83 FR 21941 - Tart Cherries Grown in the States of Michigan, et al.; Free and Restricted Percentages for the 2017-18 Crop Year for Tart Cherries
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service Federal Register Volume 83, Issue 92 (May 11, 2018)
Agricultural Marketing Service
Federal Register Volume 83, Issue 92 (May 11, 2018)
| Page Range | 21941-21946 | |
| FR Document | 2018-10083 |
[Federal Register Volume 83, Number 92 (Friday, May 11, 2018)] [Proposed Rules] [Pages 21941-21946] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-10083] ======================================================================== Proposed Rules Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. ======================================================================== Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Proposed Rules [[Page 21941]] DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 930 [Doc. No. AMS-SC-17-0071; SC18-930-1 PR] Tart Cherries Grown in the States of Michigan, et al.; Free and Restricted Percentages for the 2017-18 Crop Year for Tart Cherries AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This proposed rule would implement a recommendation from the Cherry Industry Administrative Board (Board) to establish free and restricted percentages for the 2017-18 crop year under the Marketing Order for tart cherries grown in the states of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, and Wisconsin. This action would establish the proportion of tart cherries from the 2017 crop which may be handled in commercial outlets. This action should stabilize marketing conditions by adjusting supply to meet market demand and help improve grower returns. DATES: Comments must be received by June 11, 2018. ADDRESSES: Interested persons are invited to submit written comments concerning this proposal. Comments must be sent to the Docket Clerk, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250- 0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. All comments should reference the document number and the date and page number of this issue of the Federal Register and will be made available for public inspection in the Office of the Docket Clerk during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this proposal will be included in the record and will be made available to the public. Please be advised that the identity of the individuals or entities submitting the comments will be made public on the internet at the address provided above. FOR FURTHER INFORMATION CONTACT: Jennie M. Varela, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: Jennie.Varela@ams.usda.gov or Christian.Nissen@ams.usda.gov. 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: Richard.Lower@ams.usda.gov. SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, proposes an amendment to regulations issued to carry out a marketing order as defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing Agreement and Order No. 930, both as amended (7 CFR part 930), regulating the handling of tart cherries produced in the states of Michigan, New York, Pennsylvania, Oregon, Utah, Washington and Wisconsin. Part 930 (referred to as 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 Board locally administers the Order and is comprised of producers and handlers of tart cherries operating within the production area, and a public member. The Department of Agriculture (USDA) is issuing this proposed rule in conformance with Executive Orders 13563 and 13175. This proposed rule falls within a category of regulatory action that the Office of Management and Budget (OMB) exempted from Executive Order 12866 review. Additionally, because this proposed 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 proposed rule has been reviewed under Executive Order 12988, Civil Justice Reform. Under the Order provisions now in effect, free and restricted percentages may be established for tart cherries handled during the crop year. This proposed rule would establish free and restricted percentages for tart cherries for the 2017-18 crop year, beginning July 1, 2017, through June 30, 2018. 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. A handler is afforded the opportunity for a hearing on the petition. After the hearing, USDA would rule on the petition. The Act provides that the district court of the United States in any district in which the handler is an inhabitant, or has his or her principal place of business, has jurisdiction to review USDA's ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling. This proposed rule invites comments on the establishment of free and restricted percentages for the 2017-18 crop year. This proposal would establish the proportion of tart cherries from the 2017 crop which may be handled in commercial outlets at 69 percent free and 31 percent restricted. The Secretary has determined that designating free and restricted percentages of tart cherries for the 2017 crop year would effectuate the declared policy of the Act to stabilize marketing conditions by adjusting supply to meet market demand and help improve grower returns. The final percentages were recommended by the Board at a meeting on September 14, 2017, and have been designated by the Secretary of Agriculture (Secretary). Section 930.51(a) provides the Secretary authority to regulate volume by designating free and restricted percentages for any tart cherries acquired by handlers in a given crop year. Section 930.50 prescribes [[Page 21942]] procedures for computing an optimum supply based on sales history and for calculating these free and restricted percentages. Free percentage volume may be shipped to any market, while restricted percentage volume must be held by handlers in a primary or secondary reserve, or be diverted or used for exempt purposes as prescribed in Sec. Sec. 930.159 and 930.162. Exempt purposes include, in part, the development of new products, sales into new markets, the development of export markets, and charitable contributions. Sections 930.55 through 930.57 prescribe procedures for inventory reserve. For cherries held in reserve, handlers would be responsible for storage and would retain title of the tart cherries. Under Sec. 930.52, only districts with an annual average production over the prior three years of at least six million pounds