82_FR_28670 82 FR 28550 - Irish Potatoes Grown in Certain Designated Counties in Idaho, and Malheur County, Oregon; Decreased Assessment Rate

82 FR 28550 - Irish Potatoes Grown in Certain Designated Counties in Idaho, and Malheur County, Oregon; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 120 (June 23, 2017)

Page Range28550-28552
FR Document2017-13174

This rule implements a recommendation from the Idaho-Eastern Oregon Potato Committee (Committee) to decrease the assessment rate established for the 2017-2018 and subsequent fiscal periods from $0.0025 to $0.002 per hundredweight of potatoes handled. The Committee locally administers the marketing order which regulates the handling of potatoes grown in certain designated counties in Idaho, and Malheur County, Oregon. Assessments upon potato handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period begins August 1 and ends July 31. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 82 Issue 120 (Friday, June 23, 2017)
[Federal Register Volume 82, Number 120 (Friday, June 23, 2017)]
[Rules and Regulations]
[Pages 28550-28552]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-13174]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 945

[Doc. No. AMS-SC-16-0111; SC17-945-1 FR]


Irish Potatoes Grown in Certain Designated Counties in Idaho, and 
Malheur County, Oregon; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule implements a recommendation from the Idaho-Eastern 
Oregon Potato Committee (Committee) to decrease the assessment rate 
established for the 2017-2018 and subsequent fiscal periods from 
$0.0025 to $0.002 per hundredweight of potatoes handled. The Committee 
locally administers the marketing order which regulates the handling of 
potatoes grown in certain designated counties in Idaho, and Malheur 
County, Oregon. Assessments upon potato handlers are used by the 
Committee to fund reasonable and necessary expenses of the program. The 
fiscal period begins August 1 and ends July 31. The assessment rate 
will remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective August 1, 2017.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing 
Specialist, or Gary D. Olson, Regional Director, Northwest Marketing 
Field Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting 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 
Agreement No. 98 and Order No. 945, both as amended (7 CFR part 945), 
regulating the handling of Irish potatoes grown in certain designated 
counties in Idaho, and Malheur County, Oregon, 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 final rule in 
conformance with Executive Orders 12866, 13771, 13563, and 13175.
    This action falls within a category of regulatory actions that the 
Office of Management and Budget (OMB) exempted from Executive Order 
12866 review. 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).
    This final rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the marketing order now in effect, Idaho-
Eastern Oregon potato handlers are subject to assessments. Funds to 
administer the order are derived from such assessments. It is intended 
that the assessment rate as established herein will be applicable to 
all assessable potatoes beginning August 1, 2017, 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 decreases the assessment rate established for the 
Committee for the 2017-2018 and subsequent fiscal periods from $0.0025 
to $0.002 per hundredweight of potatoes handled.
    The Idaho-Eastern Oregon potato marketing order provides authority 
for the Committee, with the approval of USDA, to formulate an annual 
budget of expenses and collect assessments from handlers to cover the 
expenses of administering the program. The members of the Committee are

[[Page 28551]]

