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[Federal Register Volume 77, Number 169 (Thursday, August 30, 2012)]
[Rules and Regulations]
[Pages 52595-52597]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-21372]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 929

[Doc. No. AMS-FV-12-0002; FV12-929-1 IR]

Cranberries Grown in States of Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York; Changing 
Reporting Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This rule revises the reporting requirements currently 
prescribed under the marketing order that regulates the handling of 
cranberries grown in the States of Massachusetts, Rhode Island, 
Connecticut, New Jersey, Wisconsin, Michigan, Minnesota, Oregon, 
Washington, and Long Island in the State of New York (order). The order 
is administered locally by the Cranberry Marketing Committee 
(Committee). This rule changes the dates covered by the third reporting 
period and the date by which the Handler Inventory Report (Form HIR) is 
due to the Committee. These changes will help ensure the Committee has 
current and complete information available for its discussions during 
its annual August meeting, while providing handlers sufficient time to 
submit their reports.

DATES: Effective August 31, 2012; comments received by October 29, 2012 
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. All comments should reference the document number 
and the date and page number of this issue of the Federal Register and 
will be made 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: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Manager, 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 Laurel May, 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: Laurel.May@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 929, both as amended (7 CFR part 929), 
regulating the handling of cranberries produced in States of 
Massachusetts, Rhode Island, Connecticut, New Jersey, Wisconsin, 
Michigan, Minnesota, Oregon, Washington, and Long Island in the State 
of New York, 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. This rule is not intended to have retroactive effect.
    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. A 
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 revises the reporting requirements currently prescribed 
under the order. This rule changes the dates covered by the third 
reporting period and the date by which the Handler Inventory Report 
(Form HIR) is due to the Committee. These changes will help ensure the 
Committee has current and complete information available for its 
discussions during its annual August meeting, while providing handlers 
sufficient time to submit their report. These changes were unanimously 
recommended by the Committee at a meeting on August 31, 2011.
    Section 929.62 of the cranberry marketing order provides, in part, 
that each handler engaged in the handling of cranberries or cranberry 
products shall, upon request of the Committee, report as to the 
quantity of cranberries acquired and handled during any designated 
period or periods. This section also provides that handlers report 
cranberries or cranberry products held in inventory on such date as the 
Committee may designate.
    Currently, Sec.  929.105 provides that certified reports shall be 
filed with the Committee, on a form provided by the Committee, by each 
handler not later than January 20, May 20, and August 20 of each fiscal 
period and by September 20 of the succeeding fiscal period. This 
Handler Inventory Report (Form HIR) must show the total quantity of 
cranberries acquired and the total quantity of cranberries and 
Vaccinium oxycoccus cranberries handled from the beginning of the 
reporting period indicated through December 31, April 30, July 31, and 
August 31, respectively. The report must also show the total quantity 
of cranberries and Vaccinium oxycoccus cranberries as well as cranberry 
products and Vaccinium oxycoccus cranberry products held by the handler 
on January 1, May 1, August 1, and August 31 of each fiscal period. The 
information obtained from handlers is compiled into reports which are 
reviewed by the Committee and used to make informed decisions regarding 
the activities under the order.
    In 2010, the Committee recommended changing the dates when handler 
reports were due in order to provide handlers with additional time to 
submit their report (75 FR 5898). Under that action, the due dates were 
changed from January 5, May 5, and August 5 of each fiscal period and 
by September 5 of the

[[Page 52596]]

succeeding fiscal period to January 20, May 20, and August 20 of each 
fiscal period and by September 20 of the succeeding fiscal period, 
respectively. This change was made to allow handlers more time to file 
their report.
    After changing the due dates of the report, the Committee realized 
that given the new due dates, the handler report due by August 20 may 
not be received prior to the Committee's annual August meeting. In 
discussing this issue, the Committee recognized that having as current 
industry information as possible available for the August meeting is 
important for administering the order. Further, it is particularly 
significant as the Committee is required to make decisions regarding 
the need to establish a volume regulation using a handler withholding 
not later than August 31 each year.
    Consequently, the Committee unanimously voted to change the due 
date for the third reporting period from August 20 to July 20. To 
accommodate the new due date, this rule also adjusts the timeframes 
covered under third period reporting by adjusting the end date from 
July 31 to June 30 for cranberries acquired and handled and for 
reporting inventory held changes August 1 to June 30. With these 
changes, handler information from the third reporting period will be 
received and compiled into reports prior to the Committee's meeting in 
August. These changes will help ensure that the Committee has current 
and complete information available for its discussions, while providing 
handlers sufficient time to submit their reports.

