81_FR_92801 81 FR 92557 - Cherries Grown in Designated Counties in Washington; Increased Assessment Rate

81 FR 92557 - Cherries Grown in Designated Counties in Washington; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 244 (December 20, 2016)

Page Range92557-92559
FR Document2016-30302

This rule implements a recommendation from the Washington Cherry Marketing Committee (Committee) to increase the assessment rate established for the 2016-2017 and subsequent fiscal periods from $0.15 to $0.25 per ton of Washington cherries handled. The Committee locally administers the marketing order and is comprised of growers and handlers of cherries operating within the production area. Assessments upon cherry handlers are used by the Committee to fund reasonable and necessary expenses of the marketing order. The fiscal period begins April 1 and ends March 31. The assessment rate will remain in effect indefinitely unless modified, suspended or terminated.

Federal Register, Volume 81 Issue 244 (Tuesday, December 20, 2016)
[Federal Register Volume 81, Number 244 (Tuesday, December 20, 2016)]
[Rules and Regulations]
[Pages 92557-92559]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30302]



[[Page 92557]]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 923

[Doc. No. AMS-SC-16-0077; SC16-923-1 FR]


Cherries Grown in Designated Counties in Washington; Increased 
Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule implements a recommendation from the Washington 
Cherry Marketing Committee (Committee) to increase the assessment rate 
established for the 2016-2017 and subsequent fiscal periods from $0.15 
to $0.25 per ton of Washington cherries handled. The Committee locally 
administers the marketing order and is comprised of growers and 
handlers of cherries operating within the production area. Assessments 
upon cherry handlers are used by the Committee to fund reasonable and 
necessary expenses of the marketing order. The fiscal period begins 
April 1 and ends March 31. The assessment rate will remain in effect 
indefinitely unless modified, suspended or terminated.

DATES: Effective December 21, 2016.

FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary D. Olson, 
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 Richard Lower, 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 rule is issued under Marketing Order 
No. 923, as amended (7 CFR part 923), regulating the handling of 
cherries 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 rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the order now in effect, Washington cherry 
handlers are subject to assessments. Funds to administer the order are 
derived from such assessments. It is intended that the assessment rate, 
as issued herein, will be applicable to all assessable Washington 
cherries 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 rule increases the assessment rate for the 2016-2017 and 
subsequent fiscal periods from $0.15 to $0.25 per ton of Washington 
cherries handled.
    The 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 growers and handlers of Washington cherries. 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 2013-2014 and subsequent fiscal periods, the Committee 
recommended, and the USDA approved, an assessment rate of $0.15 per ton 
of Washington cherries 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 18, 2016, and unanimously recommended 
expenditures of $57,150 for the 2016-2017 fiscal period. In comparison, 
the previous fiscal period's budgeted expenditures were $59,750. The 
Committee also unanimously recommended an assessment rate of $0.25 per 
ton of Washington cherries. The recommended assessment rate of $0.25 is 
$0.10 higher than the rate currently in effect.
    The expenditures recommended by the Committee for the 2016-2017 
fiscal period include $25,000 for the management fee; $7,000 for 
compliance; $5,000 for the data management fee; $5,000 for accounting 
administration; $5,000 for research; $4,000 for Committee travel; 
$3,000 for an audit; and $3,150 for other miscellaneous expenses. In 
comparison, expenditures for the 2015-2016 fiscal period were $25,000 
for the management fee; $7,000 for compliance; $5,000 for the data 
management fee; $7,000 for accounting administration; $5,000 for 
research; $4,000 for Committee travel; $4,000 for an audit; and $2,750 
for other miscellaneous expenses.
    Committee members estimated the 2016 fresh cherry production to be 
approximately 150,000 tons, which would be less than the 2015 
production of 165,358 tons by 15,358 tons. However, cherry production 
tends to fluctuate due to the effects of weather, pollination, and tree 
health. The Committee's recommended assessment rate was derived by 
dividing the 2016-2017 anticipated expenses by the expected shipments 
of Washington cherries, while also taking into account the Committee's 
monetary reserve. The recommended assessment rate of $0.25 per ton, 
when multiplied by the 150,000 tons of estimated 2016 Washington cherry 
shipments, is expected to generate $37,500 in handler assessments. The 
projected revenue from handler assessments, together with funds from 
the Committee's monetary reserve, should be adequate to cover the 2016-
2017 budgeted expenses of $57,150. The Committee expects its monetary 
reserve to decrease from $49,661 at the beginning of the 2016-2017 
fiscal period to approximately $30,011 at the end of the 2016-2017 
fiscal period. That amount will be within the provisions of the order 
and will provide the Committee with greater ability to absorb 
fluctuations in assessment income and expenses into the future.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA

[[Page 92558]]

upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee and USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
be undertaken as necessary. The Committee's 2016-2017 budget and those 
for subsequent fiscal periods will be reviewed and, as appropriate, 
approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are 53 handlers of Washington sweet cherries subject to 
regulation under the order and approximately 1,500 growers in the 
regulated production area. Small agricultural service firms are defined 
by the Small Business Administration (13 CFR 121.201) as those having 
annual receipts of less than $7,500,000, and small agricultural growers 
are defined as those having annual receipts of less than $750,000.
    National Agricultural Statistics Service has prepared a preliminary 
report for the 2015 shipping season showing that prices for the 171,600 
tons of sweet cherries that entered the fresh market averaged $2,380 
per ton. Based on the number of growers in the production area (1,500), 
the average grower revenue from the sale of sweet cherries in 2015 can 
therefore be estimated at approximately $272,272 per year. In addition, 
the Committee reports that most of the industry's 53 handlers reported 
gross receipts of less than $7,500,000 from the sale of fresh sweet 
cherries last fiscal period. Thus, the majority of growers and handlers 
of Washington sweet cherries may be classified as small entities.
    This action increases the assessment rate established for the 
Committee and collected from handlers for the 2016-2017 and subsequent 
fiscal periods from $0.15 to $0.25 per ton of Washington cherries 
handled. The Committee unanimously recommended 2016-2017 expenditures 
of $57,150 and an assessment rate of $0.25 per ton. The assessment rate 
of $0.25 is $0.10 higher than the rate established for the 2013-2014 
fiscal period.
    The 2016-2017 Washington cherry crop is estimated at 150,000 tons. 
At the $0.25 per ton assessment rate, the Committee anticipates that 
assessment income of approximately $37,500, along with reserve funds, 
should be adequate to cover budgeted expenses for the 2016-2017 fiscal 
period. With the increased assessment rate and budgeted expense level, 
the Committee anticipates that $19,650 will need to be deducted from 
the monetary reserve. As such, reserve funds are estimated to be at 
$30,011 on March 31, 2017. That reserve level is within the maximum 
permitted by the order of approximately one fiscal period's operational 
expenses (Sec.  923.42(a)(2)).
    The expenditures recommended by the Committee for the 2016-2017 
fiscal period include $25,000 for the management fee; $7,000 for 
compliance; $5,000 for the data management fee; $5,000 for accounting 
administration; $5,000 for research; $4,000 for Committee travel; 
$3,000 for the audit; and $3,150 for other miscellaneous expenses.
    In comparison, expenditures for the 2015-2016 fiscal period were 
$25,000 for the management fee; $7,000 for compliance; $5,000 for the 
data management fee; $7,000 for accounting administration; $5,000 for 
research; $4,000 for Committee travel; $4,000 for the audit; and $2,750 
for other miscellaneous expenses.
    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 fiscal period indicates that the grower price for the 
2016-2017 fiscal period could average $2,380 per ton of sweet cherries. 
Therefore, the estimated assessment revenue for the 2016-2017 fiscal 
period, as a percentage of total grower revenue, is approximately 0.01 
percent.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to growers. However, these costs are 
offset by the benefits derived by the operation of the order.
    In addition, the Committee's meeting was widely publicized 
throughout the Washington cherry 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 18, 
2016, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189 (Marketing Orders for Fruit Crops). No 
changes in those requirements are necessary as a result of this action. 
Should any changes become necessary, they would be submitted to OMB for 
approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large Washington 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. As noted in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on September 21, 2016 (81 FR 64785). Copies of the proposed 
rule were also emailed to all commodity handlers. Finally, the proposal 
was made available through the Internet by USDA and the Office of the 
Federal Register. A 15-day comment period ending October 6, 2016, was 
provided