producers and handlers of Idaho-Eastern Oregon potatoes. They are 
familiar with the Committee's needs and with the costs for goods and 
services in their local area and are thus in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    For the 2014-2015 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate of $0.0025 per 
hundredweight of potatoes 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 November 9, 2016, to consider the Committee's 
projected 2017-2018 financial requirements, the size of the Committee's 
operating reserve, and the order's continuing assessment rate. The 
Committee unanimously recommended an assessment rate of $0.002 per 
hundredweight of potatoes for the 2017-2018 fiscal period. The 
assessment rate of $0.002 is $0.0005 lower than the rate currently in 
effect. The assessment rate decrease is necessary to reduce the funds 
held in reserve to less than approximately one fiscal period's budgeted 
expenses, the maximum level allowed by the order.
    The Committee adopted a budget of $119,075 for the 2016-2017 fiscal 
period. It expects to recommend a similar level of budgeted 
expenditures for the 2017-2018 fiscal period at its next scheduled 
meeting in June 2017. The Committee expects its budget for major 
expenditures for the 2017-2018 fiscal period to be close to the 
budgeted amounts for the 2016-2017 fiscal period. These expenditures 
include $68,638 for administrative expenses, $35,437 for travel/office 
expenses, and $15,000 for marketing order contingency.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Idaho-Eastern 
Oregon potatoes. Potato shipments for 2017-2018 are estimated at 32 
million hundredweight which should provide $64,000 in assessment income 
at the proposed assessment rate. Income derived from handler 
assessments, along with other income, interest earned, and funds from 
the Committee's authorized reserve, will be adequate to cover budgeted 
expenses. Funds in the reserve (projected to be $158,275 on July 31, 
2017) are expected to be reduced to comply with the maximum permitted 
by the order of approximately one fiscal period's expenses.
    The assessment rate will continue in effect indefinitely unless 
modified, suspended, or terminated by USDA upon recommendation and 
information submitted by the Committee or other available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal 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. 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 2017-2018 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 approximately 450 producers of potatoes in the production 
area and approximately 32 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration (13 CFR 121.201) as those having annual 
receipts less than $750,000, and small agricultural service firms are 
defined as those whose annual receipts are less than $7,500,000.
    During the 2015-2016 fiscal period, the most recent full year of 
statistics available, 33,606,000 hundredweight of Idaho-Eastern Oregon 
potatoes were inspected under the order and sold into the fresh market. 
Based on information provided by the National Agricultural Statistics 
Service, the average producer price for the 2015 Idaho potato crop (the 
most recent full marketing year recorded) was $7.00 per hundredweight. 
Multiplying $7.00 by the shipment quantity of 33,606,000 hundredweight 
yields an annual crop revenue estimate of $235,242,000. The average 
annual fresh potato revenue for each of the 450 producers is therefore 
calculated to be $522,760 ($235,242,000 divided by 450), which is less 
than the Small Business Administration threshold of $750,000. 
Consequently, on average, a majority of the Idaho-Eastern Oregon potato 
producers may be classified as small entities.
    In addition, based on information reported by USDA's Market News 
Service, the average free-on-board (f.o.b.) shipping point price for 
the 2015 Idaho potato crop was $7.47 per hundredweight. Multiplying 
$7.47 by the shipment quantity of 33,606,000 hundredweight yields an 
annual crop revenue estimate of $251,036,820. The average annual fresh 
potato revenue for each of the 32 handlers is therefore calculated to 
be $7,844,900 ($251,036,820 divided by 32), which is slightly more than 
the Small Business Administration threshold of $7,500,000. Given the 
likelihood that there may be several large handlers, some of the Idaho-
Eastern Oregon potato handlers may be classified as small entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2017-2018 and subsequent 
fiscal periods from $0.0025 to $0.002 per hundredweight of potatoes 
handled. The Committee unanimously recommended an assessment rate of 
$0.002 per hundredweight of potatoes for the 2017-2018 fiscal period. 
The assessment rate of $0.002 per hundredweight is $0.0005 lower than 
the rate for the 2016-2017 fiscal period. The quantity of assessable 
potatoes for the 2017-2018 fiscal period is estimated at 32 million 
hundredweight. Thus, the $0.002 rate should provide $64,000 in 
assessment income. Income derived from handler assessments, along with 
other income, interest earned, and funds from the Committee's 
authorized reserve, will be adequate to cover budgeted expenses.
    The Committee adopted a budget of $119,075 for the 2016-2017 fiscal 
period and expects to recommend a similar amount in budgeted 
expenditures for the 2017-2018 fiscal period at its next scheduled 
meeting in June 2017. The major budgeted expenditures for the 2016-2017 
year

[[Page 28552]]

