83_FR_43966 83 FR 43799 - Pears Grown in Oregon and Washington; Increased Assessment Rate for Fresh Pears

83 FR 43799 - Pears Grown in Oregon and Washington; Increased Assessment Rate for Fresh Pears

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 167 (August 28, 2018)

Page Range43799-43801
FR Document2018-18552

This proposed rule would implement a recommendation from the Fresh Pear Committee (Committee) to increase the assessment rate established 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 167 (Tuesday, August 28, 2018)
[Federal Register Volume 83, Number 167 (Tuesday, August 28, 2018)]
[Proposed Rules]
[Pages 43799-43801]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18552]


========================================================================
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. 167 / Tuesday, August 28, 2018 / 
Proposed Rules

[[Page 43799]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 927

[Doc. No. AMS-SC-18-0048; SC18-927-1 PR]


Pears Grown in Oregon and Washington; Increased Assessment Rate 
for Fresh Pears

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Fresh Pear Committee (Committee) to increase the assessment rate 
established 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 September 27, 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, 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 Order No. 927, as amended (7 CFR part 927), regulating the 
handling of pears grown in Oregon and Washington. Part 927, (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 growers and handlers operating within the area of 
production, and a public member.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This proposed 
rule falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action, it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, Oregon and 
Washington pear 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 pears 
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 the 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 where all directly 
affected persons have an opportunity to participate and provide input.
    This proposed rule would increase the assessment rate from $0.449 
to $0.463 per 44-pound standard box or equivalent of fresh ``summer/
fall'' and ``winter'' pears handled for the 2018-2019 and subsequent 
fiscal periods. The proposed higher rate is necessary to fully cover 
the Committee's 2018-2019 fiscal period budgeted expenditures. The 
Committee has had to draw from its monetary reserve to partially fund 
program activities during the last two fiscal periods. Drawing from 
reserves to fund operations on an on-going basis is not a sustainable 
strategy. Therefore, increasing the continuing assessment rate would 
allow the Committee to fully fund budgeted expenses and replenish its 
financial reserve.
    The Committee met on May 31, 2018, and unanimously recommended 
2018-

[[Page 43800]]

