This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

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Rules and Regulations Federal Register

18343 

Vol. 72, No. 70 

Thursday, April 12, 2007 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 932 

[Docket No. AMS–FV–06–0225; FV07–932– 

1 FR] 

Olives Grown in California; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

California Olive Committee (committee) 

for the 2007 and subsequent fiscal years 

from $11.03 to $47.84 per assessable ton 

of olives handled. The committee 

locally administers the marketing order 

which regulates the handling of olives 

grown in California. Assessments upon 

olive handlers are used by the 

committee to fund reasonable and 

necessary expenses of the program. The 

fiscal year began January 1 and ends 

December 31. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Effective April 13, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer R. Garcia, 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: 

Jennifer.Garcia@usda.gov or 

Kurt.Kimmel@usda.gov. 

Small businesses may request 

information on complying with this 

regulation 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@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 148 and Order No. 932, both as 

amended (7 CFR part 932), regulating 

the handling of olives 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. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, California olive 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 would 

be applicable to all assessable olives 

beginning on January 1, 2007, and 

continue until amended, suspended, or 

terminated. This rule will not preempt 

any State or local laws, regulations, or 

policies, unless they present an 

irreconcilable conflict with this rule. 

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 2007 and subsequent fiscal years 

from $11.03 to $47.84 per ton of 

assessable olives from the applicable 

crop years. 

The California olive 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 fiscal year, 

which is the 12-month period between 

January 1 and December 31, begins after 

the corresponding crop year, which is 

the 12-month period beginning August 

1 and ending July 31 of the subsequent 

year. Fiscal year budget and assessment 

recommendations are made after the 

corresponding crop year olive tonnage is 

reported. The members of the committee 

are producers and handlers of California 

olives. They are familiar with the 

committee’s needs and with 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 discussed in 

a public meeting. Thus, all directly 

affected persons have an opportunity to 

participate and provide input. 

For the 2006 and subsequent fiscal 

years, the committee recommended, and 

USDA approved, an assessment rate that 

would continue in effect from fiscal year 

to fiscal year unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the committee or other 

information available to USDA. 

The committee met on December 12, 

2006, and unanimously recommended 

2007 fiscal year expenditures of 

$950,396 and an assessment rate of 

$47.84 per ton of assessable olives. In 

comparison, the budgeted expenditures 

for fiscal year 2006 were $1,301,121. 

The assessment rate of $47.84 is $36.81 

higher than the rate currently in effect. 

The committee recommended the higher 

assessment rate because the 2006–07 

assessable olive receipts as reported by 

the California Agricultural Statistics 

Service (CASS) are only 16,270 tons, 

which compares to 114,761 tons in 

2005–06. Unusual weather conditions, 

including a wet winter and very hot 

summer, contributed to a substantially 

smaller crop. The committee also plans 

to use available reserve funds to help 

meet its 2007 expenses. 

The major expenditures 

recommended by the committee for the 

2007 fiscal year include $365,775 for 

research, $332,450 for marketing 

activities, and $252,171 for 

administration. Budgeted expenditures 

for these items in 2006 were $210,000, 

$800,700, and $290,421, respectively. 

The committee recommended a larger 


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18344 Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 

2007 research budget so it can continue 

its ongoing olive fly research and 

research to develop a mechanical olive 

harvesting method. The 2007 marketing 

program would be scaled back. 

Recommended decreases in the 

administrative budget are due mainly to 

tighter budgeting in several areas. 

The assessment rate recommended by 

the committee was derived by 

considering anticipated fiscal year 

expenses, actual olive tonnage received 

by handlers during the 2006–07 crop 

year, and additional pertinent factors. 

Actual assessable tonnage for the 2007 

fiscal year is expected to be lower than 

the 2006–07 crop receipts of 16,270 tons 

reported by the CASS because some 

olives may be diverted by handlers to 

uses that are exempt from marketing 

order requirements. Income derived 

from handler assessments, along with 

funds from the committee’s authorized 

reserve and interest income, would be 

adequate to cover budgeted expenses. 

Funds in the reserve would be kept 

within the maximum permitted by the 

order of approximately one fiscal year’s 

expenses (§ 932.40). 

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 will be 

in effect for an indefinite period, the 

committee will continue to meet prior to 

or during each fiscal 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 2007 budget and those for 

subsequent fiscal years will be reviewed 

and, as appropriate, approved by USDA. 

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. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 850 

producers of olives in the production 

area and 2 handlers subject to regulation 

under the marketing order. Small 

agricultural producers are defined by 

the Small Business Administration (13 

CFR 121.201) as those having annual 

receipts less than $750,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $6,500,000. 

Based upon information from the 

committee, the majority of olive 

producers may be classified as small 

entities. Both of the handlers may be 

classified as large entities. 

This rule increases the assessment 

rate established for the committee and 

collected from handlers for the 2007 and 

subsequent fiscal years from $11.03 to 

$47.84 per ton of assessable olives. The 

committee unanimously recommended 

2007 expenditures of $950,396 and an 

assessment rate of $47.84 per ton. The 

proposed assessment rate of $47.84 is 

$36.81 higher than the 2006 rate. The 

higher assessment rate is necessary 

because assessable olive receipts for the 

2006–07 crop year were reported by the 

CASS to be 16,270 tons, compared to 

114,761 tons for the 2005–06 crop year. 

Actual assessable tonnage for the 2007 

fiscal year is expected to be lower 

because some of the receipts may be 

diverted by handlers to exempt outlets 

on which assessments are not paid. 

Income generated from the $47.84 per 

ton assessment rate should be adequate 

to meet this year’s expenses when 

combined with funds from the 

authorized reserve and interest income. 

