83_FR_43667 83 FR 43501 - Irish Potatoes Grown in Colorado; Increased Assessment Rate for Area No. 2

83 FR 43501 - Irish Potatoes Grown in Colorado; Increased Assessment Rate for Area No. 2

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 166 (August 27, 2018)

Page Range43501-43503
FR Document2018-18560

This rule implements 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 will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 166 (Monday, August 27, 2018)
[Federal Register Volume 83, Number 166 (Monday, August 27, 2018)]
[Rules and Regulations]
[Pages 43501-43503]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18560]



========================================================================
Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

========================================================================


Federal Register / Vol. 83, No. 166 / Monday, August 27, 2018 / Rules 
and Regulations

[[Page 43501]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 948

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


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

SUMMARY: This rule implements 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 will remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Effective September 26, 2018.

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, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This 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 final rule in 
conformance with Executive Orders 13563 and 13175. This action falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This 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 as 
established herein will 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 in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting and all directly affected 
persons have an opportunity to participate and provide input.
    This rule increases 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 realigns annual assessment revenue with expected 
administrative expenses moving forward and will no longer require the 
utilization of the monetary 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 $0.006 
assessment rate is $0.0027 higher than the rate previously in effect. 
Without the increase, anticipated assessment revenue would not have 
been sufficient to fund the Committee's ongoing administrative 
function, and the balance in the Committee's monetary reserve would not 
have been 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.

[[Page 43502]]

The Committee recommended a similar level of budgeted expenditures for 
the 2018-2019 fiscal period at its meeting in May 2018. The Committee 
anticipates its expenditures for the 2018-2019 fiscal period to be 
close to the 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) should 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.  948.78.
    The assessment rate established by this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
be undertaken as necessary. The Committee's budget for subsequent 
fiscal periods will be reviewed and, as appropriate, approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 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 rule increases 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 increase. The $0.006 per hundredweight 
assessment rate established by this rule 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 is expected to provide $84,000 in assessment income. Income 
derived from handler assessments is expected to be adequate to cover 
budgeted expenses.
    The Committee adopted a budget of $79,623 for the 2017-2018 fiscal 
period and recommended a similar amount of 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 the recommended 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 
established assessment rate of $0.006 should provide $84,000 in 
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 action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs, such costs 
are minimal and uniform on all handlers. Some of the additional costs 
may be passed on to producers. However, these costs are offset by the 
benefits derived by the operation of the Order.
    In addition, the Committee's meeting was widely publicized 
throughout the Colorado potato industry. All interested

[[Page 43503]]

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.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by the OMB and assigned OMB No. 0581-0178, 
Vegetable and Specialty Crops. No changes in those requirements are 
necessary as a result of this action. Should any changes become 
necessary, they would be submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large 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. As mentioned in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on May 24, 2018 (83 FR 24045). A copy of the proposed rule was 
provided to the handlers by the Committee. Finally, the proposal was 
made available through the internet by USDA and the Office of the 
Federal Register. A 30-day comment period ending June 25, 2018, was 
provided for interested persons to respond to the proposal. No comments 
were received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule will tend to 
effectuate the declared policy of the Act.

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 
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: August 22, 2018
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-18560 Filed 8-24-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                           43501

                                           Rules and Regulations                                                                                         Federal Register
                                                                                                                                                         Vol. 83, No. 166