2019 fiscal period expenditures of $9,213,133 and an assessment rate of 
$0.463 per standard box or equivalent of fresh ``summer/fall'' and 
``winter'' pears handled. In comparison, last year's budgeted 
expenditures were $9,282,059. The proposed assessment rate of $0.463 is 
$0.014 higher than the $0.449 rate currently in effect. The Committee 
recommended the assessment rate increase because expenditures have 
exceeded assessment revenue in the previous two fiscal periods.
    The major expenditures recommended by the Committee for the 2018-
2019 fiscal period include $550,790 for contracted administration by 
Pear Bureau Northwest, $190,700 for administrative expenses, $771,643 
for production research and market development, and $7,700,000 for 
promotion and paid advertising for both ``summer/fall'' and ``winter'' 
varieties of fresh pears. In comparison, major expenses for the 2017-
2018 fiscal period included $512,928 for contracted administration, 
$232,200 for administrative expenses, $836,931 for production research 
and market development, and $7,700,000 for promotion and paid 
advertising.
    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. Income derived from handler 
assessments of $9,260,000 (20 million standard boxes or equivalent at 
$0.463 per box) would be adequate to cover budgeted expenses of 
$9,213,133, with any excess funds used to replenish the Committee's 
monetary reserve. Funds in the reserve (currently $1,096,332) would be 
kept within the maximum permitted by Sec.  927.42(a) and would not 
exceed the expenses of approximately one fiscal period.
    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 827 growers of fresh pears in the 
production area and approximately 38 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 Market News, the industry, and the 
Committee, for the 2016-17 season, the weighted average f.o.b. price 
for Oregon-Washington fresh pears was approximately $26.99 per standard 
44-pound box. Total shipments for that period were 17,878,219 standard 
boxes or equivalent. Using the number of handlers, and assuming a 
normal distribution, the majority of handlers would have average annual 
receipts of more than $7,500,000 ($26.99 per box times 17,878,219 
equals $482,533,130 divided by 38 handlers equals $12,698,240 per 
handler).
    In addition, based on National Agricultural Statistics Service 
data, the industry produced 441,950 tons of fresh pears in the 
production area during the 2016-2017 season, with an average grower 
price of $797 per ton. Based on the average grower price, production, 
and the total number of Oregon-Washington fresh pear growers, and 
assuming a normal distribution, the average annual grower revenue is 
below $750,000 ($797 per ton times 441,950 tons equals $352,234,150 
divided by 827 growers equals $425,918 per grower). Thus, the majority 
of Oregon and Washington fresh pear handlers may be classified as large 
entities, while the majority of growers may be classified as small 
entities.
    This proposal would increase the assessment rate collected from 
handlers for the 2018-2019 and subsequent fiscal periods from $0.449 to 
$0.463 per standard box or equivalent of Oregon and Washington fresh 
``summer/fall'' and ``winter'' pears handled. The Committee unanimously 
recommended 2018-2019 fiscal period expenditures of $9,213,133 and the 
$0.463 per standard box or equivalent assessment rate. The proposed 
assessment rate of $0.463 is $0.014 higher than the rate for the 2017-
2018 fiscal period. The quantity of assessable fresh ``summer/fall'' 
and ``winter'' pears for the 2018-2019 fiscal period is estimated at 20 
million standard boxes or equivalent. Thus, the $0.463 rate should 
provide $9,260,000 in assessment income. Income derived from handler 
assessments would be adequate to cover budgeted expenses, with any 
excess funds used to replenish the Committee's monetary reserve.
    The major expenditures recommended by the Committee for the 2018-
2019 fiscal period include $550,790 for contracted administration by 
Pear Bureau Northwest, $190,700 for administrative expenses, $771,643 
for production research and market development, and $7,700,000 for 
promotion and paid advertising for both ``summer/fall'' pears and 
``winter'' pears. Budgeted expenses for these items in the 2017-2018 
fiscal period were $512,928, $232,200, $836,931, and $7,700,000, 
respectively.
    The proposed higher rate is necessary to fully cover the 
Committee's 2018-2019 fiscal period budgeted expenditures. The 
Committee has had to draw from its monetary reserve to partially fund 
program activities during the 2016-2017 and 2017-2018 fiscal periods. 
Drawing from its financial reserve to fund operations on an on-going 
basis is not a sustainable strategy. Increasing the continuing 
assessment rate would allow the Committee to fully fund budgeted 
expenses and replenish its financial reserve.
    Prior to arriving at this budget and assessment rate, the Committee 
considered maintaining the current assessment rate of $0.449 per 
standard box or equivalent. However, leaving the assessment unchanged 
would not generate sufficient revenue to meet the Committee's 2018-2019 
fiscal period budgeted expenses of $9,213,133, and would have required 
the Committee to continue to deplete its financial reserve. Based on 
estimated shipments, the

[[Page 43801]]

recommended assessment rate of $0.463 per standard box or equivalent 
should provide $9,260,000 in assessment income. The Committee 
determined assessment revenue would be adequate to fully cover budgeted 
expenditures for the 2018-2019 fiscal period, with any excess funds 
used to replenish the Committee's monetary reserve. Reserve funds would 
be kept within the amount authorized in the Order.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal year indicates that the average 
grower price for the 2018-2019 season should be approximately $800 per 
ton of fresh pears. Therefore, the estimated assessment revenue for the 
2018-2019 fiscal period as a percentage of total grower revenue would 
be about 2.6 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 growers. 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 Oregon and Washington fresh pear industry. All interested persons 
were invited to attend the meetings and participate in Committee 
deliberations on all issues. Like all Committee meetings, the May 31, 
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. 0581-0189 Fruit 
Crops. No changes in those requirements would be necessary because 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 Oregon and 
Washington fresh pear 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 927

    Marketing agreements, Pears, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 927 is 
proposed to be amended as follows:

PART 927--PEARS GROWN IN OREGON AND WASHINGTON

0
1. The authority citation for 7 CFR part 927 continues to read as 
follows:

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

0
2. Section 927.236 paragraphs (a) and (b) are revised to read as 
follows:


Sec.  927.236  Fresh pear assessment rate.

