81_FR_57656 81 FR 57493 - Apricots Grown in Designated Counties in Washington; Increased Assessment Rate

81 FR 57493 - Apricots Grown in Designated Counties in Washington; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 163 (August 23, 2016)

Page Range57493-57495
FR Document2016-20096

This proposed rule would implement a recommendation from the Washington Apricot Marketing Committee (Committee) to increase the assessment rate established for the 2016-17 and subsequent fiscal periods from $0.75 to $1.40 per ton of Washington apricots handled under the marketing order. The Committee, which is composed of growers and handlers, locally administers the order which regulates the handling of apricots grown in designated counties in Washington. Assessments upon apricot handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period begins April 1 and ends March 31. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 81 Issue 163 (Tuesday, August 23, 2016)
[Federal Register Volume 81, Number 163 (Tuesday, August 23, 2016)]
[Proposed Rules]
[Pages 57493-57495]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20096]


========================================================================
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. 163 / Tuesday, August 23, 2016 / 
Proposed Rules

[[Page 57493]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 922

[Doc. No. AMS-SC-16-0050; SC16-922-1 PR]


Apricots Grown in Designated Counties in Washington; Increased 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Washington Apricot Marketing Committee (Committee) to increase the 
assessment rate established for the 2016-17 and subsequent fiscal 
periods from $0.75 to $1.40 per ton of Washington apricots handled 
under the marketing order. The Committee, which is composed of growers 
and handlers, locally administers the order which regulates the 
handling of apricots grown in designated counties in Washington. 
Assessments upon apricot handlers are used by the Committee to fund 
reasonable and necessary expenses of the program. The fiscal period 
begins April 1 and ends March 31. The assessment rate would remain in 
effect indefinitely unless modified, suspended, or terminated.

DATES: Comments must be received by September 22, 2016.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. 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. 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 
proposed rule 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: Dale Novotny, Marketing Specialist, or 
Gary D. Olson, Regional Director, Northwest Marketing Field Office, 
Marketing Order and Agreement Division, Specialty Crops Program, AMS, 
USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, 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 proposed rule is issued under Marketing 
Agreement and Order No. 922, both as amended (7 CFR part 922), 
regulating the handling of apricots grown in designated counties in 
Washington, 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 proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the order now in effect, apricot handlers 
in designated counties in Washington are subject to assessments. Funds 
to administer the order are derived from such assessments. It is 
intended that the assessment rate as proposed herein would be 
applicable to all assessable Washington apricots beginning April 1, 
2016, and continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would increase the assessment rate established 
for the Committee for the 2016-17 and subsequent fiscal periods from 
$0.75 to $1.40 per ton of Washington apricots handled under the order.
    The Washington apricots 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 
apricots in designated counties in Washington. 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 2015-16 and subsequent fiscal periods, the Committee 
recommended, and the USDA approved, an assessment rate that would 
continue in effect from fiscal period to fiscal period 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 May 11, 2016, and unanimously recommended 
2016-17 expenditures of $7,160 and an assessment rate of $1.40 per ton 
of apricots. In comparison, the previous fiscal period's budgeted 
expenditures were $7,610. The recommended assessment rate of $1.40 per 
ton is $0.65

[[Page 57494]]

