82_FR_24180 82 FR 24080 - Tart Cherries Grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington and Wisconsin; Modification of Allocation of Assessments

82 FR 24080 - Tart Cherries Grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington and Wisconsin; Modification of Allocation of Assessments

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 100 (May 25, 2017)

Page Range24080-24082
FR Document2017-10677

This proposed rule would implement a recommendation from the Tart Cherry Industry Administrative Board (Board) to increase the portion of assessments allocated to research and promotion activities from $0.005 to $0.006 per pound of tart cherries and decrease the portion allocated to administrative expenses from $0.0025 to $0.0015 per pound of tart cherries handled under the marketing order (order). The overall assessment rate would remain unchanged at $0.0075 per pound of tart cherries. The Board locally administers the order and is comprised of producers and handlers of tart cherries operating within the area of production, and one public member. Assessments upon tart cherry handlers are used by the Board to fund reasonable and necessary expenses of the program. The fiscal period begins October 1 and ends September 30. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 82 Issue 100 (Thursday, May 25, 2017)
[Federal Register Volume 82, Number 100 (Thursday, May 25, 2017)]
[Proposed Rules]
[Pages 24080-24082]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-10677]


========================================================================
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. 82, No. 100 / Thursday, May 25, 2017 / 
Proposed Rules

[[Page 24080]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 930

[Doc. No. AMS-SC-16-0104; SC16-930-4 PR]


Tart Cherries Grown in the States of Michigan, New York, 
Pennsylvania, Oregon, Utah, Washington and Wisconsin; Modification of 
Allocation of Assessments

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Tart Cherry Industry Administrative Board (Board) to increase the 
portion of assessments allocated to research and promotion activities 
from $0.005 to $0.006 per pound of tart cherries and decrease the 
portion allocated to administrative expenses from $0.0025 to $0.0015 
per pound of tart cherries handled under the marketing order (order). 
The overall assessment rate would remain unchanged at $0.0075 per pound 
of tart cherries. The Board locally administers the order and is 
comprised of producers and handlers of tart cherries operating within 
the area of production, and one public member. Assessments upon tart 
cherry handlers are used by the Board to fund reasonable and necessary 
expenses of the program. The fiscal period begins October 1 and ends 
September 30. The assessment rate would remain in effect indefinitely 
unless modified, suspended, or terminated.

DATES: Comments must be received by June 26, 2017.

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 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: Jennie M. Varela, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: 
(863) 291-8614, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting 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 proposed rule is issued under Marketing 
Agreement and Order No. 930, both as amended (7 CFR part 930), 
regulating the handling of tart cherries produced in the States of 
Michigan, New York, Pennsylvania, Oregon, Utah, Washington and 
Wisconsin, hereinafter referred to as the ``order.'' The order is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 12866, 13771, 13563, and 13175.
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the marketing order now in effect, tart 
cherry handlers 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 tart cherries beginning on October 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 portion of the assessment 
rate allocated to research and promotion activities from $0.005 to 
$0.006 per pound of tart cherries and decrease the portion allocated to 
administrative expenses from $0.0025 to $0.0015 per pound of tart 
cherries. The overall assessment rate for the 2016-17 and subsequent 
fiscal periods would remain unchanged at $0.0075 per pound of tart 
cherries.
    The tart cherry marketing order provides authority for the Board, 
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 Board are producers and handlers of tart cherries, and 
one public member. They are familiar with the Board's needs and with 
the costs of goods and services in their local areas 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 2010-11 and subsequent fiscal periods, the Board 
recommended, and USDA approved, an assessment rate of $0.0075 per pound 
of tart cherries that would continue in effect from fiscal