[[Page 92559]]

for interested persons to respond to the proposal.
    One comment was received during the comment period in response to 
the proposal. The commenter was concerned about the impact that the 
increased assessment rate would have on growers. The commenter also 
questioned why the assessment is only applied to certain counties in 
Washington, and not others. In addition, the commenter stated that the 
opinions of sweet cherry growers and handlers should be taken into 
consideration when establishing assessment rates, and that there should 
be flexibility during the transitional period when a new assessment 
rate is implemented. Lastly, the commenter offered recommendations with 
regards to the assessment rate establishment process and took exception 
to the indefinite period that assessment rates are in effect.
    Under the order, it is handlers that are assessed, not growers. As 
such, growers will not be directly impacted by this action. However, as 
mentioned previously in this rule, some of the additional costs to 
handlers as a result of this action may be passed on to growers. 
Nevertheless, USDA believes that such additional costs will be offset 
by the benefits derived by the operation of the order.
    Furthermore, the commenter's request for clarity with regards to 
why only certain counties are covered by this regulatory change is 
addressed in the order's provisions. Section 923.4 defines the order's 
production area as the counties of Okanogan, Chelan, Kittitas, Yakima, 
Klickitat in the State of Washington and all of the counties in 
Washington lying east thereof. Only handlers who handle cherries grown 
within the specific production area are subject to assessment.
    Lastly, the commenter's thoughts regarding the assessment rate 
establishment process and effective period have been previously 
addressed in this rule. The Committee meets prior to, or during, each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings.
    Meetings are widely publicized throughout the Washington cherry 
industry and all interested persons are invited to attend the meetings 
and participate in Committee deliberations on all issues. In addition, 
interested persons are invited to submit comments on any proposed 
assessment rules. All comments are considered prior to finalization of 
a proposed rule. Once established, assessment rates remain in effect 
until modified by USDA upon the recommendation of the Committee.
    Accordingly, no changes will be made to the rule as proposed, based 
on the comment received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) The 
2016-2017 fiscal period began on April 1, 2016, and the order requires 
that the assessment rate for each fiscal period apply to all assessable 
Washington cherries 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 have already shipped 
Washington cherries 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 923

    Cherries, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 923 is 
amended as follows:

PART 923--CHERRIES GROWN IN DESIGNATED COUNTIES IN WASHINGTON

0
1. The authority citation for 7 CFR part 923 continues to read as 
follows:

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

0
2. Section 923.236 is revised to read as follows:


Sec.  923.236  Assessment rate.

    On and after April 1, 2016, an assessment rate of $0.25 per ton is 
established for the Washington Cherry Marketing Committee.

    Dated: December 12, 2016.
Bruce Summers,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2016-30302 Filed 12-19-16; 8:45 am]
 BILLING CODE 3410-02-P



                                                                 Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Rules and Regulations                                     92557

