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Rules and Regulations Federal Register

51067 

Vol. 79, No. 166 

Wednesday, August 27, 2014 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 987 

[Docket No. AMS–FV–14–0057; FV14–987– 

3 IR] 

Domestic Dates Produced or Packed in 

Riverside County, California; 

Decreased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule decreases the 

assessment rate established for the 

California Date Administrative 

Committee (Committee) for the 2014–15 

and subsequent crop years from $0.40 to 

$0.20 per hundredweight of dates 

handled. The Committee locally 

administers the marketing order, which 

regulates the handling of dates grown or 

packed in Riverside County, California. 

Assessments upon date handlers are 

used by the Committee to fund 

reasonable and necessary expenses of 

the program. The crop year begins 

October 1 and ends September 30. The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective October 1, 2014. 

Comments received by October 27, 2014 

will be considered prior to issuance of 

a final rule. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order and Agreement Division, Fruit 

and Vegetable 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 docket 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 

comments will be made public on the 

internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Terry Vawter, Senior Marketing 

Specialist, or Martin Engeler, Regional 

Director, California Marketing Field 

Office, Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (559) 487– 

5901, Fax: (559) 487–5906, or Email: 

Terry.Vawter@ams.usda.gov or 

Martin.Engeler@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 Agreement 

and Order No. 987, both as amended (7 

CFR Part 987), regulating the handling 

of dates produced or packed in 

Riverside County, California, 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 Orders 

12866, 13563, and 13175. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, Riverside County, California 

date 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 dates beginning October 1, 

2014, 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 decreases the assessment 

rate established for the Committee for 

the 2014–15 and subsequent crop years 

from $0.40 to $0.20 per hundredweight 

of dates. 

The California date 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 (7 CFR 987.72). 

The members of the Committee are date 

producers and handlers from Riverside 

County, California. They are familiar 

with the Committee’s needs and the 

costs of goods and services in their local 

area and are thus in a position to 

formulate an appropriate budget and 

assessment rate. The assessment rate is 

formulated and discussed in a public 

meeting. Thus, all directly affected 

persons have an opportunity to 

participate and provide input. 

The Committee met on June 25, 2014, 

and unanimously recommended 2014– 

15 expenditures of $56,200, and an 

assessment rate of $0.20 per 

hundredweight of Riverside County, 

California dates. In comparison, last 

year’s budgeted expenditures were 

$97,700. The assessment rate of $0.20 is 

$0.20 lower than the rate currently in 

effect. 

The Committee recommended a lower 

assessment rate because of a significant 

decrease in its budgeted expenses. The 

industry shifted its marketing programs 

from the Committee to the California 

Date Commission, a California State 

marketing program, beginning October 

1, 2013. As such costs continue to shift 

to the State marketing program, the 

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51068 Federal Register / Vol. 79, No. 166 / Wednesday, August 27, 2014 / Rules and Regulations 

amount of assessment revenue needed 

under the order continues to decrease. 

Income generated from the lower 

assessment rate, combined with cull 

surplus contributions, and carry-in 

funds from the 2013–14 crop year 

should be sufficient to cover anticipated 

2014–15 expenses. 

Proceeds from sales of cull dates are 

deposited into a surplus account for 

subsequent use by the Committee in 

covering the surplus pool share of the 

Committee’s expenses. Handlers may 

also dispose of cull dates of their own 

production within their own livestockfeeding operation; otherwise, such cull 

dates must be shipped or delivered to 

the Committee for sale to non-human 

food product outlets. Pursuant to 

§ 987.72(c), the Committee is authorized 

to temporarily use funds derived from 

assessments to defray expenses incurred 

in disposing of surplus dates. All such 

expenses are required to be deducted 

from proceeds obtained by the 

Committee from the disposal of surplus 

dates. For the 2014–15 crop year, the 

Committee estimates that $5,000 from 

the surplus account would be needed to 

temporarily defray expenses incurred in 

disposing of surplus dates. 

The major expenditures 

recommended by the Committee for the 

2014–15 crop year include: $56,200 for 

general and administrative expenses, 

and $2,800 in contingency funds. In 

comparison, the major expenditures 

recommended by the Committee for the 

2013–14 crop year included: $58,200 for 

general and administrative expenses, 

$20,000 for nutrition and food quality 

programs, and $19,500 for contingency 

funds. 