                                                                                                                                                         Monday, August 27, 2018



                                           This section of the FEDERAL REGISTER                    No. 948, as amended (7 CFR part 948),                 20 days after the date of the entry of the
                                           contains regulatory documents having general            regulating the handling of Irish potatoes             ruling.
                                           applicability and legal effect, most of which           grown in Colorado. Part 948, (referred to                The Order provides authority for each
                                           are keyed to and codified in the Code of                as the ‘‘Order’’) is effective under the              area Committee, with the approval of
                                           Federal Regulations, which is published under           Agricultural Marketing Agreement Act                  USDA, to formulate an annual budget of
                                           50 titles pursuant to 44 U.S.C. 1510.
                                                                                                   of 1937, as amended (7 U.S.C. 601–674),               expenses and collect assessments from
                                           The Code of Federal Regulations is sold by              hereinafter referred to as the ‘‘Act.’’ The           handlers to administer the program. The
                                           the Superintendent of Documents.                        Committee locally administers the                     members are familiar with the
                                                                                                   Order and is comprised of producers                   Committee’s needs and with the costs of
                                                                                                   and handlers operating within the area                goods and services in their local area
                                           DEPARTMENT OF AGRICULTURE                               of production.                                        and are in a position to formulate an
                                                                                                      The Department of Agriculture                      appropriate budget and assessment rate.
                                           Agricultural Marketing Service                          (USDA) is issuing this final rule in                  The assessment rate is formulated and
                                                                                                   conformance with Executive Orders                     discussed in a public meeting and all
                                           7 CFR Part 948                                          13563 and 13175. This action falls                    directly affected persons have an
                                           [Doc. No. AMS–SC–18–0022; SC18–948–1                    within a category of regulatory actions               opportunity to participate and provide
                                           FR]                                                     that the Office of Management and                     input.
                                                                                                   Budget (OMB) exempted from Executive                     This rule increases the assessment
                                           Irish Potatoes Grown in Colorado;                       Order 12866 review. Additionally,                     rate for Area No. 2 from $0.0033 to
                                           Increased Assessment Rate for Area                      because this rule does not meet the                   $0.006 per hundredweight of potatoes
                                           No. 2                                                   definition of a significant regulatory                handled for the 2018–2019 and
                                                                                                   action, it does not trigger the                       subsequent fiscal periods. The
                                           AGENCY:  Agricultural Marketing Service,
                                                                                                   requirements contained in Executive                   Committee established the current rate
                                           USDA.
                                                                                                   Order 13771. See OMB’s Memorandum                     in 2013–2014 fiscal period to reduce the
                                           ACTION: Final rule.                                     titled ‘‘Interim Guidance Implementing                Committee’s monetary reserve to a level
                                           SUMMARY: This rule implements a
                                                                                                   Section 2 of the Executive Order of                   that it determined to be appropriate
                                           recommendation from the Colorado                        January 30, 2017, titled ‘Reducing                    under the Order. Since that action, the
                                           Potato Administrative Committee                         Regulation and Controlling Regulatory                 reserve fund has been drawn down to
                                           (Committee) to increase the assessment                  Costs’ ’’ (February 2, 2017).                         approximately 15 percent of annual
                                           rate established for Area No. 2 for the                    This rule has been reviewed under                  budgeted expenditures. The $0.006 per
                                           2018–2019 and subsequent fiscal                         Executive Order 12988, Civil Justice                  hundredweight assessment rate realigns
                                           periods. The assessment rate will                       Reform. Under the Order, Colorado Area                annual assessment revenue with
                                           remain in effect indefinitely unless                    No. 2 potato handlers are subject to                  expected administrative expenses
                                           modified, suspended, or terminated.                     assessments. Funds to administer the                  moving forward and will no longer
                                                                                                   Order are derived from such                           require the utilization of the monetary
                                           DATES: Effective September 26, 2018.
                                                                                                   assessments. It is intended that the                  reserve to fund a portion of the
                                           FOR FURTHER INFORMATION CONTACT:                        assessment rate as established herein                 Committee’s budgeted expenditures.
                                           Barry Broadbent, Senior Marketing                       will be applicable to all assessable                     The Committee met on March 15,
                                           Specialist, or Gary Olson, Regional                     potatoes in Area No. 2 for the 2018–                  2018 to consider the Committee’s
                                           Director, Northwest Marketing Field                     2019 fiscal period, and continue until                projected 2018–2019 financial
                                           Office, Marketing Order and Agreement                   amended, suspended, or terminated.                    requirements, the size of the
                                           Division, Specialty Crops Program,                         The Act provides that administrative               Committee’s operating reserve, and the
                                           AMS, USDA; Telephone: (503) 326–                        proceedings must be exhausted before                  Order’s continuing assessment rate. The
                                           2724, Fax: (503) 326–7440, or email:                    parties may file suit in court. Under                 Committee unanimously recommended
                                           Barry.Broadbent@ams.usda.gov or                         section 608c(15)(A) of the Act, any                   an assessment rate of $0.006 per
                                           GaryD.Olson@ams.usda.gov.                               handler subject to an order may file                  hundredweight of potatoes for the 2018–
                                             Small businesses may request                          with USDA a petition stating that the                 2019 fiscal period. The $0.006
                                           information on complying with this                      order, any provision of the order, or any             assessment rate is $0.0027 higher than
                                           regulation by contacting Richard Lower,                 obligation imposed in connection with                 the rate previously in effect. Without the
                                           Marketing Order and Agreement                           the order is not in accordance with law               increase, anticipated assessment
                                           Division, Specialty Crops Program,                      and request a modification of the order               revenue would not have been sufficient
                                           AMS, USDA, 1400 Independence                            or to be exempted therefrom. Such                     to fund the Committee’s ongoing
                                           Avenue SW, STOP 0237, Washington,                       handler is afforded the opportunity for               administrative function, and the balance
                                           DC 20250–0237; Telephone: (202) 720–                    a hearing on the petition. After the                  in the Committee’s monetary reserve
                                           2491, Fax: (202)720–8938, or email:                     hearing, USDA would rule on the                       would not have been enough to cover
                                           Richard.Lower@ams.usda.gov.                             petition. The Act provides that the                   the deficit. The assessment rate increase
amozie on DSK3GDR082PROD with RULES