per ton higher than the rate currently in effect.
    Last year at the May 12, 2015, meeting, Committee members voted to 
moderately increase the budget from $7,095 to $7,610, and to decrease 
the assessment rate from $1.50 to $0.75 per ton of apricots handled. 
The Committee was attempting to lower their excess reserve funds to 
approximately one fiscal period's operating expenses to remain in 
compliance with Sec.  922.42(a)(2) of the order. The Committee based 
its recommendation on a crop estimate of 5,800 tons for the 2015-16 
crop year. The actual crop yield for that period was 4,795 tons, 1,005 
tons less than the 5,800 ton estimate used by the Committee for 
budgeting purposes. Low water supply and higher than average 
temperatures were reported by the industry at the May 11, 2016, meeting 
as the major factors for the short 2015-16 crop. As a result of the 
reduced crop size and related lower assessment revenue, the Committee 
was forced to use more funds from its reserve than previously 
anticipated. The Committee intends to fully fund ongoing operations and 
maintain adequate reserve funds through the implementation of the 
proposed assessment rate increase for the 2016-17 and future fiscal 
periods.
    The major expenditures recommended by the Committee for the 2016-17 
fiscal period include $3,000 for the contracted management fee to the 
Washington State Fruit Commission, $1,200 for Committee travel, $2,000 
for the annual audit, $500 for computer and technical services, and 
$250 for office supplies. Budgeted expenses for these items in the 
2015-2016 fiscal period were $3,000 for the management fee, $1,200 for 
Committee travel, $2,500 for the annual audit, and $500 for office 
supplies, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Washington 
apricots, while also taking into account the Committee's monetary 
reserve. Washington apricot shipments for the year are estimated at 
5,000 tons which should provide $7,000 in assessment income at the 
proposed rate of $1.40 per ton of Washington apricots handled. Income 
derived from handler assessments, along with interest income and funds 
from the Committee's authorized reserve, would be adequate to cover 
budgeted expenses for the 2016-17 fiscal period. Funds in the reserve 
(currently $7,301) would be kept within the maximum amount permitted by 
the order of approximately one fiscal period's operational expenses. 
Authority for maintaining a financial reserve is found in Sec.  
922.42(a)(2) of the order. The Committee expects its monetary reserve 
to decrease from $7,301 at the beginning of the 2016-17 fiscal period 
to approximately $7,141 at the end of the 2016-17 fiscal period. That 
amount would be within the provisions of the order and would provide 
the Committee with the ability to absorb fluctuations in assessment 
income and expenses into the future.
    The proposed 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.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of the Committee meetings are available from the Committee or the 
USDA. Committee meetings are open to the public and interested persons 
may express their views at these meetings. USDA would evaluate 
Committee recommendations and other available information to determine 
whether modification of the assessment rate is needed. Further 
rulemaking would be undertaken as necessary. The Committee's 2016-17 
budget and those for subsequent fiscal periods would be reviewed and, 
as appropriate, approved by USDA.

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 proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the 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 100 growers and 17 handlers of Washington 
apricots subject to regulation under the marketing order in the 
regulated area. 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 are defined as 
those whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    The National Agricultural Statistics Service (NASS) reports that 
the 2015 total production and utilization (including both fresh and 
processed markets) of Washington apricots was approximately 8,000 tons, 
the average price was $1,050 per ton, and the total farm-gate value was 
approximately $8,400,000. Based on these reports and the number of 
apricot growers within the production area, it is estimated that the 
2015 gross-average producer revenue from the sale of apricots was 
approximately $84,000.
    There are approximately 17 handlers under the order. According to 
information from the Committee, handlers shipped 4,795 tons of apricots 
during the 2015-16 fiscal period (approximately 400,000 24-pound 
containers), for an average of 282 tons (or 23,500 24-pound containers) 
of apricots shipped per handler.
    In addition, based on information from the USDA's Market News 
Service, 2015 freight-on-board prices for Washington No.1 apricots 
ranged from $20.00 to $26.00 per 24-pound container, with an average 
f.o.b price of $23.00 per container, for both loose-pack and 2-layer 
tray-pack containers. As such, the total value of apricots handled most 
likely ranged between $8,000,000 and $10,400,000, with most of the 17 
handlers in the production area handling less than $1,000,000. Average 
handler revenue from the sale of apricots in 2015 is estimated at 
approximately $541,176. Using this information, it is determined that 
each of the Washington apricot handlers currently ship less than 
$7,500,000 worth of apricots on an annual basis. In view of the 
foregoing, it is concluded that the majority of handlers and growers of 
Washington apricots may be classified as small entities.
    This proposal would increase the assessment rate established for 
the Committee, and collected from handlers, for the 2016-17 and 
subsequent fiscal periods from $0.75 to $1.40 per ton of Washington 
apricots handled. The proposed assessment rate of $1.40 is $0.65 higher 
than the 2015-16 rate. The quantity of assessable apricots for the 
2016-17 fiscal period is estimated at 5,000 tons. Thus, the $1.40 rate 
should provide $7,000 in assessment income and, combined with the 
existing reserve fund, should be adequate to meet this year's budgeted 
expenses.
    The major expenditures recommended by the Committee for the

