82_FR_41997 82 FR 41827 - Tart Cherries Grown in the States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington and Wisconsin; Modification of Allocation of Assessments

82 FR 41827 - 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 170 (September 5, 2017)

Page Range41827-41829
FR Document2017-18756

This rule implements 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 $0.0065 per pound of tart cherries and decrease the portion allocated to administrative expenses from $0.0025 to $0.001 per pound of tart cherries handled under the marketing order (order). This rule also corrects the allocation numbers from $0.006 per pound for research and promotion activities and $0.0015 per pound for administrative expenses as stated in the proposed rule based on a comment received. The overall assessment rate remains 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 will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 82 Issue 170 (Tuesday, September 5, 2017)
[Federal Register Volume 82, Number 170 (Tuesday, September 5, 2017)]
[Rules and Regulations]
[Pages 41827-41829]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-18756]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 930

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


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: Final rule.

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

SUMMARY: This rule implements 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 $0.0065 per pound of tart cherries and decrease the portion 
allocated to administrative expenses from $0.0025 to $0.001 per pound 
of tart cherries handled under the marketing order (order). This rule 
also corrects the allocation numbers from $0.006 per pound for research 
and promotion activities and $0.0015 per pound for administrative 
expenses as stated in the proposed rule based on a comment received. 
The overall assessment rate remains 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 will remain in effect indefinitely 
unless modified, suspended, or terminated.

DATES: Effective September 6, 2017.

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 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 final rule in 
conformance with Executive Orders 13563 and 13175. 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).
    This 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 issued herein will 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 rule increases the portion of the assessment rate allocated to 
research and promotion activities from $0.005 to $0.0065 per pound of 
tart cherries handled and decreases the portion allocated to 
administrative expenses from $0.0025 to $0.001 per pound of tart 
cherries handled under the order. This rule also corrects the 
allocation numbers from $0.006 per pound for research and promotion 
activities and $0.0015 per pound for administrative expenses as stated 
in the proposed rule based on a comment received. The overall 
assessment rate for the 2016-17 and subsequent fiscal periods remains 
unchanged at $0.0075 per pound of tart cherries.
    The tart cherry marketing order provides authority for the Tart 
Cherry Industry Administrative Board (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 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 action. However, this rule increases the portion of 
the assessment rate allocated to research and promotion activities from 
$0.005 to

[[Page 41828]]

$0.0065 per pound of tart cherries handled and decreases the portion 
allocated to administrative expenses from $0.0025 to $0.001 per pound 
of tart cherries handled under the order. This shift in allocation will 
allow for expanded research and promotion activities to help market 
this season's above-average crop, while helping to ensure that 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 
fiscal 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 should be 
adequate to cover budgeted expenses. Funds in the reserve 
(approximately $894,000) will 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(a).
    The assessment rate will 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 will be in effect for an indefinite 
period, the Board 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 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 will 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 budget for future 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 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 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 rule increases the portion of the assessment rate allocated to 
research and promotion activities from $0.005 to $0.0065 per pound of 
tart cherries handled and decreases the portion allocated to 
administrative expenses from $0.0025 to $0.001 per pound of tart 
cherries handled under the order. This rule also corrects the 
allocation numbers from $0.006 per pound for research and promotion 
activities and $0.0015 per pound for administrative expenses as stated 
in the proposed rule based on a comment received. The overall 
assessment rate established for the Board for the 2016-17 and 
subsequent fiscal periods remains 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 rule shifts 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 will allow 
for expanded research and promotion activities to help market this 
season's above-average crop, while helping to ensure that 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 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 could be 
approximately 2 percent.
    This action does 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