                                           SUPPLEMENTARY INFORMATION: This                         district court of the United States in any            is necessary to maintain the
                                           action, pursuant to 5 U.S.C. 553,                       district in which the handler is an                   Committee’s oversight activities at
                                           amends regulations issued to carry out                  inhabitant, or has his or her principal               current levels and avoid a reduction in
                                           a marketing order as defined in 7 CFR                   place of business, has jurisdiction to                the program’s effectiveness.
                                           900.2(j). This rule is issued under                     review USDA’s ruling on the petition,                    For the 2017–2018 fiscal period, the
                                           Marketing Agreement No. 97 and Order                    provided an action is filed not later than            Committee adopted a budget of $79,623.


                                      VerDate Sep<11>2014   16:25 Aug 24, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4700   Sfmt 4700   E:\FR\FM\27AUR1.SGM   27AUR1


                                           43502             Federal Register / Vol. 83, No. 166 / Monday, August 27, 2018 / Rules and Regulations

                                           The Committee recommended a similar                     U.S.C. 601–612), the Agricultural                     potatoes. The Committee unanimously
                                           level of budgeted expenditures for the                  Marketing Service (AMS) has                           recommended the increase. The $0.006
                                           2018–2019 fiscal period at its meeting in               considered the economic impact of this                per hundredweight assessment rate
                                           May 2018. The Committee anticipates                     rule on small entities. Accordingly,                  established by this rule is $0.0027
                                           its expenditures for the 2018–2019 fiscal               AMS has prepared this final regulatory                higher than the 2017–2018 rate. The
                                           period to be close to the amounts for the               flexibility analysis.                                 quantity of assessable potatoes for the
                                           2017–2018 fiscal period. Budgeted                          The purpose of the RFA is to fit                   2018–2019 fiscal period is estimated at
                                           expenditures for the 2017–2018 fiscal                   regulatory actions to the scale of                    14 million hundredweight. Thus, the
                                           period included $66,110 for                             businesses subject to such actions in                 $0.006 rate is expected to provide
                                           administrative expenses, $6,138 for                     order that small businesses will not be               $84,000 in assessment income. Income
                                           office expenses, and $7,375 for                         unduly or disproportionately burdened.                derived from handler assessments is
                                           facilities/utilities. The Committee’s                   Marketing orders issued pursuant to the               expected to be adequate to cover
                                           annual budget has been relatively stable                Act, and the rules issued thereunder, are             budgeted expenses.
                                           over the past five years, with average                  unique in that they are brought about                    The Committee adopted a budget of
                                           growth of approximately 2.7 percent.                    through group action of essentially                   $79,623 for the 2017–2018 fiscal period
                                           The Committee’s budget five years ago                   small entities acting on their own                    and recommended a similar amount of
                                           for the 2013–2014 fiscal period was                     behalf.                                               budgeted expenditures for the 2018–
                                           $71,227, compared to the 2017–2018                         There are approximately 160                        2019 fiscal period at its scheduled May
                                           fiscal period budget of $79,623.                        producers of Colorado Area No. 2                      2018 meeting. The major budgeted
                                              The assessment rate recommended by                   potatoes in the production area and                   expenditures for the 2017–2018 year
                                           the Committee was derived by                            approximately 60 handlers subject to                  included $66,110 for administrative
                                           considering anticipated expenses,                       regulation under the Order. Small                     expenses, $6,138 for office expenses,
                                           expected shipments, and the amount of                   agricultural producers are defined by                 and $7,375 for facilities/utilities.
                                           funds available in the authorized                       the Small Business Administration                     Budgeted expenses for these items in
                                           reserve. Expected income derived from                   (SBA) as those having annual receipts                 2016–2017 were $65,894, $6,587, and
                                           handler assessments of $84,000                          less than $750,000, and small                         $6,313, respectively.
                                           (estimated 14,000,000 hundredweight                     agricultural service firms are defined as                Prior to arriving at the recommended
                                           times $0.006 per hundredweight)                         those whose annual receipts are less                  assessment rate, the Committee
                                           should be adequate to cover budgeted                    than $7,500,000 (13 CFR 121.201).                     considered the benefits and costs related
                                           expenses of between $81,000 and                            According to data from USDA’s                      to establishing other assessment rates.