are subject to regulation, and any district producing a crop that is less than 50 percent of its annual average of the previous five years is exempt. The regulated districts for the 2017-2018 crop year would be: District 1--Northern Michigan; District 2--Central Michigan; District 3--Southern Michigan; District 4--New York; District 7--Utah; District 8--Washington; and District 9--Wisconsin. Districts 5 and 6 (Oregon and Pennsylvania, respectively) would not be regulated for the 2017-18 season. Demand for tart cherries and tart cherry products tends to be relatively stable from year to year. Conversely, annual tart cherry production can vary greatly. In addition, tart cherries are processed and can be stored and carried over from crop year to crop year, further impacting supply. As a result, supply and demand for tart cherries are rarely in balance. Because demand for tart cherries is inelastic, total sales volume is not very responsive to changes in price. However, prices are very sensitive to changes in supply. As such, an oversupply of cherries would have a sharp negative effect on prices, driving down grower returns. Aware of this economic relationship, the Board focuses on using the volume control provisions in the Order to balance supply and demand to stabilize industry returns. Pursuant to Sec. 930.50, the Board meets on or about July 1 to review sales data, inventory data, current crop forecasts, and market conditions for the upcoming season and, if necessary, to recommend preliminary free and restricted percentages if anticipated supply would exceed demand. After harvest is complete, but no later than September 15, the Board meets again to update its calculations using actual production data, consider any necessary adjustments to the preliminary percentages, and determine if final free and restricted percentages should be recommended to the Secretary. The Board uses sales history, inventory, and production data to determine whether there is a surplus and, if so, how much volume should be restricted to maintain optimum supply. The optimum supply represents the desirable volume of tart cherries that should be available for sale in the coming crop year. Optimum supply is defined as the average free sales of the prior three years plus desirable carry-out inventory. Desirable carry-out is the amount of fruit needed by the industry to be carried into the succeeding crop year to meet market demand until the new crop is available. Desirable carry-out is set by the Board after considering market circumstances and needs. Section 930.151(b) specifies that desirable carry-out can range from zero to a maximum of 100 million pounds. In addition, USDA's ``Guidelines for Fruit, Vegetable, and Specialty Crop Marketing Orders'' (http://www.ams.usda.gov/publications/content/1982-guidelines-fruit-vegetable-marketing-orders) specify that 110 percent of recent years' sales should be made available to primary markets each season before recommendations for volume regulation are approved. This requirement is codified in Sec. 930.50(g), which specifies that in years when restricted percentages are established, the Board shall make available tonnage equivalent to an additional 10 percent of the average sales of the prior three years for market expansion (market growth factor). After the Board determines optimum supply, desirable carry-out, and market growth factor, it must examine the current year's available volume to determine whether there is an oversupply situation. Available volume includes carry-in inventory (any inventory available at the beginning of the season) along with that season's production. If production is greater than the optimum supply minus carry-in, the difference is considered surplus. This surplus tonnage is divided by the sum of production in the regulated districts to reach a restricted percentage. This percentage must be held in reserve or used for approved diversion activities, such as exports. The Board met on June 22, 2017, and computed an optimum supply of 282.4 million pounds for the 2017-18 crop year using the average of free sales for the three previous seasons. Regarding the carry-out value, the Board discussed and considered a range of alternatives. One member suggested a carry-out value of 20 million pounds, approximately one tenth of three years' average annual sales. Last year's carry-out was set at 57 million pounds to cover the three-month gap between calculation of carry-out at the end of one season and the availability of fruit for the next season. One member, advocating for 60 million pounds, noted that a carry-out to supply only three months' worth of cherries makes it difficult for processors to serve their customers. Some Board members stated that in the past two seasons, the recommended carry-out was equivalent to approximately three months' sales but the industry ended up with a higher carry-out than anticipated, which puts downward pressure on prices. After the consideration of the alternatives, the Board determined a carry-out of 45 million pounds would be slightly less than the three-month estimate of 60 million pounds and would supply the industry's needs at the beginning of the next season. The Board subtracted the estimated carry-in of 110.5 million pounds from the optimum supply to calculate the production quantity needed from the 2017-18 crop to meet optimum supply. This number, 171.9 million pounds, was subtracted from the Board's estimated 2017-18 total production (from regulated and unregulated districts) of 259 million pounds to calculate a surplus of 87.1 million pounds of tart cherries. The Board also complied with the market growth factor requirement by removing 23.7 million pounds (average sales for prior three years of 237.4 million times 10 percent) from the surplus. The adjusted surplus of 63.1 million pounds was then divided by the expected production in the regulated districts (252 million pounds) minus anticipated orchard diversion (12 million pounds) to reach a preliminary restricted percentage of 26 percent for the 2017-18 crop year. The Board then discussed whether this calculation would provide sufficient supply to grow sales and fulfil orders that have not yet shipped, including filling remaining orders from USDA purchases. A motion to make an economic adjustment of five