                                                DEPARTMENT OF AGRICULTURE                               conformance with Executive Orders                        The Committee met on May 18, 2016,
                                                                                                        12866, 13563, and 13175.                              and unanimously recommended
                                                Agricultural Marketing Service                             This rule has been reviewed under                  expenditures of $57,150 for the 2016–
                                                                                                        Executive Order 12988, Civil Justice                  2017 fiscal period. In comparison, the
                                                7 CFR Part 923                                          Reform. Under the order now in effect,                previous fiscal period’s budgeted
                                                                                                        Washington cherry handlers are subject                expenditures were $59,750. The
                                                [Doc. No. AMS–SC–16–0077; SC16–923–1
                                                FR]
                                                                                                        to assessments. Funds to administer the               Committee also unanimously
                                                                                                        order are derived from such                           recommended an assessment rate of
                                                Cherries Grown in Designated                            assessments. It is intended that the                  $0.25 per ton of Washington cherries.
                                                Counties in Washington; Increased                       assessment rate, as issued herein, will               The recommended assessment rate of
                                                Assessment Rate                                         be applicable to all assessable                       $0.25 is $0.10 higher than the rate
                                                                                                        Washington cherries beginning April 1,                currently in effect.
                                                AGENCY:  Agricultural Marketing Service,                2016, and continue until amended,                        The expenditures recommended by
                                                USDA.                                                   suspended, or terminated.                             the Committee for the 2016–2017 fiscal
                                                ACTION: Final rule.                                        The Act provides that administrative               period include $25,000 for the
                                                                                                        proceedings must be exhausted before                  management fee; $7,000 for compliance;
                                                SUMMARY:   This rule implements a                       parties may file suit in court. Under                 $5,000 for the data management fee;
                                                recommendation from the Washington                      section 608c(15)(A) of the Act, any                   $5,000 for accounting administration;
                                                Cherry Marketing Committee                              handler subject to an order may file                  $5,000 for research; $4,000 for
                                                (Committee) to increase the assessment                  with USDA a petition stating that the                 Committee travel; $3,000 for an audit;
                                                rate established for the 2016–2017 and                  order, any provision of the order, or any             and $3,150 for other miscellaneous
                                                subsequent fiscal periods from $0.15 to                 obligation imposed in connection with                 expenses. In comparison, expenditures
                                                $0.25 per ton of Washington cherries                    the order is not in accordance with law               for the 2015–2016 fiscal period were
                                                handled. The Committee locally                          and request a modification of the order               $25,000 for the management fee; $7,000
                                                administers the marketing order and is                  or to be exempted therefrom. Such                     for compliance; $5,000 for the data
                                                comprised of growers and handlers of                    handler is afforded the opportunity for               management fee; $7,000 for accounting
                                                cherries operating within the                           a hearing on the petition. After the                  administration; $5,000 for research;
                                                production area. Assessments upon                       hearing, USDA would rule on the                       $4,000 for Committee travel; $4,000 for
                                                cherry handlers are used by the                         petition. The Act provides that the                   an audit; and $2,750 for other
                                                Committee to fund reasonable and                        district court of the United States in any            miscellaneous expenses.
                                                necessary expenses of the marketing                     district in which the handler is an                      Committee members estimated the
                                                order. The fiscal period begins April 1                 inhabitant, or has his or her principal               2016 fresh cherry production to be
                                                and ends March 31. The assessment rate                  place of business, has jurisdiction to                approximately 150,000 tons, which
                                                will remain in effect indefinitely unless               review USDA’s ruling on the petition,                 would be less than the 2015 production
                                                modified, suspended or terminated.                      provided an action is filed not later than            of 165,358 tons by 15,358 tons.
                                                DATES: Effective December 21, 2016.                     20 days after the date of the entry of the            However, cherry production tends to
                                                                                                        ruling.                                               fluctuate due to the effects of weather,
                                                FOR FURTHER INFORMATION CONTACT:
                                                                                                           This rule increases the assessment                 pollination, and tree health. The
                                                Teresa Hutchinson or Gary D. Olson,                     rate for the 2016–2017 and subsequent                 Committee’s recommended assessment
                                                Northwest Marketing Field Office,                       fiscal periods from $0.15 to $0.25 per                rate was derived by dividing the 2016–
                                                Marketing Order and Agreement                           ton of Washington cherries handled.                   2017 anticipated expenses by the
                                                Division, Specialty Crops Program,                         The order provides authority for the               expected shipments of Washington
                                                AMS, USDA; Telephone: (503) 326–                        Committee, with the approval of USDA,                 cherries, while also taking into account
                                                2724, Fax: (503) 326–7440, or Email:                    to formulate an annual budget of                      the Committee’s monetary reserve. The
                                                Teresa.Hutchinson@ams.usda.gov or                       expenses and collect assessments from                 recommended assessment rate of $0.25
                                                GaryD.Olson@ams.usda.gov.                               handlers to administer the program. The               per ton, when multiplied by the 150,000
                                                   Small businesses may request                         members of the Committee are growers                  tons of estimated 2016 Washington
                                                information on complying with this                      and handlers of Washington cherries.                  cherry shipments, is expected to
                                                regulation by contacting Richard Lower,                 They are familiar with the Committee’s                generate $37,500 in handler
                                                Marketing Order and Agreement                           needs, and with the costs for goods and               assessments. The projected revenue
                                                Division, Specialty Crops Program,                      services in their local area, and are thus            from handler assessments, together with
                                                AMS, USDA, 1400 Independence                            in a position to formulate an appropriate             funds from the Committee’s monetary
                                                Avenue SW., STOP 0237, Washington,                      budget and assessment rate. The                       reserve, should be adequate to cover the
                                                DC 20250–0237; Telephone: (202) 720–                    assessment rate is formulated and                     2016–2017 budgeted expenses of
                                                2491, Fax: (202) 720–8938, or Email:                    discussed in a public meeting. Thus, all              $57,150. The Committee expects its
                                                Richard.Lower@ams.usda.gov.                             directly affected persons have an                     monetary reserve to decrease from
                                                SUPPLEMENTARY INFORMATION: This rule                    opportunity to participate and provide                $49,661 at the beginning of the 2016–
                                                is issued under Marketing Order No.                     input.                                                2017 fiscal period to approximately
                                                923, as amended (7 CFR part 923),                          For the 2013–2014 and subsequent                   $30,011 at the end of the 2016–2017
                                                regulating the handling of cherries                     fiscal periods, the Committee                         fiscal period. That amount will be
                                                grown in designated counties in                         recommended, and the USDA approved,                   within the provisions of the order and
                                                Washington, hereinafter referred to as                  an assessment rate of $0.15 per ton of                will provide the Committee with greater
mstockstill on DSK3G9T082PROD with RULES




