80_FR_37659 80 FR 37533 - Olives Grown in California; Increased Assessment Rate

80 FR 37533 - Olives Grown in California; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 80, Issue 126 (July 1, 2015)

Page Range37533-37535
FR Document2015-16176

This rule implements a recommendation from the California Olive Committee (committee) for an increase of the assessment rate established for the 2015 and subsequent fiscal years from $15.21 to $26.00 per assessable ton of olives handled. The committee locally administers the marketing order and is comprised of producers and handlers of olives grown in California. Assessments upon olive handlers are used by the committee to fund reasonable and necessary expenses of the program. The fiscal year begins January 1 and ends December 31. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 80 Issue 126 (Wednesday, July 1, 2015)
[Federal Register Volume 80, Number 126 (Wednesday, July 1, 2015)]
[Rules and Regulations]
[Pages 37533-37535]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16176]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 932

[Doc. No. AMS-FV-14-0105; FV15-932-1 FR]


Olives Grown in California; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule implements a recommendation from the California 
Olive Committee (committee) for an increase of the assessment rate 
established for the 2015 and subsequent fiscal years from $15.21 to 
$26.00 per assessable ton of olives handled. The committee locally 
administers the marketing order and is comprised of producers and 
handlers of olives grown in California. Assessments upon olive handlers 
are used by the committee to fund reasonable and necessary expenses of 
the program. The fiscal year begins January 1 and ends December 31. The 
assessment rate will remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Effective July 2, 2015.

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Senior Marketing 
Specialist or Martin Engeler, Regional Manager, California Marketing 
Field Office, Marketing Order and Agreement Division, Fruit and 
Vegetable Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 
487-5906, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 148 and Order No. 932, both as amended (7 CFR part 932), 
regulating the handling of olives grown in California, hereinafter 
referred to as the ``order.'' 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 Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, California 
olive handlers are subject to assessments. Funds to administer the 
order are derived from such assessments. It is intended that the 
assessment rate issued herein will be applicable to all assessable 
olives beginning on January 1, 2015, 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 rule increases the assessment rate established for the 
committee for the 2015 and subsequent fiscal years from $15.21 to 
$26.00 per ton of assessable olives.
    The California olive marketing order provides authority for the 
committee, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members of the committee are producers and handlers of 
California olives. They are familiar with the committee's needs and 
with the costs for 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 and discussed in a public meeting. 
Thus, all directly affected persons have an opportunity to participate 
and provide input.
    For the 2014 and subsequent fiscal years, the committee 
recommended, and USDA approved, an assessment rate that

[[Page 37534]]