[[Page 24081]]

period to fiscal period unless modified, suspended, or terminated by 
USDA upon recommendation and information submitted by the Board or 
other information available to USDA.
    The Board met on September 8, 2016, and unanimously recommended 
2016-17 expenditures of $2,523,550 and an assessment rate of $0.0075 
per pound of tart cherries. In comparison, last year's budgeted 
expenditures were $1,725,000. The total assessment rate remains 
unchanged by this proposed action. However, this proposed rule would 
increase the portion of the assessment rate allocated to research and 
promotion activities from $0.005 to $0.006 per pound of tart cherries 
and decrease the portion allocated to administrative expenses from 
$0.0025 to $0.0015 per pound of tart cherries. This shift in allocation 
would allow for expanded research and promotion activities to help 
market this season's above-average crop, while helping to ensure that 
the funds held in the Board's authorized reserve are consistent with 
the order's limits on the reserve.
    The major expenditures recommended by the Board for the 2016-17 
year include $2,045,550 for promotion, $255,000 for personnel, and 
$106,000 for office expenses. Budgeted expenses for these items in 
2015-16 were $1,150,000, $236,000, and $102,000, respectively.
    The assessment rate recommended by the Board was derived by 
considering expected shipments of tart cherries and examining the needs 
of the industry with regard to research and promotion and the 
authorized reserve. Tart cherry shipments for the 2016-17 year are 
estimated at 314.7 million pounds, which should provide $2,360,250 in 
assessment income. Income derived from handler assessments, interest 
income, and funds from the Board's authorized reserve would be adequate 
to cover budgeted expenses. Funds in the reserve (approximately 
$894,000) would be kept within the maximum permitted by the order of no 
more than approximately one year's operational expenses as stated in 
Sec.  930.42.
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by USDA upon recommendation 
and information submitted by the Board or other available information.
    Although this assessment rate would be in effect for an indefinite 
period, the Board 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 Board 
meetings are available from the Board or USDA. Board meetings are open 
to the public, and interested persons may express their views at these 
meetings. USDA would evaluate Board recommendations and other available 
information to determine whether modification of the assessment rate is 
needed. Further rulemaking would be undertaken as necessary. The 
Board's 2016-17 budget and those for subsequent fiscal periods would be 
reviewed and, as appropriate, approved by USDA.

Executive Orders 12866 and 13771, and Regulatory Flexibility Act

    This rule does not meet the definition of a significant regulatory 
action contained in section 3(f) of Executive Order 12866, and is not 
subject to review by the Office of Management and Budget (OMB). 
Additionally, because this rule does not meet the definition of a 
significant regulatory action it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017 titled `Reducing Regulation and Controlling Regulatory 
Costs'[thinsp]'' (February 2, 2017).
    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 rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 600 producers of tart cherries in the 
regulated area and approximately 40 handlers of tart cherries who are 
subject to regulation under the order. Small agricultural producers are 
defined by the Small Business Administration (SBA) as those having 
annual receipts of less than $750,000, and small agricultural service 
firms have been defined as those whose annual receipts are less than 
$7,500,000 (13 CFR 121.201).
    According to the National Agricultural Statistics Service (NASS) 
and Board data, the average annual grower price for tart cherries 
during the 2015-16 season was approximately $0.347 per pound. With 
total utilization at 251.1 million pounds, the total 2015-16 crop value 
is estimated at $87 million. Dividing the crop value by the estimated 
number of producers (600) yields an estimated average receipt per 
producer of $145,000. This is well below the SBA threshold for small 
producers. In 2015, The Food Institute estimated a free on board 
(f.o.b.) price of $0.96 per pound for frozen tart cherries, which make 
up the majority of processed tart cherries. Multiplying the f.o.b price 
by total utilization of 251.1 million pounds results in an estimated 
handler-level tart cherry value of $241 million. Dividing this figure 
by the number of handlers (40) yields an estimated average annual 
handler receipts of $6 million, which is below the SBA threshold for 
small agricultural service firms. Assuming a normal distribution, the 
majority of producers and handlers of tart cherries may be classified 
as small entities.
    This proposal would increase the portion of the assessment rate 
allocated to research and promotion activities from $0.005 to $0.006 
per pound of tart cherries and decrease the portion allocated to 
administrative expenses from $0.0025 to $0.0015 per pound of tart 
cherries. The overall assessment rate established for the Board for the 
2016-17 and subsequent fiscal periods would remain unchanged at $0.0075 
per pound of tart cherries. The quantity of assessable tart cherries 
for the 2016-17 season is estimated at 314.7 million pounds. Thus, the 
$0.0075 rate should provide $2,360,250 in assessment income. Income 
derived from handler assessments, interest income, and funds from the 
Board's authorized reserve should provide sufficient funds to meet this 
year's anticipated expenses.
    The major expenditures recommended by the Board for the 2016-17 
year include $2,045,550 for promotion, $255,000 for personnel, and 
$106,000 for office expenses. Budgeted expenses for these items in 
2015-16 were $1,150,000, $236,000, and $102,000, respectively.
    This proposed rule would shift the allocation of the assessment 
rate to increase the portion allocated for research and promotion, 
while decreasing the portion allocated for administrative costs. This 
adjustment would allow for expanded research and promotion activities 
to help market this season's above-average crop, while helping to 
ensure that the funds held in the Board's authorized reserve are 
consistent with the order's limits on the reserve.
    Prior to arriving at this budget and assessment rate, the Board 
considered production history, crop estimates, its