[[Page 41829]]

passed on to producers. However, these costs are 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.
    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 action. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large 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. 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 May 25, 2017(82 FR 24080). Copies of the proposed rule were 
also mailed or sent via facsimile to all tart cherry 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 June 26, 
2017, was provided for interested persons to respond to the proposal.
    One comment was received from Board staff indicating that the Board 
minutes stated the recommendation was for assessment allocation of 
$0.0065 per pound of tart cherries for promotion and $0.001 per pound 
of tart cherries for administration rather than the $0.006 and $0.0015, 
respectively, as published in the proposed rule. Accordingly, the 
allocation numbers were revised based on the comment received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Board and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because the fiscal 
year ends on September 30, 2017, and the change in allotment of 
assessments collected is necessary to ensure sufficient funds are 
available to cover the increase in research and promotion expenses that 
were incurred to help market the 2016-17 above-average crop. Further, 
handlers are aware of this rule, which was recommended at a public 
meeting. Also, a 30-day comment period was provided for in the proposed 
rule and no negative comments were received.

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 
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 $0.0065 per pound of tart cherries to cover 
the cost of the research and promotion program and $0.001 per pound of 
tart cherries to cover administrative expenses.

    Dated: August 30, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-18756 Filed 9-1-17; 8:45 am]
BILLING CODE 3410-02-P



                                                                 Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Rules and Regulations                                       41827