would continue in effect from fiscal year to fiscal year unless 
modified, suspended, or terminated by USDA upon recommendation and 
information submitted by the committee or other information available 
to USDA.
    The committee met on December 9, 2014, and unanimously recommended 
2015 fiscal year expenditures of $1,374,072, and an assessment rate of 
$26.00 per ton of assessable olives. Olives are an alternate-bearing 
crop: A large crop followed by a smaller crop. Olive producers and 
handlers are accustomed to wide swings in crop yields, which 
necessarily result in fluctuations in the assessment rate from year to 
year. In comparison, last year's budgeted expenditures were $1,262,460. 
The assessment rate of $26.00 is $10.79 higher than the rate currently 
in effect.
    The committee recommended the higher assessment rate because of a 
substantial decrease in assessable olive tonnage for the 2014 crop 
year. The olive tonnage available for the 2014 crop year was less than 
40,000 tons, which compares to the 91,000 tons reported for the 2013 
crop year, as reported by the California Agricultural Statistics 
Service (CASS).
    The reduced crop is due to olives being an alternate-bearing fruit. 
The 2014 crop was what is called the ``off'' crop--the smaller of the 
two bearing-year crops.
    In addition to the funds from handler assessments, the committee 
also plans to use available reserve funds to help meet its 2015 fiscal 
year expenses.
    The major expenditures recommended by the committee for the 2015 
fiscal year include $259,231 for research, $450,000 for marketing 
activities, $122,000 for inspection equipment and electronic reporting 
development, and $393,500 for administration. The major expenditures 
for the 2014 fiscal year included $312,560 for research, $565,600 for 
marketing activities, $37,800 for inspection equipment and electronic 
reporting development, and $346,500 for administration.
    Overall 2015 expenditures include an increase in inspection 
equipment and electronic reporting development expenses due to the need 
to purchase, test, install, and link new sizers to the electronic 
reporting system. Additionally, the research budget contains a 
contingency of $41,000 for new opportunities that may arise during the 
fiscal year, and the administrative budget includes a $31,000 
contingency for unforeseen issues.
    The assessment rate recommended by the committee resulted from 
consideration of anticipated fiscal year expenses, actual olive tonnage 
received by handlers during the 2014 crop year, and additional 
pertinent information. As reported by CASS, actual assessable tonnage 
for the 2014 crop year is under 40,000 tons or less than half of the 
91,000 assessable tons in the 2013 crop year, which is a result of the 
alternate-bearing characteristics of olives.
    Income derived from handler assessments, along with interest income 
and funds from the committee's authorized reserve will be adequate to 
cover budgeted expenses. Funds in the reserve will be kept within the 
maximum permitted by the order of approximately one fiscal year's 
expenses (Sec.  932.40).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
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 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 USDA. Committee meetings are open to the public and interested 
persons may express their views at these meetings. USDA will evaluate 
committee recommendations and other available information to determine 
whether modification of the assessment rate is needed. Further 
rulemaking will be undertaken as necessary. The committee's 2015 fiscal 
year budget and those for subsequent fiscal years will be reviewed and, 
as appropriate, approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has 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. There are approximately 1,000 
producers of olives in the production area and 2 handlers subject to 
regulation under the marketing order. The Small Business Administration 
(13 CFR 121.201) defines small agricultural producers as those having 
annual receipts of less than $750,000, and small agricultural service 
firms as those whose annual receipts are less than $7,000,000 (13 CFR 
121.210).
    Based upon information from the industry and CASS, the average 
producer price for the 2014 crop year was approximately $1,027 per ton, 
and total assessable volume was less than 40,000 tons. Based on 
production, producer prices, and the total number of California olive 
producers, the average annual producer revenue is less than $750,000. 
Thus, the majority of olive producers may be classified as small 
entities. Both of the handlers may be classified as large entities.
    This rule will increase the assessment rate established for the 
committee and collected from handlers for the 2015 and subsequent 
fiscal years from $15.21 to $26.00 per ton of assessable olives. The 
committee unanimously recommended 2015 fiscal year expenditures of 
$1,374,072, and an assessment rate of $26.00 per ton. The higher 
assessment rate is necessary because assessable olive receipts for the 
2014 crop year were reported by CASS to be less than 40,000 tons, 
compared to 91,000 tons for the 2013 crop year.
    Income derived from the $26.00 per ton assessment rate, along with 
funds from the authorized reserve and interest income, should be 
adequate to meet this fiscal year's expenses.
    The major expenditures recommended by the committee for the 2015 
fiscal year include $259,231 for research, $450,000 for marketing 
activities, $122,000 for inspection equipment development, and $393,500 
for administration. Budgeted expenses for these items in 2014 were 
$312,560 for research, $565,600 for marketing activities, $37,800 for 
inspection equipment and electronic reporting development, and $346,500 
for administration.
    The committee deliberated many of the expenses, weighing the 
relative value of various programs or projects, and decreased their 
costs for research and marketing, while increasing their costs for 
inspection equipment and electronic reporting development, as well as 
their administrative expenses.
    Prior to arriving at this budget, the committee considered 
information from various sources such as the committee's Executive, 
Marketing, Inspection, and Research Subcommittees. Alternate 
expenditure levels were discussed by these groups based upon the 
relative

[[Page 37535]]