[[Page 24082]]

financial statements, and the need to both reduce financial reserves 
and increase its marketing efforts to increase demand for tart 
cherries. The Board also considered not taking this action, but 
determined that 2016-17 expenditures of $2,523,550 were appropriate, 
and the recommended assessment rate and allocation, along with funds 
from interest income, block grants, and funds from reserves, would be 
adequate to cover budgeted expenses.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicates that the average grower 
price for the 2016-17 season could be approximately $0.348 per pound of 
tart cherries. Therefore, the estimated assessment revenue for the 
2016-17 crop year as a percentage of total grower revenue would be 
approximately 2 percent.
    This action would not increase 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 costs 
may be passed on to producers. However, these costs would be offset by 
the benefits derived by the operation of the marketing order.
    The Board's meetings were widely publicized throughout the tart 
cherry industry, and all interested persons were invited to attend the 
meetings and participate in Board deliberations on all issues. Like all 
Board meetings, the June 23, 2016, and September 8, 2016, meetings were 
public meetings, 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 OMB and assigned OMB No. 0581-0177, Tart 
Cherries Grown in the States of Michigan, New York, Pennsylvania, 
Oregon, Utah, Washington, and Wisconsin. No changes in those 
requirements are necessary as a result of this proposed action. Should 
any changes become necessary, they would be submitted to OMB for 
approval.
    This proposed rule would impose no additional reporting or 
recordkeeping requirements on either small or large tart cherry 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this 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 Richard Lower 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.

List of Subjects in 7 CFR Part 930

    Marketing agreements, Reporting and recordkeeping requirements, 
tart cherries.

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

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

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

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

0
2. Section 930.200 is revised to read as follows:


Sec.  930.200   Assessment rate.

    On and after October 1, 2016, the assessment rate imposed on 
handlers shall be $0.0075 per pound of tart cherries grown in the 
production area and utilized in the production of tart cherry products. 
Included in this rate is $0.006 per pound of tart cherries to cover the 
cost of the research and promotion program and $0.0015 per pound of 
tart cherries to cover administrative expenses.

    Dated: May 19, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-10677 Filed 5-24-17; 8:45 am]
BILLING CODE 3410-02-P



     24080

     Proposed Rules                                                                                                Federal Register
                                                                                                                   Vol. 82, No. 100