million pounds to adjust for USDA sales failed to receive Board support. After the discussion, the Board's preliminary restricted percentage remained at 26 percent (63 million pounds divided by 240 million pounds). The Board met again on September 14, 2017, to consider final volume regulation percentages for the 2017-18 season. The final percentages are based [[Page 21943]] on the Board's reported production figures and the supply and demand information available in September. In September and going forward, the Board revised the formula for calculating free sales. When the three- year sales average was recalculated in September, the revision lowered the sales average to 205 million pounds, which resulted in a revised optimum supply of 250 million pounds. The total production for the 2017-18 season was 270.4 million pounds, 11.4 million pounds above the Board's June estimate. In addition, growers diverted 11.7 million pounds in the orchard, leaving 258.7 million pounds available to market, 251.1 million pounds of which are in the restricted districts. Using the actual production numbers, and accounting for the recommended desirable carry-out and economic adjustment, as well as the market growth factor, the restricted percentage was recalculated. The Board subtracted the carry-in figure used in June of 110.5 million pounds from the optimum supply of 250 million pounds to determine 139.5 million pounds of 2017-18 production would be necessary to reach optimum supply. The Board subtracted the 139.5 million pounds from the actual production of 270.4 million pounds, resulting in a surplus of 130.9 million pounds of tart cherries. The Board also recommended an economic adjustment to adjust the supply in anticipation of increased sales from market expansion, new markets, and growth from the short crop this season in Europe. The surplus was then reduced by subtracting the economic adjustment of 33 million pounds and the market growth factor of 20.5 million pounds, resulting in an adjusted surplus of 77.4 million pounds. The Board then divided this final surplus by the available production of 251.1 million pounds in the regulated districts (262.8 million pounds minus 11.7 million pounds of in-orchard diversion) to calculate a restricted percentage of 31 percent with a corresponding free percentage of 69 percent for the 2017-18 crop year, as outlined in the following table: ------------------------------------------------------------------------ Millions of pounds ------------------------------------------------------------------------ Final Calculations: (1) Average sales of the prior three years.......... 205.0 (2) Plus desirable carry-out........................ 45.0 (3) Optimum supply calculated by the Board.......... 250.0 (4) Carry-in as of July 1, 2017..................... 110.5 (5) Adjusted optimum supply (item 3 minus item 4)... 139.5 (6) Board reported production....................... 270.4 (7) Surplus (item 6 minus item 5)................... 130.9 (8) Total economic adjustments...................... 33.0 (9) Market growth factor............................ 20.5 (10) Adjusted Surplus (item 7 minus items 8 and 9).. 77.4 (11) Supply in regulated districts.................. 262.8 (12) In-orchard diversion........................... 11.7 --------------- (13) Regulated production minus in-orchard diversion 251.1 ------------------------------------------------------------------------ Percent ------------------------------------------------------------------------ Final Percentages: Restricted (item 10 divided by item 13 x 100)....... 31 Free (100 minus restricted percentage).............. 69 ------------------------------------------------------------------------ The primary purpose of setting restricted percentages is an attempt to bring supply and demand into balance. If the primary market is oversupplied with cherries, grower prices decline substantially. Restricted percentages have benefited grower returns and helped stabilize the market as compared to those seasons prior to the implementation of the Order. The Board believes the available information indicates that a restricted percentage should be established for the 2017-18 crop year to avoid oversupplying the market with tart cherries. Consequently, based on its discussion of this issue and the result of the above calculations, the Board recommended final percentages of 69 percent free and 31 percent restricted by a vote of 18 in favor and 1 opposed. The initial restriction percentage of 26 percent was lower than the final restriction of 31 percent. One factor affecting this change was the final production numbers that came in above the Board's June estimate. Additionally, in September the Board revised the formula for calculating the three-year sales average, which will be used going forward. The revision in the calculation of the free sales average lowered the sales calculation from the preliminary 237.4 million pounds to the final average of 205 million pounds. The desired carry-out remained the same at 45 million pounds, resulting in a revised optimum supply of 250 million pounds, down from the June calculation of 282.4 million pounds. At the Board meeting on September 14, an economic adjustment of 33 million pounds was recommended in the Optimum Supply Formula (OSF). Several members indicated the factors in the marketplace prompted the need to make this economic adjustment to maintain market growth. These factors include serving new and expanded markets, a year over year increase in sales, and the expectation of increased sales as a result of a smaller than normal tart cherry crop in Europe this season. One member opposed to the proposed restriction expressed opposition to the definition of sales used in the OSF. In particular, the member expressed concern that the definition of sales is misrepresented by not including imported cherries in the sales average, thus not capturing overall supply and demand. Another member agreed with this concern but did not oppose the proposed OSF calculation. A motion was made to re-open the discussion about the OSF and consider an adjustment for imports. However, the motion failed to gain enough support for further discussion. One member indicated that the issue of imports continues to be a top priority for discussion and will be revisited moving