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<body><p>May 6, 2010





Facsimile Transmission</p>
<p>






(202) 690-4413</p>
<p>






<a href="mailto:Pacalicensefee@ams.usda.gov."><u>Pacalicensefee@ams.usda.gov.</u></a></p>
<p>PACA License Fee Comments</p>
<p>AMS, F&V Programs, PACA Branch
</p>
<p>1400 Independence Ave., S.W. </p>
<p>Room 2095-S</p>
<p>Washington, D.C.  20250-0242</p>
<p>To Whom It May Concern:</p>
<p><b>Subject:
<u>PACA License Fee Comments</u></b></p>
<p><b>

Document No. AMS-FV-08-0098, RIN #0581-AC92</b></p>
<p>Established in 1926, Western Growers is an agricultural trade association whose nearly 2,500 members grow, pack and ship 90% of the fresh vegetables and nearly 70% of the fresh fruits and nuts grown in California and Arizona.  This accounts for more than fifty per cent of the nation's fresh produce production.
</p>
<p>It is on behalf of our membership that I am submitting these comments in support of the proposed rule to increase the current annual license fee of $550 per year to $995 per year.  Western Growers has always been a strong advocate of the Perishable Agricultural Commodities Act of 1930 which was established to provide a code of fair trade practices covering the marketing of fresh and frozen fruits and vegetables in interstate and foreign commerce.  Over the eighty year history, the PACA has protected growers, shippers, distributors and retailers dealing in these commodities by enforcing a set of regulations that provides for enhanced marketing and distribution of this nation’s fruits and vegetables.  In this way the law cultivates an efficient nationwide set of standards for communicating the sale and distribution of fresh and frozen fruits and vegetables which benefits the entire marketing chain from farmer to consumer.  The PACA has been an invaluable self-help tool for farmers and those throughout the supply chain.</p>
<p>The Perishable Agricultural Commodities Act also enforces federal regulations in an expedited administrative set of procedures without requiring the civil court system.  The PACA also mandates full and prompt payment, removes violators from the trade when needed, and provides the extraordinary protection on securing payment through the PACA trust provisions.</p>
<p>PACA License Fee Comments
</p>
<p>Washington, D.C.</p>
<p>May 6, 2010
</p>
<p>Page 2
</p>
<p>In 1995 the PACA increased the licensing fee from $400 to $550 for all licensees except for retailers and wholesale grocers.  The 1995 amendment allowed the USDA to authorize future increases through rule making procedures.  Again in 2000, a proposed increase was considered, however, that consideration was subsequently withdrawn and the industry was extremely fortunate that in June of 2000; President Clinton signed public law 106-224 which included 30.45 million to be deposited in the USDA PACA reserve fund on October 1, 2000.  These additional funds allowed the PACA to maintain license and complaint filing fees at the 1995 levels.</p>
<p>In 2006 the USDA’s Fruit and Vegetable Advisory Committee carefully monitored the PACA financial situation along with efficiencies and ultimately supported the PACA recommendations to close two of their regional offices.  In doing so, the PACA has streamlined and instituted an 800 phone number system to allow for good delivery questions as well as licensing questions covering the entire work day for all time zones.  Western Growers lauds the PACA branch for managing their finances judiciously which allows the industry to benefit from their services.  Even with those systematic changes Western Growers sees the necessity to increase from $550 to $995 as proposed.  With respect to the branch fee assessments, Western Growers strongly suggests that branch one and two be free and starting at branch three, WG would support the monetary charge increase from $200 to $600.  It is our opinion that reducing the current exemption from nine branches to zero is too dramatic a change.</p>
<p>Western Growers is of the opinion that with the increase from $550 to $995 a year for the license fee, as well as increasing the branch fee from $200 to $600 starting for the third branch, would allow the PACA to operate effectively for several years.  With the streamlined efficiencies that PACA has taken in 2006 restructuring the regional offices and consolidating the national wide license function into one office and reducing the 116 full time employees (FTE’s) down to 80 FTE’s, has demonstrated a responsiveness to the constituents it has successfully served for eighty years.
</p>
<p>PACA License Fee Comments
</p>
<p>Washington, D.C.</p>
<p>May 6, 2010
</p>
<p>Page 3
</p>
<p>Western Growers supports the PACA branch efforts and accomplishments and because of the need for facilitating fair trade practices, Western Growers supports the fee increase from $550 per year to $995 per year as well as the branch location fee increase from $200 a year to $600 a year starting at the third branch location.</p>
<p>Very truly yours,
</p>
<p>THOMAS R. OLIVERI
</p>
<p>Director, Trade Practices & Commodity Services</p>
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