                                                                                                                   Thursday, May 25, 2017



     This section of the FEDERAL REGISTER                    DC 20250–0237; Fax: (202) 720–8938; or                would be applicable to all assessable
     contains notices to the public of the proposed          Internet: http://www.regulations.gov.                 tart cherries beginning on October 1,
     issuance of rules and regulations. The                  Comments should reference the                         2016, and continue until amended,
     purpose of these notices is to give interested          document number and the date and                      suspended, or terminated.
     persons an opportunity to participate in the            page number of this issue of the Federal                 The Act provides that administrative
     rule making prior to the adoption of the final
     rules.
                                                             Register and will be available for public             proceedings must be exhausted before
                                                             inspection in the Office of the Docket                parties may file suit in court. Under
                                                             Clerk during regular business hours, or               section 608c(15)(A) of the Act, any
     DEPARTMENT OF AGRICULTURE                               can be viewed at: http://                             handler subject to an order may file
                                                             www.regulations.gov. All comments                     with USDA a petition stating that the
     Agricultural Marketing Service                          submitted in response to this proposed                order, any provision of the order, or any
                                                             rule will be included in the record and               obligation imposed in connection with
     7 CFR Part 930                                          will be made available to the public.                 the order is not in accordance with law
     [Doc. No. AMS–SC–16–0104; SC16–930–4
                                                             Please be advised that the identity of the            and request a modification of the order
     PR]                                                     individuals or entities submitting the                or to be exempted therefrom. Such
                                                             comments will be made public on the                   handler is afforded the opportunity for
     Tart Cherries Grown in the States of                    Internet at the address provided above.               a hearing on the petition. After the
     Michigan, New York, Pennsylvania,                       FOR FURTHER INFORMATION CONTACT:                      hearing, USDA would rule on the
     Oregon, Utah, Washington and                            Jennie M. Varela, Marketing Specialist,               petition. The Act provides that the
     Wisconsin; Modification of Allocation                   or Christian D. Nissen, Regional                      district court of the United States in any
     of Assessments                                          Director, Southeast Marketing Field                   district in which the handler is an
                                                             Office, Marketing Order and Agreement                 inhabitant, or has his or her principal
     AGENCY:  Agricultural Marketing Service,                Division, Specialty Crops Program,                    place of business, has jurisdiction to
     USDA.                                                   AMS, USDA; Telephone: (863) 324–                      review USDA’s ruling on the petition,
     ACTION: Proposed rule.                                  3375, Fax: (863) 291–8614, or Email:                  provided an action is filed not later than
                                                             Jennie.Varela@ams.usda.gov or                         20 days after the date of the entry of the
     SUMMARY:   This proposed rule would                                                                           ruling.
                                                             Christian.Nissen@ams.usda.gov.
     implement a recommendation from the                        Small businesses may request                          This proposed rule would increase
     Tart Cherry Industry Administrative                     information on complying with this                    the portion of the assessment rate
     Board (Board) to increase the portion of                regulation by contacting Richard Lower,               allocated to research and promotion
     assessments allocated to research and                   Marketing Order and Agreement                         activities from $0.005 to $0.006 per
     promotion activities from $0.005 to                     Division, Specialty Crops Program,                    pound of tart cherries and decrease the
     $0.006 per pound of tart cherries and                   AMS, USDA, 1400 Independence                          portion allocated to administrative
     decrease the portion allocated to                       Avenue SW., STOP 0237, Washington,                    expenses from $0.0025 to $0.0015 per
     administrative expenses from $0.0025 to                 DC 20250–0237; Telephone: (202) 720–                  pound of tart cherries. The overall
     $0.0015 per pound of tart cherries                      2491, Fax: (202)720–8938, or Email:                   assessment rate for the 2016–17 and
     handled under the marketing order                       Richard.Lower@ams.usda.gov.                           subsequent fiscal periods would remain
     (order). The overall assessment rate                                                                          unchanged at $0.0075 per pound of tart
                                                             SUPPLEMENTARY INFORMATION: This
     would remain unchanged at $0.0075 per                                                                         cherries.
                                                             proposed rule is issued under Marketing
     pound of tart cherries. The Board locally                                                                        The tart cherry marketing order
                                                             Agreement and Order No. 930, both as
     administers the order and is comprised                                                                        provides authority for the Board, with
                                                             amended (7 CFR part 930), regulating
     of producers and handlers of tart                                                                             the approval of USDA, to formulate an
                                                             the handling of tart cherries produced in
     cherries operating within the area of                                                                         annual budget of expenses and collect
                                                             the States of Michigan, New York,
     production, and one public member.                                                                            assessments from handlers to administer
                                                             Pennsylvania, Oregon, Utah,
     Assessments upon tart cherry handlers                                                                         the program. The members of the Board
                                                             Washington and Wisconsin, hereinafter
     are used by the Board to fund                                                                                 are producers and handlers of tart
                                                             referred to as the ‘‘order.’’ The order is
     reasonable and necessary expenses of                                                                          cherries, and one public member. They
                                                             effective under the Agricultural
     the program. The fiscal period begins                                                                         are familiar with the Board’s needs and
                                                             Marketing Agreement Act of 1937, as
     October 1 and ends September 30. The                                                                          with the costs of goods and services in
                                                             amended (7 U.S.C. 601–674), hereinafter
     assessment rate would remain in effect                                                                        their local areas and are thus in a
                                                             referred to as the ‘‘Act.’’
     indefinitely unless modified,                                                                                 position to formulate an appropriate
                                                                The Department of Agriculture
     suspended, or terminated.                                                                                     budget and assessment rate. The
                                                             (USDA) is issuing this proposed rule in
     DATES: Comments must be received by                     conformance with Executive Orders                     assessment rate is formulated and
     June 26, 2017.                                          12866, 13771, 13563, and 13175.                       discussed in a public meeting. Thus, all
     ADDRESSES: Interested persons are                          This proposed rule has been reviewed               directly affected persons have an
     invited to submit written comments                      under Executive Order 12988, Civil                    opportunity to participate and provide
     concerning this proposed rule.                          Justice Reform. Under the marketing                   input.
     Comments must be sent to the Docket                     order now in effect, tart cherry handlers                For the 2010–11 and subsequent fiscal
     Clerk, Marketing Order and Agreement                    are subject to assessments. Funds to                  periods, the Board recommended, and
     Division, Specialty Crops Program,                      administer the order are derived from                 USDA approved, an assessment rate of
     AMS, USDA, 1400 Independence                            such assessments. It is intended that the             $0.0075 per pound of tart cherries that
     Avenue SW., STOP 0237, Washington,                      assessment rate as proposed herein                    would continue in effect from fiscal