value of various projects to the olive industry and the reduced olive 
production. The assessment rate of $26.00 per ton of assessable olives 
was derived by considering anticipated expenses, the volume of 
assessable olives, and additional pertinent factors.
    A review of preliminary information indicates that average producer 
prices for 2014 crop olives were approximately $1,027 per ton. 
Therefore, utilizing the assessment rate of $26.00 per ton, the 
estimated assessment revenue for the 2015 fiscal year as a percentage 
of total producer revenue would be approximately 2.5 percent.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
would be offset by the benefits derived from the operation of the 
marketing order. In addition, the committee's meeting was widely 
publicized throughout California's olive industry and all interested 
persons were invited to attend the meeting and encouraged to 
participate in committee deliberations on all issues. Like all 
committee meetings, the December 9, 2014, meeting was a public meeting 
and all entities, both large and small, were encouraged to express 
views on this issue.
    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 the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0178. No changes in those requirements as a 
result of this action are necessary. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large California olive 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. USDA has not 
identified any relevant Federal rules that duplicate, overlap, or 
conflict with this final rule.
    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.
    A proposed rule concerning this action was published in the Federal 
Register on March 30, 2015 (80 FR 16590). Copies of the proposed rule 
were also provided to all olive handlers, as well as to all committee 
members. Finally, the proposal was made available through the Internet 
by USDA and the Office of the Federal Register. A 30-day comment 
period, ending April 29, 2015, was provided for interested persons to 
respond to the proposal. One comment was received.
    The commenter noted that the net increase in the assessment rate is 
not proportional to the proposed increase in expenses for the 
committee, and the proposed rule did not explain how the magnitude of 
the proposed increase in the assessment rate was reached.
    In response to the comment, the assessment rate is based upon 
several factors: The assessable production, the programs and costs the 
committee finds reasonable and necessary for the fiscal year (proposed 
budget of expenses), as well as the amount of funds available in the 
committee's financial reserve, if they choose to use such funds to 
offset their proposed expenses. The committee determines, based upon 
their experience with costs in their area and the types of marketing 
programs they propose, what their budget of expenses will be. Thus, 
they agreed that increasing the assessment rate to meet their program 
administration and marketing needs was acceptable, reasonable, and 
necessary to achieve their program administration and marketing goals. 
They also determined that an even larger assessment increase could be 
averted by utilizing funds from their financial reserves.
    The commenter also noted that the proposed rule states that the 
assessment rate ``would continue in effect indefinitely unless 
modified, suspended, or terminated by USDA upon recommendation and 
information submitted by the committee or other available 
information.'' The commenter stated that such language seemed at odds 
to language in the rule indicating that the alternate-bearing 
characteristics of olives result in wide swings in production, causing 
frequent changes to the assessment rate.
    In response to this comment, such language is necessary to ensure 
that the assessment rate established continues throughout the entire 
fiscal period and beyond, if necessary, thereby ensuring that 
assessments on olives continue uninterrupted. Should the committee find 
it necessary to change the assessment rate at any time, USDA would 
consider their recommendation and other available information.
    Accordingly, no changes will be made to the rule as proposed based 
on the comment received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions 
about the compliance guide should be sent to Jeffrey Smutny at the 
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because olive 
handlers have already received 2014-15 crop year olives from producers, 
the fiscal year began on January 1, 2015, and the assessment rate 
applies to all olives received during the 2014-15 crop year. Further, 
handlers are aware of this rule, which was recommended at a public 
meeting. Also, a 30-day comment period was provided for in the proposed 
rule.

List of Subjects in 7 CFR Part 932

    Olives, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 932 is 
amended as follows:

PART 932--OLIVES GROWN IN CALIFORNIA

0
1. The authority citation for 7 CFR part 932 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Section 932.230 is revised to read as follows:


Sec.  932.230  Assessment rate.

    On and after January 1, 2015, an assessment rate of $26.00 per ton 
is established for California olives.

    Dated: June 26, 2015.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2015-16176 Filed 6-30-15; 8:45 am]
 BILLING CODE 3410-02-P



                                                              Federal Register / Vol. 80, No. 126 / Wednesday, July 1, 2015 / Rules and Regulations                                           37533

