2022-2023 fiscal periods). Committee records
indicate average annual fresh pear shipments of 15,246,095 44-pound
standard boxes or equivalent over the same period. Based on these data,
the average total annual value of assessable fresh pears over this
period would have been approximately $181,733,452 (15,246,095 44-pound
standard boxes or equivalent multiplied by $11.92 per box). Dividing
that figure by the number of fresh pear growers (700) yields an average
annual crop value per grower of approximately $259,619. This figure is
well below the SBA small agricultural producer threshold of $3,500,000
in annual sales. Assuming a normal distribution, this provides evidence
that a large majority of pear growers would likely be considered small
agricultural producers according to the SBA definition.
According to USDA Market News data, the most recent shipping point
price for fresh pears out of the Yakima Valley and Wenatchee District
ranged between $36.25 and $45.05 per 44-pound standard box or
equivalent. Using this data to assume an average shipping point price
of $40.65 for all
[[Page 84830]]
Oregon and Washington fresh pears yields a total crop value of
approximately $619,753,762 (15,246,095 44-pound standard boxes
multiplied by $40.65 per box). Dividing this figure by 27 regulated
handlers yields estimated average annual handler receipts of
approximately $22,953,843. Therefore, according to the above data, the
majority of growers and handlers of Oregon and Washington fresh pears
may be classified as small entities.
As noted above, the average price received by growers in the
previous three crop years was $11.92 per 44-pound standard box or
equivalent of assessable fresh ``summer/fall'' pears and ``winter''
pears. Given the Committee-estimated production of 16,000,000 44-pound
standard boxes or equivalent of assessable fresh pears for the 2024-
2025 crop year, total grower revenue is estimated to be $190,720,000.
Total assessment revenue is expected to be $8,256,000 (16,000,000 boxes
multiplied by $0.516 per box). Therefore, estimated assessment revenue
as a percentage of total grower revenue would be about 4.3 percent
($8,256,000 divided by $190,720,000 multiplied by 100).
This proposal would increase the assessment rate collected from
handlers for the 2024-2025 and subsequent fiscal periods from $0.468 to
$0.516 per 44-pound standard box or equivalent of fresh ``summer/fall''
and ``winter'' pears. The Committee recommended 2024-2025 fiscal period
expenditures of $8,167,642 and an assessment rate of $0.516 per 44-
pound standard box or equivalent of assessable fresh ``summer/fall''
and ``winter'' pears handled. The proposed assessment rate of $0.516 is
$0.048 higher than the rate currently in effect. The Committee expects
the industry to handle 16,000,000 44-pound standard boxes or equivalent
of assessable fresh ``summer/fall'' pears and ``winter'' pears during
the 2024-2025 fiscal period. Thus, the $0.516 per 44-pound standard box
or equivalent assessment rate should provide $8,256,000 in assessment
income (16,000,000 44-pound standard boxes or equivalent multiplied by
the $0.516 assessment rate). The income generated from handler
assessments, along with $3,000 expected in interest income, should be
sufficient to meet budgeted expenditures for the 2024-2025 fiscal
period.
The major expenditures recommended by the Committee for the 2024-
2025 fiscal period include $6,928,000 for promotion and paid
advertising, $621,148 for production research and market development,
$435,321 for contracted administration and Committee expenses, and
$183,173 for industry development. For comparison, budgeted expenses
for these items during the 2023-2024 fiscal period were $6,930,000,
$843,373, $415,238, and $175,959, respectively.
The Committee recommended increasing the assessment rate to provide
adequate income to cover the Committee's budgeted expenses for the
2024-2025 fiscal period without needing to draw from the Committee's
financial reserves. The Committee projects handler receipts of
16,000,000 44-pound standard boxes or equivalent of assessable fresh
pears for the 2024-2025 fiscal period, down from the estimated
18,000,000 44-pound standard boxes or equivalent that the Committee
initially projected for the 2023-2024 fiscal period.
Prior to arriving at this budget and assessment rate
recommendation, the Committee discussed various alternatives, including
maintaining the current assessment rate of $0.468 per 44-pound standard
box or equivalent of assessable fresh pears and increasing the
assessment rate by a different amount. However, the Committee
determined that the recommended assessment rate would adequately fund
budgeted expenses for the 2024-2025 fiscal period without needing to
draw from the Committee's financial reserves. Consequently, those
alternatives were rejected.
This proposed action would increase the assessment obligation
imposed on handlers. Assessments are applied uniformly on all handlers,
and some of the costs may be passed on to growers. 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
Oregon and Washington 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 May 29,
2024, 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 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. 0581-0189, Fruit Crops.
No changes in those requirements would be necessary as a result of this
proposed rulemaking. 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 Oregon and
Washington 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.
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, AMS has determined that this proposed
rulemaking is consistent with and would 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 rulemaking.
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 proposes to amend 7 CFR part 927 as follows:
PART 927--PEARS GROWN IN OREGON AND WASHINGTON
0
1. The authority citation for part 927 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Amend Sec. 927.236 by revising the introductory text and paragraphs
(a) and (b) to read as follows:
[[Page 84831]]
Sec. 927.236 Fresh pear assessment rate.
On and after July 1, 2024, the following base rates of assessment
for fresh pears are established for the Fresh Pear Committee:
(a) $0.516 per 44-pound net weight standard box or container
equivalent for any or all varieties or subvarieties of fresh pears
classified as ``summer/fall'';
(b) $0.516 per 44-pound net weight standard box or container
equivalent for any or all varieties or subvarieties of fresh pears
classified as ``winter''; and
* * * * *
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-24773 Filed 10-23-24; 8:45 am]
BILLING CODE P
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