VerDate Sep<11>2014   18:01 May 24, 2017   Jkt 241001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\25MYP1.SGM   25MYP1


                             Federal Register / Vol. 82, No. 100 / Thursday, May 25, 2017 / Proposed Rules                                           24081

     period to fiscal period unless modified,                available from the Board or USDA.                     at 251.1 million pounds, the total 2015–
     suspended, or terminated by USDA                        Board meetings are open to the public,                16 crop value is estimated at $87
     upon recommendation and information                     and interested persons may express                    million. Dividing the crop value by the
     submitted by the Board or other                         their views at these meetings. USDA                   estimated number of producers (600)
     information available to USDA.                          would evaluate Board recommendations                  yields an estimated average receipt per
        The Board met on September 8, 2016,                  and other available information to                    producer of $145,000. This is well
     and unanimously recommended 2016–                       determine whether modification of the                 below the SBA threshold for small
     17 expenditures of $2,523,550 and an                    assessment rate is needed. Further                    producers. In 2015, The Food Institute
     assessment rate of $0.0075 per pound of                 rulemaking would be undertaken as                     estimated a free on board (f.o.b.) price
     tart cherries. In comparison, last year’s               necessary. The Board’s 2016–17 budget                 of $0.96 per pound for frozen tart
     budgeted expenditures were $1,725,000.                  and those for subsequent fiscal periods               cherries, which make up the majority of
     The total assessment rate remains                       would be reviewed and, as appropriate,                processed tart cherries. Multiplying the
     unchanged by this proposed action.                      approved by USDA.                                     f.o.b price by total utilization of 251.1
     However, this proposed rule would                                                                             million pounds results in an estimated
     increase the portion of the assessment                  Executive Orders 12866 and 13771, and
                                                                                                                   handler-level tart cherry value of $241
     rate allocated to research and promotion                Regulatory Flexibility Act
                                                                                                                   million. Dividing this figure by the
     activities from $0.005 to $0.006 per                       This rule does not meet the definition             number of handlers (40) yields an
     pound of tart cherries and decrease the                 of a significant regulatory action                    estimated average annual handler
     portion allocated to administrative                     contained in section 3(f) of Executive                receipts of $6 million, which is below
     expenses from $0.0025 to $0.0015 per                    Order 12866, and is not subject to                    the SBA threshold for small agricultural
     pound of tart cherries. This shift in                   review by the Office of Management and                service firms. Assuming a normal
     allocation would allow for expanded                     Budget (OMB). Additionally, because                   distribution, the majority of producers
     research and promotion activities to                    this rule does not meet the definition of             and handlers of tart cherries may be
     help market this season’s above-average                 a significant regulatory action it does               classified as small entities.
     crop, while helping to ensure that the                  not trigger the requirements contained                   This proposal would increase the
     funds held in the Board’s authorized                    in Executive Order 13771. See OMB’s                   portion of the assessment rate allocated
     reserve are consistent with the order’s                 Memorandum titled ‘‘Interim Guidance                  to research and promotion activities
     limits on the reserve.                                  Implementing Section 2 of the Executive               from $0.005 to $0.006 per pound of tart
        The major expenditures                               Order of January 30, 2017 titled                      cherries and decrease the portion
     recommended by the Board for the                        ‘Reducing Regulation and Controlling                  allocated to administrative expenses
     2016–17 year include $2,045,550 for                     Regulatory Costs’ ’’ (February 2, 2017).              from $0.0025 to $0.0015 per pound of
     promotion, $255,000 for personnel, and                     Pursuant to requirements set forth in              tart cherries. The overall assessment rate
     $106,000 for office expenses. Budgeted                  the Regulatory Flexibility Act (RFA) (5               established for the Board for the 2016–
