81_FR_39090 81 FR 38975 - Tart Cherries Grown in the States of Michigan, et al.; Revision of Optimum Supply Requirements and Establishment of Inventory Release Procedures

81 FR 38975 - Tart Cherries Grown in the States of Michigan, et al.; Revision of Optimum Supply Requirements and Establishment of Inventory Release Procedures

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 115 (June 15, 2016)

Page Range38975-38978
FR Document2016-14173

This proposed rule would implement recommendations from the Cherry Industry Administrative Board (Board) to add inventory release procedures and revise optimum supply provisions under the marketing order for tart cherries grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin (order). The Board locally administers the order and is comprised of growers and handlers operating within the production area. This rule would establish procedures for releasing inventory from reserves and increase the maximum carry-out volume available when calculating optimum supply from 20 million pounds to 100 million pounds. These changes would provide clear procedures should an inventory release be necessary and would provide more flexibility when calculating optimum supply.

Federal Register, Volume 81 Issue 115 (Wednesday, June 15, 2016)
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Proposed Rules]
[Pages 38975-38978]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14173]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / 
Proposed Rules

[[Page 38975]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 930

[Doc. No. AMS-FV-15-0047; FV15-930-2 PR]


Tart Cherries Grown in the States of Michigan, et al.; Revision 
of Optimum Supply Requirements and Establishment of Inventory Release 
Procedures

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement recommendations from the 
Cherry Industry Administrative Board (Board) to add inventory release 
procedures and revise optimum supply provisions under the marketing 
order for tart cherries grown in the States of Michigan, New York, 
Pennsylvania, Oregon, Utah, Washington, and Wisconsin (order). The 
Board locally administers the order and is comprised of growers and 
handlers operating within the production area. This rule would 
establish procedures for releasing inventory from reserves and increase 
the maximum carry-out volume available when calculating optimum supply 
from 20 million pounds to 100 million pounds. These changes would 
provide clear procedures should an inventory release be necessary and 
would provide more flexibility when calculating optimum supply.

DATES: Comments must be received by July 15, 2016.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 20250-
0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. All 
comments should reference the document number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours, or can be viewed at: http://www.regulations.gov. All 
comments submitted in response to this proposal will be included in the 
record and will be made available to the public. 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: Jennie M. Varela, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: 
(863) 291-8614, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Antoinette Carter, Marketing Order and 
Agreement Division, Specialty Crops 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 proposal is issued under Marketing 
Order No. 930, as amended (7 CFR part 930), regulating the handling of 
tart cherries grown in the States of Michigan, New York, Pennsylvania, 
Oregon, Utah, Washington, and Wisconsin, 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 proposed rule 
in conformance with Executive Orders 12866, 13563, and 13175.
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This proposed rule is not intended to have retroactive 
effect.
    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. A 
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 proposal invites comments on changes that would add inventory 
release procedures and would revise the optimum supply and exemption 
provisions under the order. This proposal would establish procedures 
for releasing inventory from reserves and increase the maximum carry-
out volume available when calculating optimum supply from 20 million 
pounds to 100 million pounds. These changes would provide clear 
procedures should an inventory release be necessary and would provide 
more flexibility when calculating optimum supply. The Board voted to 
recommend these proposed changes to the Secretary at its meeting on 
June 25, 2015.
    Section 930.50 prescribes procedures for calculating an optimum 
supply based on sales history to determine free and restricted 
percentages under volume regulation. As part of the process, the Board 
is required to determine the volume of fruit they anticipate would be 
necessary to have on hand at the end of the crop year. The order refers 
to this volume as carry-out inventory. This section currently 
specifies, in part, that the Board can consider a carry-out inventory 
of up to 20 million pounds, or another amount with the approval of the 
Secretary. This proposal would amend Section 930.151 to increase the 
maximum carry-out volume available when calculating optimum supply from 
20 million pounds to 100 million pounds.
    Section 930.54 of the order governs the use or disposition of 
inventory reserve cherries. Under this authority, the Board can 
recommend to the Secretary that a portion or all of inventory reserve 
cherries be released if there is not sufficient fruit on the market to 
meet commercial demand. Sections 930.55 and 930.57 outline the 
provisions and requirements of the

[[Page 38976]]