                                            persons to respond to the proposal. No                    Dated: June 26, 2015.                                ‘‘order.’’ The order is effective under the
                                            comments were received. Accordingly,                    Rex A. Barnes,                                         Agricultural Marketing Agreement Act
                                            no changes will be made to the rule as                  Associate Administrator, Agricultural                  of 1937, as amended (7 U.S.C. 601–674),
                                            proposed.                                               Marketing Service.                                     hereinafter referred to as the ‘‘Act.’’
                                                                                                    [FR Doc. 2015–16177 Filed 6–30–15; 8:45 am]               The Department of Agriculture
                                               A small business guide on complying
                                                                                                                                                           (USDA) is issuing this rule in
                                            with fruit, vegetable, and specialty crop               BILLING CODE 3410–02–P
                                                                                                                                                           conformance with Executive Orders
                                            marketing agreements and orders may                                                                            12866, 13563, and 13175.
                                            be viewed at: http://www.ams.usda.gov/                                                                            This rule has been reviewed under
                                            MarketingOrdersSmallBusinessGuide.                      DEPARTMENT OF AGRICULTURE
                                                                                                                                                           Executive Order 12988, Civil Justice
                                            Any questions about the compliance                      Agricultural Marketing Service                         Reform. Under the marketing order now
                                            guide should be sent to Jeffrey Smutny                                                                         in effect, California olive handlers are
                                            at the previously mentioned address in                  7 CFR Part 932                                         subject to assessments. Funds to
                                            the FOR FURTHER INFORMATION CONTACT                                                                            administer the order are derived from
                                            section.                                                [Doc. No. AMS–FV–14–0105; FV15–932–1                   such assessments. It is intended that the
                                                                                                    FR]
                                               After consideration of all relevant                                                                         assessment rate issued herein will be
                                            matter presented, including the                         Olives Grown in California; Increased                  applicable to all assessable olives
                                            information and recommendation                          Assessment Rate                                        beginning on January 1, 2015, and
                                            submitted by the Committee and other                                                                           continue until amended, suspended, or
                                            available information, it is hereby found               AGENCY:  Agricultural Marketing Service,               terminated.
                                            that this rule, as hereinafter set forth,               USDA.                                                     The Act provides that administrative
                                            will tend to effectuate the declared                    ACTION: Final rule.                                    proceedings must be exhausted before
                                            policy of the Act.                                                                                             parties may file suit in court. Under
                                                                                                    SUMMARY:   This rule implements a                      section 608c(15)(A) of the Act, any
                                               It is further found that good cause                  recommendation from the California                     handler subject to an order may file
                                            exists for not postponing the effective                 Olive Committee (committee) for an                     with USDA a petition stating that the
                                            date of this rule until 30 days after                   increase of the assessment rate                        order, any provision of the order, or any
                                            publication in the Federal Register (5                  established for the 2015 and subsequent                obligation imposed in connection with
                                            U.S.C. 553) because the Committee is                    fiscal years from $15.21 to $26.00 per                 the order is not in accordance with law
                                            beginning discussions regarding                         assessable ton of olives handled. The                  and request a modification of the order
                                            establishing a producer allotment                       committee locally administers the                      or to be exempted therefrom. Such
                                            volume regulation for the coming                        marketing order and is comprised of                    handler is afforded the opportunity for
                                            season. As such, it is important to have                producers and handlers of olives grown                 a hearing on the petition. After the
                                            these changes in place as the Committee                 in California. Assessments upon olive                  hearing, USDA would rule on the
                                            moves forward with these discussions                    handlers are used by the committee to                  petition. The Act provides that the
                                            and potential implementation. Further,                  fund reasonable and necessary expenses                 district court of the United States in any
                                            handlers are aware of this rule, which                  of the program. The fiscal year begins                 district in which the handler is an
                                            was recommended at a public meeting.                    January 1 and ends December 31. The                    inhabitant, or has his or her principal
                                            Also, a 15-day comment period was                       assessment rate will remain in effect                  place of business, has jurisdiction to
                                            provided for in the proposed rule.                      indefinitely unless modified,                          review USDA’s ruling on the petition,
                                                                                                    suspended, or terminated.                              provided an action is filed not later than
                                            List of Subjects in 7 CFR Part 929                                                                             20 days after the date of the entry of the
                                                                                                    DATES: Effective July 2, 2015.
                                              Cranberries, Marketing agreements,                                                                           ruling.
                                                                                                    FOR FURTHER INFORMATION CONTACT:                          This rule increases the assessment
                                            Reporting and recordkeeping                             Terry Vawter, Senior Marketing
                                            requirements.                                                                                                  rate established for the committee for
                                                                                                    Specialist or Martin Engeler, Regional                 the 2015 and subsequent fiscal years
                                              For the reasons set forth in the                      Manager, California Marketing Field                    from $15.21 to $26.00 per ton of
                                            preamble, 7 CFR part 929 is amended as                  Office, Marketing Order and Agreement                  assessable olives.
                                            follows:                                                Division, Fruit and Vegetable Program,                    The California olive marketing order
                                                                                                    AMS, USDA; Telephone: (559) 487–                       provides authority for the committee,
                                            PART 929—CRANBERRIES GROWN IN                           5901, Fax: (559) 487–5906, or Email:                   with the approval of USDA, to formulate
                                            THE STATES OF MASSACHUSETTS,                            Terry.Vawter@ams.usda.gov or                           an annual budget of expenses and
                                            RHODE ISLAND, CONNECTICUT, NEW                          Martin.Engeler@ams.usda.gov.                           collect assessments from handlers to
                                            JERSEY, WISCONSIN, MICHIGAN,                               Small businesses may request                        administer the program. The members
                                            MINNESOTA, OREGON,                                      information on complying with this                     of the committee are producers and
                                            WASHINGTON, AND LONG ISLAND IN                          regulation by contacting Jeffrey Smutny,               handlers of California olives. They are
                                            THE STATE OF NEW YORK                                   Marketing Order and Agreement                          familiar with the committee’s needs and
                                                                                                    Division, Fruit and Vegetable Program,                 with the costs for goods and services in
                                            ■ 1. The authority citation for 7 CFR                   AMS, USDA, 1400 Independence                           their local area and are thus in a
                                            part 929 continues to read as follows:                  Avenue SW., STOP 0237, Washington,                     position to formulate an appropriate
                                                                                                    DC 20250–0237; Telephone: (202) 720–                   budget and assessment rate. The
                                                Authority: 7 U.S.C. 601–674.                        2491, Fax: (202) 720–8938, or Email:                   assessment rate is formulated and
                                            § 929.149    [Amended]
                                                                                                    Jeffrey.Smutny@ams.usda.gov.                           discussed in a public meeting. Thus, all
tkelley on DSK3SPTVN1PROD with RULES