     expenses for these items in 2015–16                     U.S.C. 601–612), the Agricultural                     17 and subsequent fiscal periods would
     were $1,150,000, $236,000, and                          Marketing Service (AMS) has                           remain unchanged at $0.0075 per pound
     $102,000, respectively.                                 considered the economic impact of this                of tart cherries. The quantity of
        The assessment rate recommended by                   proposed rule on small entities.                      assessable tart cherries for the 2016–17
     the Board was derived by considering                    Accordingly, AMS has prepared this                    season is estimated at 314.7 million
     expected shipments of tart cherries and                 initial regulatory flexibility analysis.              pounds. Thus, the $0.0075 rate should
     examining the needs of the industry                        The purpose of the RFA is to fit                   provide $2,360,250 in assessment
     with regard to research and promotion                   regulatory actions to the scale of                    income. Income derived from handler
     and the authorized reserve. Tart cherry                 businesses subject to such actions in                 assessments, interest income, and funds
     shipments for the 2016–17 year are                      order that small businesses will not be               from the Board’s authorized reserve
     estimated at 314.7 million pounds,                      unduly or disproportionately burdened.                should provide sufficient funds to meet
     which should provide $2,360,250 in                      Marketing orders issued pursuant to the               this year’s anticipated expenses.
     assessment income. Income derived                       Act, and rules issued thereunder, are                    The major expenditures
     from handler assessments, interest                      unique in that they are brought about                 recommended by the Board for the
     income, and funds from the Board’s                      through group action of essentially                   2016–17 year include $2,045,550 for
     authorized reserve would be adequate to                 small entities acting on their own                    promotion, $255,000 for personnel, and
     cover budgeted expenses. Funds in the                   behalf.                                               $106,000 for office expenses. Budgeted
     reserve (approximately $894,000) would                     There are approximately 600                        expenses for these items in 2015–16
     be kept within the maximum permitted                    producers of tart cherries in the                     were $1,150,000, $236,000, and
     by the order of no more than                            regulated area and approximately 40                   $102,000, respectively.
     approximately one year’s operational                    handlers of tart cherries who are subject                This proposed rule would shift the
     expenses as stated in § 930.42.                         to regulation under the order. Small                  allocation of the assessment rate to
        The proposed assessment rate would                   agricultural producers are defined by                 increase the portion allocated for
     continue in effect indefinitely unless                  the Small Business Administration                     research and promotion, while
     modified, suspended, or terminated by                   (SBA) as those having annual receipts of              decreasing the portion allocated for
     USDA upon recommendation and                            less than $750,000, and small                         administrative costs. This adjustment
     information submitted by the Board or                   agricultural service firms have been                  would allow for expanded research and
     other available information.                            defined as those whose annual receipts                promotion activities to help market this
        Although this assessment rate would                  are less than $7,500,000 (13 CFR                      season’s above-average crop, while
     be in effect for an indefinite period, the              121.201).                                             helping to ensure that the funds held in
     Board would continue to meet prior to                      According to the National                          the Board’s authorized reserve are
     or during each fiscal period to                         Agricultural Statistics Service (NASS)                consistent with the order’s limits on the
     recommend a budget of expenses and                      and Board data, the average annual                    reserve.
     consider recommendations for                            grower price for tart cherries during the                Prior to arriving at this budget and
     modification of the assessment rate. The                2015–16 season was approximately                      assessment rate, the Board considered
     dates and times of Board meetings are                   $0.347 per pound. With total utilization              production history, crop estimates, its