include $68,638 for administrative expenses, $35,437 for travel/office 
expenses, and $15,000 for marketing order contingency. Budgeted 
expenses for these items in 2015-2016 were $64,901, $37,340, and 
$15,000, respectively.
    The lower assessment rate is necessary to reduce the reserve 
balance to less than approximately one fiscal period's budgeted 
expenses. The reserve balance on July 31, 2017, is projected to be 
$158,275. Assessment income for the 2017-2018 fiscal period is 
estimated at $64,000, while expenses are estimated to be $119,075. The 
Committee anticipates compensating for the reduced assessment revenue 
with $5,100 from miscellaneous income, $100 from interest income, and 
$49,875 from its reserve fund. The reserve fund is projected to be 
under the maximum authorized level at the end of the 2017-2018 fiscal 
period.
    The Committee discussed alternatives to this change, including 
suspending assessments for one year, recommending other assessment rate 
levels, and leaving the current rate in place. Prior to arriving at 
this assessment rate recommendation, the Committee considered 
information from the Board's Executive Committee on the cost savings 
resulting from recent administrative changes in the Committee office 
and the level of anticipated Committee expenses moving forward. The 
Committee debated between suspending assessments for one year and 
recommending the assessment rate be lowered to $0.002 per hundredweight 
of potatoes. Based on the market and shipping quantities, the Committee 
recommended the rate of $0.002 per hundredweight. The Committee 
believes this assessment rate, in combination with other income, 
interest earned, and funds utilized from the Committee's financial 
reserve, will provide sufficient funds to meet its expenses.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the producer 
price for the 2017 crop could range between $6.00 and $9.00 per 
hundredweight of potatoes. Therefore, the estimated assessment revenue 
for the 2017-2018 fiscal period as a percentage of total producer 
revenue could range between 0.022 and 0.033 percent.
    This action decreases the assessment obligation imposed on 
handlers. Assessments are applied uniformly on all handlers, and some 
of the costs may be passed on to producers. However, decreasing the 
assessment rate will reduce the burden on handlers, and may reduce the 
burden on producers. In addition, the Committee's meeting was widely 
publicized throughout the Idaho-Eastern Oregon potato industry and all 
interested persons were invited to attend the meeting and participate 
in Committee deliberations on all issues. Like all Committee meetings, 
the November 9, 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 OMB and assigned OMB No. 0581-0178 (Generic 
Vegetable and Specialty Crops). No changes in those requirements as a 
result of this action are necessary. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large Idaho-Eastern Oregon potato 
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 March 21, 2017 (82 FR 14485). Copies of the proposed rule 
were also mailed or sent via facsimile to all Idaho-E. Oregon potato 
handlers. Finally, the proposal was made available through the internet 
by USDA and the Office of the Federal Register. A 30-day comment period 
ending April 20, 2017, was provided for interested persons to respond 
to the proposal.
    Two comments were received during the comment period in response to 
the proposal. Both comments were received from outside of the regulated 
production area. One comment supported the proposed assessment 
decrease. The other comment did not support the proposal, however, it 
did not address the merits of the proposed rule. Accordingly, no 
changes have been made to the rule as proposed, based on the comments 
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.

List of Subjects in 7 CFR Part 945

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 945 is 
amended as follows:

PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN 
IDAHO, AND MALHEUR COUNTY, OREGON

0
1. The authority citation for 7 CFR part 945 continues to read as 
follows:

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


0
2. Section 945.249 is revised to read as follows:


Sec.  945.249  Assessment rate.

    On and after August 1, 2017, an assessment rate of $0.002 per 
hundredweight is established for Idaho-Eastern Oregon potatoes.

    Dated: June 20, 2017.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2017-13174 Filed 6-22-17; 8:45 am]
 BILLING CODE 3410-02-P



                                             28550                Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Rules and Regulations