                                                    M. media Marvel (PPAF)                              3375, Fax: (863) 291–8614, or Email:                  a hearing on the petition. After the
                                                *      *    *   *     *                                 Jennie.Varela@ams.usda.gov or                         hearing, USDA would rule on the
                                                                                                        Christian.Nissen@ams.usda.gov.                        petition. The Act provides that the
                                                 Done in Washington, DC, this 30th day of
                                                August 2017.
                                                                                                           Small businesses may request                       district court of the United States in any
                                                                                                        information on complying with this                    district in which the handler is an
                                                Michael C. Gregoire,
                                                                                                        regulation by contacting Richard Lower,               inhabitant, or has his or her principal
                                                Acting Administrator, Animal and Plant                  Marketing Order and Agreement                         place of business, has jurisdiction to
                                                Health Inspection Service.
                                                                                                        Division, Specialty Crops Program,                    review USDA’s ruling on the petition,
                                                [FR Doc. 2017–18712 Filed 9–1–17; 8:45 am]                                                                    provided an action is filed not later than
                                                                                                        AMS, USDA, 1400 Independence
                                                BILLING CODE 3410–34–P                                  Avenue SW., STOP 0237, Washington,                    20 days after the date of the entry of the
                                                                                                        DC 20250–0237; Telephone: (202) 720–                  ruling.
                                                                                                        2491, Fax: (202) 720–8938, or Email:                     This rule increases the portion of the
                                                DEPARTMENT OF AGRICULTURE                                                                                     assessment rate allocated to research
                                                                                                        Richard.Lower@ams.usda.gov.
                                                                                                        SUPPLEMENTARY INFORMATION: This rule
                                                                                                                                                              and promotion activities from $0.005 to
                                                Agricultural Marketing Service
                                                                                                        is issued under Marketing Agreement                   $0.0065 per pound of tart cherries
                                                                                                        and Order No. 930, both as amended (7                 handled and decreases the portion
                                                7 CFR Part 930                                                                                                allocated to administrative expenses
                                                                                                        CFR part 930), regulating the handling
                                                [Doc. No. AMS–SC–16–0104; SC16–930–4
                                                                                                        of tart cherries produced in the States of            from $0.0025 to $0.001 per pound of tart
                                                FR]                                                                                                           cherries handled under the order. This
                                                                                                        Michigan, New York, Pennsylvania,
                                                                                                                                                              rule also corrects the allocation numbers
                                                Tart Cherries Grown in the States of                    Oregon, Utah, Washington and
                                                                                                                                                              from $0.006 per pound for research and
                                                Michigan, New York, Pennsylvania,                       Wisconsin, hereinafter referred to as the
                                                                                                                                                              promotion activities and $0.0015 per
                                                Oregon, Utah, Washington and                            ‘‘order.’’ The order is effective under the
                                                                                                                                                              pound for administrative expenses as
                                                Wisconsin; Modification of Allocation                   Agricultural Marketing Agreement Act
                                                                                                                                                              stated in the proposed rule based on a
                                                of Assessments                                          of 1937, as amended (7 U.S.C. 601–674),
                                                                                                                                                              comment received. The overall
                                                                                                        hereinafter referred to as the ‘‘Act.’’
                                                AGENCY:  Agricultural Marketing Service,                                                                      assessment rate for the 2016–17 and
                                                                                                           The Department of Agriculture
                                                USDA.                                                                                                         subsequent fiscal periods remains
                                                                                                        (USDA) is issuing this final rule in
                                                                                                                                                              unchanged at $0.0075 per pound of tart
                                                ACTION: Final rule.                                     conformance with Executive Orders                     cherries.
                                                                                                        13563 and 13175. This rule does not                      The tart cherry marketing order
                                                SUMMARY:    This rule implements a                      meet the definition of a significant
                                                recommendation from the Tart Cherry                                                                           provides authority for the Tart Cherry
                                                                                                        regulatory action contained in section                Industry Administrative Board (Board),
                                                Industry Administrative Board (Board)                   3(f) of Executive Order 12866 and is not
                                                to increase the portion of assessments                                                                        with the approval of USDA, to formulate
                                                                                                        subject to review by the Office of                    an annual budget of expenses and
                                                allocated to research and promotion                     Management and Budget (OMB).
                                                activities from $0.005 to $0.0065 per                                                                         collect assessments from handlers to
                                                                                                        Additionally, because this rule does not              administer the program. The members
                                                pound of tart cherries and decrease the                 meet the definition of a significant
                                                portion allocated to administrative                                                                           of the Board are producers and handlers
                                                                                                        regulatory action, it does not trigger the            of tart cherries, and one public member.
                                                expenses from $0.0025 to $0.001 per                     requirements contained in Executive
                                                pound of tart cherries handled under                                                                          They are familiar with the Board’s needs
                                                                                                        Order 13771. See OMB’s Memorandum                     and with the costs of goods and services
                                                the marketing order (order). This rule                  titled, ‘‘Interim Guidance Implementing
                                                also corrects the allocation numbers                                                                          in their local areas and are thus in a
                                                                                                        Section 2 of the Executive Order of                   position to formulate an appropriate
                                                from $0.006 per pound for research and                  January 30, 2017, titled ‘Reducing
                                                promotion activities and $0.0015 per                                                                          budget and assessment rate. The
                                                                                                        Regulation and Controlling Regulatory                 assessment rate is formulated and
                                                pound for administrative expenses as                    Costs’ ’’ (February 2, 2017).                         discussed in a public meeting. Thus, all
                                                stated in the proposed rule based on a                     This rule has been reviewed under                  directly affected persons have an
                                                comment received. The overall                           Executive Order 12988, Civil Justice                  opportunity to participate and provide
                                                assessment rate remains unchanged at                    Reform. Under the marketing order now                 input.
                                                $0.0075 per pound of tart cherries. The                 in effect, tart cherry handlers are subject              For the 2010–11 and subsequent fiscal
                                                Board locally administers the order and                 to assessments. Funds to administer the               periods, the Board recommended, and
                                                is comprised of producers and handlers                  order are derived from such                           USDA approved, an assessment rate of
                                                of tart cherries operating within the area              assessments. It is intended that the                  $0.0075 per pound of tart cherries that
                                                of production, and one public member.                   assessment rate as issued herein will be              would continue in effect from fiscal
                                                Assessments upon tart cherry handlers                   applicable to all assessable tart cherries            period to fiscal period unless modified,
                                                are used by the Board to fund                           beginning on October 1, 2016, and                     suspended, or terminated by USDA
                                                reasonable and necessary expenses of                    continue until amended, suspended, or                 upon recommendation and information
                                                the program. The fiscal period begins                   terminated.                                           submitted by the Board or other
                                                October 1 and ends September 30. The                       The Act provides that administrative               information available to USDA.
                                                assessment rate will remain in effect                   proceedings must be exhausted before                     The Board met on September 8, 2016,
                                                indefinitely unless modified,                           parties may file suit in court. Under                 and unanimously recommended 2016–
                                                suspended, or terminated.                               section 608c(15)(A) of the Act, any                   17 expenditures of $2,523,550 and an
                                                DATES: Effective September 6, 2017.                     handler subject to an order may file                  assessment rate of $0.0075 per pound of
mstockstill on DSK30JT082PROD with RULES