primary and secondary reserves, respectively. Further, no cherries in 
the secondary reserve may be released until all cherries in the primary 
reserve have been released. This proposal would create Section 930.154 
to establish procedures for releasing inventory from reserves.
    When volume regulation is in place, the restricted portion of the 
crop is either held in reserve by handlers or can be sold for exempt 
uses as authorized in the rules and regulations of the order. Reserves 
can be held over multiple crop years and are released when there is a 
shortfall in supply. While the Board maintains record of the volume in 
reserve, handlers maintain ownership of the reserve fruit.
    All inventory reserves were released to meet demand following a 
crop disaster in 2012. The following year, the industry was still 
recovering and the Board did not recommend a volume regulation. When 
the Board recommended a volume regulation for the 2014-15 season to the 
Secretary, and cherries were again being added to the reserve, the 
Board established a committee to review the procedures for releasing 
restricted inventory from reserves. The committee recommended to the 
Board that the procedures as previously developed by the Board be 
maintained, and that any releases should first come from inventory 
currently in the primary reserve and then from any cherries designated 
for reserve from the current season if necessary.
    Under these procedures, once the additional volume needed for 
release is established, the release should be apportioned among 
handlers based on each handler's prior three-year average of volume 
handled as a percentage of the industry's three-year average. For 
example, if a handler handled five percent of the previous three years' 
production, and the Board recommended a release of 20 million pounds, 
that handler would potentially be authorized to release one million 
pounds of established reserves (.05 x 20 million). If a handler 
receives a release larger than what they have in the primary reserve, 
the excess amount would be reapportioned to those handlers with 
remaining primary reserve. If the handler in the scenario above had 
only 750,000 pounds in the primary reserve, the remaining 250,000 
pounds would be reallocated to those handlers who still had inventory 
in the primary reserve.
    The committee that reviewed the procedures for releasing restricted 
inventory from the reserves recognized that inventory reserves can be 
accumulated over a period of years. Therefore, the committee agreed 
releases should be based on the average amount handled during the three 
previous crop years, rather than using a year-to-year basis. The 
existing release procedures were crafted by the Board through a series 
of actions in past years and meetings. However, the procedures were not 
codified in the rules and regulations under the order. This proposal 
would add the inventory release procedures to the regulations.
    This recommendation was also thought to be the most equitable way 
to conduct releases. One Board member believed the releases should come 
from the current year's reserves prior to releasing from existing 
reserves, and did not support the recommendation. However, the Board 
recognized that during the crop year, complete information on reserves 
and shipment data would not be available. Thus, the Board recommended 
codifying inventory release procedures as recommended by the committee. 
The Board supported the recommendation by a vote of 17-1. This proposal 
would add a new Section 930.154 to the regulations to establish 
procedures for releasing inventory from reserves.
    In addition to reviewing inventory release procedures, the Board 
discussed changes to some of its practices regarding calculation of 
optimum supply. Optimum supply is defined as the average free sales of 
the prior three years plus desirable carry-out inventory. Desirable 
carry-out is the amount of fruit needed by the industry to be carried 
into the succeeding crop year to meet marketing demand until the new 
crop is available. Desirable carry-out is set each year by the Board 
after considering market circumstances and needs. Section 930.50(a) 
currently specifies that desirable carry-out can range from 0 to a 
maximum of 20 million pounds, but also authorizes the Board to 
establish an alternative carry-out figure with the approval of the 
Secretary.
    Since the promulgation of the order, the industry has seen new 
products and new segments emerge, such as dried tart cherries. As a 
result, at the end of a season there are multiple product lines that 
need to be supplied with tart cherries before the next harvest, which 
has impacted desirable carry-out. Desirable carry-out is the amount of 
fruit needed by the industry to be carried into the succeeding crop 
year to meet marketing demand until the new crop is available.
    In 2014, the Board used its authority to recommend to the Secretary 
a carry-out volume above the order-prescribed 20 million pound maximum 
for the 2014-2015 crop year. At that time, the Board estimated it was 
necessary to have 50 million pounds available at the end of the crop 
year to fulfill the needs of the industry. In discussing volume 
regulation for the 2015-2016 crop year, the Board agreed an increased 
carry-out was again necessary and recommended to the Secretary a 55 
million pound carry-out when calculating the optimum supply.
    In order to facilitate future carry-out needs without engaging with 
annual rulemaking, the Board recommended permanently increasing the 
maximum carry-out to 100 million pounds. Some members considered the 
100 million pound upper limit to be too high, and voted against the 
recommendation. However, this proposed change would only increase the 
available range for the carry-out value from 0 to 20 million pounds to 
0 to 100 million. This proposed amendment would provide the Board with 
additional flexibility when considering the carry-out, but in itself 
does not establish a carry-out amount. The Board would still have to 
discuss and recommend a desirable carry-out value that represents 
current industry needs each crop year. Consequently, the Board 
supported the recommendation by a vote of 12-5. This proposal would 
amend Section 930.151 of the regulations to increase the maximum carry-
out volume possible when calculating optimum supply from 20 million 
pounds to 100 million pounds.
    The Board made several other recommendations for changes to the 
rules and regulations under the order at its June 25, 2015 meeting. 
These changes are being considered under a separate action.

Initial 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 action 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 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 600 producers of tart cherries in the

[[Page 38977]]