                                           $83,000 and put a small amount back                     Market News, the 2016–2017 season                     However, the Committee determined
                                           into the Committee’s monetary reserve                   weighted average f.o.b. price for                     that any assessment rate other than the
                                           fund. Funds in the reserve (currently                   Colorado potatoes was approximately                   $0.006 per hundredweight rate would
                                           expected to be $11,848 at the end of the                $12.06 per hundredweight. The                         either generate insufficient revenue to
                                           2017–2018 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 established by                   number of handlers, and assuming a                    desired addition to the Committee’s
                                           this rule will continue in effect                       normal distribution, the majority of                  reserve. Based on estimated shipments,
                                           indefinitely unless modified,                           handlers would have average annual                    the established assessment rate of
                                           suspended, or terminated by USDA                        receipts of less than $7,500,000 ($12.06              $0.006 should provide $84,000 in
                                           upon recommendation and information                     times 13.9 million equals $167,634,000                assessment income. The Committee
                                           submitted by the Committee or other                     divided by 60 handlers equals                         determined that this level of assessment
                                           available information.                                  $2,793,900 per handler).                              revenue would be adequate to cover
                                              Although this assessment rate will be                   In addition, based on data from                    budgeted expenses for the 2018–2019
                                           in effect for an indefinite period, the                 USDA’s National Agricultural Statistics               fiscal period without unduly increasing
                                           Committee will continue to meet prior                   Service, the season average producer                  reserve funds.
                                           to or during each fiscal period to                      price for Colorado potatoes for the                      A review of historical information and
                                           recommend a budget of expenses and                      2016–2017 crop year was approximately                 preliminary information pertaining to
                                           consider recommendations for                            $9.60 per hundredweight. Based on                     the upcoming fiscal year indicates that
                                           modification of the assessment rate. The                producer price, shipment data, and the                the average producer price for the 2018–
                                           dates and times of Committee meetings                   total number of Colorado Area No. 2                   2019 season should be approximately
                                           are available from the Committee or                     potato producers, and assuming a                      $9.26 per hundredweight of potatoes.
                                           USDA. Committee meetings are open to                    normal distribution, the average annual               Therefore, the estimated assessment
                                           the public and interested persons may                   producer revenue is above $750,000                    revenue for the 2018–2019 fiscal period
                                           express their views at these meetings.                  ($9.60 times 13.9 million                             as a percentage of total producer
                                           USDA will evaluate Committee                            hundredweight equals $133,440,000                     revenue would be about 0.06 percent.
                                           recommendations and other available                     divided by 160 producers equals                          This action increases the assessment
                                           information to determine whether                        $834,000 per producer). Thus, the                     obligation imposed on handlers. While
                                           modification of the assessment rate is                  majority of Colorado Area No. 2 potato                assessments impose some additional
                                           needed. Further rulemaking will be                      handlers may be classified as small                   costs, such costs are minimal and
                                           undertaken as necessary. The                            entities, while many of the Colorado                  uniform on all handlers. Some of the
                                                                                                   Area No. 2 potato producers may be                    additional costs may be passed on to
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                                           Committee’s budget for subsequent
                                           fiscal periods will be reviewed and, as                 classified as large entities.                         producers. However, these costs are
                                           appropriate, approved by USDA.                             This rule increases the assessment                 offset by the benefits derived by the
                                                                                                   rate collected from handlers for the                  operation of the Order.
                                           Final Regulatory Flexibility Analysis                   2018–2019 and subsequent fiscal                          In addition, the Committee’s meeting
                                             Pursuant to requirements set forth in                 periods from $0.0033 to $0.006 per                    was widely publicized throughout the
                                           the Regulatory Flexibility Act (RFA) (5                 hundredweight of Colorado Area No. 2                  Colorado potato industry. All interested