                                                (3) Dispute Resolution. A response to                DEPARTMENT OF AGRICULTURE                              of 1937, as amended (7 U.S.C. 601–674),
                                             an appeal will advise the requester that                                                                       hereinafter referred to as the ‘‘Act.’’
                                             the 2007 FOIA amendments created the                    Agricultural Marketing Service                            The Department of Agriculture
                                             Office of Government Information                                                                               (USDA) is issuing this final rule in
                                             Services (OGIS) to offer dispute                        7 CFR Part 945                                         conformance with Executive Orders
                                             resolution services to resolve disputes                                                                        12866, 13771, 13563, and 13175.
                                                                                                     [Doc. No. AMS–SC–16–0111; SC17–945–1
                                             between FOIA requesters and Federal                                                                               This action falls within a category of
                                                                                                     FR]
                                                                                                                                                            regulatory actions that the Office of
                                             agencies as a nonexclusive alternative to
                                                                                                     Irish Potatoes Grown in Certain                        Management and Budget (OMB)
                                             litigation. Dispute resolution is a                                                                            exempted from Executive Order 12866
                                             voluntary process. A requester may                      Designated Counties in Idaho, and
                                                                                                     Malheur County, Oregon; Decreased                      review. Additionally, because this rule
                                             contact OGIS in any of the following                                                                           does not meet the definition of a
                                             ways: Office of Government Information                  Assessment Rate
                                                                                                                                                            significant regulatory action it does not
                                             Services, National Archives and Records                 AGENCY:  Agricultural Marketing Service,               trigger the requirements contained in
                                             Administration, 8601 Adelphi Road,                      USDA.                                                  Executive Order 13771. See OMB’s
                                             College Park, MD 20740; Email: ogis@                    ACTION: Final rule.                                    Memorandum titled ‘‘Interim Guidance
                                             nara.gov; Telephone: 202–741–5770;                                                                             Implementing Section 2 of the Executive
                                             Facsimile: 202–741–5769; Toll-free: 1–                  SUMMARY:   This rule implements a                      Order of January 30, 2017 titled
                                             877–684–6448.                                           recommendation from the Idaho-Eastern                  ‘Reducing Regulation and Controlling
                                                                                                     Oregon Potato Committee (Committee)                    Regulatory Costs’ ’’ (February 2, 2017).
                                             ■ 3. In § 9301.8, paragraph (f)(3) is                   to decrease the assessment rate                           This final rule has been reviewed
                                             revised to read as follows:                             established for the 2017–2018 and                      under Executive Order 12988, Civil
                                                                                                     subsequent fiscal periods from $0.0025                 Justice Reform. Under the marketing
                                             § 9301.8   Fees in general.
                                                                                                     to $0.002 per hundredweight of potatoes                order now in effect, Idaho-Eastern
                                             *      *     *    *     *                               handled. The Committee locally                         Oregon potato handlers are subject to
                                                (f) * * *                                            administers the marketing order which                  assessments. Funds to administer the
                                                                                                     regulates the handling of potatoes grown               order are derived from such
                                                (3) SIGAR determines that unusual
                                                                                                     in certain designated counties in Idaho,               assessments. It is intended that the
                                             circumstances apply to the processing of                                                                       assessment rate as established herein
                                                                                                     and Malheur County, Oregon.
                                             a request, provides timely notice to the                                                                       will be applicable to all assessable
                                                                                                     Assessments upon potato handlers are
                                             requester, and delay is excused for an                  used by the Committee to fund                          potatoes beginning August 1, 2017, and
                                             additional ten days, but SIGAR still fails              reasonable and necessary expenses of                   continue until amended, suspended, or
                                             to respond within the timeframe                         the program. The fiscal period begins                  terminated.
                                             established by the additional delay. This               August 1 and ends July 31. The                            The Act provides that administrative
                                             provision applies only to search fees or                assessment rate will remain in effect                  proceedings must be exhausted before
                                             duplication fees for educational                        indefinitely unless modified,                          parties may file suit in court. Under
                                             institution, non-commercial scientific                  suspended, or terminated.                              section 608c(15)(A) of the Act, any
                                             institution, or representative of the news              DATES: Effective August 1, 2017.
                                                                                                                                                            handler subject to an order may file
                                             media requesters. However, the                                                                                 with USDA a petition stating that the
                                                                                                     FOR FURTHER INFORMATION CONTACT:                       order, any provision of the order, or any
                                             following exceptions shall apply:
                                                                                                     Barry Broadbent, Senior Marketing                      obligation imposed in connection with
                                                (i) Notwithstanding § 9301.8(f)(3), if               Specialist, or Gary D. Olson, Regional                 the order is not in accordance with law
                                             SIGAR determines that unusual                           Director, Northwest Marketing Field                    and request a modification of the order
                                             circumstances apply and that more than                  Office, Marketing Order and Agreement                  or to be exempted therefrom. Such
                                             5000 pages are necessary to respond to                  Division, Specialty Crops Program,                     handler is afforded the opportunity for
                                             the request, SIGAR may continue to                      AMS, USDA; Telephone: (503) 326–                       a hearing on the petition. After the
                                             charge search fees, or duplication fees                 2724, Fax: (503) 326–7440, or Email:                   hearing, USDA would rule on the
                                             for requesters in preferred status, for as              Barry.Broadbent@ams.usda.gov or                        petition. The Act provides that the
                                             long as necessary, after timely written                 GaryD.Olson@ams.usda.gov.                              district court of the United States in any
                                             notice has been made to the requester                      Small businesses may request                        district in which the handler is an
                                             and SIGAR has discussed with the                        information on complying with this                     inhabitant, or has his or her principal
                                             requester how the requester could                       regulation by contacting Richard Lower,                place of business, has jurisdiction to
                                             effectively limit the scope of the request              Marketing Order and Agreement                          review USDA’s ruling on the petition,
                                             via written mail, electronic mail, or                   Division, Specialty Crops Program,                     provided an action is filed not later than
                                             telephone, or made three good-faith                     AMS, USDA, 1400 Independence                           20 days after the date of the entry of the
                                             attempts to do so.                                      Avenue SW., STOP 0237, Washington,                     ruling.
                                                                                                     DC 20250–0237; Telephone: (202) 720–                      This rule decreases the assessment
                                             [FR Doc. 2017–13056 Filed 6–22–17; 8:45 am]
                                                                                                     2491, Fax: (202) 720–8938, or Email:                   rate established for the Committee for
                                             BILLING CODE 3710–L9–P                                  Richard.Lower@ams.usda.gov.                            the 2017–2018 and subsequent fiscal
                                                                                                     SUPPLEMENTARY INFORMATION: This rule                   periods from $0.0025 to $0.002 per
                                                                                                     is issued under Marketing Agreement                    hundredweight of potatoes handled.
                                                                                                     No. 98 and Order No. 945, both as                         The Idaho-Eastern Oregon potato
Pmangrum on DSK7TPTVN1PROD with RULES