    On and after July 1, 2018, the following base rates of assessment 
for fresh pears are established for the Fresh Pear Committee:
    (a) $0.463 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``summer/fall'';
    (b) $0.463 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``winter''; and
* * * * *

    Dated: August 22, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-18552 Filed 8-27-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                 43799

                                                 Proposed Rules                                                                                                Federal Register
                                                                                                                                                               Vol. 83, No. 167

                                                                                                                                                               Tuesday, August 28, 2018



                                                 This section of the FEDERAL REGISTER                    Northwest Marketing Field Office,                     the 2018–2019 fiscal period, and
                                                 contains notices to the public of the proposed          Marketing Order and Agreement                         continue until amended, suspended, or
                                                 issuance of rules and regulations. The                  Division, Specialty Crops Program,                    terminated.
                                                 purpose of these notices is to give interested          AMS, USDA; Telephone: (503) 326–                         The Act provides that administrative
                                                 persons an opportunity to participate in the            2724, Fax: (503) 326–7440, or Email:                  proceedings must be exhausted before
                                                 rule making prior to the adoption of the final
                                                 rules.
                                                                                                         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
                                                                                                            Small businesses may request                       handler subject to an order may file
                                                 DEPARTMENT OF AGRICULTURE                               information on complying with this                    with USDA a petition stating that the
                                                                                                         regulation by contacting Richard Lower,               order, any provision of the order, or any
                                                 Agricultural Marketing Service                          Marketing Order and Agreement                         obligation imposed in connection with
                                                                                                         Division, Specialty Crops Program,                    the order is not in accordance with law
                                                 7 CFR Part 927                                          AMS, USDA, 1400 Independence                          and request a modification of the order
                                                                                                         Avenue SW, STOP 0237, Washington,                     or to be exempted therefrom. Such
                                                 [Doc. No. AMS–SC–18–0048; SC18–927–1
                                                 PR]                                                     DC 20250–0237; Telephone: (202) 720–                  handler is afforded the opportunity for
                                                                                                         2491, Fax: (202) 720–8938, or Email:                  a hearing on the petition. After the
                                                 Pears Grown in Oregon and                               Richard.Lower@ams.usda.gov.                           hearing, USDA would rule on the
                                                 Washington; Increased Assessment                        SUPPLEMENTARY INFORMATION: This                       petition. The Act provides that the
                                                 Rate for Fresh Pears                                    action, pursuant to 5 U.S.C. 553,                     district court of the United States in any
                                                                                                         proposes an amendment to regulations                  district in which the handler is an
                                                 AGENCY:  Agricultural Marketing Service,                issued to carry out a marketing order as              inhabitant, or has his or her principal
                                                 USDA.                                                   defined in 7 CFR 900.2(j). This proposed              place of business, has jurisdiction to
                                                 ACTION: Proposed rule.                                  rule is issued under Marketing Order                  review USDA’s ruling on the petition,
                                                                                                         No. 927, as amended (7 CFR part 927),                 provided an action is filed not later than
                                                 SUMMARY:   This proposed rule would
                                                                                                         regulating the handling of pears grown                20 days after the date of the entry of the
                                                 implement a recommendation from the
                                                                                                         in Oregon and Washington. Part 927,                   ruling.