                                                the ‘‘order.’’ The order is effective under             Washington cherries that would                        ability to absorb fluctuations in
                                                the Agricultural Marketing Agreement                    continue in effect from fiscal period to              assessment income and expenses into
                                                Act of 1937, as amended (7 U.S.C. 601–                  fiscal period unless modified,                        the future.
                                                674), hereinafter referred to as the                    suspended, or terminated by USDA                         The assessment rate established in
                                                ‘‘Act.’’                                                upon recommendation and information                   this rule will continue in effect
                                                   The Department of Agriculture                        submitted by the Committee or other                   indefinitely unless modified,
                                                (USDA) is issuing this rule in                          information available to USDA.                        suspended, or terminated by USDA


                                           VerDate Sep<11>2014   19:50 Dec 19, 2016   Jkt 241001   PO 00000   Frm 00009   Fmt 4700   Sfmt 4700   E:\FR\FM\20DER1.SGM   20DER1


                                                92558            Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Rules and Regulations

                                                upon recommendation and information                     per year. In addition, the Committee                  fiscal period could average $2,380 per
                                                submitted by the Committee or other                     reports that most of the industry’s 53                ton of sweet cherries. Therefore, the
                                                available information.                                  handlers reported gross receipts of less              estimated assessment revenue for the
                                                  Although this assessment rate will be                 than $7,500,000 from the sale of fresh                2016–2017 fiscal period, as a percentage
                                                in effect for an indefinite period, the                 sweet cherries last fiscal period. Thus,              of total grower revenue, is
                                                Committee will continue to meet prior                   the majority of growers and handlers of               approximately 0.01 percent.
                                                to or during each fiscal period to                      Washington sweet cherries may be                         This action increases the assessment
                                                recommend a budget of expenses and                      classified as small entities.                         obligation imposed on handlers. While
                                                consider recommendations for                               This action increases the assessment               assessments impose some additional
                                                modification of the assessment rate. The                rate established for the Committee and                costs on handlers, the costs are minimal
                                                dates and times of Committee meetings                   collected from handlers for the 2016–                 and uniform on all handlers. Some of
                                                are available from the Committee and                    2017 and subsequent fiscal periods from               the additional costs may be passed on
                                                USDA. Committee meetings are open to                    $0.15 to $0.25 per ton of Washington                  to growers. However, these costs are
                                                the public and interested persons may                   cherries handled. The Committee                       offset by the benefits derived by the
                                                express their views at these meetings.                  unanimously recommended 2016–2017                     operation of the order.
                                                USDA will evaluate Committee                            expenditures of $57,150 and an                           In addition, the Committee’s meeting
                                                recommendations and other available                     assessment rate of $0.25 per ton. The                 was widely publicized throughout the
                                                information to determine whether                        assessment rate of $0.25 is $0.10 higher              Washington cherry industry and all
                                                modification of the assessment rate is                  than the rate established for the 2013–               interested persons were invited to
                                                needed. Further rulemaking will be                      2014 fiscal period.                                   attend the meeting and participate in
                                                undertaken as necessary. The                               The 2016–2017 Washington cherry                    Committee deliberations on all issues.
                                                Committee’s 2016–2017 budget and                        crop is estimated at 150,000 tons. At the             Like all Committee meetings, the May
                                                those for subsequent fiscal periods will                $0.25 per ton assessment rate, the                    18, 2016, meeting was a public meeting
                                                be reviewed and, as appropriate,                        Committee anticipates that assessment                 and all entities, both large and small,
                                                approved by USDA.                                       income of approximately $37,500, along
                                                                                                                                                              were able to express views on this issue.
                                                                                                        with reserve funds, should be adequate
                                                Final Regulatory Flexibility Analysis                                                                            In accordance with the Paperwork
                                                                                                        to cover budgeted expenses for the
                                                   Pursuant to requirements set forth in                                                                      Reduction Act of 1995 (44 U.S.C.
                                                                                                        2016–2017 fiscal period. With the
                                                the Regulatory Flexibility Act (RFA) (5                                                                       Chapter 35), the order’s information
                                                                                                        increased assessment rate and budgeted
                                                U.S.C. 601–612), the Agricultural                                                                             collection requirements have been