VerDate Sep<11>2014   18:01 May 24, 2017   Jkt 241001   PO 00000   Frm 00002   Fmt 4702   Sfmt 4702   E:\FR\FM\25MYP1.SGM   25MYP1


     24082                   Federal Register / Vol. 82, No. 100 / Thursday, May 25, 2017 / Proposed Rules

     financial statements, and the need to                   duplication by industry and public                    DEPARTMENT OF AGRICULTURE
     both reduce financial reserves and                      sector agencies.
     increase its marketing efforts to increase                 AMS is committed to complying with                 Agricultural Marketing Service
     demand for tart cherries. The Board also                the E-Government Act, to promote the
     considered not taking this action, but                  use of the Internet and other                         7 CFR Part 996
     determined that 2016–17 expenditures                    information technologies to provide                   [Doc. No. AMS–SC–16–0102; SC16–996–3
     of $2,523,550 were appropriate, and the                 increased opportunities for citizen                   PR]
     recommended assessment rate and                         access to Government information and
     allocation, along with funds from                       services, and for other purposes.                     Minimum Quality and Handling
     interest income, block grants, and funds                                                                      Standards for Domestic and Imported
     from reserves, would be adequate to                        USDA has not identified any relevant
                                                             Federal rules that duplicate, overlap, or             Peanuts Marketed in the United States;
     cover budgeted expenses.                                                                                      Change to the Quality and Handling
        A review of historical information and               conflict with this action.
                                                                                                                   Requirements
     preliminary information pertaining to                      A small business guide on complying
     the upcoming crop year indicates that                   with fruit, vegetable, and specialty crop             AGENCY:  Agricultural Marketing Service,
     the average grower price for the 2016–                  marketing agreements and orders may                   USDA.
     17 season could be approximately                        be viewed at: http://www.ams.usda.gov/                ACTION: Proposed rule.
     $0.348 per pound of tart cherries.                      rules-regulations/moa/small-businesses.
     Therefore, the estimated assessment                     Any questions about the compliance                    SUMMARY:   This proposed rule would
     revenue for the 2016–17 crop year as a                  guide should be sent to Richard Lower                 implement a recommendation from the
     percentage of total grower revenue                      at the previously mentioned address in                Peanut Standards Board (Board) to
     would be approximately 2 percent.                       the FOR FURTHER INFORMATION CONTACT                   revise the minimum quality and
        This action would not increase the                   section.                                              handling standards for domestic and
     assessment obligation imposed on                                                                              imported peanuts marketed in the
                                                                A 30-day comment period is provided
     handlers. While assessments impose                                                                            United States (Standards). The Board
                                                             to allow interested persons to respond
     some additional costs on handlers, the                                                                        advises the Secretary of Agriculture
                                                             to this proposed rule.
     costs are minimal and uniform on all                                                                          regarding potential changes to the
     handlers. Some of the costs may be                      List of Subjects in 7 CFR Part 930                    Standards and is comprised of
     passed on to producers. However, these                                                                        producers and industry representatives.
                                                               Marketing agreements, Reporting and                 This action would relax the allowance
     costs would be offset by the benefits
                                                             recordkeeping requirements, tart                      for damaged kernels in farmers stock
     derived by the operation of the
                                                             cherries.                                             peanuts when determining segregation.
     marketing order.
        The Board’s meetings were widely                       For the reasons set forth in the                    This change would increase the
     publicized throughout the tart cherry                   preamble, 7 CFR part 930 is proposed to               allowance for damaged kernels under
     industry, and all interested persons                    be amended as follows:                                Segregation 1 from not more than 2.49