regulated area and approximately 40 handlers of tart cherries who are 
subject to regulation under the order. Small agricultural producers are 
defined by the Small Business Administration (SBA) as those having 
annual receipts of less than $750,000 and small agricultural service 
firms have been defined as those having annual receipts of less than 
$7,500,000 (13 CFR 121.201).
    According to the National Agricultural Statistics Service and Board 
data, the average annual grower price for tart cherries during the 
2014-15 crop year was $0.35 per pound, and total utilization was around 
300 million pounds. Therefore, average receipts for tart cherry 
producers were around $175,800, well below the SBA threshold for small 
producers. In 2014, The Food Institute estimated an f.o.b. price of 
$0.96 per pound for frozen tart cherries, which make up the majority of 
processed tart cherries. Using this data, average annual handler 
receipts were about $6.9 million, which is also below the SBA threshold 
for small agricultural service firms. Assuming a normal distribution, 
the majority of producers and handlers of tart cherries may be 
classified as small entities.
    This proposed action would create Sec.  930.154 of the rules and 
regulations, establishing procedures for release of inventory reserves. 
This proposed rule would also revise Sec.  930.151 to allow the Board 
to consider a carry-out of up to 100 million pounds when calculating 
optimum supply. These changes are intended to provide clear direction 
in the event an inventory release becomes necessary and allow the Board 
to be more responsive to tart cherry market demand. The authority for 
these actions is provided in Sec. Sec.  930.50 and 930.54 of the order. 
The Board voted to recommend these proposed changes to the Secretary at 
its meeting on June 25, 2015.
    It is not anticipated that this action would impose additional 
costs on handlers or growers, regardless of size. The proposed changes 
are administrative in nature and intended to align the provisions of 
the order with current industry practices. The addition of rules and 
regulations regarding inventory releases is a codification of 
administrative procedures the Board has had in place for many years. 
The expanded carry-out upper limit would allow the Board additional 
flexibility in meeting market needs without additional rulemaking.
    The benefits of this rule are not expected to be disproportionately 
greater or less for small handlers or producers than for larger 
entities.
    The Board discussed alternatives to these proposed changes to the 
order, including releasing reserves from the current crop year or 
releasing cherries in the order in which the fruit was put into 
reserve. A committee was established to review the reserve procedures, 
and it proposed using a three-year average percentage for each handler 
and releasing the previous crop years' reserves. The Board agreed that 
the committee's recommendation would be the most equitable solution. 
Regarding the carry-out limit, the Board considered not recommending a 
permanent change. However, the Board anticipates needing more than 20 
million pounds of carry-out for the foreseeable future. A member 
suggested changing the motion to 80 million pounds, but that suggestion 
did not receive support. Thus, the suggested alternatives were 
rejected.
    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. 0581-0177, (Tart Cherries Grown in the States of 
Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and 
Wisconsin). 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.
    Accordingly, this proposal would not impose any additional 
reporting or recordkeeping requirements on either small or large tart 
cherry 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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this rule.
    The Board's meeting was widely publicized throughout the tart 
cherry industry and all interested persons were invited to attend and 
participate in Board deliberations on all issues. Like all Board 
meetings, the June 25, 2015, meeting was a public meeting and all 
entities, both large and small, were able to express views on these 
issues. Finally, interested persons are invited to submit comments on 
this proposed rule, including the regulatory and informational impacts 
of this action on small businesses.
    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/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Antoinette Carter at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. A 30-day period is deemed appropriate because 
this action would need to be in place as soon as possible since 
handlers are already putting cherries into reserve from the 2015-2016 
crop. The action would also need to be in place before the Board meets 
in June to have preliminary discussions on volume control, including 
determining an appropriate carry-out figure. All written comments 
received during the comment period will be considered before a final 
determination is made on this matter.

List of Subjects in 7 CFR Part 930

    Marketing agreements, Reporting and recordkeeping requirements, 
Tart cherries.

    For the reasons set forth in the preamble, 7 CFR part 930 is 
proposed to be amended as follows:

PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK, 
PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN

0
1. The authority citation for 7 CFR part 930 continues to read as 
follows:

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

0
2. In Sec.  930.151:
0
a. Designate the current paragraph as paragraph (a); and
0
b. Add a new paragraph (b) to read as follows:


Sec.  930.151  Desirable carry-out inventory.

* * * * *
    (b) Beginning with the crop year starting July 1, 2016, for the 
purposes of determining an optimum supply volume, the Board may 
recommend a desirable carry-out inventory not to exceed 100 million 
pounds.
0
3. Section 930.154 is added to read as follows:


Sec.  930.154  Release of inventory reserve cherries.

    As provided in Sec.  930.54, the Board may recommend a release of a 
portion or all of the primary and/or secondary

[[Page 38978]]

reserve cherries. The total available reserves will be determined at 
the beginning of the crop year. The primary reserve as defined in 
Sec. Sec.  930.55 and 930.150 must be depleted before the secondary 
reserve can be released. If a release is recommended, the recommended 
volume shall be apportioned to handlers on the basis of each handler's 
proportion of the total volume handled in the preceding three crop 
years. If a handler has less volume in reserve than is apportioned, the 
excess volume shall be reapportioned to those who still have volume in 
reserve until the total release is complete.

    Dated: June 10, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-14173 Filed 6-14-16; 8:45 am]
 BILLING CODE P



                                                                                                                                                                                                 38975

                                               Proposed Rules                                                                                                 Federal Register
                                                                                                                                                              Vol. 81, No. 115