                                                 Fresh Pear Committee (Committee) to
                                                                                                         (referred to as ‘‘the Order’’) is effective              The Order provides authority for the
                                                 increase the assessment rate established
                                                                                                         under the Agricultural Marketing                      Committee, with the approval of USDA,
                                                 for the 2018–2019 and subsequent fiscal
                                                                                                         Agreement Act of 1937, as amended (7                  to formulate an annual budget of
                                                 periods. The assessment rate would
                                                                                                         U.S.C. 601–674), hereinafter referred to              expenses and collect assessments from
                                                 remain in effect indefinitely unless
                                                                                                         as the ‘‘Act.’’ The Committee locally                 handlers to administer the program. The
                                                 modified, suspended, or terminated.
                                                                                                         administers the Order and is comprised                members are familiar with the
                                                 DATES: Comments must be received by                                                                           Committee’s needs and with the costs of
                                                                                                         of growers and handlers operating
                                                 September 27, 2018.                                     within the area of production, and a                  goods and services in their local area
                                                 ADDRESSES: Interested persons are                       public member.                                        and are in a position to formulate an
                                                 invited to submit written comments                         The Department of Agriculture                      appropriate budget and assessment rate.
                                                 concerning this proposed rule.                          (USDA) is issuing this proposed rule in               The assessment rate is formulated and
                                                 Comments must be sent to the Docket                     conformance with Executive Orders                     discussed in a public meeting where all
                                                 Clerk, Marketing Order and Agreement                    13563 and 13175. This proposed rule                   directly affected persons have an
                                                 Division, Specialty Crops Program,                      falls within a category of regulatory                 opportunity to participate and provide
                                                 AMS, USDA, 1400 Independence                            actions that the Office of Management                 input.
                                                 Avenue SW, STOP 0237, Washington,                       and Budget (OMB) exempted from                           This proposed rule would increase
                                                 DC 20250–0237; Fax: (202) 720–8938; or                  Executive Order 12866 review.                         the assessment rate from $0.449 to
                                                 internet: http://www.regulations.gov.                   Additionally, because this proposed                   $0.463 per 44-pound standard box or
                                                 Comments should reference the                           rule does not meet the definition of a                equivalent of fresh ‘‘summer/fall’’ and
                                                 document number and the date and                        significant regulatory action, it does not            ‘‘winter’’ pears handled for the 2018–
                                                 page number of this issue of the Federal                trigger the requirements contained in                 2019 and subsequent fiscal periods. The
                                                 Register and will be available for public               Executive Order 13771. See OMB’s                      proposed higher rate is necessary to
                                                 inspection in the Office of the Docket                  Memorandum titled ‘‘Interim Guidance                  fully cover the Committee’s 2018–2019
                                                 Clerk during regular business hours, or                 Implementing Section 2 of the Executive               fiscal period budgeted expenditures.
                                                 can be viewed at: http://                               Order of January 30, 2017, titled                     The Committee has had to draw from its
                                                 www.regulations.gov. All comments                       ‘Reducing Regulation and Controlling                  monetary reserve to partially fund
                                                 submitted in response to this rule will                 Regulatory Costs’ ’’ (February 2, 2017).              program activities during the last two
                                                 be included in the record and will be                      This proposed rule has been reviewed               fiscal periods. Drawing from reserves to
daltland on DSKBBV9HB2PROD with PROPOSALS