Funds in the reserve would be kept 

within the maximum permitted by the 

order of about one fiscal year’s expenses 

(§ 932.40). 

Expenditures recommended by the 

committee for the 2007 fiscal year 

include $365,775 for research, $332,450 

for marketing activities, and $252,171 

for administration. Budgeted expenses 

for these items in 2006 were $210,000, 

$800,700, and $290,421 respectively. 

The committee recommended a larger 

2007 research budget so it can continue 

its olive fly research projects and 

research to develop a mechanical olive 

harvesting method. The 2007 marketing 

program would be scaled back. 

Recommended decreases in the 

administrative budget are due mainly to 

tighter budgeting in several areas. 

Prior to arriving at this budget, the 

committee considered information from 

various sources, such as the committee’s 

Executive, Market Development, and 

Research Subcommittees. Alternate 

spending levels were discussed by these 

groups, based upon the relative value of 

various research and marketing projects 

to the olive industry and the reduced 

olive production. The assessment rate of 

$47.84 per ton of assessable olives was 

derived by considering anticipated 

expenses, the volume of assessable 

olives and additional pertinent factors. 

A review of historical information 

indicates that the grower price for the 

2006–07 crop year was approximately 

$960.57 per ton for canning fruit and 

$344.56 per ton for limited-use sizes, 

leaving the balance as unusable cull 

fruit. Approximately 87 percent of a ton 

of olives are canning fruit sizes and 9 

percent are limited use sizes, leaving the 

balance as unusable cull fruit. Grower 

revenue on 16,270 total tons of canning 

and limited-use sizes would be 

$14,704,092 given the current grower 

prices for those sizes. Therefore, with an 

assessment rate increased from $11.03 

to $47.84, the estimated assessment 

revenue is expected to be approximately 

5 percent of grower revenue. 

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 will 

be offset by the benefits derived by the 

operation of the marketing order. In 

addition, the committee’s meeting was 

widely publicized throughout the 

California olive industry and all 

interested persons were invited to 

attend the meeting and participate in 

committee deliberations on all issues. 

Like all committee meetings, the 

December 12, 2006, meeting was a 

public meeting and all entities, both 

large and small, were able to express 

views on this issue. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large California olive 

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. 

The 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 


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Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 18345 

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 proposed rule concerning this 

action was published in the Federal 

Register on March 7, 2007 (72 FR 

10091). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all olive handlers. Finally, the proposal 

was made available through the Internet 

by USDA and the Office of the Federal 

Register. A 15-day comment period 

ending March 22, 2007, 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: http://www.ams.usda.gov/ 

fv/moab/html. Any questions about the 

compliance guide should be sent to Jay 

Guerber 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: (1) The 2007 fiscal year began 

on January 1, 2007, and the marketing 

order requires that the rate of 

assessment for each fiscal year apply to 

all assessable olives handled during 

such fiscal year; (2) the committee needs 

sufficient funds to pay its expenses, 

which are incurred on a continuous 

basis; and (3) handlers are aware of this 

action, which was discussed by the 

committee and unanimously 

recommended at a public meeting, and 

is similar to other assessment rate 

actions issued in past years. Also, a 15- 

day comment period was provided for 

in the proposed rule. 

List of Subjects in 7 CFR Part 932 

Marketing agreements, Olives, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 932 is proposed to 

be amended as follows: 

PART 932—OLIVES GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 932 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 932.230 is revised to read 

as follows: 

§ 932.230 Assessment rate. 

On and after January 1, 2007, an 

assessment rate of $47.84 per ton is 

established for California olives. 

Dated: April 9, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 07–1832 Filed 4–10–07; 1:10 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 985 

[Docket Nos. AMS–FV–07–0039; FV07–985–

2 IFR] 

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 2006–2007 

Marketing Year 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule revises the quantity 

of Class 1 (Scotch) and Class 3 (Native) 

spearmint oil that handlers may 

purchase from, or handle for, producers 

during the 2006–2007 marketing year. 

This rule increases the Scotch spearmint 

oil salable quantity from 878,205 

pounds to 2,984,817 pounds, and the 

allotment percentage from 45 percent to 

153 percent. In addition, this rule 

increases the Native spearmint oil 

salable quantity from 1,161,260 pounds 

to 1,205,208 pounds, and the allotment 

percentage from 53 percent to 55 

percent. The marketing order regulates 

the handling of spearmint oil produced 

in the Far West and is administered 

locally by the Spearmint Oil 

Administrative Committee (Committee). 

The Committee recommended this rule 

for the purpose of avoiding extreme 

fluctuations in supplies and prices and 

to help maintain stability in the Far 

West spearmint oil market. 

DATES: Effective June 1, 2006, through 

May 31, 2007; comments received by 

June 11, 2007 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 Administration Branch, Fruit and 

Vegetable Programs, 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 docket 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. 

FURTHER INFORMATION CONTACT: Susan 

M. Hiller, Marketing Specialist, or Gary 

D. Olson, Regional Manager, Northwest 

Marketing Field Office, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (503) 326–2724, Fax: (503) 

326–7440, or e-mail: 

Susan.Hiller@usda.gov or 

GaryD.Olson@usda.gov. 

Small businesses may request 

information on complying with this 

regulation 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@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. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the provisions of the 

marketing order now in effect, salable 

quantities and allotment percentages 

may be established for classes of 

spearmint oil produced in the Far West. 

This rule increases the quantity of 

Scotch and Native spearmint oil 

produced in the Far West that may be 

purchased from or handled for 

producers by handlers during the 2006–

2007 marketing year, which ends on 

May 31, 2007. This rule will not 

preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 


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