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 action 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 
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 55 handlers of cranberries who are subject 
to regulation under the marketing order and approximately 1,200 
cranberry producers in the regulated area. Small agricultural service 
firms are defined by the Small Business Administration (SBA) as those 
having annual receipts of less than $7,000,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$750,000 (13 CFR 121.201).
    Based on Committee data and information from the National 
Agricultural Statistics Service, the average annual f.o.b. price of 
cranberries during the 2010 season was approximately $46.50 per barrel 
and total shipments were approximately 6.8 million barrels. As a 
percentage, about 18 percent of the handlers shipped approximately 6.5 
million barrels of cranberries. Using the average f.o.b. price and 
shipment data, about 82 percent of cranberry handlers could be 
considered small businesses under SBA's definition. In addition, based 
on production and producer prices, and the total number of cranberry 
growers, the average grower revenue is less than $750,000. Therefore, 
the majority of growers and handlers of cranberries may be considered 
small entities.
    This rule revises the reporting requirements currently prescribed 
under the cranberry marketing order. This rule revises Sec.  929.105 by 
changing the due date for the third reporting period from August 20 to 
July 20. To accommodate the new due date, this rule also adjusts the 
end date for the timeframe covered under the third period reporting 
from July 31 to June 30 for cranberries acquired and handled, and 
changes August 1 to June 30 for reporting inventory held. These changes 
will help ensure the Committee has current and complete information 
available for discussion during its annual August meeting, while 
providing handlers sufficient time to submit their Handler Inventory 
Report (Form HIR). The authority for these actions is provided in Sec.  
929.62. These changes were unanimously recommended by the Committee at 
a meeting on August 31, 2011.
    It is not anticipated that this action will impose any additional 
costs on the industry nor will it change the reporting and 
recordkeeping burden on handlers. Having current and complete 
information available during the Committee's August meeting will assist 
the Committee when making decisions regarding the administration of the 
order. The benefits of this rule are not expected to be 
disproportionately greater or less for small handlers or growers than 
for large entities.
    The Committee considered one alternative to these changes, making 
no changes to the reporting requirements. The Committee recognized 
making no changes to the reporting requirements could mean that current 
and complete information for the third reporting period may not be 
available for discussion during the August meeting. Therefore, this 
alternative was rejected.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
chapter 35), the order's information collection requirements have been 
approved by the Office of Management and Budget (OMB) and assigned OMB 
No. 0581-0189, Generic Fruit Crops. Because this revision changes 
neither the content of the Handler Inventory Report (Form HIR) nor its 
calculated burden, no changes in OMB requirements as a result of this 
action are necessary. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large cranberry 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Further, the Committee's meeting was widely publicized throughout 
the cranberry industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the August 31, 2011, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. Finally, interested persons are invited to submit 
comments on this interim rule, including the regulatory and 
informational impacts of this action on small businesses.
    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 Laurel May at the previously 
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
    This rule invites comments on changes to the reporting requirements 
currently prescribed under the

[[Page 52597]]

cranberry marketing order. Any comments received will be considered 
prior to finalization of this rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim 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 handler reporting cycle for the current fiscal period 
has already begun; (2) the Committee would like this action in place 
prior to the start of the third reporting period which begins May 1; 
(3) the Committee unanimously recommended these changes at a public 
meeting and interested parties had an opportunity to provide input; and 
(4) this rule provides a 60-day comment period and any comments 
received will be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 929

    Cranberries, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 929 is 
amended as follows:

PART 929--CRANBERRIES GROWN IN THE STATES OF MASSACHUSETTS, RHODE 
ISLAND, CONNECTICUT, NEW JERSEY, WISCONSIN, MICHIGAN, MINNESOTA, 
OREGON, WASHINGTON, AND LONG ISLAND IN THE STATE OF NEW YORK

0
1. The authority citation for 7 CFR part 929 continues to read as 
follows:

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

0
2. Amend Sec.  929.105 by revising paragraph (b) to read as follows:

Sec.  929.105  Reporting.

* * * * *
    (b) Certified reports shall be filed with the committee, on a form 
provided by the committee, by each handler not later than January 20, 
May 20, and July 20 of each fiscal period and by September 20 of the 
succeeding fiscal period showing:
    (1) The total quantity of cranberries the handler acquired and the 
total quantity of cranberries and Vaccinium oxycoccus cranberries the 
handler handled from the beginning of the reporting period indicated 
through December 31, April 30, June 30, and August 31, respectively, 
and
    (2) The respective quantities of cranberries and Vaccinium 
oxycoccus cranberries and cranberry products and Vaccinium oxycoccus 
cranberry products held by the handler on January 1, May 1, June 30, 
and August 31 of each fiscal period.

    Dated: August 22, 2012.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2012-21372 Filed 8-29-12; 8:45 am]
BILLING CODE 3410-02-P
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