forward into the winter season. After reviewing the available data and considering the concerns expressed, the [[Page 21944]] Board determined that a 31 percent restriction would meet sales needs and establish some reserves without oversupplying the market. Thus, the Board recommended establishing final percentages of 69 percent free and 31 percent restricted. The Board could meet and recommend the release of additional volume during the crop year if conditions so warranted. The Secretary finds, from the recommendation and supporting information supplied by the Board, that designating final percentages of 69 percent free and 31 percent restricted will tend to effectuate the declared policy of the Act, and so designates these percentages. Initial 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 proposed rule on small entities. Accordingly, AMS has prepared this initial regulatory flexibility analysis. The purpose of the RFA is to fit regulatory actions to the scale of businesses subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Marketing orders issued pursuant to the Act, and rules issued thereunder, are unique in that they are brought about through group action of essentially small entities acting on their own behalf. There are approximately 600 producers of tart cherries in the regulated area and approximately 40 handlers of tart cherries who are subject to regulation under the Order. Small agricultural producers are defined by the Small Business Administration (SBA) as those having annual receipts of less than $750,000, and small agricultural service firms have been defined as those whose annual receipts are less than $7,500,000 (13 CFR 121.201). According to the National Agricultural Statistics Service (NASS) and Board data, the average annual grower price for tart cherries utilized for processing during the 2016-17 season was approximately $0.273 per pound. With total utilization at approximately 323.1 million pounds for the 2016-17 season, the total 2016-17 value of the crop utilized for processing is estimated at $88.2 million. Dividing the crop value by the estimated number of producers (600) yields an estimated average receipt per producer of $147,000. This is well below the SBA threshold for small producers. A free on board (f.o.b.) price of $0.83 per pound for frozen tart cherries, which make up the majority of processed tart cherries, is a good estimate to represent the range of prices reported by the Food Institute during the 2017-2018 season. Multiplying the f.o.b price by total utilization of 323.1 million pounds results in an estimated handler-level tart cherry value of $268 million. Dividing this figure by the number of handlers (40) yields an estimated average annual handler receipts of $6.7 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. The tart cherry industry in the United States is characterized by wide annual fluctuations in production. According to NASS, the pounds of tart cherry production utilized for processing for the years 2014 through 2016 were 304 million, 253 million, and 329 million, respectively. Because of these fluctuations, supply and demand for tart cherries are rarely equal. Demand for tart cherries is inelastic, meaning changes in price have a minimal effect on total sales volume. However, prices are very sensitive to changes in supply, and grower prices vary widely in response to the large swings in annual supply. Grower prices per pound for processed utilization have ranged from a low of $0.073 in 1987 to a high of $0.588 per pound in 2012. Because of this relationship between supply and price, oversupplying the market with tart cherries would have a sharp negative effect on prices, driving down grower returns. Aware of this economic relationship, the Board focuses on using the volume control authority in the Order to align supply with demand and stabilize industry returns. This authority allows the industry to set free and restricted percentages as a way to bring supply and demand into balance. Free percentage cherries can be marketed by handlers to any outlet, while restricted percentage volume must be held by handlers in reserve, diverted, or used for exempted purposes. This proposal would control the supply of tart cherries by establishing percentages of 69 percent free and 31 percent restricted for the 2017-18 crop year. These percentages should stabilize marketing conditions by adjusting supply to meet market demand and help improve grower returns. The proposal would regulate tart cherries handled in Michigan, New York, Utah, Washington, and Wisconsin. The authority for this proposal is provided in Sec. Sec. 930.50, 930.51(a), and 930.52. The Board recommended this action at a meeting on September 14, 2017. This proposal would result in some fruit being diverted from the primary domestic markets. However, as mentioned earlier, the USDA's ``Guidelines for Fruit, Vegetable, and Specialty Crop Marketing Orders'' (http://www.ams.usda.gov/publications/content/1982-guidelines-fruit-vegetable-marketing-orders) specify that 110 percent of recent years' sales should be made available to primary markets each season before recommendations for volume regulation are approved. The quantity that would be available under this proposal is greater than 110 percent of the average quantity shipped in the prior three years. In addition, there are secondary uses available for restricted fruit, including the development of new products, sales into new markets, the development of export markets, and being placed in reserve. While these alternatives may provide different levels of return than the sales to primary markets, they play an important role for the industry. The areas of new products, new markets, and the development of export markets utilize restricted fruit to develop and expand the markets for tart cherries. In 2016-17, these activities accounted for over 37 million pounds in sales, 15.6 million of which were exports. Placing tart cherries into reserves is also a key part of balancing supply and demand. Although handlers bear the handling and storage costs for fruit in reserve, reserves stored in large crop years are used to supplement supplies in short crop years. The reserves allow the industry to mitigate the impact of oversupply in large crop years, while allowing the industry