     were invited to attend the meetings and                                                                       percent to not more than 3.49 percent.
     participate in Board deliberations on all               PART 930—TART CHERRIES GROWN                          The requirements for Segregation 2
     issues. Like all Board meetings, the June               IN THE STATES OF MICHIGAN, NEW                        would also be adjusted to reflect this
     23, 2016, and September 8, 2016,                        YORK, PENNSYLVANIA, OREGON,                           change. The Board recommended this
     meetings were public meetings, and all                  UTAH, WASHINGTON, AND                                 change to align the incoming standards
     entities, both large and small, were able               WISCONSIN                                             with recent changes to the outgoing
     to express views on this issue. Finally,                                                                      quality standards and to help increase
     interested persons are invited to submit                ■ 1. The authority citation for 7 CFR                 returns to producers.
     comments on this proposed rule,                         part 930 continues to read as follows:                DATES: Comments must be received by
     including the regulatory and                                                                                  June 26, 2017.
                                                                 Authority: 7 U.S.C. 601–674.
     informational impacts of this action on                                                                       ADDRESSES: Interested persons are
     small businesses.                                       ■ 2. Section 930.200 is revised to read               invited to submit written comments
        In accordance with the Paperwork                     as follows:                                           concerning this proposal. Comments
     Reduction Act of 1995 (44 U.S.C.                                                                              must be sent to the Docket Clerk,
     Chapter 35), the order’s information                    § 930.200    Assessment rate.                         Marketing Order and Agreement
     collection requirements have been                         On and after October 1, 2016, the                   Division, Specialty Crops Program,
     previously approved by OMB and                          assessment rate imposed on handlers                   AMS, USDA, 1400 Independence
     assigned OMB No. 0581–0177, Tart                        shall be $0.0075 per pound of tart                    Avenue SW., STOP 0237, Washington,
     Cherries Grown in the States of                         cherries grown in the production area                 DC 20250–0237; Fax: (202) 720–8938; or
     Michigan, New York, Pennsylvania,                       and utilized in the production of tart                Internet: http://www.regulations.gov. All
     Oregon, Utah, Washington, and                           cherry products. Included in this rate is             comments should reference the
     Wisconsin. No changes in those                          $0.006 per pound of tart cherries to                  document number and the date and
     requirements are necessary as a result of               cover the cost of the research and                    page number of this issue of the Federal
     this proposed action. Should any                        promotion program and $0.0015 per                     Register and will be made available for
     changes become necessary, they would                    pound of tart cherries to cover                       public inspection in the Office of the
     be submitted to OMB for approval.                       administrative expenses.                              Docket Clerk during regular business
        This proposed rule would impose no                                                                         hours, or can be viewed at: http://
                                                               Dated: May 19, 2017.
     additional reporting or recordkeeping                                                                         www.regulations.gov. All comments
     requirements on either small or large                   Bruce Summers,                                        submitted in response to this proposal
     tart cherry handlers. As with all Federal               Acting Administrator, Agricultural Marketing          will be included in the record and will
     marketing order programs, reports and                   Service.                                              be made available to the public. Please
     forms are periodically reviewed to                      [FR Doc. 2017–10677 Filed 5–24–17; 8:45 am]           be advised that the identity of the
     reduce information requirements and                     BILLING CODE 3410–02–P                                individuals or entities submitting the


VerDate Sep<11>2014   18:01 May 24, 2017   Jkt 241001   PO 00000   Frm 00003   Fmt 4702   Sfmt 4702   E:\FR\FM\25MYP1.SGM   25MYP1



Document Created: 2018-11-08 08:52:43
Document Modified: 2018-11-08 08:52:43
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 June 26, 2017.
ContactJennie M. Varela, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation82 FR 24080 
CFR AssociatedMarketing Agreements; Reporting and Recordkeeping Requirements and Tart Cherries

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