                                                                                                    SUPPLEMENTARY INFORMATION: This rule                   directly affected persons have an
                                            ■ 2. In § 929.149, the words ‘‘when a                   is issued under Marketing Agreement                    opportunity to participate and provide
                                            producer allotment volume regulation is                 No. 148 and Order No. 932, both as                     input.
                                            in effect’’ are added to the end of the                 amended (7 CFR part 932), regulating                      For the 2014 and subsequent fiscal
                                            introductory text, and paragraphs (e)                   the handling of olives grown in                        years, the committee recommended, and
                                            and (f) are removed.                                    California, hereinafter referred to as the             USDA approved, an assessment rate that


                                       VerDate Sep<11>2014   17:34 Jun 30, 2015   Jkt 235001   PO 00000   Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\01JYR1.SGM   01JYR1


                                            37534             Federal Register / Vol. 80, No. 126 / Wednesday, July 1, 2015 / Rules and Regulations

                                            would continue in effect from fiscal year               expenses, actual olive tonnage received                area and 2 handlers subject to regulation
                                            to fiscal year unless modified,                         by handlers during the 2014 crop year,                 under the marketing order. The Small
                                            suspended, or terminated by USDA                        and additional pertinent information.                  Business Administration (13 CFR
                                            upon recommendation and information                     As reported by CASS, actual assessable                 121.201) defines small agricultural
                                            submitted by the committee or other                     tonnage for the 2014 crop year is under                producers as those having annual
                                            information available to USDA.                          40,000 tons or less than half of the                   receipts of less than $750,000, and small
                                               The committee met on December 9,                     91,000 assessable tons in the 2013 crop                agricultural service firms as those whose
                                            2014, and unanimously recommended                       year, which is a result of the alternate-              annual receipts are less than $7,000,000
                                            2015 fiscal year expenditures of                        bearing characteristics of olives.                     (13 CFR 121.210).
                                            $1,374,072, and an assessment rate of                      Income derived from handler                            Based upon information from the
                                            $26.00 per ton of assessable olives.                    assessments, along with interest income                industry and CASS, the average
                                            Olives are an alternate-bearing crop: A                 and funds from the committee’s                         producer price for the 2014 crop year
                                            large crop followed by a smaller crop.                  authorized reserve will be adequate to                 was approximately $1,027 per ton, and
                                            Olive producers and handlers are                        cover budgeted expenses. Funds in the                  total assessable volume was less than
                                            accustomed to wide swings in crop                       reserve will be kept within the                        40,000 tons. Based on production,
                                            yields, which necessarily result in                     maximum permitted by the order of                      producer prices, and the total number of
                                            fluctuations in the assessment rate from                approximately one fiscal year’s                        California olive producers, the average
                                            year to year. In comparison, last year’s                expenses (§ 932.40).                                   annual producer revenue is less than
                                            budgeted expenditures were $1,262,460.                     The assessment rate established in                  $750,000. Thus, the majority of olive
                                            The assessment rate of $26.00 is $10.79                 this rule will continue in effect                      producers may be classified as small
                                            higher than the rate currently in effect.               indefinitely unless modified,                          entities. Both of the handlers may be
                                               The committee recommended the                        suspended, or terminated by USDA                       classified as large entities.
                                            higher assessment rate because of a                     upon recommendation and information                       This rule will increase the assessment
                                            substantial decrease in assessable olive                submitted by the committee or other                    rate established for the committee and
                                            tonnage for the 2014 crop year. The                     available information. Although this                   collected from handlers for the 2015 and
                                            olive tonnage available for the 2014 crop               assessment rate will be in effect for an               subsequent fiscal years from $15.21 to
                                            year was less than 40,000 tons, which                   indefinite period, the committee will                  $26.00 per ton of assessable olives. The
                                            compares to the 91,000 tons reported for                continue to meet prior to or during each               committee unanimously recommended
                                            the 2013 crop year, as reported by the                  fiscal year to recommend a budget of                   2015 fiscal year expenditures of
                                            California Agricultural Statistics Service              expenses and consider                                  $1,374,072, and an assessment rate of
                                            (CASS).                                                 recommendations for modification of                    $26.00 per ton. The higher assessment