to maintain supply to markets in years when production falls below demand. Further, storage and handling costs are more than offset by the increase in price when moving from a large crop to a short crop year. In addition, the Board recommended a carry-out of 45 million pounds and made a demand adjustment of 33 million pounds in order to make the regulation less restrictive. The domestic market would have an ample supply of tart cherries, even with the recommended restriction. There are 110.5 million pounds of carry-in, 7.7 million pounds of production in the unregulated districts, and there would be 173.7 million pounds of free tonnage from the regulated districts, leaving 291.8 million pounds of fruit available to the domestic market. Consequently, it is not anticipated that this proposal would unduly burden growers or handlers. [[Page 21945]] While this proposal could result in some additional costs to the industry, these costs are more than outweighed by the benefits. The purpose of setting restricted percentages is to attempt to bring supply and demand into balance. If the primary market (domestic) is oversupplied with cherries, grower prices decline substantially. Without volume control, the primary market would likely be oversupplied, resulting in lower grower prices. The three districts in Michigan, along with the districts in New York, Utah, Washington, and Wisconsin, are the restricted areas for this crop year, and have a combined total production of 262.8 million pounds. A 31 percent restriction, after removing the 11.7 million pounds for in-orchard diversion, means 173.3 million pounds would be available to be shipped to primary markets from these five states. The 173.3 million pounds from the restricted districts, 7.7 million pounds from the unrestricted districts (Oregon and Pennsylvania), and the 110.5 million pound carry-in inventory would make a total of 291.5 million pounds available as free tonnage for the primary markets. This is less than the 306 million pounds of free tonnage made available last year. However, this would be enough to cover 260 million pounds of Board reported sales in 2016-2017, while providing substantial carry- out. Further, the Board could meet and recommend the release of additional volume during the crop year if conditions so warranted. Prior to the implementation of the Order, grower prices often did not cover the cost of production. The most recent costs of production determined by representatives of Michigan State University are an estimated $0.33 per pound. To assess the impact that volume control has on the prices growers receive for their product, an econometric model has been developed. Based on the model, the use of volume control would have a positive impact on grower returns for this crop year. With volume control, grower prices are estimated to be approximately $0.05 per pound higher than without restrictions. In addition, absent volume control, the industry could start to build large amounts of unwanted inventories. These inventories would have a depressing effect on grower prices. Retail demand is assumed to be highly inelastic, which indicates that changes in price do not result in significant changes in the quantity demanded. Consumer prices largely do not reflect fluctuations in cherry supplies. Therefore, this proposal should have little or no effect on consumer prices and should not result in a reduction in retail sales. The free and restricted percentages established by this proposal would provide the market with optimum supply and apply uniformly to all regulated handlers in the industry, regardless of size. As the restriction represents a percentage of a handler's volume, the costs, when applicable, are proportionate and should not place an extra burden on small entities as compared to large entities. The stabilizing effects of this proposal would benefit all handlers by helping them maintain and expand markets, despite seasonal supply fluctuations. Likewise, price stability positively impacts all growers and handlers by allowing them to better anticipate the revenues their tart cherries would generate. Growers and handlers, regardless of size, would benefit from the stabilizing effects of this restriction. In addition, the increased carry-out should provide processors enough supply to meet market needs going into the next season. The Board considered alternatives in its preliminary restriction discussions that affected this recommended action. The Board had extensive discussions on carry-out inventory alternatives. The alternatives included four motions that failed to pass, ranging from 20 million pounds to 55 million pounds. The Board determined that if the carry-out number was too large, it could have a negative impact on grower returns. Some members were concerned that processors would not have enough fruit to maintain sales before the new crop was available. After consideration of the alternatives, the Board recommended a carry- out of 45 million pounds. Regarding demand, the Board began in June with a sales average of 237.4 million pounds. However, in September the Board revised the formula for calculating the sales average going forward. This modification will provide a more accurate calculation of free sales each year. This revision lowered the three-year sales average for the final calculation made at the September meeting to 205 million pounds. Additionally, at the September meeting, Board members discussed an expectation of increased sales over the coming year. This anticipated increase is from serving new and expanded markets and to adjust for a smaller than normal tart cherry crop in Europe this season. In order to avoid undersupplying the market, the Board determined that the calculation of the optimum supply should include an additional adjustment to account for the growth in new markets, market expansion, and the crop shortage in Europe. The Board could accept the calculated surplus without any change. After discussion, an adjustment of an additional 33 million pounds was made to the 2017-18 available supply of tart cherries as it was determined that this amount would best meet the industry's sales needs. A motion to re-open the discussion and consider a further adjustment for imports was made, but the motion failed to receive support. Thus, the alternatives were rejected. 