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Rules and Regulations Federal Register

53811 

Vol. 76, No. 168 

Tuesday, August 30, 2011 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 927 

[Doc. No. AMS–FV–11–0070 FV11–927–3 IR] 

Pears Grown in Oregon and 

Washington; Assessment Rate 

Decrease for Processed Pears 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule decreases the 

assessment rate established for the 

Processed Pear Committee (Committee) 

for the 2011–2012 and subsequent fiscal 

periods from $8.41 to $7.73 per ton of 

summer/fall processed pears. The 

Committee locally administers the 

marketing order which regulates the 

handling of processed pears grown in 

Oregon and Washington. Assessments 

upon handlers of Oregon-Washington 

processed pears are used by the 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period begins July 1 and ends June 

30. The assessment rate will remain in 

effect indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective August 31, 2011. 

Comments received by October 31, 

2011, 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. Comments should 

reference the document 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 the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Teresa Hutchinson or Gary Olson, 

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: 

Teresa.Hutchinson@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

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: 

Laurel.May@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

927, as amended (7 CFR part 927), 

regulating the handling of pears grown 

in Oregon and Washington, 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, Oregon-Washington pear 

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 summer/fall processed pears 

beginning July 1, 2011, 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 2011–2012 and subsequent fiscal 

periods from $8.41 to $7.73 per ton for 

summer/fall processed pears handled. 

The assessment rate for ‘‘winter’’ and 

‘‘other’’ pears for processing would 

remain unchanged at a zero rate. 

The order provides authority for the 

Committee, with USDA approval, to 

formulate an annual budget of expenses 

and to collect assessments from 

handlers to administer the processed 

pear program. The members of the 

Committee are producers, handlers, and 

processors of Oregon-Washington 

processed pears. They are familiar with 

the Committee’s needs and with the 

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 

formulated and discussed at a public 

meeting. Thus, all directly affected 

persons have an opportunity to 

participate and provide input. 

For the 2009–2010 and subsequent 

fiscal periods, the Committee 

unanimously recommended, and USDA 

approved, the following three base rates 

of assessment: (a) $8.41 per ton for any 

or all varieties or subvarieties of pears 

for canning classified as ‘‘summer/fall’’, 

excluding pears for other methods of 

processing; (b) $0.00 per ton for any or 

all varieties or subvarieties of pears for 

processing classified as ‘‘winter’’; and 

(c) $0.00 per ton for any or all varieties 

or subvarieties of pears for processing 

classified as ‘‘other’’. The assessment 

rate for ‘‘summer/fall’’ pears applies 

only to pears for canning and excludes 

pears for other methods of processing as 

defined in § 927.15, which includes 


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53812 Federal Register / Vol. 76, No. 168 / Tuesday, August 30, 2011 / Rules and Regulations 

pears for concentrate, freezing, 

dehydrating, pressing, or in any other 

way to convert pears into a processed 

product. This rate would continue in 

effect from fiscal period to fiscal period 

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 June 2, 2011, 

and unanimously recommended 2011– 

2012 expenditures of $926,933 and an 

assessment rate of $7.73 per ton for 

summer/fall processed pears handled. 

In comparison, last year’s budgeted 

expenditures were $1,038,258. The 

assessment rate of $7.73 is $0.78 lower 

than the rate previously in effect. The 

Committee recommended the 

assessment rate decrease because the 

summer/fall processed pear promotion 

budget was reduced. 

The major expenditures 

recommended by the Committee for the 

2011–2012 fiscal period include 

$759,000 for promotion and paid 

advertising, $117,243 for research 

programs, $24,000 for contracted 

administration by Washington State 

Fruit Commission, and $12,500 for 

market access and trade policy. In 

comparison, major expenses for the 

2010–2011 fiscal period included 

$846,500 for promotion and paid 

advertising, $140,658 for research 

programs, $24,200 for contracted 

administration by Washington State 

Fruit Commission, and $11,400 for 

market access and trade policy. 

The Committee based its 

recommended assessment rate for 

processed pears on the 2011–2012 

summer/fall processed pear crop 

estimate, the 2011–2012 program 

expenditure needs, and the current and 

projected size of its monetary reserve. 

Applying the $7.73 per ton rate to the 

Committee’s 120,000 ton summer/fall 

processed pear crop estimate should 

provide $927,600 in assessment income. 

Thus, income derived from summer/fall 

processed pear handler assessments, 

and interest and other income ($500) 

would be adequate to cover the 

recommended $926,933 budget for 

2011–2012. Funds in the reserve were 

$467,501 as of June 30, 2010. The 

Committee estimates that $98,055 will 

be added to the reserve for 2010–2011. 

Thus, the Committee estimates a reserve 

of $565,556 on June 30, 2011, For 2011– 

2012, the Committee estimates that 

$1,167 will be added to the reserve for 

an estimated reserve of $566,723 on 

June 30, 2012, which would be within 

the maximum permitted by the order of 

approximately one fiscal period’s 

operational expenses (§ 927.42). 

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 fiscal period 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 2011–2012 budget and 

those for subsequent fiscal periods 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 

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 1,500 

growers of processed pears in the 

regulated production area and 

approximately 51 handlers of processed 

pears subject to regulation under the 

order. Small agricultural growers are 

defined by the Small Business 

Administration (SBA) (13 CFR 121.201) 

as those having annual receipts of less 

than $750,000, and small agricultural 

service firms are defined as those whose 

annual receipts are less than $7,000,000. 

