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[Federal Register: January 11, 2010 (Volume 75, Number 6)]
[Rules and Regulations]               
[Page 1269-1271]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr11ja10-2]                         

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Doc. No. AMS-FV-09-0048; FV09-993-1 FIR]

 
Dried Prunes Produced in California; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim final rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule that decreased the 
assessment rate established for the Prune Marketing Committee 
(Committee), for the 2009-10 and subsequent crop years from $0.30 to 
$0.16 per ton of salable dried prunes. The Committee locally 
administers the marketing order that regulates the handling of dried 
prunes in California. The interim final rule was necessary to align the 
Committee's expected revenue with decreases in its proposed budget for 
the 2009-10 and subsequent crop years, which began on August 1. The 
assessment rate will remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Effective Date: January 12, 2010.

FOR FURTHER INFORMATION CONTACT: Debbie Wray, Marketing Specialist, or 
Kurt J. Kimmel, Regional Manager, California Marketing Field Office, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA; Telephone: (559) 487-5901, Fax: (559) 487-5906, or E-mail: 
Debbie.Wray@ams.usda.gov or Kurt.Kimmel@ams.usda.gov.
    Small businesses may obtain information on complying with this, and 
other marketing order and agreement regulations by viewing a guide at 
the following Web site: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide; or by contacting Jay Guerber, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue, SW., STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-2491, Fax: (202) 720-8938, or E-mail: 
Jay.Guerber@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 110 and Marketing Order No. 993, both as amended (7 CFR 
part 993), regulating the handling of dried prunes grown in 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 Order 12866.
    Under the order, California dried prune handlers are subject to 
assessments, which provide funds to administer the order. Assessment 
rates issued under the order are intended to be applicable to all 
assessable salable dried prunes for the entire crop year, and continue 
indefinitely until amended, suspended, or terminated. The Committee's 
fiscal period begins on August 1 and ends on July 31.
    In an interim final rule published in the Federal Register on 
September 9, 2009, and effective on September 10, 2009 (74 FR 46310, 
Doc. No. AMS-FV-09-0048; FV09-993-1 IFR), Sec.  993.347 was amended by 
decreasing the assessment rate established for the Committee for the 
2009-10 and subsequent crop years from $0.30 to $0.16 per ton of 
California salable dried prunes. The decrease in the per-ton assessment 
rate was possible due to significant decreases in operating expenses 
and contingencies, and a significant increase in the crop estimate for 
the 2009-10 crop year.

[[Page 1270]]

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), 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 900 producers of salable dried prunes in 
the production area and approximately 20 handlers subject to regulation 
under the marketing order. The Small Business Administration (13 CFR 
121.201) defines small agricultural producers as those whose annual 
receipts are less than $750,000, and small agricultural service firms 
are defined as those whose annual receipts are less than $7,000,000.
    Committee data indicates that about 64 percent of the handlers ship 
under $7,000,000 worth of dried prunes. Dividing the average prune crop 
value for 2008-09 reported by the National Agricultural Statistics 
Service (NASS) of $196,080,000 by the number of producers (900) yields 
an average annual producer revenue estimate of about $217,867. Based on 
the foregoing, the majority of handlers and dried prune producers may 
be classified as small entities.
    This rule continues in effect the action that decreased the 
assessment rate established for the Committee and collected from 
handlers for the 2009-10 and subsequent crop years from $0.30 to $0.16 
per ton of salable dried prunes.
    The Committee met on June 25, 2009, and unanimously recommended 
expenses of $54,138 and a decreased assessment rate of $0.16 per ton of 
salable dried prunes for the 2009-10 crop year. The Committee's budget 
of expenses of $54,138 includes a slight increase in personnel expenses 
and decreases in operating expenses and for contingencies. Most of the 
Committee's expenses reflect its portion of the joint administrative 
costs of the Committee and the California Dried Plum Board (CDPB). The 
Committee believes that extra assessment income carried in from the 
2008 crop year, plus interest income and 2009-10 crop year assessment 
income, is adequate to cover its estimated expenses of $54,138.
    The assessment rate of $0.16 per ton of salable dried prunes is 
$0.14 per ton of salable dried prunes lower than the rate currently in 
effect. The quantity of salable dried prunes for the 2009-10 crop year 
is currently estimated at 160,000 tons, compared to 125,373 tons of 
salable dried prunes for the 2008-09 crop year.
    The major expenditures recommended by the Committee for the 2009-10 
crop year include $26,450 for salaries and benefits, $11,780 for 
operating expenses, and $15,908 for contingencies. In comparison, 
budgeted expenses for these items in 2008-09 were $26,248 for salaries 
and benefits, $12,893 for operating expenses, and $26,459 for 
contingencies.
    The 2009-10 assessment rate was derived by considering the handler 
assessment revenue needed to meet anticipated expenses, the estimated 
salable tons of California dried prunes, excess funds carried forward 
into the 2009-10 crop year, and estimated interest income. Therefore, 
the Committee recommended an assessment rate of $0.16 per ton of 
salable dried prunes.
    Prior to arriving at its budget of $54,138, the Committee 
considered information from various sources, including the Committee's 
Executive Subcommittee. The Executive Subcommittee reviewed the 
administrative expenses shared between the Committee and the CDPB in 
recent years. The Executive Subcommittee then recommended the $54,138 
budget and $0.16 per ton assessment rate to the Committee. The 
Committee recommended the same budget and assessment rate to USDA.
    Section 993.81(c) of the order provides the Committee the authority 
to use excess assessment funds from the 2008-09 crop year (estimated at 
$28,533) for up to 5 months beyond the end of the crop year to meet 
2009-10 crop year expenses, which are estimated to be $54,138. At the 
end of the 5 months, the Committee either refunds or credits excess 
funds to handlers.
    To calculate the percentage of grower revenue represented by the 
assessment rate for 2008, the assessment rate of $0.30 per ton is 
divided by the estimated average grower price (according to the NASS). 
This results in estimated assessment revenue for the 2008-09 crop year 
as a percentage of grower revenue of .02 percent ($0.30 divided by 
$1,520 per ton). NASS data for 2009 is not yet available. However, 
applying the same calculations above using the average grower price for 
2006-08 would result in estimated assessment revenue as a percentage of 
total grower revenue of .01 percent for the 2009-10 crop year ($0.16 
divided by $1,453 per ton). Thus, the assessment revenue should be well 
below 1 percent of estimated grower revenue in 2009.
    This action continues in effect the decreased 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 meeting 
was widely publicized throughout the California dried prune 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 25, 2009, meeting was a public meeting and 
all entities, both large and small, were able to express views on this 
issue.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large dried prune 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap, or conflict with this rule.
    Comments on the interim final rule were required to be received on 
or before November 9, 2009. No comments were received. Therefore, for 
the reasons given in the interim final rule, we are adopting the 
interim final rule as a final rule, without change.
    To view the interim final rule, go to: http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480a1f26c.
    This action also affirms information contained in the interim final 
rule concerning Executive Orders 12866 and 12988, the Paperwork 
Reduction Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 
101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim final rule, without change, as published in 
the Federal Register (74 FR 46310, September 9, 2009) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 993

    Marketing agreements, Plums, Prunes, Reporting and recordkeeping 
requirements.

[[Page 1271]]

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA [AMENDED]

0
Accordingly, the interim final rule amending 7 CFR part 993 which was 
published at 74 FR 46310 on September 9, 2009, is adopted as a final 
rule, without change.

    Dated: January 5, 2010.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. 2010-163 Filed 1-8-10; 8:45 am]
BILLING CODE 3410-02-P
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