                                                 made available to the public. Please be                 under Executive Order 12988, Civil                    fund operations on an on-going basis is
                                                 advised that the identity of the                        Justice Reform. Under the Order now in                not a sustainable strategy. Therefore,
                                                 individuals or entities submitting the                  effect, Oregon and Washington pear                    increasing the continuing assessment
                                                 comments will be made public on the                     handlers are subject to assessments.                  rate would allow the Committee to fully
                                                 internet at the address provided above.                 Funds to administer the Order are                     fund budgeted expenses and replenish
                                                 FOR FURTHER INFORMATION CONTACT:                        derived from such assessments. It is                  its financial reserve.
                                                 Barry Broadbent, Marketing Specialist,                  intended that the assessment rate would                  The Committee met on May 31, 2018,
                                                 or Gary Olson, Regional Director,                       be applicable to all assessable pears for             and unanimously recommended 2018–


                                            VerDate Sep<11>2014   16:30 Aug 27, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\28AUP1.SGM   28AUP1


                                                 43800                  Federal Register / Vol. 83, No. 167 / Tuesday, August 28, 2018 / Proposed Rules

                                                 2019 fiscal period expenditures of                      information to determine whether                      grower). Thus, the majority of Oregon
                                                 $9,213,133 and an assessment rate of                    modification of the assessment rate is                and Washington fresh pear handlers
                                                 $0.463 per standard box or equivalent of                needed. Further rulemaking would be                   may be classified as large entities, while
                                                 fresh ‘‘summer/fall’’ and ‘‘winter’’ pears              undertaken as necessary. The                          the majority of growers may be
                                                 handled. In comparison, last year’s                     Committee’s budget for subsequent                     classified as small entities.
                                                 budgeted expenditures were $9,282,059.                  fiscal periods would be reviewed and,                    This proposal would increase the
                                                 The proposed assessment rate of $0.463                  as appropriate, approved by USDA.                     assessment rate collected from handlers
                                                 is $0.014 higher than the $0.449 rate                                                                         for the 2018–2019 and subsequent fiscal
                                                                                                         Initial Regulatory Flexibility Analysis               periods from $0.449 to $0.463 per
                                                 currently in effect. The Committee
                                                 recommended the assessment rate                           Pursuant to requirements set forth in               standard box or equivalent of Oregon
                                                 increase because expenditures have                      the Regulatory Flexibility Act (RFA) (5               and Washington fresh ‘‘summer/fall’’
                                                 exceeded assessment revenue in the                      U.S.C. 601–612), the Agricultural                     and ‘‘winter’’ pears handled. The
                                                 previous two fiscal periods.                            Marketing Service (AMS) has                           Committee unanimously recommended
                                                    The major expenditures                               considered the economic impact of this                2018–2019 fiscal period expenditures of
                                                 recommended by the Committee for the                    proposed rule on small entities.                      $9,213,133 and the $0.463 per standard
                                                 2018–2019 fiscal period include                         Accordingly, AMS has prepared this                    box or equivalent assessment rate. The
                                                 $550,790 for contracted administration                  initial regulatory flexibility analysis.              proposed assessment rate of $0.463 is
                                                 by Pear Bureau Northwest, $190,700 for                    The purpose of the RFA is to fit                    $0.014 higher than the rate for the 2017–
                                                 administrative expenses, $771,643 for                   regulatory actions to the scale of                    2018 fiscal period. The quantity of
                                                 production research and market                          businesses subject to such actions in                 assessable fresh ‘‘summer/fall’’ and
                                                 development, and $7,700,000 for                         order that small businesses will not be               ‘‘winter’’ pears for the 2018–2019 fiscal
                                                 promotion and paid advertising for both                 unduly or disproportionately burdened.                period is estimated at 20 million
                                                 ‘‘summer/fall’’ and ‘‘winter’’ varieties of             Marketing orders issued pursuant to the               standard boxes or equivalent. Thus, the
                                                 fresh pears. In comparison, major                       Act, and the rules issued thereunder, are             $0.463 rate should provide $9,260,000
                                                 expenses for the 2017–2018 fiscal                       unique in that they are brought about                 in assessment income. Income derived
                                                 period included $512,928 for contracted                 through group action of essentially                   from handler assessments would be
                                                 administration, $232,200 for                            small entities acting on their own                    adequate to cover budgeted expenses,
                                                 administrative expenses, $836,931 for                   behalf.                                               with any excess funds used to replenish
                                                 production research and market                            There are approximately 827 growers                 the Committee’s monetary reserve.
                                                 development, and $7,700,000 for                         of fresh pears in the production area and                The major expenditures