                                                                                                        expense level, the Committee
                                                Marketing Service (AMS) has                                                                                   previously approved by the Office of
                                                                                                        anticipates that $19,650 will need to be
                                                considered the economic impact of this                  deducted from the monetary reserve. As                Management and Budget (OMB) and
                                                rule on small entities. Accordingly,                    such, reserve funds are estimated to be               assigned OMB No. 0581–0189
                                                AMS has prepared this final regulatory                  at $30,011 on March 31, 2017. That                    (Marketing Orders for Fruit Crops). No
                                                flexibility analysis.                                   reserve level is within the maximum                   changes in those requirements are
                                                   The purpose of the RFA is to fit                     permitted by the order of approximately               necessary as a result of this action.
                                                regulatory actions to the scale of                      one fiscal period’s operational expenses              Should any changes become necessary,
                                                businesses subject to such actions in                   (§ 923.42(a)(2)).                                     they would be submitted to OMB for
                                                order that small businesses will not be                    The expenditures recommended by                    approval.
                                                unduly or disproportionately burdened.                  the Committee for the 2016–2017 fiscal                   This rule imposes no additional
                                                Marketing orders issued pursuant to the                 period include $25,000 for the                        reporting or recordkeeping requirements
                                                Act, and the rules issued thereunder, are               management fee; $7,000 for compliance;                on either small or large Washington
                                                unique in that they are brought about                   $5,000 for the data management fee;                   cherry handlers. As with all Federal
                                                through group action of essentially                     $5,000 for accounting administration;                 marketing order programs, reports and
                                                small entities acting on their own                      $5,000 for research; $4,000 for                       forms are periodically reviewed to
                                                behalf.                                                 Committee travel; $3,000 for the audit;               reduce information requirements and
                                                   There are 53 handlers of Washington                  and $3,150 for other miscellaneous                    duplication by industry and public
                                                sweet cherries subject to regulation                    expenses.                                             sector agencies. As noted in the initial
                                                under the order and approximately                          In comparison, expenditures for the                regulatory flexibility analysis, USDA
                                                1,500 growers in the regulated                          2015–2016 fiscal period were $25,000                  has not identified any relevant Federal
                                                production area. Small agricultural                     for the management fee; $7,000 for                    rules that duplicate, overlap, or conflict
                                                service firms are defined by the Small                  compliance; $5,000 for the data                       with this final rule.
                                                Business Administration (13 CFR                         management fee; $7,000 for accounting                    AMS is committed to complying with
                                                121.201) as those having annual receipts                administration; $5,000 for research;                  the E-Government Act, to promote the
                                                of less than $7,500,000, and small                      $4,000 for Committee travel; $4,000 for               use of the internet and other
                                                agricultural growers are defined as those               the audit; and $2,750 for other                       information technologies to provide
                                                having annual receipts of less than                     miscellaneous expenses.                               increased opportunities for citizen
                                                $750,000.                                                  The Committee discussed alternatives               access to Government information and
                                                   National Agricultural Statistics                     to this action, including recommending                services, and for other purposes.
                                                Service has prepared a preliminary                      alternative expenditure levels and                       A proposed rule concerning this
                                                report for the 2015 shipping season                     assessment rates. Although lower                      action was published in the Federal
                                                showing that prices for the 171,600 tons                assessment rates were considered, none                Register on September 21, 2016 (81 FR
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                                                of sweet cherries that entered the fresh                were selected because they would not                  64785). Copies of the proposed rule
                                                market averaged $2,380 per ton. Based                   have generated sufficient income to                   were also emailed to all commodity
                                                on the number of growers in the                         administer the order.                                 handlers. Finally, the proposal was
                                                production area (1,500), the average                       A review of historical data and                    made available through the Internet by
                                                grower revenue from the sale of sweet                   preliminary information pertaining to                 USDA and the Office of the Federal
                                                cherries in 2015 can therefore be                       the upcoming fiscal period indicates                  Register. A 15-day comment period
                                                estimated at approximately $272,272                     that the grower price for the 2016–2017               ending October 6, 2016, was provided