[[Page 57495]]

2016-17 fiscal period include $3,000 for the contracted management fee 
to the Washington State Fruit Commission, $1,200 for Committee travel, 
$2,000 for the annual audit, $500 for computer and technical services, 
and $250 for office supplies. Budgeted expenses for these items in the 
2015-2016 fiscal period were $3,000 for the management fee, $1,200 for 
Committee travel, $2,500 for the annual audit, and $500 for office 
supplies.
    The Committee discussed alternatives to this action, including 
recommending alternative expenditure levels and assessment rates. 
Although lower assessment rates were considered, none were selected 
because they would not have generated sufficient income to administer 
the order.
    A review of historical data and preliminary information pertaining 
to the upcoming 2016-17 fiscal period season indicates that the grower 
price for Washington apricots could range between $1,050 and $1,300 per 
ton. Therefore, the assessment revenue for the 2016-17 fiscal period, 
as a percentage of total grower revenue, could range between 0.133 and 
0.108 percent.
    This action would increase the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. However, these costs 
would be offset by the benefits derived by the operation of the order.
    In addition, the Committee's meeting was widely publicized 
throughout the Washington apricot industry and all interested persons 
were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the May 11, 
2016, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons are invited to submit comments on this proposed rule, including 
the regulatory and informational impacts of this action on small 
businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189. 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 proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Washington apricot 
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 action.
    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 proposed rule. Thirty days is deemed appropriate 
because: (1) The 2016-17 fiscal period began on April 1, 2016, and the 
marketing order requires that the rate of assessment for each fiscal 
period apply to all assessable Washington apricots handled during such 
fiscal period; (2) the Committee needs to have sufficient funds to pay 
its expenses, which are incurred on a continuous basis; (3) handlers 
are already shipping Washington apricots from the 2016 crop; and (4) 
handlers are aware of this action, which was unanimously recommended by 
the Committee at a public meeting and is similar to other assessment 
rate actions issued in past years.

List of Subjects in 7 CFR Part 922

    Apricots, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 922 is 
proposed to be amended as follows:

PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON

0
1. The authority citation for 7 CFR part 922 continues to read as 
follows:

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

0
2. Section 922.235 is revised to read as follows:


Sec.  922.235  Assessment rate.

    On or after April 1, 2016, an assessment rate of $1.40 per ton is 
established for Washington apricots handled in the production area.

    Dated: August 18, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-20096 Filed 8-22-16; 8:45 am]
BILLING CODE 3410-02-P



                                                                                                                                                                                                  57493

                                                  Proposed Rules                                                                                                Federal Register
                                                                                                                                                                Vol. 81, No. 163