                                                 promotion and paid advertising.                         approximately 38 handlers subject to                  recommended by the Committee for the
                                                    The assessment rate recommended by                   regulation under the Order. Small                     2018–2019 fiscal period include
                                                 the Committee was derived by                            agricultural producers are defined by                 $550,790 for contracted administration
                                                 considering anticipated expenses,                       the Small Business Administration                     by Pear Bureau Northwest, $190,700 for
                                                 expected shipments, and the amount of                   (SBA) as those having annual receipts                 administrative expenses, $771,643 for
                                                 funds available in the authorized                       less than $750,000, and small                         production research and market
                                                 reserve. Income derived from handler                    agricultural service firms are defined as             development, and $7,700,000 for
                                                 assessments of $9,260,000 (20 million                   those whose annual receipts are less                  promotion and paid advertising for both
                                                 standard boxes or equivalent at $0.463                  than $7,500,000 (13 CFR 121.201).                     ‘‘summer/fall’’ pears and ‘‘winter’’
                                                 per box) would be adequate to cover                       According to data from USDA Market                  pears. Budgeted expenses for these
                                                 budgeted expenses of $9,213,133, with                   News, the industry, and the Committee,                items in the 2017–2018 fiscal period
                                                 any excess funds used to replenish the                  for the 2016–17 season, the weighted                  were $512,928, $232,200, $836,931, and
                                                 Committee’s monetary reserve. Funds in                  average f.o.b. price for Oregon-                      $7,700,000, respectively.
                                                 the reserve (currently $1,096,332) would                Washington fresh pears was                               The proposed higher rate is necessary
                                                 be kept within the maximum permitted                    approximately $26.99 per standard 44-                 to fully cover the Committee’s 2018–
                                                 by § 927.42(a) and would not exceed the                 pound box. Total shipments for that                   2019 fiscal period budgeted
                                                 expenses of approximately one fiscal                    period were 17,878,219 standard boxes                 expenditures. The Committee has had to
                                                 period.                                                 or equivalent. Using the number of                    draw from its monetary reserve to
                                                    The assessment rate proposed in this                 handlers, and assuming a normal                       partially fund program activities during
                                                 rule would continue in effect                           distribution, the majority of handlers                the 2016–2017 and 2017–2018 fiscal
                                                 indefinitely unless modified,                           would have average annual receipts of                 periods. Drawing from its financial
                                                 suspended, or terminated by USDA                        more than $7,500,000 ($26.99 per box                  reserve to fund operations on an on-
                                                 upon recommendation and information                     times 17,878,219 equals $482,533,130                  going basis is not a sustainable strategy.
                                                 submitted by the Committee or other                     divided by 38 handlers equals                         Increasing the continuing assessment
                                                 available information.                                  $12,698,240 per handler).                             rate would allow the Committee to fully
                                                    Although this assessment rate would                    In addition, based on National                      fund budgeted expenses and replenish
                                                 be in effect for an indefinite period, the              Agricultural Statistics Service data, the             its financial reserve.
                                                 Committee would continue to meet                        industry produced 441,950 tons of fresh                  Prior to arriving at this budget and
                                                 prior to or during each fiscal period to                pears in the production area during the               assessment rate, the Committee
                                                 recommend a budget of expenses and                      2016–2017 season, with an average                     considered maintaining the current
                                                 consider recommendations for                            grower price of $797 per ton. Based on                assessment rate of $0.449 per standard
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                                                 modification of the assessment rate. The                the average grower price, production,                 box or equivalent. However, leaving the
                                                 dates and times of Committee meetings                   and the total number of Oregon-                       assessment unchanged would not
                                                 are available from the Committee or                     Washington fresh pear growers, and                    generate sufficient revenue to meet the
                                                 USDA. Committee meetings are open to                    assuming a normal distribution, the                   Committee’s 2018–2019 fiscal period
                                                 the public and interested persons may                   average annual grower revenue is below                budgeted expenses of $9,213,133, and
                                                 express their views at these meetings.                  $750,000 ($797 per ton times 441,950                  would have required the Committee to
                                                 USDA would evaluate Committee                           tons equals $352,234,150 divided by                   continue to deplete its financial reserve.
                                                 recommendations and other available                     827 growers equals $425,918 per                       Based on estimated shipments, the