                                                                                                     amended (7 CFR part 945), regulating                   marketing order provides authority for
                                                                                                     the handling of Irish potatoes grown in                the Committee, with the approval of
                                                                                                     certain designated counties in Idaho,                  USDA, to formulate an annual budget of
                                                                                                     and Malheur County, Oregon,                            expenses and collect assessments from
                                                                                                     hereinafter referred to as the ‘‘order.’’              handlers to cover the expenses of
                                                                                                     The order is effective under the                       administering the program. The
                                                                                                     Agricultural Marketing Agreement Act                   members of the Committee are


                                        VerDate Sep<11>2014   15:26 Jun 22, 2017   Jkt 241001   PO 00000   Frm 00002   Fmt 4700   Sfmt 4700   E:\FR\FM\23JNR1.SGM   23JNR1


                                                                  Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Rules and Regulations                                         28551

                                             producers and handlers of Idaho-Eastern                 2017) are expected to be reduced to                    inspected under the order and sold into
                                             Oregon potatoes. They are familiar with                 comply with the maximum permitted by                   the fresh market. Based on information
                                             the Committee’s needs and with the                      the order of approximately one fiscal                  provided by the National Agricultural
                                             costs for goods and services in their                   period’s expenses.                                     Statistics Service, the average producer
                                             local area and are thus in a position to                   The assessment rate will continue in                price for the 2015 Idaho potato crop (the
                                             formulate an appropriate budget and                     effect indefinitely unless modified,                   most recent full marketing year
                                             assessment rate. The assessment rate is                 suspended, or terminated by USDA                       recorded) was $7.00 per hundredweight.
                                             formulated and discussed in a public                    upon recommendation and information                    Multiplying $7.00 by the shipment
                                             meeting. Thus, all directly affected                    submitted by the Committee or other                    quantity of 33,606,000 hundredweight
                                             persons have an opportunity to                          available information.                                 yields an annual crop revenue estimate
                                             participate and provide input.                             Although this assessment rate will be               of $235,242,000. The average annual
                                                For the 2014–2015 and subsequent                     in effect for an indefinite period, the                fresh potato revenue for each of the 450
                                             fiscal periods, the Committee                           Committee will continue to meet prior                  producers is therefore calculated to be
                                             recommended, and USDA approved, an                      to or during each fiscal period to                     $522,760 ($235,242,000 divided by 450),
                                             assessment rate of $0.0025 per                          recommend a budget of expenses and                     which is less than the Small Business
                                             hundredweight of potatoes that would                    consider recommendations for                           Administration threshold of $750,000.
                                             continue in effect from fiscal period to                modification of the assessment rate. The               Consequently, on average, a majority of
                                             fiscal period unless modified,                          dates and times of Committee meetings                  the Idaho-Eastern Oregon potato
                                             suspended, or terminated by USDA                        are available from the Committee or                    producers may be classified as small
                                             upon recommendation and information                     USDA. Committee meetings are open to                   entities.
                                             submitted by the Committee or other                     the public and interested persons may                     In addition, based on information
                                             information available to USDA.                          express their views at these meetings.                 reported by USDA’s Market News
                                                The Committee met on November 9,                     USDA will evaluate Committee                           Service, the average free-on-board
                                             2016, to consider the Committee’s                       recommendations and other available                    (f.o.b.) shipping point price for the 2015
                                             projected 2017–2018 financial                           information to determine whether                       Idaho potato crop was $7.47 per
                                             requirements, the size of the                           modification of the assessment rate is                 hundredweight. Multiplying $7.47 by
                                             Committee’s operating reserve, and the                  needed. Further rulemaking will be                     the shipment quantity of 33,606,000
                                             order’s continuing assessment rate. The                 undertaken as necessary. The                           hundredweight yields an annual crop
                                             Committee unanimously recommended                       Committee’s 2017–2018 budget, and                      revenue estimate of $251,036,820. The
                                             an assessment rate of $0.002 per                        those for subsequent fiscal periods, will              average annual fresh potato revenue for
                                             hundredweight of potatoes for the 2017–                 be reviewed and, as appropriate,                       each of the 32 handlers is therefore
