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Rules and Regulations Federal Register

23671 

Vol. 78, No. 77 

Monday, April 22, 2013 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 959 

[Doc. No. AMS–FV–12–0039; FV12–959–1 

FR] 

Onions Grown in South Texas; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

South Texas Onion Committee 

(Committee) for the 2012–13 and 

subsequent fiscal periods from $0.025 to 

$0.03 per 50-pound equivalent of onions 

handled. The Committee locally 

administers the marketing order that 

regulates the handling of onions grown 

in South Texas. Assessments upon 

onion handlers are used by the 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period begins August 1 and ends 

July 31. The assessment rate will remain 

in effect indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective Date: April 23, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Doris Jamieson, Marketing Specialist or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or Email: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

959, as amended (7 CFR part 959), 

regulating the handling of onions grown 

in South Texas, hereinafter referred to 

as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, South Texas onion handlers 

are subject to assessments. Funds to 

administer the order are derived from 

such assessments. It is intended that the 

assessment rate as issued herein will be 

applicable to all assessable onions 

beginning on August 1, 2012, and 

continue until amended, suspended, or 

terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule increases the assessment 

rate established for the Committee for 

the 2012–13 and subsequent fiscal 

periods from $0.025 to $0.03 per 50- 

pound equivalent of onions handled. 

The South Texas onion marketing 

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 of the Committee are 

producers and handlers of South Texas 

onions. They are familiar with the 

Committee’s needs and with the costs 

for goods and services in their local area 

and are thus in a position to formulate 

an appropriate budget and assessment 

rate. The assessment rate is formulated 

and discussed in a public meeting. 

Thus, all directly affected persons have 

an opportunity to participate and 

provide input. 

For the 2009–10 and subsequent fiscal 

periods, the Committee recommended, 

and USDA approved, an assessment rate 

that would continue in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

based upon a recommendation and 

information submitted by the 

Committee or other information 

available to USDA. 

The Committee met on June 26, 2012, 

and unanimously recommended 2012– 

13 expenditures of $145,467 and an 

assessment rate of $0.03 per 50-pound 

equivalent of onions. In comparison, 

last year’s budgeted expenditures were 

$190,467. The assessment rate of $0.03 

is $0.005 higher than the rate currently 

in effect. The Committee’s 2012–13 crop 

estimate of five million 50-pound 

equivalents is lower than the six million 

estimated for last year, and would not 

generate adequate assessment income to 

cover budgeted expenses at the $0.025 

rate. With the recommended $0.005 

increase, assessment income should 

approximate $150,000. The increased 

assessment rate should provide 

sufficient funds to cover anticipated 

2012–13 expenses. 

The major expenditures 

recommended by the Committee for the 

2012–13 fiscal period include $46,610 

for compliance, $37,050 for 

administration, and $32,942 for 

management. Budgeted expenses for 

these items were the same in 2011–12. 

The reduction in overall budgeted 

expenses from $190,467 to $145,467 is 

due to the elimination of market 

development programs. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenses by expected 

shipments of South Texas onions. 

Onion shipments for the year are 

estimated at five million 50-pound 

equivalents, which should provide 

$150,000 in assessment income. Income 

derived from handler assessments, along 


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23672 Federal Register / Vol. 78, No. 77 / Monday, April 22, 2013 / Rules and Regulations 

with interest income, should be 

adequate to cover budgeted expenses. 

Funds in the reserve (currently 

$107,162) will be kept within the 

maximum permitted by the order 

(approximately two fiscal periods’ 

expenses as stated in § 959.43). 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

based upon a 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 2012–13 budget and those 

for subsequent fiscal periods would 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 

business 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 85 producers 

of onions in the production area and 

approximately 30 handlers subject to 

regulation under the marketing 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 $7,000,000 (13 CFR 121.201). 