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 are necessary in those requirements as a result of this action. Should any changes become necessary, they would be submitted to OMB for approval. This proposal would not impose any additional reporting or recordkeeping requirements on either small or large tart cherry handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. AMS is committed to complying with the E-Government Act, to promote the use of the internet and other information technologies to provide increased opportunities for citizen access to Government information and services, and for other purposes. USDA has not identified any relevant Federal rules that duplicate, overlap or conflict with this proposed rule. In addition, the Board's meetings were widely publicized throughout the tart cherry industry, and all interested persons were invited to attend the meeting and participate in Board deliberations on all issues. Like all Board meetings, the June 22, 2017, and September 14, 2017, meetings were public meetings, and all entities, both large and small, were able to express views on this issue. Finally, interested persons are invited to submit comments on this proposed rule, including the regulatory and information collection impacts of this proposal on small businesses. 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 [[Page 21946]] at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT section. A 30-day comment period is provided to allow interested persons to respond to this proposal. All written comments timely received will be considered before a final determination is made on this matter. List of Subjects in 7 CFR Part 930 Marketing agreements, Reporting and recordkeeping requirements, Tart cherries. For the reasons set forth in the preamble, 7 CFR part 930 is proposed to be amended as follows: PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK, PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN 0 1. The authority citation for 7 CFR part 930 continues to read as follows: Authority: 7 U.S.C. 601-674. 0 2. Revise Sec. 930.256 and its heading title to read as follows: Sec. 930.256 Free and restricted percentages for the 2017-18 crop year. The percentages for tart cherries handled by handlers during the crop year beginning on July 1, 2017, which shall be free and restricted, respectively, are designated as follows: Free percentage, 69 percent and restricted percentage, 31 percent. Dated: May 8, 2018. Bruce Summers, Acting Administrator, Agricultural Marketing Service. [FR Doc. 2018-10083 Filed 5-10-18; 8:45 am] BILLING CODE 3410-02-P
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Proposed Rules Federal Register
Vol. 83, No. 92
Friday, May 11, 2018
This section of the FEDERAL REGISTER will be included in the record and will Order of January 30, 2017, titled
contains notices to the public of the proposed be made available to the public. Please ‘Reducing Regulation and Controlling
issuance of rules and regulations. The be advised that the identity of the Regulatory Costs’ ’’ (February 2, 2017).
purpose of these notices is to give interested individuals or entities submitting the This proposed rule has been reviewed
persons an opportunity to participate in the comments will be made public on the under Executive Order 12988, Civil
rule making prior to the adoption of the final
internet at the address provided above. Justice Reform. Under the Order
rules.
FOR FURTHER INFORMATION CONTACT: provisions now in effect, free and
Jennie M. Varela, Marketing Specialist, restricted percentages may be
DEPARTMENT OF AGRICULTURE or Christian D. Nissen, Regional established for tart cherries handled
Director, Southeast Marketing Field during the crop year. This proposed rule
Agricultural Marketing Service Office, Marketing Order and Agreement would establish free and restricted
Division, Specialty Crops Program, percentages for tart cherries for the
7 CFR Part 930 AMS, USDA; Telephone: (863) 324– 2017–18 crop year, beginning July 1,
[Doc. No. AMS–SC–17–0071; SC18–930–1
3375, Fax: (863) 291–8614, or Email: 2017, through June 30, 2018.
PR] Jennie.Varela@ams.usda.gov or The Act provides that administrative
Christian.Nissen@ams.usda.gov. proceedings must be exhausted before
Tart Cherries Grown in the States of Small businesses may request parties may file suit in court. Under
Michigan, et al.; Free and Restricted information on complying with this section 608c(15)(A) of the Act, any
Percentages for the 2017–18 Crop Year regulation by contacting Richard Lower, handler subject to an order may file
for Tart Cherries Marketing Order and Agreement with USDA a petition stating that the
Division, Specialty Crops Program, order, any provision of the order, or any
AGENCY: Agricultural Marketing Service, AMS, USDA, 1400 Independence obligation imposed in connection with
USDA. Avenue SW, STOP 0237, Washington, the order is not in accordance with law
ACTION: Proposed rule. DC 20250–0237; Telephone: (202) 720– and request a modification of the order
2491, Fax: (202) 720–8938, or Email: or to be exempted therefrom. A handler
SUMMARY: This proposed rule would Richard.Lower@ams.usda.gov. is afforded the opportunity for a hearing
implement a recommendation from the on the petition. After the hearing, USDA
SUPPLEMENTARY INFORMATION: This
Cherry Industry Administrative Board would rule on the petition. The Act
action, pursuant to 5 U.S.C. 553,
(Board) to establish free and restricted provides that the district court of the
proposes an amendment to regulations
percentages for the 2017–18 crop year United States in any district in which
issued to carry out a marketing order as
under the Marketing Order for tart the handler is an inhabitant, or has his
defined in 7 CFR 900.2(j). This proposed
cherries grown in the states of Michigan, or her principal place of business, has
rule is issued under Marketing
New York, Pennsylvania, Oregon, Utah, jurisdiction to review USDA’s ruling on
Agreement and Order No. 930, both as
Washington, and Wisconsin. This action the petition, provided an action is filed
amended (7 CFR part 930), regulating
would establish the proportion of tart not later than 20 days after the date of
the handling of tart cherries produced in
cherries from the 2017 crop which may the entry of the ruling.