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                                                                 Federal Register / Vol. 81, No. 244 / Tuesday, December 20, 2016 / Rules and Regulations                                            92559

                                                for interested persons to respond to the                on any proposed assessment rules. All                 § 923.236   Assessment rate.
                                                proposal.                                               comments are considered prior to                        On and after April 1, 2016, an
                                                   One comment was received during                      finalization of a proposed rule. Once                 assessment rate of $0.25 per ton is
                                                the comment period in response to the                   established, assessment rates remain in               established for the Washington Cherry
                                                proposal. The commenter was                             effect until modified by USDA upon the                Marketing Committee.
                                                concerned about the impact that the                     recommendation of the Committee.                        Dated: December 12, 2016.
                                                increased assessment rate would have                       Accordingly, no changes will be made
                                                on growers. The commenter also                                                                                Bruce Summers,
                                                                                                        to the rule as proposed, based on the                 Associate Administrator, Agricultural
                                                questioned why the assessment is only                   comment received.
                                                applied to certain counties in                                                                                Marketing Service.
                                                Washington, and not others. In addition,                   A small business guide on complying                [FR Doc. 2016–30302 Filed 12–19–16; 8:45 am]
                                                the commenter stated that the opinions                  with fruit, vegetable, and specialty crop             BILLING CODE 3410–02–P
                                                of sweet cherry growers and handlers                    marketing agreements and orders may
                                                should be taken into consideration                      be viewed at: http://www.ams.usda.gov/
                                                when establishing assessment rates, and                 rules-regulations/moa/small-businesses.               DEPARTMENT OF AGRICULTURE
                                                that there should be flexibility during                 Any questions about the compliance
                                                                                                        guide should be sent to Richard Lower                 Agricultural Marketing Service
                                                the transitional period when a new
                                                assessment rate is implemented. Lastly,                 at the previously mentioned address in
                                                                                                        the FOR FURTHER INFORMATION CONTACT                   7 CFR Part 981
                                                the commenter offered
                                                recommendations with regards to the                     section.                                              [Doc. No. AMS–SC–16–0045; SC16–981–2
                                                assessment rate establishment process                      After consideration of all relevant                FR]
                                                and took exception to the indefinite                    material presented, including the
                                                period that assessment rates are in                     information and recommendation                        Almonds Grown in California;
                                                effect.                                                 submitted by the Committee and other                  Increased Assessment Rate
                                                   Under the order, it is handlers that are             available information, it is hereby found             AGENCY:  Agricultural Marketing Service,
                                                assessed, not growers. As such, growers                 that this rule, as hereinafter set forth,             USDA.
                                                will not be directly impacted by this                   will tend to effectuate the declared                  ACTION: Final rule.
                                                action. However, as mentioned                           policy of the Act.
                                                previously in this rule, some of the                       Pursuant to 5 U.S.C. 553, it also found            SUMMARY:   This rule implements a
                                                additional costs to handlers as a result                and determined that good cause exists                 recommendation from the Almond
                                                of this action may be passed on to                      for not postponing the effective date of              Board of California (Board) for an
                                                growers. Nevertheless, USDA believes                    this rule until 30 days after publication             increase of the assessment rate
                                                that such additional costs will be offset                                                                     established for the 2016–17 through the
                                                                                                        in the Federal Register because: (1) The
                                                by the benefits derived by the operation                                                                      2018–19 crop years from $0.03 to $0.04
                                                                                                        2016–2017 fiscal period began on April
                                                of the order.                                                                                                 per pound of almonds handled under
                                                   Furthermore, the commenter’s request                 1, 2016, and the order requires that the
                                                                                                        assessment rate for each fiscal period                the marketing order (order). Of the $0.04
                                                for clarity with regards to why only                                                                          per pound assessment, 60 percent (or
                                                certain counties are covered by this                    apply to all assessable Washington
                                                                                                        cherries handled during such fiscal                   $0.024 per pound) is available as credit-