                                             2018 fiscal period. The assessment rate                 approved by USDA.                                      calculated to be $7,844,900
                                             of $0.002 is $0.0005 lower than the rate                                                                       ($251,036,820 divided by 32), which is
                                             currently in effect. The assessment rate                Final Regulatory Flexibility Analysis
                                                                                                                                                            slightly more than the Small Business
                                             decrease is necessary to reduce the                        Pursuant to requirements set forth in               Administration threshold of $7,500,000.
                                             funds held in reserve to less than                      the Regulatory Flexibility Act (RFA) (5                Given the likelihood that there may be
                                             approximately one fiscal period’s                       U.S.C. 601–612), the Agricultural                      several large handlers, some of the
                                             budgeted expenses, the maximum level                    Marketing Service (AMS) has                            Idaho-Eastern Oregon potato handlers
                                             allowed by the order.                                   considered the economic impact of this                 may be classified as small entities.
                                                The Committee adopted a budget of                    rule on small entities. Accordingly,                      This rule decreases the assessment
                                             $119,075 for the 2016–2017 fiscal                       AMS has prepared this final regulatory                 rate established for the Committee and
                                             period. It expects to recommend a                       flexibility analysis.                                  collected from handlers for the 2017–
                                             similar level of budgeted expenditures                     The purpose of the RFA is to fit                    2018 and subsequent fiscal periods from
                                             for the 2017–2018 fiscal period at its                  regulatory actions to the scale of                     $0.0025 to $0.002 per hundredweight of
                                             next scheduled meeting in June 2017.                    businesses subject to such actions in                  potatoes handled. The Committee
                                             The Committee expects its budget for                    order that small businesses will not be                unanimously recommended an
                                             major expenditures for the 2017–2018                    unduly or disproportionately burdened.                 assessment rate of $0.002 per
                                             fiscal period to be close to the budgeted               Marketing orders issued pursuant to the                hundredweight of potatoes for the 2017–
                                             amounts for the 2016–2017 fiscal                        Act, and the rules issued thereunder, are              2018 fiscal period. The assessment rate
                                             period. These expenditures include                      unique in that they are brought about                  of $0.002 per hundredweight is $0.0005
                                             $68,638 for administrative expenses,                    through group action of essentially                    lower than the rate for the 2016–2017
                                             $35,437 for travel/office expenses, and                 small entities acting on their own                     fiscal period. The quantity of assessable
                                             $15,000 for marketing order                             behalf.                                                potatoes for the 2017–2018 fiscal period
                                             contingency.                                               There are approximately 450                         is estimated at 32 million
                                                The assessment rate recommended by                   producers of potatoes in the production                hundredweight. Thus, the $0.002 rate
                                             the Committee was derived by dividing                   area and approximately 32 handlers                     should provide $64,000 in assessment
                                             anticipated expenses by expected                        subject to regulation under the                        income. Income derived from handler
                                             shipments of Idaho-Eastern Oregon                       marketing order. Small agricultural                    assessments, along with other income,
                                             potatoes. Potato shipments for 2017–                    producers are defined by the Small                     interest earned, and funds from the
                                             2018 are estimated at 32 million                        Business Administration (13 CFR                        Committee’s authorized reserve, will be
                                             hundredweight which should provide                      121.201) as those having annual receipts               adequate to cover budgeted expenses.
                                             $64,000 in assessment income at the                     less than $750,000, and small                             The Committee adopted a budget of
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                                             proposed assessment rate. Income                        agricultural service firms are defined as              $119,075 for the 2016–2017 fiscal
                                             derived from handler assessments, along                 those whose annual receipts are less                   period and expects to recommend a
                                             with other income, interest earned, and                 than $7,500,000.                                       similar amount in budgeted
                                             funds from the Committee’s authorized                      During the 2015–2016 fiscal period,                 expenditures for the 2017–2018 fiscal
                                             reserve, will be adequate to cover                      the most recent full year of statistics                period at its next scheduled meeting in
                                             budgeted expenses. Funds in the reserve                 available, 33,606,000 hundredweight of                 June 2017. The major budgeted
                                             (projected to be $158,275 on July 31,                   Idaho-Eastern Oregon potatoes were                     expenditures for the 2016–2017 year