the states of Michigan, New York,
be handled in commercial outlets. This This proposed rule invites comments
Pennsylvania, Oregon, Utah,
action should stabilize marketing on the establishment of free and
Washington and Wisconsin. Part 930
conditions by adjusting supply to meet restricted percentages for the 2017–18
(referred to as the ‘‘Order’’) is effective
market demand and help improve crop year. This proposal would
under the Agricultural Marketing
grower returns. establish the proportion of tart cherries
Agreement Act of 1937, as amended (7
DATES: Comments must be received by U.S.C. 601–674), hereinafter referred to from the 2017 crop which may be
June 11, 2018. as the ‘‘Act.’’ The Board locally handled in commercial outlets at 69
ADDRESSES: Interested persons are administers the Order and is comprised percent free and 31 percent restricted.
invited to submit written comments of producers and handlers of tart The Secretary has determined that
concerning this proposal. Comments cherries operating within the designating free and restricted
must be sent to the Docket Clerk, production area, and a public member. percentages of tart cherries for the 2017
Marketing Order and Agreement The Department of Agriculture crop year would effectuate the declared
Division, Specialty Crops Program, (USDA) is issuing this proposed rule in policy of the Act to stabilize marketing
AMS, USDA, 1400 Independence conformance with Executive Orders conditions by adjusting supply to meet
Avenue SW, STOP 0237, Washington, 13563 and 13175. This proposed rule market demand and help improve
DC 20250–0237; Fax: (202) 720–8938; or falls within a category of regulatory grower returns. The final percentages
internet: http://www.regulations.gov. All action that the Office of Management were recommended by the Board at a
comments should reference the and Budget (OMB) exempted from meeting on September 14, 2017, and
sradovich on DSK3GMQ082PROD with PROPOSALS
document number and the date and Executive Order 12866 review. have been designated by the Secretary of
page number of this issue of the Federal Additionally, because this proposed Agriculture (Secretary).
Register and will be made available for rule does not meet the definition of a Section 930.51(a) provides the
public inspection in the Office of the significant regulatory action, it does not Secretary authority to regulate volume
Docket Clerk during regular business trigger the requirements contained in by designating free and restricted
hours, or can be viewed at: http:// Executive Order 13771. See OMB’s percentages for any tart cherries
www.regulations.gov. All comments Memorandum titled ‘‘Interim Guidance acquired by handlers in a given crop
submitted in response to this proposal Implementing Section 2 of the Executive year. Section 930.50 prescribes
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![21946 Federal Register / Vol. 83, No. 92 / Friday, May 11, 2018 / Proposed Rules
at the previously mentioned address in –200C, –300, –400, and –500 series FOR FURTHER INFORMATION CONTACT:
the FOR FURTHER INFORMATION CONTACT airplanes. This proposed AD was David Truong, Aerospace Engineer,
section. prompted by a report indicating that Airframe Section, FAA, Los Angeles
A 30-day comment period is provided cracks were found on the fuselage frame ACO Branch, 3960 Paramount
to allow interested persons to respond webs at stations forward and aft of the Boulevard, Lakewood, CA 90712–4137;
to this proposal. All written comments overwing emergency exits between phone: 562–627–5224; fax: 562–627–
timely received will be considered stringers S–7 and S–8. This proposed 5210; email: david.truong@faa.gov.
before a final determination is made on AD would require repetitive high SUPPLEMENTARY INFORMATION:
this matter. frequency eddy current (HFEC)
Comments Invited
inspections for cracking of the fuselage
List of Subjects in 7 CFR Part 930 We invite you to send any written
frame webs at certain stations between
Marketing agreements, Reporting and stringers S–7 and S–8 and applicable relevant data, views, or arguments about
recordkeeping requirements, Tart on-condition actions. We are proposing this proposal. Send your comments to
cherries. this AD to address the unsafe condition an address listed under the ADDRESSES
For the reasons set forth in the on these products. section. Include ‘‘Docket No. FAA–
preamble, 7 CFR part 930 is proposed to DATES: We must receive comments on 2018–0392; Product Identifier 2018–
be amended as follows: this proposed AD by June 25, 2018. NM–044–AD’’ at the beginning of your
comments. We specifically invite
ADDRESSES: You may send comments,
PART 930—TART CHERRIES GROWN comments on the overall regulatory,
using the procedures found in 14 CFR economic, environmental, and energy
IN THE STATES OF MICHIGAN, NEW 11.43 and 11.45, by any of the following
YORK, PENNSYLVANIA, OREGON, aspects of this NPRM. We will consider
methods: all comments received by the closing
UTAH, WASHINGTON, AND • Federal eRulemaking Portal: Go to
WISCONSIN date and may amend this NPRM
http://www.regulations.gov. Follow the because of those comments.