According to Committee data and 

information from the National 

Agricultural Statistical Service (NASS), 

the average price for South Texas onions 

during the 2010–11 season was around 

$7.35 per 50-pound equivalents and 

total shipments were approximately 5.4 

million 50-pound equivalents. Using the 

average price and shipment information 

and assuming a normal distribution, the 

majority of South Texas onion 

producers would have annual receipts 

of less than $750,000. In addition, based 

on available information, approximately 

80 percent South Texas onion handlers 

could be considered small businesses 

under SBA’s definition. Thus, the 

majority of South Texas onion 

producers and handlers may be 

classified as small entities. 

This rule increases the assessment 

rate established for the Committee and 

collected from handlers for the 2012–13 

and subsequent fiscal periods from 

$0.025 to $0.03 per 50-pound equivalent 

of onions. The Committee unanimously 

recommended 2012–13 expenditures of 

$145,467 and an assessment rate of 

$0.03 per 50-pound equivalent. The 

assessment rate of $0.03 is $0.005 higher 

than the 2011–12 rate. The quantity of 

assessable onions for the 2012–13 fiscal 

period is estimated at five million 50- 

pound equivalents, compared to an 

estimated six million 50-pound 

equivalents last year. The current 

assessment rate of $0.025 would not 

generate sufficient revenue to meet 

expenses, however the $0.03 rate should 

provide $150,000 in assessment income 

and be adequate to meet this year’s 

expenses. 

The major expenditures 

recommended by the Committee for the 

2012–13 fiscal period include $46,610 

for compliance, $37,050 for 

administration, and $32,942 for 

management. Budgeted expenses for 

these items were the same in 2011–12. 

The reduction in overall budgeted 

expenses from $190,467 to $145,467 is 

due to the elimination of market 

development programs. 

Prior to arriving at this budget, the 

Committee considered information from 

various sources, such as the 

Committee’s Budget and Personnel 

Committee and the Marketing 

Committee. Alternative expenditure 

levels were discussed by these groups, 

based upon the relative value of various 

promotional projects to the South Texas 

onion industry. The assessment rate of 

$0.03 per 50-pound equivalent of 

assessable onions was then determined 

by dividing the total recommended 

budget by the quantity of assessable 

onions, estimated at five million 50- 

pound equivalents for the 2012–13 

fiscal period. Assessment income 

should approximate $150,000, $5,333 

above anticipated expenses, which the 

Committee determined to be acceptable. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the grower price for the 2012–13 

fiscal period could range between $6.60 

and $9.80 per 50-pound equivalent of 

onions. Therefore, the estimated 

assessment revenue for the 2012–13 

fiscal period, as a percentage of total 

grower revenue, could range between .3 

and .45 percent. 

This action increases the assessment 

obligation imposed on handlers. While 

assessments impose some additional 

costs on handlers, the costs are minimal 

and uniform on all handlers. Some of 

the additional costs may be passed on 

to producers. However, these costs are 

offset by the benefits derived by the 

operation of the marketing order. In 

addition, the Committee’s meeting was 

widely publicized throughout the South 

Texas onion industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the June 26, 2012, 

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 Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0178, 

Vegetable and Specialty Crops. No 

changes in those requirements as a 

result of this action are necessary. 

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 South Texas 

onion handlers. As with all Federal 

marketing order programs, reports and 

forms are periodically reviewed to 

reduce information requirements and 

duplication by industry and public 

sector agencies. As noted in the initial 

regulatory flexibility analysis, USDA 

has not identified any relevant Federal 

rules that duplicate, overlap, or conflict 

with this final rule. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

A proposed rule concerning this 

action was published in the Federal 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 78, No. 77 / Monday, April 22, 2013 / Rules and Regulations 23673 

Register on February 5, 2013 (78 FR 

8047). Copies of the proposed rule were 

also mailed or sent via facsimile to all 

onion handlers. Finally, the proposal 

was made available through the Internet 

by USDA and the Office of the Federal 

Register. A 10-day comment period 

ending February 15, 2013, 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: www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

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, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because the 2012–13 fiscal period began 

on August 1, 2012, and the marketing 

order requires that the assessment rate 

for each fiscal period apply to all 

assessable onions handled during such 

fiscal period. In addition, the Committee 

needs sufficient funds to pay its 

expenses, which are incurred on a 

continuous basis. Further, handlers are 

aware of this rule which was 

recommended at a public meeting. Also, 

a 10-day comment period was provided 

for in the proposed rule, and no 

comments were received. 