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                                                                        Federal Register / Vol. 83, No. 167 / Tuesday, August 28, 2018 / Proposed Rules                                            43801

                                                 recommended assessment rate of $0.463                   use of the internet and other                         ACTION:   Notice of Proposed Rulemaking.
                                                 per standard box or equivalent should                   information technologies to provide
                                                 provide $9,260,000 in assessment                        increased opportunities for citizen                   SUMMARY:    The Federal Housing Finance
                                                 income. The Committee determined                        access to Government information and                  Agency (FHFA) is proposing to amend
                                                 assessment revenue would be adequate                    services, and for other purposes.                     its rule on golden parachute payments
                                                 to fully cover budgeted expenditures for                   USDA has not identified any relevant               to better align the rule with areas of
                                                 the 2018–2019 fiscal period, with any                   Federal rules that duplicate, overlap, or             FHFA’s supervisory concern and reduce
                                                 excess funds used to replenish the                      conflict with this proposed rule.                     administrative and compliance burdens.
                                                 Committee’s monetary reserve. Reserve                      A small business guide on complying                The current rule requires FHFA review
                                                 funds would be kept within the amount                   with fruit, vegetable, and specialty crop             and consent before a regulated entity or
                                                 authorized in the Order.                                marketing agreements and orders may                   the Office of Finance (OF) enters into an
                                                    A review of historical information and               be viewed at: http://www.ams.usda.gov/                agreement to make, or makes, a payment
                                                 preliminary information pertaining to                   rules-regulations/moa/small-businesses.               that is contingent on the termination of
                                                 the upcoming fiscal year indicates that                 Any questions about the compliance                    an affiliated party, if the regulated entity
                                                 the average grower price for the 2018–                  guide should be sent to Richard Lower                 or OF is in a troubled condition, in
                                                 2019 season should be approximately                     at the previously mentioned address in                conservatorship or receivership, or
                                                 $800 per ton of fresh pears. Therefore,                 the FOR FURTHER INFORMATION CONTACT                   insolvent. FHFA’s experience
                                                 the estimated assessment revenue for                    section.                                              implementing the rule indicates that the
                                                 the 2018–2019 fiscal period as a                                                                              rule requires review of some agreements
                                                                                                         List of Subjects in 7 CFR Part 927                    and payments where there is little risk
                                                 percentage of total grower revenue
                                                 would be about 2.6 percent.                               Marketing agreements, Pears,                        of excess or abuse, and thus that it is too
                                                    This proposed action would increase                  Reporting and recordkeeping                           broad.
                                                 the assessment obligation imposed on                    requirements.                                            If amended as proposed, the rule
                                                 handlers. While assessments impose                        For the reasons set forth in the                    would focus on the types of agreements
                                                 some additional costs on handlers, the                  preamble, 7 CFR part 927 is proposed to               and payments that are of greater
                                                 costs are minimal and uniform on all                    be amended as follows:                                supervisory concern to FHFA. In
                                                 handlers. Some of the additional costs                                                                        general, these are payments to and
                                                 may be passed on to growers. However,                   PART 927—PEARS GROWN IN                               agreements with executive officers,
                                                 these costs would be offset by the                      OREGON AND WASHINGTON                                 broad-based plans covering large
                                                 benefits derived by the operation of the                                                                      numbers of employees (such as
                                                                                                         ■ 1. The authority citation for 7 CFR                 severance plans), and payments made to
                                                 Order. In addition, the Committee’s
                                                                                                         part 927 continues to read as follows:                non-executive-officer employees who
                                                 meetings were widely publicized
                                                 throughout the Oregon and Washington                        Authority: 7 U.S.C. 601–674.                      may have engaged in certain types of
                                                 fresh pear industry. All interested                     ■ 2. Section 927.236 paragraphs (a) and               wrongdoing. The proposed amendments
                                                 persons were invited to attend the                      (b) are revised to read as follows:                   would also revise and clarify