The assessment rate of $0.20 per 

hundredweight of dates handled was 

recommended by the Committee after 

considering several factors: the 

anticipated size of the 2014–15 crop, the 

Committee’s estimates of the incoming 

reserve, other income, and anticipated 

expenses. Date shipments for the year 

are estimated at 27,000,000 pounds 

(270,000 hundredweight) which should 

provide $54,000 in assessment income. 

Income derived from handler 

assessments, along with a $5,000 

reimbursement for the cost of disposing 

of surplus culls, should be adequate to 

cover budgeted expenses. Section 

987.72(d) of the order states that the 

Committee may maintain a monetary 

reserve not to exceed the average of one 

year’s expenses incurred during the 

most recent five preceding crop years, 

except that an established reserve need 

not be reduced to conform to any 

recomputed average. The Committee 

expects to carry a $60,000 reserve into 

the 2014–15 crop year. It expects to add 

$2,800 to the reserve during the year, for 

a carryout of approximately $62,800, 

which is below the limit specified in the 

order. 

The assessment rate established in 

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 is 

effective for an indefinite period, the 

Committee will continue to meet prior 

to or during each crop year 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 2014–15 budget and those 

for subsequent crop years will 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 

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 70 date 

producers in the production area and 11 

handlers subject to regulation under the 

marketing order. The Small Business 

Administration defines small 

agricultural producers as those having 

annual receipts of less than $750,000, 

and small agricultural service firms as 

those whose annual receipts are less 

than $7,000,000. (13 CFR 121.201) 

According to the National 

Agricultural Statistics Service (NASS), 

data for the most-recently completed 

crop year (2012) shows that about 4.04 

tons, or 8,080 pounds, of dates were 

produced per acre. The 2012 grower 

price published by NASS was $1,340 

per ton, or $0.67 per pound. Thus, the 

value of date production per acre in 

2011–12 averaged about $5,414 (8,080 

pounds times $0.67 per pound). At that 

average price, a producer would have to 

farm over 138 acres to receive an annual 

income from dates of $750,000 

($750,000 divided by $5,414 per acre 

equals 138.53 acres). According to 

Committee staff, the majority of 

California date producers farm less than 

138 acres. Thus, it can be concluded 

that the majority of date producers 

could be considered small entities. In 

addition, according to data from the 

Committee staff, the majority of 

California date handlers have receipts of 

less than $7,000,000 and may also be 

considered small entities. 

This rule decreases the assessment 

rate established for the Committee and 

collected from handlers for the 2014–15 

and subsequent crop years from $0.40 to 

$0.20 per hundredweight of dates 

handled. The Committee unanimously 

recommended 2014–15 expenditures of 

$56,200 and an assessment rate of $0.20 

per hundredweight of dates, which is 

$0.20 lower than the 2013–14 rate 

currently in effect. The quantity of 

assessable dates for the 2014–15 crop 

year is estimated at 27,000,000 pounds 

(270,000 hundredweight). Thus, the 

$0.20 rate should provide $54,000 in 

assessment income. Income derived 

from handler’s assessments, along with 

the $5,000 contribution from the surplus 

program, should be adequate to cover 

expenses for the 2014–15 crop year. 

The major expenditures 

recommended by the Committee for the 

2014–15 crop year include: $56,200 for 

general and administrative expenses, 

and $2,800 in contingency funds. In 

comparison, the major expenditures 

recommended by the Committee for the 

2013–14 crop year include: $58,200 for 

general and administrative expenses, 

$20,000 for nutrition and food quality 

programs, and $19,500 for contingency 

funds. 

The Committee recommended a lower 

assessment rate because the industry 

began shifting its marketing programs to 

the State marketing program, the 

California Date Commission, beginning 

October 1, 2013. The migration of costs 

to the State marketing program has 

continued. Thus, less assessment 

revenue is needed to fund Committee 

operations under the order. 

Section 987.72(d) of the order states 

that the Committee may maintain a 

monetary reserve not to exceed the 

average of one year’s expenses incurred 

during the most recent five preceding 

crop years, except that an established 

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Federal Register / Vol. 79, No. 166 / Wednesday, August 27, 2014 / Rules and Regulations 51069 

reserve need not be reduced to conform 

to any recomputed average. The 

Committee expects to carry a $60,000 

reserve into the 2014–15 crop year. It 

expects to add $2,800 to the reserve 

during the year, for a carryout of 

approximately $62,800, which is below 

the limit specified in the order. 

The Committee reviewed and 

unanimously recommended 2014–15 

crop year expenditures of $56,200. Prior 

to arriving at this budget, the Committee 

considered information from various 

sources, such as the Committee’s Budget 

Subcommittee. Alternative expenditure 

levels and assessment rates were 

discussed by the subcommittee, based 

upon the relative value of various 

projects to the date industry and the 

Committee. The assessment rate of $0.20 

per hundredweight of dates was then 

recommended after consideration of 

several factors, including the 

anticipated 2014–15 crop size, the 

Committee’s estimates of the incoming 

reserve funds, other income, and their 

anticipated expenses. 

A review of historical and preliminary 

information pertaining to the upcoming 

crop year indicates that the grower price 

for the 2014–15 crop year could range 

between $45.00 and $55.00 per 

hundredweight of dates. Utilizing these 

estimates and the assessment rate of 

$0.20 per hundredweight, the estimated 

assessment revenue for the 2014–15 

crop year as a percentage of total grower 

revenue could range between 0.36 and 

0.44 percent. 

This action decreases the assessment 

obligation imposed on handlers. 

Assessments are applied uniformly on 

all handlers, and some of the costs may 

be passed on to producers. However, 

decreasing the assessment rate reduces 

the burden on handlers, and may reduce 

the burden on producers. In addition, 

the Committee’s and subcommittee’s 

meetings were widely publicized 

throughout the California date industry, 

and all interested persons were invited 

to attend the meetings and encouraged 

to participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the June 25, 2014, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express views on this issue. Industry 

members also discussed the various 

possible assessment rates, potential crop 

size, and estimated expenses at the 

Budget Subcommittee meeting on June 

4, 2014. Finally, interested persons are 

invited to submit comments on this 

interim rule, including the regulatory 

and informational 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 Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0178, 

‘‘Vegetable and Specialty Crop 

Marketing Orders.’’ 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 action imposes no additional 

reporting or recordkeeping requirements 

on either small or large Riverside 

County, California date 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 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/ 

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 upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect, and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) The 2014–15 crop year 

begins on October 1, 2014, and the 

marketing order requires that the rate of 

assessment for each crop year apply to 

all assessable dates handled during such 

crop year; (2) the action decreases the 

assessment rate for assessable dates 

beginning with the 2014–15 crop year; 

(3) handlers are aware of this action 

which was unanimously recommended 

by the Committee at a public meeting 

and is similar to other assessment rate 

actions issued in past years; and (4) this 

interim rule provides a 60-day comment 

period. All comments timely received 

will be considered prior to finalization 

of this rule. 

List of Subjects in 7 CFR Part 987 

Dates, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 987 is amended as 

follows: 

PART 987—DATES PRODUCED OR 

PACKED IN RIVERSIDE COUNTY, 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 987 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 987.339 is revised to read 

as follows: 

§ 987.339 Assessment rate. 

On and after October 1, 2014, an 

assessment rate of $0.20 per 

hundredweight is established for 

Riverside County, California dates. 

Dated: August 22, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–20413 Filed 8–26–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 946 

[Doc. No. AMS–FV–14–0026; FV14–946–1 

FIR] 

Irish Potatoes Grown in Washington; 

Modification of the Handling 

Regulations for Yellow Fleshed and 

White Types of Potatoes 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Affirmation of interim rule as 

final rule. 

SUMMARY: The Department of 

Agriculture is adopting, as a final rule, 

without change, an interim rule that 

extended the temporary exemption of 

yellow fleshed and white skin (white 

types) potatoes from minimum quality, 

maturity, pack, marking, and inspection 

requirements under the Washington 

potato marketing order through the 

2014–2015 and subsequent fiscal 

periods. This rule is expected to reduce 

overall industry expenses and increase 

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