                                               The reduced crop is due to olives                    the assessment rate. The dates and times               rate is necessary because assessable
                                            being an alternate-bearing fruit. The                   of committee meetings are available                    olive receipts for the 2014 crop year
                                            2014 crop was what is called the ‘‘off’’                from the committee or USDA.                            were reported by CASS to be less than
                                            crop—the smaller of the two bearing-                    Committee meetings are open to the                     40,000 tons, compared to 91,000 tons for
                                            year crops.                                             public and interested persons may                      the 2013 crop year.
                                               In addition to the funds from handler                express their views at these meetings.                    Income derived from the $26.00 per
                                            assessments, the committee also plans                   USDA will evaluate committee                           ton assessment rate, along with funds
                                            to use available reserve funds to help                  recommendations and other available                    from the authorized reserve and interest
                                            meet its 2015 fiscal year expenses.                     information to determine whether                       income, should be adequate to meet this
                                               The major expenditures                               modification of the assessment rate is                 fiscal year’s expenses.
                                            recommended by the committee for the                    needed. Further rulemaking will be                        The major expenditures
                                            2015 fiscal year include $259,231 for                   undertaken as necessary. The                           recommended by the committee for the
                                            research, $450,000 for marketing                        committee’s 2015 fiscal year budget and                2015 fiscal year include $259,231 for
                                            activities, $122,000 for inspection                     those for subsequent fiscal years will be              research, $450,000 for marketing
                                            equipment and electronic reporting                      reviewed and, as appropriate, approved                 activities, $122,000 for inspection
                                            development, and $393,500 for                           by USDA.                                               equipment development, and $393,500
                                            administration. The major expenditures                                                                         for administration. Budgeted expenses
                                            for the 2014 fiscal year included                       Final Regulatory Flexibility Analysis                  for these items in 2014 were $312,560
                                            $312,560 for research, $565,600 for                        Pursuant to requirements set forth in               for research, $565,600 for marketing
                                            marketing activities, $37,800 for                       the Regulatory Flexibility Act (RFA) (5                activities, $37,800 for inspection
                                            inspection equipment and electronic                     U.S.C. 601–612), the Agricultural                      equipment and electronic reporting
                                            reporting development, and $346,500                     Marketing Service (AMS) has                            development, and $346,500 for
                                            for administration.                                     considered the economic impact of this                 administration.
                                               Overall 2015 expenditures include an                 rule on small entities. Accordingly,                      The committee deliberated many of
                                            increase in inspection equipment and                    AMS has prepared this final regulatory                 the expenses, weighing the relative
                                            electronic reporting development                        flexibility analysis.                                  value of various programs or projects,
                                            expenses due to the need to purchase,                      The purpose of the RFA is to fit                    and decreased their costs for research
                                            test, install, and link new sizers to the               regulatory actions to the scale of                     and marketing, while increasing their
                                            electronic reporting system.                            businesses subject to such actions in                  costs for inspection equipment and
                                            Additionally, the research budget                       order that small businesses will not be                electronic reporting development, as
                                            contains a contingency of $41,000 for                   unduly or disproportionately burdened.                 well as their administrative expenses.
                                            new opportunities that may arise during                 Marketing orders issued pursuant to the                   Prior to arriving at this budget, the
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                                            the fiscal year, and the administrative                 Act, and the rules issued thereunder, are              committee considered information from
                                            budget includes a $31,000 contingency                   unique in that they are brought about                  various sources such as the committee’s
                                            for unforeseen issues.                                  through group action of essentially                    Executive, Marketing, Inspection, and
                                               The assessment rate recommended by                   small entities acting on their own                     Research Subcommittees. Alternate
                                            the committee resulted from                             behalf. There are approximately 1,000                  expenditure levels were discussed by
                                            consideration of anticipated fiscal year                producers of olives in the production                  these groups based upon the relative