                                                 meetings and participate in Committee                                                                         definitions, exemptions, and procedures
                                                                                                         § 927.236    Fresh pear assessment rate.              to implement FHFA’s supervisory
                                                 deliberations on all issues. Like all
                                                 Committee meetings, the May 31, 2018,                      On and after July 1, 2018, the                     approach. Where possible, FHFA would
                                                 meeting was a public meeting and all                    following base rates of assessment for                also align procedures and outcomes of
                                                 entities, both large and small, were able               fresh pears are established for the Fresh             review under the Golden Parachute
                                                 to express views on this issue. Finally,                Pear Committee:                                       Payment Rule with requirements of
                                                 interested persons are invited to submit                   (a) $0.463 per 44-pound net weight                 FHFA’s rule on executive
                                                 comments on this proposed rule,                         standard box or container equivalent for              compensation. FHFA expects
                                                 including the regulatory and                            any or all varieties or subvarieties of               implementation of these changes would
                                                 information collection impacts of this                  fresh pears classified as ‘‘summer/fall’’;            result in reduced administrative and
                                                                                                            (b) $0.463 per 44-pound net weight                 compliance burdens.
                                                 action on small businesses.
                                                    In accordance with the Paperwork                     standard box or container equivalent for              DATES: Comments must be received by
                                                 Reduction Act of 1995 (44 U.S.C.                        any or all varieties or subvarieties of               October 12, 2018.
                                                 Chapter 35), the Order’s information                    fresh pears classified as ‘‘winter’’; and
                                                                                                                                                               ADDRESSES: You may submit your
                                                 collection requirements have been                       *      *    *     *     *                             comments on the proposed rule,
                                                 previously approved by the OMB and                        Dated: August 22, 2018.                             identified by regulatory information
                                                 assigned OMB No. 0581–0189 Fruit                        Bruce Summers,                                        number (RIN) 2590–AA72, by any one
                                                 Crops. No changes in those                              Administrator, Agricultural Marketing                 of the following methods:
                                                 requirements would be necessary                         Service.                                                 • Agency website: www.fhfa.gov/
                                                 because of this action. Should any                      [FR Doc. 2018–18552 Filed 8–27–18; 8:45 am]           open-for-comment-or-input.
                                                 changes become necessary, they would                    BILLING CODE 3410–02–P
                                                                                                                                                                  • Federal eRulemaking Portal: http://
                                                 be submitted to OMB for approval.                                                                             www.regulations.gov. Follow the
                                                    This proposed rule would not impose                                                                        instructions for submitting comments. If
                                                 any additional reporting or                             FEDERAL HOUSING FINANCE                               you submit your comment to the
                                                 recordkeeping requirements on either                    AGENCY                                                Federal eRulemaking Portal, please also
                                                 small or large Oregon and Washington                                                                          send it by email to FHFA at
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                                                 fresh pear handlers. As with all Federal                12 CFR Part 1231                                      RegComments@fhfa.gov to ensure
                                                 marketing order programs, reports and                                                                         timely receipt by FHFA. Include the
                                                 forms are periodically reviewed to                      RIN 2590–AA72                                         following information in the subject line
                                                 reduce information requirements and                     Golden Parachute and Indemnification                  of your submission: Comments/RIN
                                                 duplication by industry and public                      Payments                                              2590–AA72.
                                                 sector agencies.                                                                                                 • Hand Delivered/Courier: The hand
                                                    AMS is committed to complying with                   AGENCY:     Federal Housing Finance                   delivery address is: Alfred M. Pollard,
                                                 the E-Government Act, to promote the                    Agency.                                               General Counsel, Attention: Comments/


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Document Created: 2018-08-28 00:22:25
Document Modified: 2018-08-28 00:22:25
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 September 27, 2018.
ContactBarry Broadbent, 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 43799 
CFR AssociatedMarketing Agreements; Pears and Reporting and Recordkeeping Requirements

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