                                                                                                                                                                Tuesday, August 23, 2016



                                                  This section of the FEDERAL REGISTER                    Docket Clerk during regular business                  handler subject to an order may file
                                                  contains notices to the public of the proposed          hours, or can be viewed at: http://                   with USDA a petition stating that the
                                                  issuance of rules and regulations. The                  www.regulations.gov. All comments                     order, any provision of the order, or any
                                                  purpose of these notices is to give interested          submitted in response to this proposed                obligation imposed in connection with
                                                  persons an opportunity to participate in the            rule will be included in the record and               the order is not in accordance with law
                                                  rule making prior to the adoption of the final
                                                  rules.
                                                                                                          will be made available to the public.                 and request a modification of the order
                                                                                                          Please be advised that the identity of the            or to be exempted therefrom. Such
                                                                                                          individuals or entities submitting the                handler is afforded the opportunity for
                                                  DEPARTMENT OF AGRICULTURE                               comments will be made public on the                   a hearing on the petition. After the
                                                                                                          internet at the address provided above.               hearing, USDA would rule on the
                                                  Agricultural Marketing Service                          FOR FURTHER INFORMATION CONTACT: Dale                 petition. The Act provides that the
                                                                                                          Novotny, Marketing Specialist, or Gary                district court of the United States in any
                                                  7 CFR Part 922                                          D. Olson, Regional Director, Northwest                district in which the handler is an
                                                  [Doc. No. AMS–SC–16–0050; SC16–922–1                    Marketing Field Office, Marketing Order               inhabitant, or has his or her principal
                                                  PR]                                                     and Agreement Division, Specialty                     place of business, has jurisdiction to
                                                                                                          Crops Program, AMS, USDA;                             review USDA’s ruling on the petition,
                                                  Apricots Grown in Designated                            Telephone: (503) 326–2724, Fax: (503)                 provided an action is filed not later than
                                                  Counties in Washington; Increased                       326–7440, or Email: DaleJ.Novotny@                    20 days after the date of the entry of the
                                                  Assessment Rate                                         ams.usda.gov or GaryD.Olson@                          ruling.
                                                                                                          ams.usda.gov.                                            This proposed rule would increase
                                                  AGENCY:  Agricultural Marketing Service,                   Small businesses may request                       the assessment rate established for the
                                                  USDA.                                                   information on complying with this                    Committee for the 2016–17 and
                                                  ACTION: Proposed rule.                                  regulation by contacting Antoinette                   subsequent fiscal periods from $0.75 to
                                                                                                          Carter, Marketing Order and Agreement                 $1.40 per ton of Washington apricots
                                                  SUMMARY:   This proposed rule would                     Division, Specialty Crops Program,                    handled under the order.
                                                  implement a recommendation from the                     AMS, USDA, 1400 Independence                             The Washington apricots marketing
                                                  Washington Apricot Marketing                            Avenue SW., STOP 0237, Washington,                    order provides authority for the
                                                  Committee (Committee) to increase the                   DC 20250–0237; Telephone: (202) 720–                  Committee, with the approval of USDA,
                                                  assessment rate established for the                     2491, Fax: (202) 720–8938, or Email:                  to formulate an annual budget of
                                                  2016–17 and subsequent fiscal periods                   Antoinette.Carter@ams.usda.gov.                       expenses and collect assessments from
                                                  from $0.75 to $1.40 per ton of                                                                                handlers to administer the program. The
                                                                                                          SUPPLEMENTARY INFORMATION: This
                                                  Washington apricots handled under the                                                                         members of the Committee are
                                                  marketing order. The Committee, which                   proposed rule is issued under Marketing
                                                                                                          Agreement and Order No. 922, both as                  producers and handlers of apricots in
                                                  is composed of growers and handlers,                                                                          designated counties in Washington.
                                                  locally administers the order which                     amended (7 CFR part 922), regulating
                                                                                                          the handling of apricots grown in                     They are familiar with the Committee’s
                                                  regulates the handling of apricots grown                                                                      needs, and with the costs for goods and
                                                  in designated counties in Washington.                   designated counties in Washington,
                                                                                                          hereinafter referred to as the ‘‘order.’’             services in their local area, and are thus
                                                  Assessments upon apricot handlers are                                                                         in a position to formulate an appropriate
                                                  used by the Committee to fund                           The order is effective under the
                                                                                                          Agricultural Marketing Agreement Act                  budget and assessment rate. The
                                                  reasonable and necessary expenses of                                                                          assessment rate is formulated and
                                                  the program. The fiscal period begins                   of 1937, as amended (7 U.S.C. 601–674),
                                                                                                          hereinafter referred to as the ‘‘Act.’’               discussed in a public meeting. Thus, all
                                                  April 1 and ends March 31. The                                                                                directly affected persons have an
                                                                                                             The Department of Agriculture
                                                  assessment rate would remain in effect                                                                        opportunity to participate and provide
                                                                                                          (USDA) is issuing this proposed rule in
                                                  indefinitely unless modified,                                                                                 input.
                                                                                                          conformance with Executive Orders
                                                  suspended, or terminated.                                                                                        For the 2015–16 and subsequent fiscal
                                                                                                          12866, 13563, and 13175.
                                                  DATES: Comments must be received by                        This proposed rule has been reviewed               periods, the Committee recommended,
                                                  September 22, 2016.                                     under Executive Order 12988, Civil                    and the USDA approved, an assessment
                                                  ADDRESSES: Interested persons are                       Justice Reform. Under the order now in                rate that would continue in effect from
                                                  invited to submit written comments                      effect, apricot handlers in designated                fiscal period to fiscal period unless
                                                  concerning this proposed rule.                          counties in Washington are subject to                 modified, suspended, or terminated by
                                                  Comments must be sent to the Docket                     assessments. Funds to administer the                  USDA upon recommendation and
                                                  Clerk, Marketing Order and Agreement                    order are derived from such                           information submitted by the
                                                  Division, Specialty Crops Program,                      assessments. It is intended that the                  Committee or other information
                                                  AMS, USDA, 1400 Independence                            assessment rate as proposed herein                    available to USDA.
srobinson on DSK5SPTVN1PROD with PROPOSALS