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                                                              Federal Register / Vol. 80, No. 126 / Wednesday, July 1, 2015 / Rules and Regulations                                                37535

                                            value of various projects to the olive                     A proposed rule concerning this                        Accordingly, no changes will be made
                                            industry and the reduced olive                          action was published in the Federal                    to the rule as proposed based on the
                                            production. The assessment rate of                      Register on March 30, 2015 (80 FR                      comment received.
                                            $26.00 per ton of assessable olives was                 16590). Copies of the proposed rule                       A small business guide on complying
                                            derived by considering anticipated                      were also provided to all olive handlers,              with fruit, vegetable, and specialty crop
                                            expenses, the volume of assessable                      as well as to all committee members.                   marketing agreements and orders may
                                            olives, and additional pertinent factors.               Finally, the proposal was made                         be viewed at: http://www.ams.usda.gov/
                                               A review of preliminary information                  available through the Internet by USDA                 MarketingOrdersSmallBusinessGuide.
                                            indicates that average producer prices                  and the Office of the Federal Register. A
                                                                                                                                                           Any questions about the compliance
                                            for 2014 crop olives were approximately                 30-day comment period, ending April
                                                                                                                                                           guide should be sent to Jeffrey Smutny
                                            $1,027 per ton. Therefore, utilizing the                29, 2015, was provided for interested
                                                                                                                                                           at the previously-mentioned address in
                                            assessment rate of $26.00 per ton, the                  persons to respond to the proposal. One
                                                                                                                                                           the FOR FURTHER INFORMATION CONTACT
                                            estimated assessment revenue for the                    comment was received.
                                                                                                       The commenter noted that the net                    section.
                                            2015 fiscal year as a percentage of total
                                            producer revenue would be                               increase in the assessment rate is not                    After consideration of all relevant
                                            approximately 2.5 percent.                              proportional to the proposed increase in               material presented, including the
                                               This action increases the assessment                 expenses for the committee, and the                    information and recommendation
                                            obligation imposed on handlers. While                   proposed rule did not explain how the                  submitted by the committee and other
                                            assessments impose some additional                      magnitude of the proposed increase in                  available information, it is hereby found
                                            costs on handlers, the costs are minimal                the assessment rate was reached.                       that this rule, as hereinafter set forth,
                                            and uniform on all handlers. Some of                       In response to the comment, the                     will tend to effectuate the declared
                                            the additional costs may be passed on                   assessment rate is based upon several                  policy of the Act.
                                            to producers. However, these costs                      factors: The assessable production, the
                                                                                                                                                              Pursuant to 5 U.S.C. 553, it also found
                                                                                                    programs and costs the committee finds
                                            would be offset by the benefits derived                                                                        and determined that good cause exists
                                                                                                    reasonable and necessary for the fiscal
                                            from the operation of the marketing                                                                            for not postponing the effective date of
                                                                                                    year (proposed budget of expenses), as
                                            order. In addition, the committee’s                                                                            this rule until 30 days after publication
                                                                                                    well as the amount of funds available in
                                            meeting was widely publicized                                                                                  in the Federal Register because olive
                                                                                                    the committee’s financial reserve, if they
                                            throughout California’s olive industry                                                                         handlers have already received 2014–15
                                                                                                    choose to use such funds to offset their
                                            and all interested persons were invited                                                                        crop year olives from producers, the
                                                                                                    proposed expenses. The committee
                                            to attend the meeting and encouraged to                                                                        fiscal year began on January 1, 2015,
                                                                                                    determines, based upon their experience
                                            participate in committee deliberations                                                                         and the assessment rate applies to all
                                                                                                    with costs in their area and the types of
                                            on all issues. Like all committee                                                                              olives received during the 2014–15 crop
                                                                                                    marketing programs they propose, what
                                            meetings, the December 9, 2014,                         their budget of expenses will be. Thus,                year. Further, handlers are aware of this
                                            meeting was a public meeting and all                    they agreed that increasing the                        rule, which was recommended at a
                                            entities, both large and small, were                    assessment rate to meet their program                  public meeting. Also, a 30-day comment
                                            encouraged to express views on this                     administration and marketing needs was                 period was provided for in the proposed
                                            issue.                                                  acceptable, reasonable, and necessary to               rule.
                                               In accordance with the Paperwork                     achieve their program administration
                                            Reduction Act of 1995 (44 U.S.C.                                                                               List of Subjects in 7 CFR Part 932
                                                                                                    and marketing goals. They also
                                            Chapter 35), the order’s information                    determined that an even larger                           Olives, Marketing agreements,
                                            collection requirements have been                       assessment increase could be averted by                Reporting and recordkeeping
                                            previously approved by the Office of                    utilizing funds from their financial                   requirements.
                                            Management and Budget (OMB) and                         reserves.
                                            assigned OMB No. 0581–0178. No                             The commenter also noted that the                     For the reasons set forth in the
                                            changes in those requirements as a                      proposed rule states that the assessment               preamble, 7 CFR part 932 is amended as
                                            result of this action are necessary.                    rate ‘‘would continue in effect                        follows:
                                            Should any changes become necessary,                    indefinitely unless modified,
                                            they would be submitted to OMB for                      suspended, or terminated by USDA                       PART 932—OLIVES GROWN IN
                                            approval.                                               upon recommendation and information                    CALIFORNIA
                                               This rule imposes no additional                      submitted by the committee or other
                                            reporting or recordkeeping requirements                 available information.’’ The commenter                 ■ 1. The authority citation for 7 CFR
                                            on either small or large California olive               stated that such language seemed at                    part 932 continues to read as follows:
                                            handlers. As with all Federal marketing                 odds to language in the rule indicating                    Authority: 7 U.S.C. 601–674.
                                            order programs, reports and forms are                   that the alternate-bearing characteristics
                                            periodically reviewed to reduce                         of olives result in wide swings in                     ■ 2. Section 932.230 is revised to read
                                            information requirements and                            production, causing frequent changes to                as follows:
                                            duplication by industry and public                      the assessment rate.
                                                                                                                                                           § 932.230    Assessment rate.
                                            sector agencies. USDA has not                              In response to this comment, such
                                            identified any relevant Federal rules                   language is necessary to ensure that the                 On and after January 1, 2015, an
                                            that duplicate, overlap, or conflict with               assessment rate established continues                  assessment rate of $26.00 per ton is
                                            this final rule.                                        throughout the entire fiscal period and                established for California olives.
                                               AMS is committed to complying with                   beyond, if necessary, thereby ensuring
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                                                                                                                                                             Dated: June 26, 2015.
                                            the E-Government Act to promote the                     that assessments on olives continue
                                            use of the internet and other                           uninterrupted. Should the committee                    Rex A. Barnes,
                                            information technologies to provide                     find it necessary to change the                        Associate Administrator, Agricultural
                                            increased opportunities for citizen                     assessment rate at any time, USDA                      Marketing Service.
                                            access to Government information and                    would consider their recommendation                    [FR Doc. 2015–16176 Filed 6–30–15; 8:45 am]
                                            services, and for other purposes.                       and other available information.                       BILLING CODE 3410–02–P




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Document Created: 2015-12-15 13:18:49
Document Modified: 2015-12-15 13:18:49
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective July 2, 2015.
ContactTerry Vawter, Senior Marketing Specialist or Martin Engeler, Regional Manager, California Marketing Field Office, Marketing Order and Agreement Division, Fruit and Vegetable Program, AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or Email: [email protected] or [email protected]
FR Citation80 FR 37533 
CFR AssociatedOlives; Marketing Agreements and Reporting and Recordkeeping Requirements

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