                                                FOR FURTHER INFORMATION CONTACT:                        with USDA a petition stating that the                 tart cherries. In comparison, last year’s
                                                Jennie M. Varela, Marketing Specialist,                 order, any provision of the order, or any             budgeted expenditures were $1,725,000.
                                                or Christian D. Nissen, Regional                        obligation imposed in connection with                 The total assessment rate remains
                                                Director, Southeast Marketing Field                     the order is not in accordance with law               unchanged by this action. However, this
                                                Office, Marketing Order and Agreement                   and request a modification of the order               rule increases the portion of the
                                                Division, Specialty Crops Program,                      or to be exempted therefrom. Such                     assessment rate allocated to research
                                                AMS, USDA; Telephone: (863) 324–                        handler is afforded the opportunity for               and promotion activities from $0.005 to


                                           VerDate Sep<11>2014   16:52 Sep 01, 2017   Jkt 241001   PO 00000   Frm 00003   Fmt 4700   Sfmt 4700   E:\FR\FM\05SER1.SGM   05SER1


                                                41828            Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Rules and Regulations

                                                $0.0065 per pound of tart cherries                      U.S.C. 601–612), the Agricultural                     promotion activities and $0.0015 per
                                                handled and decreases the portion                       Marketing Service (AMS) has                           pound for administrative expenses as
                                                allocated to administrative expenses                    considered the economic impact of this                stated in the proposed rule based on a
                                                from $0.0025 to $0.001 per pound of tart                rule on small entities. Accordingly,                  comment received. The overall
                                                cherries handled under the order. This                  AMS has prepared this final regulatory                assessment rate established for the
                                                shift in allocation will allow for                      flexibility analysis.                                 Board for the 2016–17 and subsequent
                                                expanded research and promotion                            The purpose of the RFA is to fit                   fiscal periods remains unchanged at
                                                activities to help market this season’s                 regulatory actions to the scale of                    $0.0075 per pound of tart cherries. The
                                                above-average crop, while helping to                    businesses subject to such actions in                 quantity of assessable tart cherries for
                                                ensure that funds held in the Board’s                   order that small businesses will not be               the 2016–17 season is estimated at 314.7
                                                authorized reserve are consistent with                  unduly or disproportionately burdened.                million pounds. Thus, the $0.0075 rate
                                                the order’s limits on the reserve.                      Marketing orders issued pursuant to the               should provide $2,360,250 in
                                                   The major expenditures                               Act, and rules issued thereunder, are                 assessment income. Income derived
                                                recommended by the Board for the                        unique in that they are brought about                 from handler assessments, interest
                                                2016–17 fiscal year include $2,045,550                  through group action of essentially                   income, and funds from the Board’s
                                                for promotion, $255,000 for personnel,                  small entities acting on their own                    authorized reserve should provide
                                                and $106,000 for office expenses.                       behalf.                                               sufficient funds to meet this year’s
                                                Budgeted expenses for these items in                       There are approximately 600                        anticipated expenses.
                                                2015–16 were $1,150,000, $236,000, and                  producers of tart cherries in the                        The major expenditures
                                                $102,000, respectively.                                 regulated area and approximately 40                   recommended by the Board for the
                                                   The assessment rate recommended by                   handlers of tart cherries who are subject             2016–17 year include $2,045,550 for
                                                the Board was derived by considering                    to regulation under the order. Small                  promotion, $255,000 for personnel, and
                                                expected shipments of tart cherries and                 agricultural producers are defined by                 $106,000 for office expenses. Budgeted
                                                examining the needs of the industry                     the Small Business Administration                     expenses for these items in 2015–16
                                                with regard to research and promotion                   (SBA) as those having annual receipts of              were $1,150,000, $236,000, and
                                                and the authorized reserve. Tart cherry                 less than $750,000, and small                         $102,000, respectively.
                                                shipments for the 2016–17 year are                      agricultural service firms have been                     This rule shifts the allocation of the
                                                estimated at 314.7 million pounds,                      defined as those whose annual receipts                assessment rate to increase the portion
                                                which should provide $2,360,250 in                      are less than $7,500,000 (13 CFR                      allocated for research and promotion,
                                                assessment income. Income derived                       121.201).                                             while decreasing the portion allocated
                                                from handler assessments, interest                         According to the National                          for administrative costs. This
                                                income, and funds from the Board’s                      Agricultural Statistics Service and                   adjustment will allow for expanded
                                                authorized reserve should be adequate                   Board data, the average annual grower                 research and promotion activities to
                                                to cover budgeted expenses. Funds in                    price for tart cherries during the 2015–              help market this season’s above-average
                                                the reserve (approximately $894,000)                    16 season was approximately $0.347 per                crop, while helping to ensure that funds
                                                will be kept within the maximum                         pound. With total utilization at 251.1                held in the Board’s authorized reserve
                                                permitted by the order of no more than                  million pounds, the total 2015–16 crop                are consistent with the order’s limits on
                                                approximately one year’s operational                    value is estimated at $87 million.                    the reserve.
                                                expenses as stated in § 930.42(a).                      Dividing the crop value by the estimated                 Prior to arriving at this budget and
                                                   The assessment rate will continue in                 number of producers (600) yields an                   assessment rate, the Board considered
                                                effect indefinitely unless modified,                    estimated average receipt per producer                production history, crop estimates, its
                                                suspended, or terminated by USDA                        of $145,000. This is well below the SBA               financial statements, and the need to
                                                upon recommendation and information                     threshold for small producers. In 2015,               both reduce financial reserves and
                                                submitted by the Board or other                         The Food Institute estimated a free on                increase its marketing efforts to increase
                                                available information.                                  board (f.o.b.) price of $0.96 per pound               demand for tart cherries. The Board also
                                                   Although this assessment rate will be                for frozen tart cherries, which make up               considered not taking this action but
                                                in effect for an indefinite period, the                 the majority of processed tart cherries.              determined that 2016–17 expenditures
                                                Board will continue to meet prior to or                 Multiplying the f.o.b price by total                  of $2,523,550 were appropriate, and the
                                                during each fiscal period to recommend                  utilization of 251.1 million pounds                   recommended assessment rate and
                                                a budget of expenses and consider                       results in an estimated handler-level tart            allocation, along with funds from
                                                recommendations for modification of                     cherry value of $241 million. Dividing                interest income, block grants, and funds
                                                the assessment rate. The dates and times                this figure by the number of handlers                 from reserves, would be adequate to
                                                of Board meetings are available from the                (40) yields an estimated average annual               cover budgeted expenses.
                                                Board or USDA. Board meetings are                       handler receipts of $6 million, which is                 A review of historical information and
                                                open to the public, and interested                      below the SBA threshold for small                     preliminary information pertaining to
                                                persons may express their views at these                agricultural service firms. Assuming a                the upcoming crop year indicates that
                                                meetings. USDA will evaluate Board                      normal distribution, the majority of                  the average grower price for the 2016–
                                                recommendations and other available                     producers and handlers of tart cherries               17 season could be approximately
                                                information to determine whether                        may be classified as small entities.                  $0.348 per pound of tart cherries.
                                                modification of the assessment rate is                     This rule increases the portion of the             Therefore, the estimated assessment
                                                needed. Further rulemaking would be                     assessment rate allocated to research                 revenue for the 2016–17 crop year as a
                                                undertaken as necessary. The Board’s                    and promotion activities from $0.005 to               percentage of total grower revenue
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                                                budget for future fiscal periods will be                $0.0065 per pound of tart cherries                    could be approximately 2 percent.
                                                reviewed and, as appropriate, approved                  handled and decreases the portion                        This action does not increase the
                                                by USDA.                                                allocated to administrative expenses                  assessment obligation imposed on
                                                                                                        from $0.0025 to $0.001 per pound of tart              handlers. While assessments impose
                                                Final Regulatory Flexibility Analysis                   cherries handled under the order. This                some additional costs on handlers, the
                                                  Pursuant to requirements set forth in                 rule also corrects the allocation numbers             costs are minimal and uniform on all
                                                the Regulatory Flexibility Act (RFA) (5                 from $0.006 per pound for research and                handlers. Some of the costs may be


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                                                                 Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Rules and Regulations                                             41829

                                                passed on to producers. However, these                  allocation numbers were revised based                 pound of tart cherries to cover
                                                costs are offset by the benefits derived                on the comment received.                              administrative expenses.
                                                by the operation of the marketing order.                   A small business guide on complying                  Dated: August 30, 2017.
                                                   The Board’s meetings were widely                     with fruit, vegetable, and specialty crop
                                                                                                                                                              Bruce Summers,
                                                publicized throughout the tart cherry                   marketing agreements and orders may
                                                                                                        be viewed at: http://www.ams.usda.gov/                Acting Administrator, Agricultural Marketing
                                                industry, and all interested persons                                                                          Service.
                                                were invited to attend the meetings and                 rules-regulations/moa/small-businesses.
                                                                                                                                                              [FR Doc. 2017–18756 Filed 9–1–17; 8:45 am]
                                                participate in Board deliberations on all               Any questions about the compliance
                                                                                                        guide should be sent to Richard Lower                 BILLING CODE 3410–02–P
                                                issues. Like all Board meetings, the June
                                                23, 2016, and September 8, 2016,                        at the previously mentioned address in
                                                meetings were public meetings, and all                  the FOR FURTHER INFORMATION CONTACT
                                                                                                        section.                                              DEPARTMENT OF AGRICULTURE
                                                entities, both large and small, were able
                                                to express views on this issue.                            After consideration of all relevant
                                                                                                                                                              Agricultural Marketing Service
                                                   In accordance with the Paperwork                     material presented, including the
                                                Reduction Act of 1995 (44 U.S.C.                        information and recommendation
                                                                                                                                                              7 CFR Part 1205
                                                Chapter 35), the order’s information                    submitted by the Board and other
                                                collection requirements have been                       available information, it is hereby found             [Doc. # AMS–CN–17–0003]
                                                previously approved by OMB and                          that this rule, as hereinafter set forth,
                                                                                                        will tend to effectuate the declared                  Cotton Board Rules and Regulations:
                                                assigned OMB No. 0581–0177, Tart                                                                              Adjusting Supplemental Assessment
                                                Cherries Grown in the States of                         policy of the Act.
                                                                                                           Pursuant to 5 U.S.C. 553, it is also               on Imports (2017 Amendments)
                                                Michigan, New York, Pennsylvania,
                                                Oregon, Utah, Washington, and                           found and determined that good cause                  AGENCY: Agricultural Marketing Service,
                                                Wisconsin. No changes in those                          exists for not postponing the effective               USDA.
                                                requirements are necessary as a result of               date of this rule until 30 days after
                                                                                                                                                              ACTION: Direct final rule.
                                                this action. Should any changes become                  publication in the Federal Register
                                                necessary, they would be submitted to                   because the fiscal year ends on                       SUMMARY:    The Agricultural Marketing
                                                OMB for approval.                                       September 30, 2017, and the change in                 Service (AMS) is amending the Cotton
                                                   This rule imposes no additional                      allotment of assessments collected is                 Board Rules and Regulations, increasing
                                                reporting or recordkeeping requirements                 necessary to ensure sufficient funds are              the value assigned to imported cotton
                                                on either small or large tart cherry                    available to cover the increase in                    for the purposes of calculating
                                                handlers. As with all Federal marketing                 research and promotion expenses that                  supplemental assessments collected for
                                                order programs, reports and forms are                   were incurred to help market the 2016–                use by the Cotton Research and
                                                periodically reviewed to reduce                         17 above-average crop. Further,                       Promotion Program. This amendment is
                                                information requirements and                            handlers are aware of this rule, which                required each year to ensure that
                                                duplication by industry and public                      was recommended at a public meeting.                  assessments collected on imported
                                                sector agencies. As noted in the initial                Also, a 30-day comment period was                     cotton and the cotton content of
                                                regulatory flexibility analysis, USDA                   provided for in the proposed rule and                 imported products will be the same as
                                                has not identified any relevant Federal                 no negative comments were received.                   those paid on domestically produced
                                                rules that duplicate, overlap, or conflict              List of Subjects in 7 CFR Part 930                    cotton. In addition, AMS is updating the
                                                with this final rule.                                                                                         Harmonized Tariff Schedule (HTS)
                                                                                                          Marketing agreements, Reporting and                 statistical reporting numbers that were
                                                   AMS is committed to complying with                   recordkeeping requirements, Tart
                                                the E-Government Act, to promote the                                                                          amended since the last assessment
                                                                                                        cherries.                                             adjustment in 2016.
                                                use of the Internet and other
                                                                                                          For the reasons set forth in the
                                                information technologies to provide                                                                           DATES: This direct rule is effective
                                                                                                        preamble, 7 CFR part 930 is amended as
                                                increased opportunities for citizen                                                                           November 6, 2017, without further
                                                                                                        follows:
                                                access to Government information and                                                                          action or notice, unless significant
                                                services, and for other purposes.                       PART 930—TART CHERRIES GROWN                          adverse comment is received by October
                                                   A proposed rule concerning this                      IN THE STATES OF MICHIGAN, NEW                        5, 2017. If significant adverse comment
                                                action was published in the Federal                     YORK, PENNSYLVANIA, OREGON,                           is received, AMS will publish a timely
                                                Register on May 25, 2017(82 FR 24080).                  UTAH, WASHINGTON, AND                                 withdrawal of the amendment in the
                                                Copies of the proposed rule were also                   WISCONSIN                                             Federal Register.
                                                mailed or sent via facsimile to all tart                                                                      ADDRESSES: Written comments may be
                                                cherry handlers. Finally, the proposal                  ■ 1. The authority citation for 7 CFR                 submitted to the addresses specified
                                                was made available through the internet                 part 930 continues to read as follows:                below. All comments will be made
                                                by USDA and the Office of the Federal                       Authority: 7 U.S.C. 601–674.                      available to the public. Please do not
                                                Register. A 30-day comment period                       ■ 2. Section 930.200 is revised to read               include personally identifiable
                                                ending June 26, 2017, was provided for                  as follows:                                           information (such as name, address, or
                                                interested persons to respond to the                                                                          other contact information) or
                                                proposal.                                               § 930.200    Assessment rate.                         confidential business information that
                                                   One comment was received from                          On and after October 1, 2016, the                   you do not want publically disclosed.
                                                Board staff indicating that the Board                   assessment rate imposed on handlers                   All comments may be posted on the
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                                                minutes stated the recommendation was                   shall be $0.0075 per pound of tart                    Internet and can be retrieved by most
                                                for assessment allocation of $0.0065 per                cherries grown in the production area                 Internet search engines. Comments may
                                                pound of tart cherries for promotion and                and utilized in the production of tart                be submitted anonymously.
                                                $0.001 per pound of tart cherries for                   cherry products. Included in this rate is                Comments, identified by AMS–CN–
                                                administration rather than the $0.006                   $0.0065 per pound of tart cherries to                 17–0003, may be submitted
                                                and $0.0015, respectively, as published                 cover the cost of the research and                    electronically through the Federal
                                                in the proposed rule. Accordingly, the                  promotion program and $0.001 per                      eRulemaking Portal at http://


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Document Created: 2017-09-02 03:25:02
Document Modified: 2017-09-02 03:25:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective September 6, 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 41827 
CFR AssociatedMarketing Agreements; Reporting and Recordkeeping Requirements and Tart Cherries

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