82 FR 31244 - Sweet Onions Grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 128 (July 6, 2017)

The Department of Agriculture is adopting, as a final rule, without change, an interim rule that implemented a recommendation from the Walla Walla Sweet Onion Marketing Committee (Committee) to decrease the assessment rate established for the 2017 and subsequent fiscal periods from $0.22 to $0.10 per 50-pound bag or equivalent of sweet onions handled. The Committee locally administers the marketing order and is comprised of producers and handlers of sweet onions operating within the area of production along with one public member. The interim rule was necessary to allow the Committee to reduce its financial reserve while still providing adequate funding to meet program expenses.

[Federal Register Volume 82, Number 128 (Thursday, July 6, 2017)]
[Rules and Regulations]
[Pages 31244-31245]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14177]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[Doc. No. AMS-SC-16-0116; SC17-956-1 FIR]


Sweet Onions Grown in the Walla Walla Valley of Southeast 
Washington and Northeast Oregon; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture is adopting, as a final rule, 
without change, an interim rule that implemented a recommendation from 
the Walla Walla Sweet Onion Marketing Committee (Committee) to decrease 
the assessment rate established for the 2017 and subsequent fiscal 
periods from $0.22 to $0.10 per 50-pound bag or equivalent of sweet 
onions handled. The Committee locally administers the marketing order 
and is comprised of producers and handlers of sweet onions operating 
within the area of production along with one public member. The interim 
rule was necessary to allow the Committee to reduce its financial 
reserve while still providing adequate funding to meet program 
expenses.

DATES: Effective July 7, 2017.

FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary Olson, 
Northwest Marketing Field Office, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-
2724, Fax: (503) 326-7440, or Email: [email protected] or 
[email protected].
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/rules-regulations/moa/small-businesses; or 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 and Order No. 956, as amended (7 CFR part 956), regulating 
the handling of sweet onions grown in the Walla Walla Valley of 
southeast Washington and northeast 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 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' '' (February 2, 2017).
    Under the order, Walla Walla sweet onion handlers are subject to 
assessments. Funds to administer the order are derived from such 
assessments. Assessment rates issued under the order are intended to be 
applicable to all assessable Walla Walla sweet onions for the entire 
fiscal period and continue indefinitely until amended, suspended, or 
terminated. The Committee's fiscal period begins on January 1 and ends 
on December 31.
    In an interim rule published in the Federal Register on February 
27, 2017, and effective on February 28, 2017 (82 FR 11789), Sec.  
956.202 was amended by decreasing the assessment rate established for 
Walla Walla sweet onions for the 2017 and subsequent fiscal periods 
from $0.22 to $0.10 per 50-pound bag or equivalent. The decrease in the 
assessment rate allows the Committee to reduce its financial reserve 
while still providing adequate funding to meet program expenses.

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 9 handlers of Walla Walla sweet onions subject to 
regulation under the order and approximately 30 producers in the 
regulated production area. Small agricultural service firms are defined 
by the Small Business Administration as those having annual receipts of 
less than $7,500,000, and small agricultural producers are defined as 
those having annual receipts of less than $750,000 (13 CFR 121.201).
    During the 2016 marketing year, the Committee reported that 
approximately 304,500 50-pound bags or equivalents of Walla Walla sweet 
onions were shipped into the fresh market. Based on information 
reported by USDA's Market News Service, the average 2016 marketing year 
f.o.b. shipping point price for the Walla Walla sweet onions was $19.55 
per 50-pound equivalent. Multiplying the $19.55 average price by the 
shipment quantity of 304,500 50-pound equivalents yields an annual crop 
revenue estimate of $5,952,975. The average annual revenue for each of 
the 9 handlers is therefore calculated to be $661,442 ($5,952,975 
divided by 9), which is considerably less than the Small Business 
Administration threshold of $7,500,000. Consequently, all of the Walla 
Walla sweet onion handlers could be classified as small entities.
    In addition, based on information provided by the National 
Agricultural Statistics Service (NASS), the average producer price for 
Walla Walla sweet

[[Page 31245]]

onions for the 2011 through 2015 marketing years is $16.24 per 50-pound 
equivalent. NASS has not released data regarding the 2016 marketing 
year at this time. Multiplying the 2011-2015 marketing year average 
price of $16.24 by the estimated 2017 marketing year shipments of 
325,000 50-pound equivalents yields an annual crop revenue estimate of 
$5,278,000. The estimated average annual revenue for each of the 30 
producers is therefore calculated to be approximately $175,933 
($5,278,000 divided by 30), which is less than the Small Business 
Administration threshold of $750,000. In view of the foregoing, the 
majority of Walla Walla sweet onion producers, and all of the Walla 
Walla sweet onion handlers, may be classified as small entities.
    This rule continues in effect the action that decreased the 
assessment rate established for the Committee and collected from 
handlers for the 2017 and subsequent fiscal periods from $0.22 to $0.10 
per 50-pound bag or equivalent of Walla Walla sweet onions handled. The 
Committee also unanimously recommended 2017 expenditures of $93,250. 
The assessment rate of $0.10 is $0.12 lower than the previously 
established assessment rate. Applying the $0.10 per 50-pound bag or 
equivalent assessment rate to the Committee's 325,000 50-pound bag or 
equivalent crop estimate should provide $32,500 in assessment income. 
Thus, income derived from handler assessments, along with interest, 
other income, and funds from the Committee's authorized reserve, will 
be adequate to cover budgeted expenses. This action will allow the 
Committee to reduce its financial reserve while still providing 
adequate funding to meet program expenses.
    This rule continues in effect the action that decreased 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 reduces the burden 
on handlers and may reduce the burden on producers.
    In addition, the Committee's meeting was widely publicized 
throughout the Walla Walla sweet onion industry, and all interested 
persons were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the December 
6, 2016, meeting was a public meeting, and all entities, both large and 
small, were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the OMB and assigned OMB No. 0581-0178, 
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 action imposes no additional reporting or recordkeeping 
requirements on either small or large Walla Walla sweet onion 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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule.
    Comments on the interim rule were required to be received on or 
before April 28, 2017. One comment was received during the comment 
period from an individual who was outside of the regulated production 
area. The comment was generally opposed to all government regulation. 
In the comment, the commenter failed to specifically address any of the 
merits of the rule. Accordingly, no changes have been made to the rule, 
based on the comment received.
    Therefore, for reasons given in the interim rule, we are adopting 
the interim rule as a final rule, without change.
    To view the interim rule, go to: https://www.regulations.gov/document?D=AMS-SC-16-0116-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is 
hereby found that finalizing the interim rule, without change, as 
published in the Federal Register (82 FR 11789, February 27, 2017) will 
tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 956

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

PART 956--SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY IN SOUTHEAST 
WASHINGTON AND NORTHEAST OREGON

0
Accordingly, the interim rule amending 7 CFR part 956, which was 
published at 82 FR 11789 on February 27, 2017, is adopted as final 
without change.

    Dated: June 29, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-14177 Filed 7-5-17; 8:45 am]
BILLING CODE 3410-02-P