                                                  Avenue SW., STOP 0237, Washington,                      would be applicable to all assessable                    The Committee met on May 11, 2016,
                                                  DC 20250–0237; Fax: (202) 720–8938; or                  Washington apricots beginning April 1,                and unanimously recommended 2016–
                                                  Internet: http://www.regulations.gov.                   2016, and continue until amended,                     17 expenditures of $7,160 and an
                                                  Comments should reference the                           suspended, or terminated.                             assessment rate of $1.40 per ton of
                                                  document number and the date and                           The Act provides that administrative               apricots. In comparison, the previous
                                                  page number of this issue of the Federal                proceedings must be exhausted before                  fiscal period’s budgeted expenditures
                                                  Register and will be made available for                 parties may file suit in court. Under                 were $7,610. The recommended
                                                  public inspection in the Office of the                  section 608c(15)(A) of the Act, any                   assessment rate of $1.40 per ton is $0.65


                                             VerDate Sep<11>2014   17:24 Aug 22, 2016   Jkt 238001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\23AUP1.SGM   23AUP1


                                                  57494                  Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Proposed Rules

                                                  per ton higher than the rate currently in               Authority for maintaining a financial                 less than $750,000, and small
                                                  effect.                                                 reserve is found in § 922.42(a)(2) of the             agricultural service firms are defined as
                                                     Last year at the May 12, 2015,                       order. The Committee expects its                      those whose annual receipts are less
                                                  meeting, Committee members voted to                     monetary reserve to decrease from                     than $7,500,000 (13 CFR 121.201).
                                                  moderately increase the budget from                     $7,301 at the beginning of the 2016–17                   The National Agricultural Statistics
                                                  $7,095 to $7,610, and to decrease the                   fiscal period to approximately $7,141 at              Service (NASS) reports that the 2015
                                                  assessment rate from $1.50 to $0.75 per                 the end of the 2016–17 fiscal period.                 total production and utilization
                                                  ton of apricots handled. The Committee                  That amount would be within the                       (including both fresh and processed
                                                  was attempting to lower their excess                    provisions of the order and would                     markets) of Washington apricots was
                                                  reserve funds to approximately one                      provide the Committee with the ability                approximately 8,000 tons, the average
                                                  fiscal period’s operating expenses to                   to absorb fluctuations in assessment                  price was $1,050 per ton, and the total
                                                  remain in compliance with                               income and expenses into the future.                  farm-gate value was approximately
                                                  § 922.42(a)(2) of the order. The                           The proposed assessment rate would                 $8,400,000. Based on these reports and
                                                  Committee based its recommendation                      continue in effect indefinitely unless                the number of apricot growers within
                                                  on a crop estimate of 5,800 tons for the                modified, suspended, or terminated by                 the production area, it is estimated that
                                                  2015–16 crop year. The actual crop                      USDA upon recommendation and                          the 2015 gross-average producer
                                                  yield for that period was 4,795 tons,                   information submitted by the                          revenue from the sale of apricots was
                                                  1,005 tons less than the 5,800 ton                      Committee or other available                          approximately $84,000.
                                                  estimate used by the Committee for                      information.                                             There are approximately 17 handlers
                                                  budgeting purposes. Low water supply                       Although this assessment rate would                under the order. According to
                                                  and higher than average temperatures                    be in effect for an indefinite period, the            information from the Committee,
                                                  were reported by the industry at the                    Committee would continue to meet                      handlers shipped 4,795 tons of apricots
                                                  May 11, 2016, meeting as the major                      prior to or during each fiscal period to              during the 2015–16 fiscal period
                                                  factors for the short 2015–16 crop. As a                recommend a budget of expenses and                    (approximately 400,000 24-pound
                                                  result of the reduced crop size and                     consider recommendations for                          containers), for an average of 282 tons
                                                  related lower assessment revenue, the                   modification of the assessment rate. The              (or 23,500 24-pound containers) of
                                                  Committee was forced to use more                        dates and times of the Committee                      apricots shipped per handler.
                                                  funds from its reserve than previously                  meetings are available from the                          In addition, based on information
                                                  anticipated. The Committee intends to                   Committee or the USDA. Committee                      from the USDA’s Market News Service,
                                                  fully fund ongoing operations and                       meetings are open to the public and                   2015 freight-on-board prices for