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                                             28552                Federal Register / Vol. 82, No. 120 / Friday, June 23, 2017 / Rules and Regulations

                                             include $68,638 for administrative                      reduce the burden on producers. In                        A small business guide on complying
                                             expenses, $35,437 for travel/office                     addition, the Committee’s meeting was                  with fruit, vegetable, and specialty crop
                                             expenses, and $15,000 for marketing                     widely publicized throughout the Idaho-                marketing agreements and orders may
                                             order contingency. Budgeted expenses                    Eastern Oregon potato industry and all                 be viewed at: http://www.ams.usda.gov/
                                             for these items in 2015–2016 were                       interested persons were invited to                     rules-regulations/moa/small-businesses.
                                             $64,901, $37,340, and $15,000,                          attend the meeting and participate in                  Any questions about the compliance
                                             respectively.                                           Committee deliberations on all issues.                 guide should be sent to Richard Lower
                                                The lower assessment rate is                         Like all Committee meetings, the                       at the previously mentioned address in
                                             necessary to reduce the reserve balance                 November 9, 2016, meeting was a public                 the FOR FURTHER INFORMATION CONTACT
                                             to less than approximately one fiscal                   meeting and all entities, both large and               section.
                                             period’s budgeted expenses. The reserve                 small, were able to express views on                      After consideration of all relevant
                                             balance on July 31, 2017, is projected to               this issue.                                            material presented, including the
                                             be $158,275. Assessment income for the                     In accordance with the Paperwork                    information and recommendation
                                             2017–2018 fiscal period is estimated at                 Reduction Act of 1995, (44 U.S.C.                      submitted by the Committee and other
                                             $64,000, while expenses are estimated                   Chapter 35), the order’s information                   available information, it is hereby found
                                             to be $119,075. The Committee                           collection requirements have been                      that this rule, as hereinafter set forth,
                                             anticipates compensating for the                        previously approved by OMB and                         will tend to effectuate the declared
                                             reduced assessment revenue with                         assigned OMB No. 0581–0178 (Generic                    policy of the Act.
                                             $5,100 from miscellaneous income,                       Vegetable and Specialty Crops). No
                                             $100 from interest income, and $49,875                                                                         List of Subjects in 7 CFR Part 945
                                                                                                     changes in those requirements as a
                                             from its reserve fund. The reserve fund                 result of this action are necessary.                     Marketing agreements, Potatoes,
                                             is projected to be under the maximum                    Should any changes become necessary,                   Reporting and recordkeeping
                                             authorized level at the end of the 2017–                they would be submitted to OMB for                     requirements.
                                             2018 fiscal period.                                     approval.                                                For the reasons set forth in the
                                                The Committee discussed alternatives                                                                        preamble, 7 CFR part 945 is amended as
                                                                                                        This rule imposes no additional
                                             to this change, including suspending                                                                           follows:
                                                                                                     reporting or recordkeeping requirements
                                             assessments for one year,
                                                                                                     on either small or large Idaho-Eastern
                                             recommending other assessment rate                                                                             PART 945—IRISH POTATOES GROWN
                                                                                                     Oregon potato handlers. As with all
                                             levels, and leaving the current rate in                                                                        IN CERTAIN DESIGNATED COUNTIES
                                                                                                     Federal marketing order programs,
                                             place. Prior to arriving at this                                                                               IN IDAHO, AND MALHEUR COUNTY,
                                                                                                     reports and forms are periodically
                                             assessment rate recommendation, the                                                                            OREGON
                                                                                                     reviewed to reduce information
                                             Committee considered information from
                                                                                                     requirements and duplication by
                                             the Board’s Executive Committee on the                                                                         ■ 1. The authority citation for 7 CFR
                                                                                                     industry and public sector agencies. As
                                             cost savings resulting from recent                                                                             part 945 continues to read as follows:
                                             administrative changes in the                           noted in the initial regulatory flexibility
                                                                                                     analysis, USDA has not identified any                      Authority: 7 U.S.C. 601–674.
                                             Committee office and the level of
                                             anticipated Committee expenses moving                   relevant Federal rules that duplicate,                 ■ 2. Section 945.249 is revised to read
                                             forward. The Committee debated                          overlap, or conflict with this final rule.             as follows:
                                             between suspending assessments for                         AMS is committed to complying with
                                                                                                     the E-Government Act, to promote the                   § 945.249    Assessment rate.
                                             one year and recommending the
                                             assessment rate be lowered to $0.002                    use of the internet and other                            On and after August 1, 2017, an
                                             per hundredweight of potatoes. Based                    information technologies to provide                    assessment rate of $0.002 per
                                             on the market and shipping quantities,                  increased opportunities for citizen                    hundredweight is established for Idaho-
                                             the Committee recommended the rate of                   access to Government information and                   Eastern Oregon potatoes.
                                             $0.002 per hundredweight. The                           services, and for other purposes.                        Dated: June 20, 2017.
                                             Committee believes this assessment rate,                   A proposed rule concerning this                     Erin Morris,
                                             in combination with other income,                       action was published in the Federal                    Associate Administrator, Agricultural
                                             interest earned, and funds utilized from                Register on March 21, 2017 (82 FR                      Marketing Service.
                                             the Committee’s financial reserve, will                 14485). Copies of the proposed rule                    [FR Doc. 2017–13174 Filed 6–22–17; 8:45 am]
                                             provide sufficient funds to meet its                    were also mailed or sent via facsimile to
                                                                                                                                                            BILLING CODE 3410–02–P
                                             expenses.                                               all Idaho-E. Oregon potato handlers.
                                                A review of historical information and               Finally, the proposal was made
                                             preliminary information pertaining to                   available through the internet by USDA
                                                                                                     and the Office of the Federal Register. A              DEPARTMENT OF HOMELAND
                                             the upcoming fiscal period indicates                                                                           SECURITY
                                             that the producer price for the 2017 crop               30-day comment period ending April
                                             could range between $6.00 and $9.00                     20, 2017, was provided for interested                  Coast Guard
                                             per hundredweight of potatoes.                          persons to respond to the proposal.
                                             Therefore, the estimated assessment                        Two comments were received during                   33 CFR Part 117
                                             revenue for the 2017–2018 fiscal period                 the comment period in response to the
                                             as a percentage of total producer                       proposal. Both comments were received                  [Docket No. USCG–2017–0517]
                                             revenue could range between 0.022 and                   from outside of the regulated production
                                                                                                     area. One comment supported the                        Drawbridge Operation Regulation;
                                             0.033 percent.
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                                                This action decreases the assessment                 proposed assessment decrease. The                      Thames River, New London, CT
                                             obligation imposed on handlers.                         other comment did not support the                      AGENCY: Coast Guard, DHS.
                                             Assessments are applied uniformly on                    proposal, however, it did not address                  ACTION:Notice of deviation from
                                             all handlers, and some of the costs may                 the merits of the proposed rule.                       drawbridge regulation.
                                             be passed on to producers. However,                     Accordingly, no changes have been
                                             decreasing the assessment rate will                     made to the rule as proposed, based on                 SUMMARY: The Coast Guard has issued a
                                             reduce the burden on handlers, and may                  the comments received.                                 temporary deviation from the operating


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Document Created: 2017-06-23 03:37:13
Document Modified: 2017-06-23 03:37:13
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 August 1, 2017.
ContactBarry Broadbent, Senior Marketing Specialist, or Gary D. Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or Email: [email protected] or [email protected]
FR Citation82 FR 28550 
CFR AssociatedMarketing Agreements; Potatoes and Reporting and Recordkeeping Requirements

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