According to the Noncitrus Fruits and 

Nuts 2010 Preliminary Summary issued 

in January 2011 by the National 

Agricultural Statistics Service, the total 

farm-gate value of summer/fall 

processed pears grown in Oregon and 

Washington for 2010 was $76,427,000. 

Based on the number of processed pear 

growers in the Oregon and Washington, 

the average gross revenue for each 

grower can be estimated at 

approximately $50,951. Furthermore, 

based on Committee records, the 

Committee has estimated that all of the 

Northwest pear handlers currently ship 

less than $7,000,000 worth of processed 

pears each on an annual basis. From this 

information, it is concluded that the 

majority of growers and handlers of 

Oregon and Washington processed pears 

may be classified as small entities. 

There are five processing plants in the 

production area, with one in Oregon 

and four in Washington. All five 

processors would be considered large 

entities under the SBA’s definition of 

small businesses. 

This rule decreases the assessment 

rate established for the Committee and 

collected from handlers for the 2011– 

2012 and subsequent fiscal periods from 

$8.41 to $7.73 per ton for processed 

pears handled. The Committee 

unanimously recommended 2011–2012 

expenditures of $926,933 and an 

assessment rate of $7.73 per ton for 

summer/fall processed pears. The 

assessment rate of $7.73 is $0.78 lower 

than the previous rate. The Committee 

recommended the assessment rate 

decrease because the summer/fall 

processed pear promotion budget was 

reduced. 

The quantity of assessable processed 

pears for the 2011–2012 fiscal period is 

estimated at 120,000 tons. Thus, the 

$7.73 rate should provide $927,600 in 

assessment income. Income derived 

from summer/fall processed pear 

handler assessments, and interest and 

other income ($500) would be adequate 

to cover the budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2011–2012 fiscal period include 

$759,000 for promotion and paid 

advertising, $117,243 for research 

programs, $24,000 for contracted 

administration by Washington State 

Fruit Commission, and $12,500 for 

market access and trade policy. In 

comparison, major expenses for the 

2010–2011 fiscal period included 

$846,500 for promotion and paid 

advertising, $140,658 for research 

programs, $24,200 for contracted 

administration by Washington State 

Fruit Commission, and $11,400 for 

market access and trade policy. 

The Committee discussed alternate 

rates of assessment, but determined that 

the recommended assessment rate 

would be sufficient to fund the 2011– 

2012 summer/fall processed pear 

programs. 


srobinson on DSK4SPTVN1PROD with RULES
Federal Register / Vol. 76, No. 168 / Tuesday, August 30, 2011 / Rules and Regulations 53813 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the Oregon-Washington grower 

price for the 2011–2012 fiscal period 

could range between $216 and $283 per 

ton of processed pears. Therefore, the 

estimated assessment revenue for the 

2011–2012 fiscal period as a percentage 

of total grower revenue could range 

between 3.58 and 2.73 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 meeting 

was widely publicized throughout the 

Oregon-Washington pear 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 2, 

2011, meeting was a public meeting and 

all entities, both large and small, were 

able to express 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. 

In accordance with the Paperwork 

Reduction Act of 1991 (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. 0581–0189, Generic 

Fruit Crops. No changes in those 

requirements as a result of this action 

are anticipated. 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 OregonWashington processed pear 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 Laurel May 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 2011–2012 fiscal 

period began on July 1, 2011, and the 

marketing order requires that the rate of 

assessment for each fiscal period apply 

to all assessable pears handled during 

such fiscal period; (2) this action 

decreases the assessment rate for 

assessable processed pears beginning 

with the 2011–2012 fiscal period; (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, 

and all comments timely received will 

be considered prior to finalization of 

this rule. 

List of Subjects in 7 CFR Part 927 

Marketing agreements, Pears, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 927 is amended as 

follows: 

PART 927—PEARS GROWN IN 

OREGON AND WASHINGTON 

■ 1. The authority citation for 7 CFR 

part 927 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. In § 927.237, the introductory text 

and paragraph (a) are revised to read as 

follows: 

§ 927.237 Processed pear assessment 

rate. 

On and after July 1, 2011, the 

following base rates of assessment for 

pears for processing are established for 

the Processed Pear Committee: 

(a) $7.73 per ton for any or all 

varieties or subvarieties of pears for 

canning classified as ‘‘summer/fall’’ 

excluding pears for other methods of 

processing; 

* * * * * 

Dated: August 19, 2011. 

David R. Shipman, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–22115 Filed 8–29–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 993 

[Doc. No. AMS–FV–11–0068; FV11–993–1 

IR] 

Dried Prunes Produced in 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 

Prune Marketing Committee 

(Committee) for the 2011–12 and 

subsequent crop years from $0.27 to 

$0.22 per ton of salable dried prunes 

handled. The Committee locally 

administers the marketing order which 

regulates the handling of dried prunes 

produced in California. Assessments 

upon dried prune handlers are used by 

the Committee to fund reasonable and 

necessary expenses of the program. The 

crop year begins August 1 and ends July 

31. The assessment rate will remain in 

effect indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective August 31, 2011. 

Comments received by October 31, 

2011, 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. Comments should 

reference the document 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 


srobinson on DSK4SPTVN1PROD with RULES