                                                  maintain adequate reserve funds                         interested persons may express their                  Washington No.1 apricots ranged from
                                                  through the implementation of the                       views at these meetings. USDA would                   $20.00 to $26.00 per 24-pound
                                                  proposed assessment rate increase for                   evaluate Committee recommendations                    container, with an average f.o.b price of
                                                  the 2016–17 and future fiscal periods.                  and other available information to                    $23.00 per container, for both loose-
                                                     The major expenditures                               determine whether modification of the                 pack and 2-layer tray-pack containers.
                                                  recommended by the Committee for the                    assessment rate is needed. Further                    As such, the total value of apricots
                                                  2016–17 fiscal period include $3,000 for                rulemaking would be undertaken as                     handled most likely ranged between
                                                  the contracted management fee to the                    necessary. The Committee’s 2016–17                    $8,000,000 and $10,400,000, with most
                                                  Washington State Fruit Commission,                      budget and those for subsequent fiscal                of the 17 handlers in the production
                                                  $1,200 for Committee travel, $2,000 for                 periods would be reviewed and, as                     area handling less than $1,000,000.
                                                  the annual audit, $500 for computer and                 appropriate, approved by USDA.                        Average handler revenue from the sale
                                                  technical services, and $250 for office                                                                       of apricots in 2015 is estimated at
                                                  supplies. Budgeted expenses for these                   Initial Regulatory Flexibility Analysis               approximately $541,176. Using this
                                                  items in the 2015–2016 fiscal period                      Pursuant to requirements set forth in               information, it is determined that each
                                                  were $3,000 for the management fee,                     the Regulatory Flexibility Act (RFA) (5               of the Washington apricot handlers
                                                  $1,200 for Committee travel, $2,500 for                 U.S.C. 601–612), the Agricultural                     currently ship less than $7,500,000
                                                  the annual audit, and $500 for office                   Marketing Service (AMS) has                           worth of apricots on an annual basis. In
                                                  supplies, respectively.                                 considered the economic impact of this                view of the foregoing, it is concluded
                                                     The assessment rate recommended by                   proposed rule on small entities.                      that the majority of handlers and
                                                  the Committee was derived by dividing                   Accordingly, AMS has prepared this                    growers of Washington apricots may be
                                                  anticipated expenses by expected                        initial regulatory flexibility analysis.              classified as small entities.
                                                  shipments of Washington apricots,                         The purpose of the RFA is to fit                       This proposal would increase the
                                                  while also taking into account the                      regulatory actions to the scale of                    assessment rate established for the
                                                  Committee’s monetary reserve.                           businesses subject to such actions in                 Committee, and collected from
                                                  Washington apricot shipments for the                    order that small businesses will not be               handlers, for the 2016–17 and
                                                  year are estimated at 5,000 tons which                  unduly or disproportionately burdened.                subsequent fiscal periods from $0.75 to
                                                  should provide $7,000 in assessment                     Marketing orders issued pursuant to the               $1.40 per ton of Washington apricots
                                                  income at the proposed rate of $1.40 per                Act, and the rules issued thereunder, are             handled. The proposed assessment rate
                                                  ton of Washington apricots handled.                     unique in that they are brought about                 of $1.40 is $0.65 higher than the 2015–
                                                  Income derived from handler                             through group action of essentially                   16 rate. The quantity of assessable
                                                  assessments, along with interest income                 small entities acting on their own                    apricots for the 2016–17 fiscal period is
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                                                  and funds from the Committee’s                          behalf.                                               estimated at 5,000 tons. Thus, the $1.40
                                                  authorized reserve, would be adequate                     There are approximately 100 growers                 rate should provide $7,000 in
                                                  to cover budgeted expenses for the                      and 17 handlers of Washington apricots                assessment income and, combined with
                                                  2016–17 fiscal period. Funds in the                     subject to regulation under the                       the existing reserve fund, should be
                                                  reserve (currently $7,301) would be kept                marketing order in the regulated area.                adequate to meet this year’s budgeted
                                                  within the maximum amount permitted                     Small agricultural producers are defined              expenses.
                                                  by the order of approximately one fiscal                by the Small Business Administration                     The major expenditures
                                                  period’s operational expenses.                          (SBA) as those having annual receipts of              recommended by the Committee for the


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                                                                         Federal Register / Vol. 81, No. 163 / Tuesday, August 23, 2016 / Proposed Rules                                                57495

                                                  2016–17 fiscal period include $3,000 for                small or large Washington apricot                     established for Washington apricots
                                                  the contracted management fee to the                    handlers. As with all Federal marketing               handled in the production area.
                                                  Washington State Fruit Commission,                      order programs, reports and forms are                   Dated: August 18, 2016.
                                                  $1,200 for Committee travel, $2,000 for                 periodically reviewed to reduce                       Elanor Starmer,
                                                  the annual audit, $500 for computer and                 information requirements and
                                                                                                                                                                Administrator, Agricultural Marketing
                                                  technical services, and $250 for office                 duplication by industry and public
                                                                                                                                                                Service.
                                                  supplies. Budgeted expenses for these                   sector agencies.
                                                                                                                                                                [FR Doc. 2016–20096 Filed 8–22–16; 8:45 am]
                                                  items in the 2015–2016 fiscal period                       AMS is committed to complying with
                                                                                                          the E-Government Act, to promote the                  BILLING CODE 3410–02–P
                                                  were $3,000 for the management fee,
                                                  $1,200 for Committee travel, $2,500 for                 use of the internet and other
                                                  the annual audit, and $500 for office                   information technologies to provide
                                                                                                          increased opportunities for citizen                   DEPARTMENT OF AGRICULTURE
                                                  supplies.
                                                     The Committee discussed alternatives                 access to Government information and                  Agricultural Marketing Service
                                                  to this action, including recommending                  services, and for other purposes.
                                                  alternative expenditure levels and                         USDA has not identified any relevant
                                                                                                                                                                7 CFR Part 1260
                                                  assessment rates. Although lower                        Federal rules that duplicate, overlap or
                                                  assessment rates were considered, none                  conflict with this action.                            [No. AMS–LPS–15–0084]
                                                  were selected because they would not                       A small business guide on complying
                                                  have generated sufficient income to                     with fruit, vegetable, and specialty crop             Amendment to the Beef Promotion and
                                                  administer the order.                                   marketing agreements and orders may                   Research Rules and Regulations
                                                     A review of historical data and                      be viewed at: http://www.ams.usda.gov/
                                                  preliminary information pertaining to                   rules-regulations/moa/small-businesses.               AGENCY:  Agricultural Marketing Service,
                                                  the upcoming 2016–17 fiscal period                      Any questions about the compliance                    USDA.
                                                  season indicates that the grower price                  guide should be sent to Antoinette                    ACTION: Proposed rule.
                                                  for Washington apricots could range                     Carter at the previously-mentioned
                                                  between $1,050 and $1,300 per ton.                      address in the FOR FURTHER INFORMATION                SUMMARY:  This proposed rule would
                                                  Therefore, the assessment revenue for                   CONTACT section.                                      amend the Beef Promotion and Research
                                                  the 2016–17 fiscal period, as a                            A 30-day comment period is provided                Order (Order) established under the
                                                  percentage of total grower revenue,                     to allow interested persons to respond                Beef Promotion and Research Act of
                                                  could range between 0.133 and 0.108                     to this proposed rule. Thirty days is                 1985 (Act) to add six Harmonized Tariff
                                                  percent.                                                deemed appropriate because: (1) The                   System (HTS) codes for imported veal
                                                     This action would increase the                       2016–17 fiscal period began on April 1,               and veal products and update
                                                  assessment obligation imposed on                        2016, and the marketing order requires                assessment levels for imported veal and
                                                  handlers. While assessments impose                      that the rate of assessment for each                  veal products based on revised
                                                  some additional costs on handlers, the                  fiscal period apply to all assessable                 determinations of live animal
                                                  costs are minimal and uniform on all                    Washington apricots handled during                    equivalencies.
                                                  handlers. However, these costs would                    such fiscal period; (2) the Committee                 DATES: Comments must be received by
                                                  be offset by the benefits derived by the                needs to have sufficient funds to pay its             October 24, 2016.
                                                  operation of the order.                                 expenses, which are incurred on a
                                                     In addition, the Committee’s meeting                                                                       ADDRESSES: Comments should be posted
                                                                                                          continuous basis; (3) handlers are
                                                  was widely publicized throughout the                                                                          online at www.regulations.gov.
                                                                                                          already shipping Washington apricots
                                                  Washington apricot industry and all                                                                           Comments received will be posted
                                                                                                          from the 2016 crop; and (4) handlers are
                                                  interested persons were invited to                                                                            without change, including any personal
                                                                                                          aware of this action, which was
                                                  attend the meeting and participate in                                                                         information provided. All comments
                                                                                                          unanimously recommended by the
                                                  Committee deliberations on all issues.                                                                        should reference the docket number
                                                                                                          Committee at a public meeting and is
                                                  Like all Committee meetings, the May                                                                          AMS–LPS–15–0084; the date of
                                                                                                          similar to other assessment rate actions
                                                  11, 2016, meeting was a public meeting                                                                        submission; and the page number of this
                                                                                                          issued in past years.
                                                  and all entities, both large and small,                                                                       issue of the Federal Register. Comments
                                                  were able to express views on this issue.               List of Subjects in 7 CFR Part 922                    may also be sent to Mike Dinkel,
                                                  Finally, interested persons are invited to                Apricots, Marketing agreements,                     Agricultural Marketing Specialist,
                                                  submit comments on this proposed rule,                  Reporting and recordkeeping                           Research and Promotion Division,
                                                  including the regulatory and                            requirements.                                         Livestock, Poultry, and Seed Program,
                                                  informational impacts of this action on                   For the reasons set forth in the                    AMS, USDA, Room 2610–S, STOP 0249,
                                                  small businesses.                                       preamble, 7 CFR part 922 is proposed to               1400 Independence Avenue SW.,
                                                     In accordance with the Paperwork                     be amended as follows:                                Washington, DC 20250–0249; or via fax
                                                  Reduction Act of 1995 (44 U.S.C.                                                                              (202) 720–1125. Comments will be
                                                  Chapter 35), the order’s information                    PART 922—APRICOTS GROWN IN                            made available for public inspection at
                                                  collection requirements have been                       DESIGNATED COUNTIES IN                                the above address during regular
                                                  previously approved by the Office of                    WASHINGTON                                            business hours or via the Internet at
                                                  Management and Budget (OMB) and                                                                               www.regulations.gov. Comments must
                                                  assigned OMB No. 0581–0189. No                          ■ 1. The authority citation for 7 CFR                 be received by October 24, 2016.
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                                                  changes in those requirements as a                      part 922 continues to read as follows:                FOR FURTHER INFORMATION CONTACT:
                                                  result of this action are necessary.                        Authority: 7 U.S.C. 601–674.                      Mike Dinkel, Agricultural Marketing
                                                  Should any changes become necessary,                    ■ 2. Section 922.235 is revised to read               Specialist, Research and Promotion
                                                  they would be submitted to OMB for                      as follows:                                           Division, Livestock, Poultry, and Seed
                                                  approval.                                                                                                     Program, AMS, USDA, Room 2610–S,
                                                     This proposed rule would not impose                  § 922.235    Assessment rate.                         STOP 0249, 1400 Independence Avenue
                                                  any additional reporting or                               On or after April 1, 2016, an                       SW., Washington, DC 20250–0249; fax
                                                  recordkeeping requirements on either                    assessment rate of $1.40 per ton is                   (202) 720–1125; telephone (301) 352–


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Document Created: 2018-02-09 11:39:59
Document Modified: 2018-02-09 11:39:59
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 September 22, 2016.
ContactDale Novotny, Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected]
FR Citation81 FR 57493 
CFR AssociatedApricots; Marketing Agreements and Reporting and Recordkeeping Requirements

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