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                                                             Federal Register / Vol. 83, No. 166 / Monday, August 27, 2018 / Rules and Regulations                                             43503

                                           persons were invited to attend the                      List of Subjects in 7 CFR Part 948                    DATES: This final rule is effective
                                           meetings and participate in Committee                     Marketing agreements, Potatoes,                     January 1, 2019.
                                           deliberations on all issues. Like all                   Reporting and recordkeeping                           FOR FURTHER INFORMATION CONTACT:
                                           Committee meetings, the March 15,                       requirements.                                         Monique Chenault, Paralegal, and
                                           2018, meeting was a public meeting and                                                                        Shelley Thompson, Counsel, Office of
                                                                                                     For the reasons set forth in the
                                           all entities, both large and small, were                                                                      Regulations, at (202) 435–7700. If you
                                                                                                   preamble, 7 CFR part 948 is amended as
                                           able to express views on this issue.                                                                          require this document in an alternative
                                                                                                   follows:
                                              In accordance with the Paperwork                                                                           electronic format, please contact CFPB_
                                           Reduction Act of 1995 (44 U.S.C.                        PART 948—IRISH POTATOES GROWN                         Accessibility@cfpb.gov.
                                           Chapter 35), the Order’s information                    IN COLORADO                                           SUPPLEMENTARY INFORMATION: The
                                           collection requirements have been                                                                             Bureau is amending the regulation text
                                           previously approved by the OMB and                      ■ 1. The authority citation for 7 CFR                 and official interpretations for
                                           assigned OMB No. 0581–0178,                             part 948 continues to read as follows:                Regulation Z, which implements TILA,
                                           Vegetable and Specialty Crops. No                           Authority: 7 U.S.C. 601–674.                      to update the dollar amounts of various
                                           changes in those requirements are                                                                             thresholds that are adjusted annually
                                           necessary as a result of this action.                   ■ 2. Section 948.216 is revised to read
                                                                                                   as follows:                                           based on the annual percentage change
                                           Should any changes become necessary,                                                                          in the CPI as published by the Bureau
                                           they would be submitted to OMB for                      § 948.216    Assessment rate.                         of Labor Statistics (BLS). Specifically,
                                           approval.                                                                                                     for open-end consumer credit plans
                                                                                                     On and after September 1, 2018, an
                                              This rule imposes no additional                      assessment rate of $0.006 per                         under TILA, the threshold that triggers
                                           reporting or recordkeeping requirements                 hundredweight is established for                      requirements to disclose minimum
                                           on either small or large Colorado potato                Colorado Area No. 2 potatoes.                         interest charges will remain unchanged
                                           handlers. As with all Federal marketing                                                                       at $1.00 in 2019. For open-end
                                           order programs, reports and forms are                     Dated: August 22, 2018
                                                                                                                                                         consumer credit plans under the CARD
                                           periodically reviewed to reduce                         Bruce Summers,
                                                                                                                                                         Act amendments to TILA, the adjusted
                                           information requirements and                            Administrator, Agricultural Marketing                 dollar amount in 2019 for the safe
                                           duplication by industry and public                      Service.
                                                                                                                                                         harbor for a first violation penalty fee
                                           sector agencies. As mentioned in the                    [FR Doc. 2018–18560 Filed 8–24–18; 8:45 am]           will increase by $1 to $28 and the
                                           initial regulatory flexibility analysis,                BILLING CODE 3410–02–P                                adjusted dollar amount for the safe
                                           USDA has not identified any relevant                                                                          harbor for a subsequent violation
                                           Federal rules that duplicate, overlap, or                                                                     penalty fee will increase by $1 to $39.
                                           conflict with this final rule.                          BUREAU OF CONSUMER FINANCIAL                          For HOEPA loans, the adjusted total
                                              AMS is committed to complying with                   PROTECTION                                            loan amount threshold for high-cost