                                                                                                                                                              Wednesday, June 15, 2016



                                               This section of the FEDERAL REGISTER                    document number and the date and                       the order is not in accordance with law
                                               contains notices to the public of the proposed          page number of this issue of the Federal               and request a modification of the order
                                               issuance of rules and regulations. The                  Register and will be made available for                or to be exempted therefrom. A handler
                                               purpose of these notices is to give interested          public inspection in the Office of the                 is afforded the opportunity for a hearing
                                               persons an opportunity to participate in the            Docket Clerk during regular business                   on the petition. After the hearing, USDA
                                               rule making prior to the adoption of the final
                                               rules.
                                                                                                       hours, or can be viewed at: http://                    would rule on the petition. The Act
                                                                                                       www.regulations.gov. All comments                      provides that the district court of the
                                                                                                       submitted in response to this proposal                 United States in any district in which
                                               DEPARTMENT OF AGRICULTURE                               will be included in the record and will                the handler is an inhabitant, or has his
                                                                                                       be made available to the public. Please                or her principal place of business, has
                                               Agricultural Marketing Service                          be advised that the identity of the                    jurisdiction to review USDA’s ruling on
                                                                                                       individuals or entities submitting the                 the petition, provided an action is filed
                                               7 CFR Part 930                                          comments will be made public on the                    not later than 20 days after the date of
                                               [Doc. No. AMS–FV–15–0047; FV15–930–2
                                                                                                       internet at the address provided above.                the entry of the ruling.
                                               PR]                                                     FOR FURTHER INFORMATION CONTACT:                          This proposal invites comments on
                                                                                                       Jennie M. Varela, Marketing Specialist,                changes that would add inventory
                                               Tart Cherries Grown in the States of                    or Christian D. Nissen, Regional                       release procedures and would revise the
                                               Michigan, et al.; Revision of Optimum                   Director, Southeast Marketing Field                    optimum supply and exemption
                                               Supply Requirements and                                 Office, Marketing Order and Agreement                  provisions under the order. This
                                               Establishment of Inventory Release                      Division, Specialty Crops Program,                     proposal would establish procedures for
                                               Procedures                                              AMS, USDA; Telephone: (863) 324–                       releasing inventory from reserves and
                                                                                                       3375, Fax: (863) 291–8614, or Email:                   increase the maximum carry-out volume
                                               AGENCY:  Agricultural Marketing Service,                Jennie.Varela@ams.usda.gov or                          available when calculating optimum
                                               USDA.                                                   Christian.Nissen@ams.usda.gov.                         supply from 20 million pounds to 100
                                               ACTION: Proposed rule.                                     Small businesses may request                        million pounds. These changes would
                                                                                                       information on complying with this                     provide clear procedures should an
                                               SUMMARY:   This proposed rule would                     regulation by contacting Antoinette                    inventory release be necessary and
                                               implement recommendations from the                      Carter, Marketing Order and Agreement                  would provide more flexibility when
                                               Cherry Industry Administrative Board                    Division, Specialty Crops Program,                     calculating optimum supply. The Board
                                               (Board) to add inventory release                        AMS, USDA, 1400 Independence                           voted to recommend these proposed
                                               procedures and revise optimum supply                    Avenue SW., STOP 0237, Washington,                     changes to the Secretary at its meeting
                                               provisions under the marketing order                    DC 20250–0237; Telephone: (202) 720–                   on June 25, 2015.
                                               for tart cherries grown in the States of                2491, Fax: (202) 720–8938, or Email:                      Section 930.50 prescribes procedures
                                               Michigan, New York, Pennsylvania,                       Antoinette.Carter@ams.usda.gov.                        for calculating an optimum supply
                                               Oregon, Utah, Washington, and                                                                                  based on sales history to determine free
                                                                                                       SUPPLEMENTARY INFORMATION: This
                                               Wisconsin (order). The Board locally                                                                           and restricted percentages under
                                               administers the order and is comprised                  proposal is issued under Marketing
                                                                                                       Order No. 930, as amended (7 CFR part                  volume regulation. As part of the
                                               of growers and handlers operating                                                                              process, the Board is required to
                                               within the production area. This rule                   930), regulating the handling of tart
                                                                                                       cherries grown in the States of                        determine the volume of fruit they
                                               would establish procedures for releasing                                                                       anticipate would be necessary to have
                                               inventory from reserves and increase the                Michigan, New York, Pennsylvania,
                                                                                                       Oregon, Utah, Washington, and                          on hand at the end of the crop year. The
                                               maximum carry-out volume available                                                                             order refers to this volume as carry-out
                                               when calculating optimum supply from                    Wisconsin, hereinafter referred to as the
                                                                                                       ‘‘order.’’ The order is effective under the            inventory. This section currently
                                               20 million pounds to 100 million                                                                               specifies, in part, that the Board can
                                               pounds. These changes would provide                     Agricultural Marketing Agreement Act
                                                                                                       of 1937, as amended (7 U.S.C. 601–674),                consider a carry-out inventory of up to
                                               clear procedures should an inventory                                                                           20 million pounds, or another amount
                                               release be necessary and would provide                  hereinafter referred to as the ‘‘Act.’’
                                                                                                          The Department of Agriculture                       with the approval of the Secretary. This
                                               more flexibility when calculating                                                                              proposal would amend Section 930.151
                                                                                                       (USDA) is issuing this proposed rule in
                                               optimum supply.                                                                                                to increase the maximum carry-out
                                                                                                       conformance with Executive Orders
                                               DATES: Comments must be received by                     12866, 13563, and 13175.                               volume available when calculating
                                               July 15, 2016.                                             This proposal has been reviewed                     optimum supply from 20 million
                                               ADDRESSES: Interested persons are                       under Executive Order 12988, Civil                     pounds to 100 million pounds.
                                               invited to submit written comments                      Justice Reform. This proposed rule is                     Section 930.54 of the order governs
                                               concerning this proposal. Comments                      not intended to have retroactive effect.               the use or disposition of inventory
                                               must be sent to the Docket Clerk,                          The Act provides that administrative                reserve cherries. Under this authority,
ehiers on DSK5VPTVN1PROD with PROPOSALS




                                               Marketing Order and Agreement                           proceedings must be exhausted before                   the Board can recommend to the
                                               Division, Specialty Crops Program,                      parties may file suit in court. Under                  Secretary that a portion or all of
                                               AMS, USDA, 1400 Independence                            section 608c(15)(A) of the Act, any                    inventory reserve cherries be released if
                                               Avenue SW., STOP 0237, Washington,                      handler subject to an order may file                   there is not sufficient fruit on the market
                                               DC 20250–0237; Fax: (202) 720–8938; or                  with USDA a petition stating that the                  to meet commercial demand. Sections
                                               Internet: http://www.regulations.gov. All               order, any provision of the order, or any              930.55 and 930.57 outline the
                                               comments should reference the                           obligation imposed in connection with                  provisions and requirements of the


                                          VerDate Sep<11>2014   14:37 Jun 14, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\15JNP1.SGM   15JNP1


                                               38976                 Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Proposed Rules