instructions for submitting comments. We will post all comments we
■ 1. The authority citation for 7 CFR
• Fax: 202–493–2251. receive, without change, to http://
part 930 continues to read as follows:
• Mail: U.S. Department of www.regulations.gov, including any
Authority: 7 U.S.C. 601–674. Transportation, Docket Operations, M– personal information you provide. We
■ 2. Revise § 930.256 and its heading 30, West Building Ground Floor, Room will also post a report summarizing each
title to read as follows: W12–140, 1200 New Jersey Avenue SE, substantive verbal contact we receive
Washington, DC 20590. about this proposed AD.
§ 930.256 Free and restricted percentages • Hand Delivery: Deliver to Mail
for the 2017–18 crop year. address above between 9 a.m. and 5 Discussion
The percentages for tart cherries p.m., Monday through Friday, except We have received a report indicating
handled by handlers during the crop Federal holidays. that cracks were found on the fuselage
year beginning on July 1, 2017, which For service information identified in frame webs at stations forward and aft
shall be free and restricted, respectively, this NPRM, contact Boeing Commercial of the overwing emergency exits
are designated as follows: Free Airplanes, Attention: Contractual & Data between stringers S–7 and S–8. Cracks
percentage, 69 percent and restricted Services (C&DS), 2600 Westminster were found at multiple stations and
percentage, 31 percent. Blvd., MC 110–SK57, Seal Beach, CA ranged in length from 2.4 inches to 2.55
Dated: May 8, 2018. 90740–5600; telephone 562–797–1717; inches. The cracks started at the end
Bruce Summers, internet https:// fastener common to the uppermost
Acting Administrator, Agricultural Marketing www.myboeingfleet.com. You may view shear tie above the emergency exit
Service. this referenced service information at doors, where there is high load transfer
[FR Doc. 2018–10083 Filed 5–10–18; 8:45 am]
the FAA, Transport Standards Branch, due to high shear flows around the
2200 South 216th St., Des Moines, WA. emergency exit doors. The cracks are the
BILLING CODE 3410–02–P
For information on the availability of result of fatigue loading caused by
this material at the FAA, call 206–231– cyclic pressurization of the fuselage.
3195. It is also available on the internet This condition, if not addressed, could
DEPARTMENT OF TRANSPORTATION at http://www.regulations.gov by result in fuselage frame web cracking,
searching for and locating Docket No. which may lead to subsequent failure of
Federal Aviation Administration
FAA–2018–0392. the surrounding structure, and
14 CFR Part 39 Examining the AD Docket ultimately result in rapid
decompression and loss of structural
[Docket No. FAA–2018–0392; Product You may examine the AD docket on integrity of the airplane.
Identifier 2018–NM–044–AD] the internet at http://
www.regulations.gov by searching for Related Service Information Under 1
RIN 2120–AA64 and locating Docket No. FAA–2018– CFR Part 51
0392; or in person at Docket Operations We reviewed Boeing Alert
Airworthiness Directives; The Boeing
between 9 a.m. and 5 p.m., Monday Requirements Bulletin 737–53A1371
Company Airplanes
through Friday, except Federal holidays. RB, dated January 19, 2018. The service
sradovich on DSK3GMQ082PROD with PROPOSALS
AGENCY: Federal Aviation The AD docket contains this NPRM, the information describes procedures for
Administration (FAA), DOT. regulatory evaluation, any comments repetitive HFEC inspections for cracking
ACTION: Notice of proposed rulemaking received, and other information. The of the fuselage frame webs at certain
(NPRM). street address for Docket Operations stations between stringers S–7 and S–8
(phone: 800–647–5527) is in the and applicable on-condition actions.
SUMMARY: We propose to adopt a new ADDRESSES section. Comments will be The on-condition action is repair. This
airworthiness directive (AD) for all The available in the AD docket shortly after service information is reasonably
Boeing Company Model 737–100, –200, receipt. available because the interested parties
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Document Created: 2018-11-02 09:49:17
Document Modified: 2018-11-02 09:49:17
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Proposed rule. | |
| Dates | Comments must be received by June 11, 2018. | |
| 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] | |
| FR Citation | 83 FR 21941 | |
| CFR Associated | Marketing Agreements; Reporting and Recordkeeping Requirements and Tart Cherries |
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