List of Subjects in 7 CFR Part 959 

Marketing agreements, Onions, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 959 is amended as 

follows: 

PART 959—ONIONS GROWN IN 

SOUTH TEXAS 

■ 1. The authority citation for 7 CFR 

part 959 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 959.237 is revised to read 

as follows: 

§ 959.237 Assessment rate. 

On and after August 1, 2012, an 

assessment rate of $0.03 per 50-pound 

equivalent is established for South 

Texas onions. 

Dated: April 16, 2013. 

David R. Shipman, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2013–09381 Filed 4–19–13; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Doc. Nos. AMS–FV–11–0088; FV12–985–1A 

FIR] 

Marketing Order Regulating the 

Handling of Spearmint Oil Produced in 

the Far West; Revision of the Salable 

Quantity and Allotment Percentage for 

Class 1 (Scotch) and Class 3 (Native) 

Spearmint Oil for the 2012–2013 

Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Affirmation of interim rule as 

final rule. 

SUMMARY: The Department of 

Agriculture (USDA) is adopting, as a 

final rule, without change, an interim 

rule that revised the quantity of Class 1 

(Scotch) and Class 3 (Native) spearmint 

oil that handlers may purchase from, or 

handle on behalf of, producers during 

the 2012–2013 marketing year under the 

Far West spearmint oil marketing order. 

The interim rule increased the Scotch 

spearmint oil salable quantity from 

782,413 pounds to 2,622,115 pounds 

and the allotment percentage from 38 

percent to 128 percent. In addition, the 

interim rule increased the Native 

spearmint oil salable quantity from 

1,162,473 pounds to 1,348,270 pounds 

and the allotment percentage from 50 

percent to 58 percent. This change is 

expected to moderate extreme 

fluctuations in the supply and price of 

spearmint oil. Also, this change will 

help maintain stability in the Far West 

spearmint oil market. 

DATES: Effective June 1, 2012, through 

May 31, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Barry Broadbent, Senior Marketing 

Specialist, or Gary Olson, Regional 

Director, Northwest Marketing Field 

Office, Marketing Order and Agreement 

Division, Fruit and Vegetable 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 obtain 

information on complying with this and 

other marketing order regulations by 

viewing a guide at the following Web 

site: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide; 

or by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

985 (7 CFR part 985), as amended, 

regulating the handling of spearmint oil 

produced in the Far West (Washington, 

Idaho, Oregon, and designated parts of 

Nevada and Utah), hereinafter referred 

to as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

The handling of spearmint oil 

produced in the Far West is regulated by 

the order and is administered locally by 

the Spearmint Oil Administrative 

Committee (Committee). Under the 

authority of the order, salable quantities 

and allotment percentages were 

established for both Scotch and Native 

spearmint oil for the 2012–2013 

marketing year. However, early in the 

2012–2013 marketing year, it became 

evident to the Committee and the 

industry that demand for spearmint oil 

was greater than previously projected 

and an intra-seasonal increase in the 

salable quantity and allotment 

percentage for each class of oil was 

warranted. 

Therefore, this rule continues in effect 

the action that increased the Scotch 

spearmint oil salable quantity from 

782,413 pounds to 2,622,115 pounds, 

and allotment percentage from 38 

percent to 128 percent. In addition, this 

rule continues in effect the action that 

increased the Native spearmint oil 

salable quantity from 1,162,473 pounds 

to 1,348,270 pounds, and allotment 

percentage from 50 percent to 58 

percent. 

In an interim rule published in the 

Federal Register on December 28, 2012, 

and effective June 1, 2012, through May 

31, 2013, (77 FR 76341, Doc. No. AMS– 

FV–11–0088, FV12–985–1A IR), 

§ 985.230 was amended to reflect the 

aforementioned increases in the salable 

quantities and allotment percentages for 

Scotch and Native spearmint oil for the 

2012–2013 marketing year. 


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