                                                regulatory change is addressed in the                                                                         back for handlers who conduct their
                                                order’s provisions. Section 923.4 defines               period; (2) the Committee needs to have
                                                                                                        sufficient funds to pay its expenses,                 own promotional activities. The
                                                the order’s production area as the
                                                                                                        which are incurred on a continuous                    assessment rate will return to $0.03 for
                                                counties of Okanogan, Chelan, Kittitas,
                                                                                                        basis; (3) handlers have already shipped              the 2019–20 and subsequent crop years,
                                                Yakima, Klickitat in the State of
                                                                                                        Washington cherries from the 2016                     and the amount available for handler
                                                Washington and all of the counties in
                                                                                                        crop; and (4) handlers are aware of this              credit-back will return to $0.018 per
                                                Washington lying east thereof. Only
                                                                                                        action, which was unanimously                         pound (60 percent). The Board locally
                                                handlers who handle cherries grown
                                                                                                        recommended by the Committee at a                     administers the order and is comprised
                                                within the specific production area are
                                                                                                        public meeting and is similar to other                of growers and handlers of almonds
                                                subject to assessment.
                                                   Lastly, the commenter’s thoughts                     assessment rate actions issued in past                grown in California. Assessments upon
                                                regarding the assessment rate                           years.                                                almond handlers are used by the Board
                                                establishment process and effective                                                                           to fund reasonable and necessary
                                                                                                        List of Subjects in 7 CFR Part 923                    expenses of the program. The crop year
                                                period have been previously addressed
                                                in this rule. The Committee meets prior                   Cherries, Marketing agreements,                     began on August 1 and ends on July 31.
                                                to, or during, each fiscal period to                    Reporting and recordkeeping                           The $0.04 assessment rate will remain
                                                recommend a budget of expenses and                      requirements.                                         in effect until July 31, 2019. Beginning
                                                consider recommendations for                                                                                  August 1, 2019, the assessment rate will
                                                                                                          For the reasons set forth in the                    return to $0.03 and will remain in effect
                                                modification of the assessment rate. The                preamble, 7 CFR part 923 is amended as
                                                dates and times of Committee meetings                                                                         indefinitely unless modified,
                                                                                                        follows:                                              suspended, or terminated. Two
                                                are available from the Committee or
                                                USDA. Committee meetings are open to                                                                          comments period were provided to
                                                                                                        PART 923—CHERRIES GROWN IN
                                                the public and interested persons may                                                                         interested individuals. Comments will
                                                                                                        DESIGNATED COUNTIES IN
                                                express their views at these meetings.                                                                        be addressed later in this document.
                                                                                                        WASHINGTON
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                                                   Meetings are widely publicized                                                                             DATES: Effective December 21, 2016.
                                                throughout the Washington cherry                        ■ 1. The authority citation for 7 CFR                 FOR FURTHER INFORMATION CONTACT:
                                                industry and all interested persons are                 part 923 continues to read as follows:                Marketing Specialist Andrea Ricci, or
                                                invited to attend the meetings and                                                                            Regional Director Jeffrey Smutny,
                                                                                                            Authority: 7 U.S.C. 601–674.
                                                participate in Committee deliberations                                                                        California Marketing Field Office,
                                                on all issues. In addition, interested                  ■ 2. Section 923.236 is revised to read               Marketing Order and Agreement
                                                persons are invited to submit comments                  as follows:                                           Division, Specialty Crops Program,


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Document Created: 2018-02-14 09:10:02
Document Modified: 2018-02-14 09:10:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective December 21, 2016.
ContactTeresa Hutchinson or Gary D. Olson, 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 92557 
CFR AssociatedCherries; Marketing Agreements and Reporting and Recordkeeping Requirements

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