                                           the E-Government Act, to promote the                                                                          mortgages in 2019 will be $21,549. The
                                           use of the internet and other                           12 CFR Part 1026                                      adjusted points-and-fees dollar trigger
                                           information technologies to provide                                                                           for high-cost mortgages in 2019 will be
                                           increased opportunities for citizen                     Truth in Lending (Regulation Z) Annual
                                                                                                                                                         $1,077. For qualified mortgages, which
                                           access to Government information and                    Threshold Adjustments (Credit Cards,
                                                                                                                                                         receive certain protections from liability
                                           services, and for other purposes.                       HOEPA, and Qualified Mortgages)
                                                                                                                                                         under the ability-to-repay rule, the
                                              A proposed rule concerning this                      AGENCY:  Bureau of Consumer Financial                 maximum thresholds for total points
                                           action was published in the Federal                     Protection.                                           and fees in 2019 will be 3 percent of the
                                           Register on May 24, 2018 (83 FR 24045).                 ACTION: Final rule; official                          total loan amount for a loan greater than
                                           A copy of the proposed rule was                         interpretation.                                       or equal to $107,747; $3,232 for a loan
                                           provided to the handlers by the                                                                               amount greater than or equal to $64,648
                                           Committee. Finally, the proposal was                    SUMMARY: The Bureau of Consumer                       but less than $107,747; 5 percent of the
                                           made available through the internet by                  Financial Protection (Bureau) is issuing              total loan amount for a loan greater than
                                           USDA and the Office of the Federal                      this final rule amending the regulation               or equal to $21,549 but less than
                                           Register. A 30-day comment period                       text and official interpretations for                 $64,648; $1,077 for a loan amount
                                           ending June 25, 2018, was provided for                  Regulation Z, which implements the                    greater than or equal to $13,468 but less
                                           interested persons to respond to the                    Truth in Lending Act (TILA). The                      than $21,549; and 8 percent of the total
                                           proposal. No comments were received.                    Bureau is required to calculate annually              loan amount for a loan amount less than
                                              A small business guide on complying                  the dollar amounts for several                        $13,468.
                                           with fruit, vegetable, and specialty crop               provisions in Regulation Z; this final
                                           marketing agreements and orders may                     rule revises, as applicable, the dollar               I. Background
                                           be viewed at: http://www.ams.usda.gov/                  amounts for provisions implementing                   A. Credit Card Annual Adjustments
                                           rules-regulations/moa/small-businesses.                 TILA and amendments to TILA,
                                           Any questions about the compliance                      including under the Credit Card                       Minimum Interest Charge Disclosure
                                           guide should be sent to Richard Lower                   Accountability Responsibility and                     Thresholds
                                           at the previously mentioned address in                  Disclosure Act of 2009 (CARD Act), the                  Sections 1026.6(b)(2)(iii) and
                                           the FOR FURTHER INFORMATION CONTACT                     Home Ownership and Equity Protection                  1026.60(b)(3) of Regulation Z implement
                                           section.                                                Act of 1994 (HOEPA), and the Dodd-                    sections 127(a)(3) and 127(c)(1)(A)(ii)(II)
                                              After consideration of all relevant                  Frank Wall Street Reform and Consumer                 of TILA. Sections 1026.6(b)(2)(iii) and
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                                           material presented, including the                       Protection Act (Dodd-Frank Act). The                  1026.60(b)(3) require the disclosure of
                                           information and recommendation                          Bureau is adjusting these amounts,                    any minimum interest charge exceeding
                                           submitted by the Committee and other                    where appropriate, based on the annual                $1.00 that could be imposed during a
                                           available information, it is hereby found               percentage change reflected in the                    billing cycle and provide that, for open-
                                           that this rule will tend to effectuate the              Consumer Price Index (CPI) in effect on               end consumer credit plans, the
                                           declared policy of the Act.                             June 1, 2018.                                         minimum interest charge thresholds


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Document Created: 2018-08-25 01:48:41
Document Modified: 2018-08-25 01:48:41
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective September 26, 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 43501 
CFR AssociatedMarketing Agreements; Potatoes and Reporting and Recordkeeping Requirements

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