                                               primary and secondary reserves,                         accumulated over a period of years.                    20 million pound maximum for the
                                               respectively. Further, no cherries in the               Therefore, the committee agreed                        2014–2015 crop year. At that time, the
                                               secondary reserve may be released until                 releases should be based on the average                Board estimated it was necessary to
                                               all cherries in the primary reserve have                amount handled during the three                        have 50 million pounds available at the
                                               been released. This proposal would                      previous crop years, rather than using a               end of the crop year to fulfill the needs
                                               create Section 930.154 to establish                     year-to-year basis. The existing release               of the industry. In discussing volume
                                               procedures for releasing inventory from                 procedures were crafted by the Board                   regulation for the 2015–2016 crop year,
                                               reserves.                                               through a series of actions in past years              the Board agreed an increased carry-out
                                                  When volume regulation is in place,                  and meetings. However, the procedures                  was again necessary and recommended
                                               the restricted portion of the crop is                   were not codified in the rules and                     to the Secretary a 55 million pound
                                               either held in reserve by handlers or can               regulations under the order. This                      carry-out when calculating the optimum
                                               be sold for exempt uses as authorized in                proposal would add the inventory                       supply.
                                               the rules and regulations of the order.                 release procedures to the regulations.                    In order to facilitate future carry-out
                                               Reserves can be held over multiple crop                   This recommendation was also                         needs without engaging with annual
                                               years and are released when there is a                  thought to be the most equitable way to                rulemaking, the Board recommended
                                               shortfall in supply. While the Board                    conduct releases. One Board member                     permanently increasing the maximum
                                               maintains record of the volume in                       believed the releases should come from                 carry-out to 100 million pounds. Some
                                               reserve, handlers maintain ownership of                 the current year’s reserves prior to                   members considered the 100 million
                                               the reserve fruit.                                      releasing from existing reserves, and did              pound upper limit to be too high, and
                                                  All inventory reserves were released                 not support the recommendation.                        voted against the recommendation.
                                               to meet demand following a crop                         However, the Board recognized that                     However, this proposed change would
                                               disaster in 2012. The following year, the               during the crop year, complete                         only increase the available range for the
                                               industry was still recovering and the                   information on reserves and shipment                   carry-out value from 0 to 20 million
                                               Board did not recommend a volume                        data would not be available. Thus, the                 pounds to 0 to 100 million. This
                                               regulation. When the Board                              Board recommended codifying                            proposed amendment would provide
                                               recommended a volume regulation for                     inventory release procedures as                        the Board with additional flexibility
                                               the 2014–15 season to the Secretary, and                recommended by the committee. The                      when considering the carry-out, but in
                                               cherries were again being added to the                  Board supported the recommendation                     itself does not establish a carry-out
                                               reserve, the Board established a                        by a vote of 17–1. This proposal would                 amount. The Board would still have to
                                               committee to review the procedures for                  add a new Section 930.154 to the                       discuss and recommend a desirable
                                               releasing restricted inventory from                     regulations to establish procedures for                carry-out value that represents current
                                               reserves. The committee recommended                     releasing inventory from reserves.                     industry needs each crop year.
                                               to the Board that the procedures as                       In addition to reviewing inventory                   Consequently, the Board supported the
                                               previously developed by the Board be                    release procedures, the Board discussed                recommendation by a vote of 12–5. This
                                               maintained, and that any releases                       changes to some of its practices                       proposal would amend Section 930.151
                                               should first come from inventory                        regarding calculation of optimum                       of the regulations to increase the
                                               currently in the primary reserve and                    supply. Optimum supply is defined as                   maximum carry-out volume possible
                                               then from any cherries designated for                   the average free sales of the prior three              when calculating optimum supply from
                                               reserve from the current season if                      years plus desirable carry-out inventory.              20 million pounds to 100 million
                                               necessary.                                              Desirable carry-out is the amount of                   pounds.
                                                  Under these procedures, once the                     fruit needed by the industry to be                        The Board made several other
                                               additional volume needed for release is                 carried into the succeeding crop year to               recommendations for changes to the
                                               established, the release should be                      meet marketing demand until the new                    rules and regulations under the order at
                                               apportioned among handlers based on                     crop is available. Desirable carry-out is              its June 25, 2015 meeting. These
                                               each handler’s prior three-year average                 set each year by the Board after                       changes are being considered under a
                                               of volume handled as a percentage of                    considering market circumstances and                   separate action.
                                               the industry’s three-year average. For                  needs. Section 930.50(a) currently
                                               example, if a handler handled five                      specifies that desirable carry-out can                 Initial Regulatory Flexibility Analysis
                                               percent of the previous three years’                    range from 0 to a maximum of 20                           Pursuant to requirements set forth in
                                               production, and the Board                               million pounds, but also authorizes the                the Regulatory Flexibility Act (RFA) (5
                                               recommended a release of 20 million                     Board to establish an alternative carry-               U.S.C. 601–612), the Agricultural
                                               pounds, that handler would potentially                  out figure with the approval of the                    Marketing Service (AMS) has
                                               be authorized to release one million                    Secretary.                                             considered the economic impact of this
                                               pounds of established reserves (.05 × 20                  Since the promulgation of the order,                 action on small entities. Accordingly,
                                               million). If a handler receives a release               the industry has seen new products and                 AMS has prepared this initial regulatory
                                               larger than what they have in the                       new segments emerge, such as dried tart                flexibility analysis.
                                               primary reserve, the excess amount                      cherries. As a result, at the end of a                    The purpose of the RFA is to fit
                                               would be reapportioned to those                         season there are multiple product lines                regulatory actions to the scale of
                                               handlers with remaining primary                         that need to be supplied with tart                     businesses subject to such actions in
                                               reserve. If the handler in the scenario                 cherries before the next harvest, which                order that small businesses will not be
                                               above had only 750,000 pounds in the                    has impacted desirable carry-out.                      unduly or disproportionately burdened.
ehiers on DSK5VPTVN1PROD with PROPOSALS




                                               primary reserve, the remaining 250,000                  Desirable carry-out is the amount of                   Marketing orders issued pursuant to the
                                               pounds would be reallocated to those                    fruit needed by the industry to be                     Act, and rules issued thereunder, are
                                               handlers who still had inventory in the                 carried into the succeeding crop year to               unique in that they are brought about
                                               primary reserve.                                        meet marketing demand until the new                    through group action of essentially
                                                  The committee that reviewed the                      crop is available.                                     small entities acting on their own
                                               procedures for releasing restricted                       In 2014, the Board used its authority                behalf.
                                               inventory from the reserves recognized                  to recommend to the Secretary a carry-                    There are approximately 600
                                               that inventory reserves can be                          out volume above the order-prescribed                  producers of tart cherries in the


                                          VerDate Sep<11>2014   14:37 Jun 14, 2016   Jkt 238001   PO 00000   Frm 00002   Fmt 4702   Sfmt 4702   E:\FR\FM\15JNP1.SGM   15JNP1


                                                                     Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Proposed Rules                                                38977

                                               regulated area and approximately 40                        The Board discussed alternatives to                 including the regulatory and
                                               handlers of tart cherries who are subject               these proposed changes to the order,                   informational impacts of this action on
                                               to regulation under the order. Small                    including releasing reserves from the                  small businesses.
                                               agricultural producers are defined by                   current crop year or releasing cherries in               A small business guide on complying
                                               the Small Business Administration                       the order in which the fruit was put into              with fruit, vegetable, and specialty crop
                                               (SBA) as those having annual receipts of                reserve. A committee was established to                marketing agreements and orders may
                                               less than $750,000 and small                            review the reserve procedures, and it                  be viewed at: http://www.ams.usda.gov/
                                               agricultural service firms have been                    proposed using a three-year average                    rules-regulations/moa/small-businesses.
                                               defined as those having annual receipts                 percentage for each handler and                        Any questions about the compliance
                                               of less than $7,500,000 (13 CFR                         releasing the previous crop years’                     guide should be sent to Antoinette
                                               121.201).                                               reserves. The Board agreed that the                    Carter at the previously mentioned
                                                  According to the National                            committee’s recommendation would be                    address in the FOR FURTHER INFORMATION
                                               Agricultural Statistics Service and                     the most equitable solution. Regarding                 CONTACT section.
                                               Board data, the average annual grower                   the carry-out limit, the Board                           A 30-day comment period is provided
                                               price for tart cherries during the 2014–                considered not recommending a                          to allow interested persons to respond
                                               15 crop year was $0.35 per pound, and                   permanent change. However, the Board                   to this proposal. A 30-day period is
                                               total utilization was around 300 million                anticipates needing more than 20                       deemed appropriate because this action
                                               pounds. Therefore, average receipts for                 million pounds of carry-out for the                    would need to be in place as soon as
                                               tart cherry producers were around                       foreseeable future. A member suggested                 possible since handlers are already
                                               $175,800, well below the SBA threshold                  changing the motion to 80 million                      putting cherries into reserve from the
                                               for small producers. In 2014, The Food                  pounds, but that suggestion did not                    2015–2016 crop. The action would also
                                               Institute estimated an f.o.b. price of                  receive support. Thus, the suggested                   need to be in place before the Board
                                               $0.96 per pound for frozen tart cherries,               alternatives were rejected.                            meets in June to have preliminary
                                               which make up the majority of                              In accordance with the Paperwork                    discussions on volume control,
                                               processed tart cherries. Using this data,               Reduction Act of 1995 (44 U.S.C.                       including determining an appropriate
                                               average annual handler receipts were                    Chapter 35), the order’s information                   carry-out figure. All written comments
                                               about $6.9 million, which is also below                 collection requirements have been                      received during the comment period
                                               the SBA threshold for small agricultural                previously approved by the Office of                   will be considered before a final
                                               service firms. Assuming a normal                        Management and Budget (OMB) and                        determination is made on this matter.
                                               distribution, the majority of producers                 assigned OMB No. 0581–0177, (Tart
                                               and handlers of tart cherries may be                    Cherries Grown in the States of                        List of Subjects in 7 CFR Part 930
                                               classified as small entities.                           Michigan, New York, Pennsylvania,                        Marketing agreements, Reporting and
                                                  This proposed action would create                    Oregon, Utah, Washington, and                          recordkeeping requirements, Tart
                                               § 930.154 of the rules and regulations,                 Wisconsin). No changes in those                        cherries.
                                               establishing procedures for release of                  requirements as a result of this action                  For the reasons set forth in the
                                               inventory reserves. This proposed rule                  are necessary. Should any changes                      preamble, 7 CFR part 930 is proposed to
                                               would also revise § 930.151 to allow the                become necessary, they would be                        be amended as follows:
                                               Board to consider a carry-out of up to                  submitted to OMB for approval.
                                               100 million pounds when calculating                        Accordingly, this proposal would not                PART 930—TART CHERRIES GROWN
                                               optimum supply. These changes are                       impose any additional reporting or                     IN THE STATES OF MICHIGAN, NEW
                                               intended to provide clear direction in                  recordkeeping requirements on either                   YORK, PENNSYLVANIA, OREGON,
                                               the event an inventory release becomes                  small or large tart cherry handlers. As                UTAH, WASHINGTON, AND
                                               necessary and allow the Board to be                     with all Federal marketing order                       WISCONSIN
                                               more responsive to tart cherry market                   programs, reports and forms are
                                               demand. The authority for these actions                 periodically reviewed to reduce                        ■ 1. The authority citation for 7 CFR
                                               is provided in §§ 930.50 and 930.54 of                  information requirements and                           part 930 continues to read as follows:
                                               the order. The Board voted to                           duplication by industry and public                         Authority: 7 U.S.C. 601–674.
                                               recommend these proposed changes to                     sector agencies.
                                               the Secretary at its meeting on June 25,                   AMS is committed to complying with                  ■ 2. In § 930.151:
                                               2015.                                                   the E-Government Act to promote the                    ■ a. Designate the current paragraph as
                                                  It is not anticipated that this action               use of the Internet and other                          paragraph (a); and
                                                                                                                                                              ■ b. Add a new paragraph (b) to read as
                                               would impose additional costs on                        information technologies to provide
                                               handlers or growers, regardless of size.                                                                       follows:
                                                                                                       increased opportunities for citizen
                                               The proposed changes are                                access to Government information and                   § 930.151    Desirable carry-out inventory.
                                               administrative in nature and intended to                services, and for other purposes.                      *     *     *     *     *
                                               align the provisions of the order with                     USDA has not identified any relevant                  (b) Beginning with the crop year
                                               current industry practices. The addition                Federal rules that duplicate, overlap or               starting July 1, 2016, for the purposes of
                                               of rules and regulations regarding                      conflict with this rule.                               determining an optimum supply
                                               inventory releases is a codification of                    The Board’s meeting was widely                      volume, the Board may recommend a
                                               administrative procedures the Board has                 publicized throughout the tart cherry                  desirable carry-out inventory not to
                                               had in place for many years. The                        industry and all interested persons were               exceed 100 million pounds.
                                                                                                       invited to attend and participate in
ehiers on DSK5VPTVN1PROD with PROPOSALS




                                               expanded carry-out upper limit would                                                                           ■ 3. Section 930.154 is added to read as
                                               allow the Board additional flexibility in               Board deliberations on all issues. Like                follows:
                                               meeting market needs without                            all Board meetings, the June 25, 2015,
                                               additional rulemaking.                                  meeting was a public meeting and all                   § 930.154    Release of inventory reserve
                                                  The benefits of this rule are not                    entities, both large and small, were able              cherries.
                                               expected to be disproportionately                       to express views on these issues.                        As provided in § 930.54, the Board
                                               greater or less for small handlers or                   Finally, interested persons are invited to             may recommend a release of a portion
                                               producers than for larger entities.                     submit comments on this proposed rule,                 or all of the primary and/or secondary


                                          VerDate Sep<11>2014   14:37 Jun 14, 2016   Jkt 238001   PO 00000   Frm 00003   Fmt 4702   Sfmt 4702   E:\FR\FM\15JNP1.SGM   15JNP1


                                               38978                 Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Proposed Rules

                                               reserve cherries. The total available                     • Fax: 202–493–2251.                                 proposed to require modifying the fuel
                                               reserves will be determined at the                        • Mail: U.S. Department of                           quantity indicating system (FQIS) to
                                               beginning of the crop year. The primary                 Transportation, Docket Operations, M–                  prevent development of an ignition
                                               reserve as defined in §§ 930.55 and                     30, West Building Ground Floor, Room                   source inside the center fuel tank due to
                                               930.150 must be depleted before the                     W12–140, 1200 New Jersey Avenue SE.,                   electrical fault conditions.
                                               secondary reserve can be released. If a                 Washington, DC 20590.                                     The NPRM invited comments on
                                               release is recommended, the                               • Hand Delivery: Deliver to Mail                     regulatory, economic, environmental,
                                               recommended volume shall be                             address above between 9 a.m. and 5                     and energy aspects of the proposal.
                                               apportioned to handlers on the basis of                 p.m., Monday through Friday, except                       The NPRM was prompted by fuel
                                               each handler’s proportion of the total                  Federal holidays.                                      system reviews conducted by the
                                               volume handled in the preceding three                   Examining the AD Docket                                manufacturer. The actions specified by
                                               crop years. If a handler has less volume                                                                       the NPRM are intended to prevent
                                               in reserve than is apportioned, the                        You may examine the AD docket on                    ignition sources inside the center fuel
                                               excess volume shall be reapportioned to                 the Internet at http://                                tank, which, in combination with
                                               those who still have volume in reserve                  www.regulations.gov by searching for                   flammable fuel vapors, could result in a
                                               until the total release is complete.                    and locating Docket No. FAA–2016–                      fuel tank explosion and consequent loss
                                                                                                       6140; or in person at the Docket                       of the airplane.
                                                 Dated: June 10, 2016.                                 Management Facility between 9 a.m.
                                               Elanor Starmer,                                         and 5 p.m., Monday through Friday,                     Related Rulemaking
                                               Administrator, Agricultural Marketing                   except Federal holidays. The AD docket                    At the time we issued the NPRM, we
                                               Service.                                                contains the proposed AD, the                          issued five other NPRMs that also
                                               [FR Doc. 2016–14173 Filed 6–14–16; 8:45 am]             regulatory evaluation, any comments                    proposed to require modification of the
                                               BILLING CODE P                                          received, and other information. The                   FQIS:
                                                                                                       street address for the Docket Office                      • Docket No. FAA–2016–6139,
                                                                                                       (phone: 800–647–5527) is in the                        Directorate Identifier 2015–NM–061–
                                               DEPARTMENT OF TRANSPORTATION                            ADDRESSES section. Comments will be                    AD, for certain The Boeing Company
                                                                                                       available in the AD docket shortly after               Model 737–600, –700, –700C, –800,
                                               Federal Aviation Administration                         receipt.                                               –900, and –900ER series airplanes.
                                                                                                       FOR FURTHER INFORMATION CONTACT: Jon                      • Docket No. FAA–2016–6141,
                                               14 CFR Part 39                                          Regimbal, Aerospace Engineer,                          Directorate Identifier 2015–NM–048–
                                               [Docket No. FAA–2016–6140; Directorate                  Propulsion Branch, ANM–140S, FAA,                      AD, for certain The Boeing Company
                                               Identifier 2015–NM–059–AD]                              Seattle Aircraft Certification Office                  Model 767 airplanes.
                                                                                                       (ACO), 1601 Lind Avenue SW., Renton,                      • Docket No. FAA–2016–6143,
                                               RIN 2120–AA64
                                                                                                       WA 98057–3356; phone: 425–917–6506;                    Directorate Identifier 2015–NM–028–
                                               Airworthiness Directives; The Boeing                    fax: 425–917–6590; email:                              AD, for all Airbus Model A300 B4–600,
                                               Company Airplanes                                       Jon.Regimbal@faa.gov.                                  B4–600R, and F4–600R series airplanes,
                                                                                                       SUPPLEMENTARY INFORMATION:                             and Model A300 C4–605R Variant F
                                               AGENCY: Federal Aviation                                                                                       airplanes (collectively called Model
                                               Administration (FAA), DOT.                              Comments Invited                                       A300–600 series airplanes), and Model
                                               ACTION: Notice of proposed rulemaking                     We invite you to send any written                    A310 series airplanes.
                                               (NPRM); extension of comment period.                    relevant data, views, or arguments about                  • Docket No. FAA–2016–6144,
                                                                                                       this proposal. Send your comments to                   Directorate Identifier 2015–NM–088–
                                               SUMMARY:    This document announces an                  an address listed under the ADDRESSES                  AD, for certain Airbus Model A318,
                                               extension of the comment period for the                 section. Include ‘‘Docket No. FAA–                     A319, A320, and A321 airplanes.
                                               above-referenced NPRM, which                            2016–6140; Directorate Identifier 2015–                   • Docket No. FAA–2016–6145,
                                               proposed the adoption of a new                          NM–059–AD’’ at the beginning of your                   Directorate Identifier 2015–NM–056–
                                               airworthiness directive (AD) for certain                comments. We specifically invite                       AD, for certain The Boeing Company
                                               The Boeing Company Model 777                            comments on the overall regulatory,                    Model 747 airplanes.
                                               airplanes. That NPRM invited                            economic, environmental, and energy
                                               comments concerning the proposed                                                                               Actions Since Previous NPRM Was
                                                                                                       aspects of this proposed AD. We will                   Issued
                                               requirement to modify the fuel quantity                 consider all comments received by the
                                               indicating system (FQIS) to prevent                     closing date and may amend this                          Since we issued the NPRM, we have
                                               development of an ignition source                       proposed AD because of those                           received a request from Airlines for
                                               inside the center fuel tank due to                      comments.                                              America (A4A) to extend the comment
                                               electrical fault conditions. This                         We will post all comments we                         period. A4A stated that the NPRMs are
                                               extension of the comment period is                      receive, without change, to http://                    controversial and could drive
                                               necessary to provide all interested                     www.regulations.gov, including any                     substantial costs, especially for cargo
                                               persons an opportunity to present their                 personal information you provide. We                   airlines. To be able to prepare informed
                                               views on the proposed requirements of                   will also post a report summarizing each               and meaningful comments with
                                               that NPRM.                                              substantive verbal contact we receive                  coordinated consensus among its
                                               DATES: We must receive comments on                      about this proposed AD.                                members, A4A requested a longer
                                               the NPRM by September 19, 2016.
ehiers on DSK5VPTVN1PROD with PROPOSALS




                                                                                                                                                              comment period to understand a
                                               ADDRESSES: You may send comments,
                                                                                                       Discussion                                             number of factors, including related
                                               using the procedures found in 14 CFR                      We issued an NPRM to amend 14 CFR                    service information, data and safety
                                               11.43 and 11.45, by any of the following                part 39 by adding an AD that would                     analysis of the unsafe condition, and
                                               methods:                                                apply to certain The Boeing Model 777                  potential costs.
                                                 • Federal eRulemaking Portal: Go to                   airplanes. The NPRM published in the                     We agree with the request, and have
                                               http://www.regulations.gov. Follow the                  Federal Register on May 4, 2016 (81 FR                 determined that it is appropriate to
                                               instructions for submitting comments.                   26750) (‘‘the NPRM’’). The NPRM                        extend the comment period for the


                                          VerDate Sep<11>2014   14:37 Jun 14, 2016   Jkt 238001   PO 00000   Frm 00004   Fmt 4702   Sfmt 4702   E:\FR\FM\15JNP1.SGM   15JNP1



Document Created: 2016-06-15 02:21:19
Document Modified: 2016-06-15 02:21:19
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by July 15, 2016.
ContactJennie M. Varela, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation81 FR 38975 
CFR AssociatedMarketing Agreements; Reporting and Recordkeeping Requirements and Tart Cherries

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR