83_FR_24146 83 FR 24045 - Irish Potatoes Grown in Colorado; Increased Assessment Rate for Area No. 2

83 FR 24045 - Irish Potatoes Grown in Colorado; Increased Assessment Rate for Area No. 2

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 101 (May 24, 2018)

Page Range24045-24047
FR Document2018-11084

This proposed rule would implement a recommendation from the Colorado Potato Administrative Committee (Committee) to increase the assessment rate established for Area No. 2 for the 2018-2019 and subsequent fiscal periods. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 101 (Thursday, May 24, 2018)
[Federal Register Volume 83, Number 101 (Thursday, May 24, 2018)]
[Proposed Rules]
[Pages 24045-24047]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-11084]


========================================================================
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. 101 / Thursday, May 24, 2018 / 
Proposed Rules

[[Page 24045]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

[Doc. No. AMS-SC-18-0022; SC18-948-1 PR]


Irish Potatoes Grown in Colorado; Increased Assessment Rate for 
Area No. 2

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Colorado Potato Administrative Committee (Committee) to increase the 
assessment rate established for Area No. 2 for the 2018-2019 and 
subsequent fiscal periods. The assessment rate would remain in effect 
indefinitely unless modified, suspended, or terminated.

DATES: Comments must be received by June 25, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. Comments should reference the document number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing 
Specialist, or Gary Olson, Regional Director, Northwest Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or 
email: Barry.Broadbent@ams.usda.gov or GaryD.Olson@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 No. 97 and Order No. 948, as amended (7 CFR part 
948), regulating the handling of Irish potatoes grown in Colorado. Part 
948, (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 Committee locally 
administers the Order and is comprised of producers and handlers 
operating within the area of production.
    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 actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposal 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, Colorado Area No. 2 potato 
handlers are subject to assessments. Funds to administer the Order are 
derived from such assessments. It is intended that the assessment rate 
would be applicable to all assessable potatoes in Area No. 2 for the 
2018-2019 fiscal period, 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.
    The Order provides authority for each area Committee, with the 
approval of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members are 
familiar with the Committee's needs and with the costs of goods and 
services in their local area and are thus in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    This proposal would increase the assessment rate for Area No. 2 
from $0.0033 to $0.006 per hundredweight of potatoes handled for the 
2018-2019 and subsequent fiscal periods. The Committee established the 
current rate in 2013-2014 fiscal period to reduce the Committee's 
monetary reserve to a level that it determined to be appropriate under 
the Order. Since that action, the reserve fund has been drawn down to 
approximately 15 percent of annual budgeted expenditures. The $0.006 
per hundredweight assessment rate would realign annual assessment 
revenue with expected administrative expenses moving forward and would 
no longer require the utilization of the monetary

[[Page 24046]]

reserve to fund a portion of the Committee's budgeted expenditures.
    The Committee met on March 15, 2018 to consider the Committee's 
projected 2018-2019 financial requirements, the size of the Committee's 
operating reserve, and the Order's continuing assessment rate. The 
Committee unanimously recommended an assessment rate of $0.006 per 
hundredweight of potatoes for the 2018-2019 fiscal period. The proposed 
assessment rate of $0.006 is $0.0027 higher than the rate currently in 
effect. Without the proposed increase, anticipated assessment revenue 
would not be sufficient to fund the Committee's ongoing administrative 
function, and the balance in the Committee's monetary reserve would not 
be enough to cover the deficit. The assessment rate increase is 
necessary to maintain the Committee's oversight activities at current 
levels and avoid a reduction in the program's effectiveness.
    For the 2017-2018 fiscal period, the Committee adopted a budget of 
$79,623. The Committee expects to recommend a similar level of budgeted 
expenditures for the 2018-2019 fiscal period at its meeting in May 
2018. The Committee anticipates its budgeted expenditures for the 2018-
2019 fiscal period to be close to the budgeted amounts for the 2017-
2018 fiscal period. Budgeted expenditures for the 2017-2018 fiscal 
period included $66,110 for administrative expenses, $6,138 for office 
expenses, and $7,375 for facilities/utilities. The Committee's annual 
budget has been relatively stable over the past five years, with 
average growth of approximately 2.7 percent. The Committee's budget 
five years ago for the 2013-2014 fiscal period was $71,227, compared to 
the 2017-2018 fiscal period budget of $79,623.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments, and the amount of 
funds available in the authorized reserve. Expected income derived from 
handler assessments of $84,000 (estimated 14,000,000 hundredweight 
times $0.006 per hundredweight) would be adequate to cover budgeted 
expenses of between $81,000 and $83,000 and put a small amount back 
into the Committee's monetary reserve fund. Funds in the reserve 
(currently expected to be $11,848 at the end of the 2017-2018 fiscal 
period) would be kept within the maximum permitted by Sec.  
[thinsp]948.78.
    The assessment rate proposed in this rule would continue in effect 
indefinitely unless modified, suspended, or terminated by USDA upon 
recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee would continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA would evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's budget for subsequent 
fiscal periods would be reviewed and, as appropriate, approved by USDA.

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 the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 160 producers of Colorado Area No. 2 
potatoes in the production area and approximately 60 handlers subject 
to regulation under the Order. Small agricultural producers are defined 
by the Small Business Administration (SBA) as those having annual 
receipts less than $750,000, and small agricultural service firms are 
defined as those whose annual receipts are less than $7,500,000 (13 CFR 
121.201).
    According to data from USDA's Market News, the 2016-2017 season 
weighted average f.o.b. price for Colorado potatoes was approximately 
$12.06 per hundredweight. The Committee reported that shipments for the 
2016-2017 fiscal period were 13.9 million hundredweight. Using the 
number of handlers, and assuming a normal distribution, the majority of 
handlers would have average annual receipts of less than $7,500,000 
($12.06 times 13.9 million equals $167,634,000 divided by 60 handlers 
equals $2,793,900 per handler).
    In addition, based on data from USDA's National Agricultural 
Statistics Service, the season average producer price for Colorado 
potatoes for the 2016-2017 crop year was approximately $9.60 per 
hundredweight. Based on producer price, shipment data, and the total 
number of Colorado Area No. 2 potato producers, and assuming a normal 
distribution, the average annual producer revenue is above $750,000 
($9.60 times 13.9 million hundredweight equals $133,440,000 divided by 
160 producers equals $834,000 per producer). Thus, the majority of 
Colorado Area No. 2 potato handlers may be classified as small 
entities, while many of the Colorado Area No. 2 potato producers may be 
classified as large entities.
    This proposal would increase the assessment rate collected from 
handlers for the 2018-2019 and subsequent fiscal periods from $0.0033 
to $0.006 per hundredweight of Colorado Area No. 2 potatoes. The 
Committee unanimously recommended the proposed increase. The proposed 
assessment rate of $0.006 is $0.0027 higher than the 2017-2018 rate. 
The quantity of assessable potatoes for the 2018-2019 fiscal period is 
estimated at 14 million hundredweight. Thus, the $0.006 rate should 
provide $84,000 in assessment income. Income derived from handler 
assessments would be adequate to cover budgeted expenses.
    The Committee adopted a budget of $79,623 for the 2017-2018 fiscal 
period and expects to recommend a similar amount in budgeted 
expenditures for the 2018-2019 fiscal period at its scheduled May 2018 
meeting. The major budgeted expenditures for the 2017-2018 year 
included $66,110 for administrative expenses, $6,138 for office 
expenses, and $7,375 for facilities/utilities. Budgeted expenses for 
these items in 2016-2017 were $65,894, $6,587, and $6,313, 
respectively.
    Prior to arriving at this proposed assessment rate, the Committee 
considered the benefits and costs related to establishing other 
assessment rates. However, the Committee determined that any assessment 
rate other than the $0.006 per hundredweight rate would either generate 
insufficient revenue to meet the Committee's expected expenses for the 
2018-2019 fiscal period or would result in a larger than desired 
addition to the Committee's reserve. Based on estimated shipments, the 
recommended assessment rate of $0.006 should provide $84,000 in

[[Page 24047]]

assessment income. The Committee determined that this level of 
assessment revenue would be adequate to cover budgeted expenses for the 
2018-2019 fiscal period without unduly increasing reserve funds.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal year indicates that the average 
producer price for the 2018-2019 season should be approximately $9.26 
per hundredweight of potatoes. Therefore, the estimated assessment 
revenue for the 2018-2019 fiscal period as a percentage of total 
producer revenue would be about 0.06 percent.
    This proposed action would 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 additional costs may be passed on to producers. However, these 
costs would be offset by the benefits derived by the operation of the 
Order. In addition, the Committee's meetings were widely publicized 
throughout the Colorado potato industry. All interested persons were 
invited to attend the meetings and participate in Committee 
deliberations on all issues. Like all Committee meetings, the March 15, 
2018 meeting was a public meeting 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 action on 
small businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by the OMB and assigned OMB No. 0581-0178, Generic 
Vegetable and Specialty Crops. No changes in those requirements would 
be necessary as a result of this action. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Colorado potato 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    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.
    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.

List of Subjects in 7 CFR Part 948

    Marketing agreements, Potatoes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 948 is 
proposed to be amended as follows:

PART 948--IRISH POTATOES GROWN IN COLORADO

0
1. The authority citation for 7 CFR part 948 continues to read as 
follows:

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

0
2. Section 948.216 is revised to read as follows:


Sec.  948.216   Assessment rate.

    On and after September 1, 2018, an assessment rate of $0.006 per 
hundredweight is established for Colorado Area No. 2 potatoes.

    Dated: May 18, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-11084 Filed 5-23-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                  24045

                                                  Proposed Rules                                                                                                Federal Register
                                                                                                                                                                Vol. 83, No. 101

                                                                                                                                                                Thursday, May 24, 2018



                                                  This section of the FEDERAL REGISTER                    FOR FURTHER INFORMATION CONTACT:                      such assessments. It is intended that the
                                                  contains notices to the public of the proposed          Barry Broadbent, Senior Marketing                     assessment rate would be applicable to
                                                  issuance of rules and regulations. The                  Specialist, or Gary Olson, Regional                   all assessable potatoes in Area No. 2 for
                                                  purpose of these notices is to give interested          Director, Northwest Marketing Field                   the 2018–2019 fiscal period, and
                                                  persons an opportunity to participate in the            Office, Marketing Order and Agreement                 continue until amended, suspended, or
                                                  rule making prior to the adoption of the final
                                                  rules.
                                                                                                          Division, Specialty Crops Program,                    terminated.
                                                                                                          AMS, USDA; Telephone: (503) 326–                         The Act provides that administrative
                                                                                                          2724, Fax: (503) 326–7440, or email:                  proceedings must be exhausted before
                                                  DEPARTMENT OF AGRICULTURE                               Barry.Broadbent@ams.usda.gov or                       parties may file suit in court. Under
                                                                                                          GaryD.Olson@ams.usda.gov.                             section 608c(15)(A) of the Act, any
                                                  Agricultural Marketing Service                             Small businesses may request                       handler subject to an order may file
                                                                                                          information on complying with this                    with USDA a petition stating that the
                                                  7 CFR Part 948                                          regulation by contacting Richard Lower,               order, any provision of the order, or any
                                                                                                          Marketing Order and Agreement                         obligation imposed in connection with
                                                  [Doc. No. AMS–SC–18–0022; SC18–948–1                    Division, Specialty Crops Program,                    the order is not in accordance with law
                                                  PR]                                                     AMS, USDA, 1400 Independence                          and request a modification of the order
                                                                                                          Avenue SW, STOP 0237, Washington,                     or to be exempted therefrom. Such
                                                  Irish Potatoes Grown in Colorado;                       DC 20250–0237; Telephone: (202) 720–                  handler is afforded the opportunity for
                                                  Increased Assessment Rate for Area                      2491, Fax: (202)720–8938, or email:                   a hearing on the petition. After the
                                                  No. 2                                                   Richard.Lower@ams.usda.gov.                           hearing, USDA would rule on the
                                                                                                          SUPPLEMENTARY INFORMATION: This                       petition. The Act provides that the
                                                  AGENCY:  Agricultural Marketing Service,
                                                                                                          action, pursuant to 5 U.S.C. 553,                     district court of the United States in any
                                                  USDA.
                                                                                                          proposes an amendment to regulations                  district in which the handler is an
                                                  ACTION: Proposed rule.                                                                                        inhabitant, or has his or her principal
                                                                                                          issued to carry out a marketing order as
                                                  SUMMARY:   This proposed rule would                     defined in 7 CFR 900.2(j). This proposed              place of business, has jurisdiction to
                                                  implement a recommendation from the                     rule is issued under Marketing                        review USDA’s ruling on the petition,
                                                  Colorado Potato Administrative                          Agreement No. 97 and Order No. 948, as                provided an action is filed not later than
                                                  Committee (Committee) to increase the                   amended (7 CFR part 948), regulating                  20 days after the date of the entry of the
                                                  assessment rate established for Area No.                the handling of Irish potatoes grown in               ruling.
                                                  2 for the 2018–2019 and subsequent                      Colorado. Part 948, (referred to as the                  The Order provides authority for each
                                                  fiscal periods. The assessment rate                     ‘‘Order’’) is effective under the                     area Committee, with the approval of
                                                  would remain in effect indefinitely                     Agricultural Marketing Agreement Act                  USDA, to formulate an annual budget of
                                                  unless modified, suspended, or                          of 1937, as amended (7 U.S.C. 601–674),               expenses and collect assessments from
                                                  terminated.                                             hereinafter referred to as the ‘‘Act.’’ The           handlers to administer the program. The
                                                                                                          Committee locally administers the                     members are familiar with the
                                                  DATES: Comments must be received by                     Order and is comprised of producers                   Committee’s needs and with the costs of
                                                  June 25, 2018.                                          and handlers operating within the area                goods and services in their local area
                                                  ADDRESSES: Interested persons are                       of production.                                        and are thus in a position to formulate
                                                  invited to submit written comments                         The Department of Agriculture                      an appropriate budget and assessment
                                                  concerning this proposed rule.                          (USDA) is issuing this proposed rule in               rate. The assessment rate is formulated
                                                  Comments must be sent to the Docket                     conformance with Executive Orders                     and discussed in a public meeting.
                                                  Clerk, Marketing Order and Agreement                    13563 and 13175. This proposed rule                   Thus, all directly affected persons have
                                                  Division, Specialty Crops Program,                      falls within a category of regulatory                 an opportunity to participate and
                                                  AMS, USDA, 1400 Independence                            actions that the Office of Management                 provide input.
                                                  Avenue SW, STOP 0237, Washington,                       and Budget (OMB) exempted from                           This proposal would increase the
                                                  DC 20250–0237; Fax: (202) 720–8938; or                  Executive Order 12866 review.                         assessment rate for Area No. 2 from
                                                  internet: http://www.regulations.gov.                   Additionally, because this proposal                   $0.0033 to $0.006 per hundredweight of
                                                  Comments should reference the                           does not meet the definition of a                     potatoes handled for the 2018–2019 and
                                                  document number and the date and                        significant regulatory action, it does not            subsequent fiscal periods. The
                                                  page number of this issue of the Federal                trigger the requirements contained in                 Committee established the current rate
                                                  Register and will be available for public               Executive Order 13771. See OMB’s                      in 2013–2014 fiscal period to reduce the
                                                  inspection in the Office of the Docket                  Memorandum titled ‘‘Interim Guidance                  Committee’s monetary reserve to a level
                                                  Clerk during regular business hours, or                 Implementing Section 2 of the Executive               that it determined to be appropriate
                                                  can be viewed at: http://                               Order of January 30, 2017, titled                     under the Order. Since that action, the
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                  www.regulations.gov. All comments                       ‘Reducing Regulation and Controlling                  reserve fund has been drawn down to
                                                  submitted in response to this rule will                 Regulatory Costs’ ’’ (February 2, 2017).              approximately 15 percent of annual
                                                  be included in the record and will be                      This proposed rule has been reviewed               budgeted expenditures. The $0.006 per
                                                  made available to the public. Please be                 under Executive Order 12988, Civil                    hundredweight assessment rate would
                                                  advised that the identity of the                        Justice Reform. Under the Order,                      realign annual assessment revenue with
                                                  individuals or entities submitting the                  Colorado Area No. 2 potato handlers are               expected administrative expenses
                                                  comments will be made public on the                     subject to assessments. Funds to                      moving forward and would no longer
                                                  internet at the address provided above.                 administer the Order are derived from                 require the utilization of the monetary


                                             VerDate Sep<11>2014   18:08 May 23, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\24MYP1.SGM   24MYP1


                                                  24046                   Federal Register / Vol. 83, No. 101 / Thursday, May 24, 2018 / Proposed Rules

                                                  reserve to fund a portion of the                        upon recommendation and information                   times 13.9 million equals $167,634,000
                                                  Committee’s budgeted expenditures.                      submitted by the Committee or other                   divided by 60 handlers equals
                                                     The Committee met on March 15,                       available information.                                $2,793,900 per handler).
                                                  2018 to consider the Committee’s                           Although this assessment rate would                   In addition, based on data from
                                                  projected 2018–2019 financial                           be in effect for an indefinite period, the            USDA’s National Agricultural Statistics
                                                  requirements, the size of the                           Committee would continue to meet                      Service, the season average producer
                                                  Committee’s operating reserve, and the                  prior to or during each fiscal period to              price for Colorado potatoes for the
                                                  Order’s continuing assessment rate. The                 recommend a budget of expenses and                    2016–2017 crop year was approximately
                                                  Committee unanimously recommended                       consider recommendations for                          $9.60 per hundredweight. Based on
                                                  an assessment rate of $0.006 per                        modification of the assessment rate. The              producer price, shipment data, and the
                                                  hundredweight of potatoes for the 2018–                 dates and times of Committee meetings                 total number of Colorado Area No. 2
                                                  2019 fiscal period. The proposed                        are available from the Committee or                   potato producers, and assuming a
                                                  assessment rate of $0.006 is $0.0027                    USDA. Committee meetings are open to                  normal distribution, the average annual
                                                  higher than the rate currently in effect.               the public and interested persons may                 producer revenue is above $750,000
                                                  Without the proposed increase,                          express their views at these meetings.                ($9.60 times 13.9 million
                                                  anticipated assessment revenue would                    USDA would evaluate Committee                         hundredweight equals $133,440,000
                                                  not be sufficient to fund the                           recommendations and other available                   divided by 160 producers equals
                                                  Committee’s ongoing administrative                      information to determine whether                      $834,000 per producer). Thus, the
                                                  function, and the balance in the                        modification of the assessment rate is                majority of Colorado Area No. 2 potato
                                                  Committee’s monetary reserve would                      needed. Further rulemaking would be                   handlers may be classified as small
                                                  not be enough to cover the deficit. The                 undertaken as necessary. The                          entities, while many of the Colorado
                                                  assessment rate increase is necessary to                Committee’s budget for subsequent                     Area No. 2 potato producers may be
                                                  maintain the Committee’s oversight                      fiscal periods would be reviewed and,                 classified as large entities.
                                                  activities at current levels and avoid a                as appropriate, approved by USDA.                        This proposal would increase the
                                                  reduction in the program’s effectiveness.                                                                     assessment rate collected from handlers
                                                     For the 2017–2018 fiscal period, the                 Initial Regulatory Flexibility Analysis               for the 2018–2019 and subsequent fiscal
                                                  Committee adopted a budget of $79,623.                    Pursuant to requirements set forth in               periods from $0.0033 to $0.006 per
                                                  The Committee expects to recommend a                    the Regulatory Flexibility Act (RFA) (5               hundredweight of Colorado Area No. 2
                                                  similar level of budgeted expenditures                  U.S.C. 601–612), the Agricultural                     potatoes. The Committee unanimously
                                                  for the 2018–2019 fiscal period at its                  Marketing Service (AMS) has                           recommended the proposed increase.
                                                  meeting in May 2018. The Committee                      considered the economic impact of this                The proposed assessment rate of $0.006
                                                  anticipates its budgeted expenditures                   proposed rule on small entities.                      is $0.0027 higher than the 2017–2018
                                                  for the 2018–2019 fiscal period to be                   Accordingly, AMS has prepared this                    rate. The quantity of assessable potatoes
                                                  close to the budgeted amounts for the                   initial regulatory flexibility analysis.              for the 2018–2019 fiscal period is
                                                  2017–2018 fiscal period. Budgeted                         The purpose of the RFA is to fit                    estimated at 14 million hundredweight.
                                                  expenditures for the 2017–2018 fiscal                   regulatory actions to the scale of                    Thus, the $0.006 rate should provide
                                                  period included $66,110 for                             businesses subject to such actions in                 $84,000 in assessment income. Income
                                                  administrative expenses, $6,138 for                     order that small businesses will not be               derived from handler assessments
                                                  office expenses, and $7,375 for                         unduly or disproportionately burdened.                would be adequate to cover budgeted
                                                  facilities/utilities. The Committee’s                   Marketing orders issued pursuant to the               expenses.
                                                  annual budget has been relatively stable                Act, and the rules issued thereunder, are                The Committee adopted a budget of
                                                  over the past five years, with average                  unique in that they are brought about                 $79,623 for the 2017–2018 fiscal period
                                                  growth of approximately 2.7 percent.                    through group action of essentially                   and expects to recommend a similar
                                                  The Committee’s budget five years ago                   small entities acting on their own                    amount in budgeted expenditures for
                                                  for the 2013–2014 fiscal period was                     behalf.                                               the 2018–2019 fiscal period at its
                                                  $71,227, compared to the 2017–2018                        There are approximately 160                         scheduled May 2018 meeting. The major
                                                  fiscal period budget of $79,623.                        producers of Colorado Area No. 2                      budgeted expenditures for the 2017–
                                                     The assessment rate recommended by                   potatoes in the production area and                   2018 year included $66,110 for
                                                  the Committee was derived by                            approximately 60 handlers subject to                  administrative expenses, $6,138 for
                                                  considering anticipated expenses,                       regulation under the Order. Small                     office expenses, and $7,375 for
                                                  expected shipments, and the amount of                   agricultural producers are defined by                 facilities/utilities. Budgeted expenses
                                                  funds available in the authorized                       the Small Business Administration                     for these items in 2016–2017 were
                                                  reserve. Expected income derived from                   (SBA) as those having annual receipts                 $65,894, $6,587, and $6,313,
                                                  handler assessments of $84,000                          less than $750,000, and small                         respectively.
                                                  (estimated 14,000,000 hundredweight                     agricultural service firms are defined as                Prior to arriving at this proposed
                                                  times $0.006 per hundredweight) would                   those whose annual receipts are less                  assessment rate, the Committee
                                                  be adequate to cover budgeted expenses                  than $7,500,000 (13 CFR 121.201).                     considered the benefits and costs related
                                                  of between $81,000 and $83,000 and put                    According to data from USDA’s                       to establishing other assessment rates.
                                                  a small amount back into the                            Market News, the 2016–2017 season                     However, the Committee determined
                                                  Committee’s monetary reserve fund.                      weighted average f.o.b. price for                     that any assessment rate other than the
                                                  Funds in the reserve (currently expected                Colorado potatoes was approximately                   $0.006 per hundredweight rate would
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                  to be $11,848 at the end of the 2017–                   $12.06 per hundredweight. The                         either generate insufficient revenue to
                                                  2018 fiscal period) would be kept                       Committee reported that shipments for                 meet the Committee’s expected
                                                  within the maximum permitted by                         the 2016–2017 fiscal period were 13.9                 expenses for the 2018–2019 fiscal
                                                  § 948.78.                                               million hundredweight. Using the                      period or would result in a larger than
                                                     The assessment rate proposed in this                 number of handlers, and assuming a                    desired addition to the Committee’s
                                                  rule would continue in effect                           normal distribution, the majority of                  reserve. Based on estimated shipments,
                                                  indefinitely unless modified,                           handlers would have average annual                    the recommended assessment rate of
                                                  suspended, or terminated by USDA                        receipts of less than $7,500,000 ($12.06              $0.006 should provide $84,000 in


                                             VerDate Sep<11>2014   18:08 May 23, 2018   Jkt 244001   PO 00000   Frm 00002   Fmt 4702   Sfmt 4702   E:\FR\FM\24MYP1.SGM   24MYP1


                                                                          Federal Register / Vol. 83, No. 101 / Thursday, May 24, 2018 / Proposed Rules                                          24047

                                                  assessment income. The Committee                        access to Government information and                  AGENCY: Federal Aviation
                                                  determined that this level of assessment                services, and for other purposes.                     Administration (FAA), DOT.
                                                  revenue would be adequate to cover                         USDA has not identified any relevant               ACTION: Notice of proposed rulemaking
                                                  budgeted expenses for the 2018–2019                     Federal rules that duplicate, overlap, or             (NPRM).
                                                  fiscal period without unduly increasing                 conflict with this proposed rule.
                                                  reserve funds.                                             A small business guide on complying                SUMMARY:   This action proposes to
                                                     A review of historical information and               with fruit, vegetable, and specialty crop             amend six United States Area
                                                  preliminary information pertaining to                   marketing agreements and orders may                   Navigation (RNAV) routes (Q–88, Q–90,
                                                  the upcoming fiscal year indicates that                 be viewed at: http://www.ams.usda.gov/                Q–114, Q–126, Q–136, and Q–150) and
                                                  the average producer price for the 2018–                rules-regulations/moa/small-businesses.               establish one RNAV route (Q–92) in the
                                                  2019 season should be approximately                     Any questions about the compliance                    western United States. The routes
                                                  $9.26 per hundredweight of potatoes.                    guide should be sent to Richard Lower                 would support standard instrument
                                                  Therefore, the estimated assessment                     at the previously mentioned address in                departures (SIDs) and standard terminal
                                                  revenue for the 2018–2019 fiscal period                 the FOR FURTHER INFORMATION CONTACT                   arrival routes (STARs) for Denver
                                                  as a percentage of total producer                       section.                                              International Airport. Additionally, the
                                                  revenue would be about 0.06 percent.                                                                          routes will promote operational
                                                                                                          List of Subjects in 7 CFR Part 948
                                                     This proposed action would increase                                                                        efficiencies for users and provide
                                                  the assessment obligation imposed on                      Marketing agreements, Potatoes,                     connectivity to current and proposed
                                                  handlers. While assessments impose                      Reporting and recordkeeping                           RNAV enroute procedures while
                                                  some additional costs on handlers, the                  requirements.                                         enhancing capacity for adjacent airports.
                                                  costs are minimal and uniform on all                      For the reasons set forth in the                    DATES: Comments must be received on
                                                  handlers. Some of the additional costs                  preamble, 7 CFR part 948 is proposed to               or before July 2, 2018.
                                                  may be passed on to producers.                          be amended as follows:                                ADDRESSES: Send comments on this
                                                  However, these costs would be offset by                                                                       proposal to the U.S. Department of
                                                  the benefits derived by the operation of                PART 948—IRISH POTATOES GROWN                         Transportation, Docket Operations, 1200
                                                  the Order. In addition, the Committee’s                 IN COLORADO                                           New Jersey Avenue SE, West Building
                                                  meetings were widely publicized                         ■ 1. The authority citation for 7 CFR                 Ground Floor, Room W12–140,
                                                  throughout the Colorado potato                          part 948 continues to read as follows:                Washington, DC 20590; telephone:
                                                  industry. All interested persons were                                                                         1 (800) 647–5527, or (202) 366–9826.
                                                  invited to attend the meetings and                          Authority: 7 U.S.C. 601–674.                      You must identify FAA Docket No.
                                                  participate in Committee deliberations                  ■ 2. Section 948.216 is revised to read               FAA–2018–0232; Airspace Docket No.
                                                  on all issues. Like all Committee                       as follows:                                           17–ANM–33 at the beginning of your
                                                  meetings, the March 15, 2018 meeting                                                                          comments. You may also submit
                                                  was a public meeting and all entities,                  § 948.216    Assessment rate.
                                                                                                                                                                comments through the internet at http://
                                                  both large and small, were able to                        On and after September 1, 2018, an                  www.regulations.gov.
                                                  express views on this issue. Finally,                   assessment rate of $0.006 per                            FAA Order 7400.11B, Airspace
                                                  interested persons are invited to submit                hundredweight is established for                      Designations and Reporting Points, and
                                                  comments on this proposed rule,                         Colorado Area No. 2 potatoes.                         subsequent amendments can be viewed
                                                  including the regulatory and                              Dated: May 18, 2018.                                online at http://www.faa.gov/air_traffic/
                                                  information collection impacts of this                  Bruce Summers,                                        publications/. For further information,
                                                  action on small businesses.                             Administrator, Agricultural Marketing                 you can contact the Airspace Policy
                                                     In accordance with the Paperwork                     Service.                                              Group, Federal Aviation
                                                  Reduction Act of 1995 (44 U.S.C.                        [FR Doc. 2018–11084 Filed 5–23–18; 8:45 am]           Administration, 800 Independence
                                                  Chapter 35), the Order’s information                    BILLING CODE 3410–02–P
                                                                                                                                                                Avenue SW, Washington, DC 20591;
                                                  collection requirements have been                                                                             telephone: (202) 267–8783. The Order is
                                                  previously approved by the OMB and                                                                            also available for inspection at the
                                                  assigned OMB No. 0581–0178, Generic                     DEPARTMENT OF TRANSPORTATION                          National Archives and Records
                                                  Vegetable and Specialty Crops. No                                                                             Administration (NARA). For
                                                  changes in those requirements would be                  Federal Aviation Administration                       information on the availability of FAA
                                                  necessary as a result of this action.                                                                         Order 7400.11B at NARA, call (202)
                                                  Should any changes become necessary,                    14 CFR Part 71                                        741–6030, or go to https://
                                                  they would be submitted to OMB for                                                                            www.archives.gov/federal-register/cfr/
                                                  approval.                                               [Docket No. FAA–2018–0232; Airspace                   ibr-locations.html.
                                                                                                          Docket No. 17–ANM–33]                                    FAA Order 7400.11, Airspace
                                                     This proposed rule would not impose
                                                  any additional reporting or                             RIN 2120–AA66                                         Designations and Reporting Points, is
                                                  recordkeeping requirements on either                                                                          published yearly and effective on
                                                  small or large Colorado potato handlers.                Proposed Amendment and                                September 15.
                                                  As with all Federal marketing order                     Establishment of Multiple Air Traffic                 FOR FURTHER INFORMATION CONTACT:
                                                  programs, reports and forms are                         Service (ATS) Routes; Western United                  Kenneth Ready, Airspace Policy Group,
                                                  periodically reviewed to reduce                         States                                                Office of Airspace Services, Federal
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                  information requirements and                                                                                  Aviation Administration, 800
                                                  duplication by industry and public                        Editorial Note: Proposed Rule document              Independence Avenue SW, Washington,
                                                  sector agencies.                                        2018–10466 was originally published on                DC 20591; telephone: (202) 267–8783.
                                                                                                          pages 22891 through 22894 in the issue of
                                                     AMS is committed to complying with                   Thursday, May 17, 2018. In that publication,          SUPPLEMENTARY INFORMATION:
                                                  the E-Government Act, to promote the                    on pages 22893 through 22894, the latitude
                                                  use of the internet and other                                                                                 Authority for This Rulemaking
                                                                                                          coordinates appeared incorrectly. The
                                                  information technologies to provide                     corrected document is published here in its             The FAA’s authority to issue rules
                                                  increased opportunities for citizen                     entirety.                                             regarding aviation safety is found in


                                             VerDate Sep<11>2014   18:08 May 23, 2018   Jkt 244001   PO 00000   Frm 00003   Fmt 4702   Sfmt 4702   E:\FR\FM\24MYP1.SGM   24MYP1



Document Created: 2018-05-24 00:05:33
Document Modified: 2018-05-24 00:05:33
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by June 25, 2018.
ContactBarry Broadbent, Senior Marketing Specialist, or Gary Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2724, Fax: (503) 326-7440, or email: [email protected] or [email protected]
FR Citation83 FR 24045 
CFR AssociatedMarketing Agreements; Potatoes and Reporting and Recordkeeping Requirements

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR