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[Federal Register Volume 76, Number 93 (Friday, May 13, 2011)]
[Rules and Regulations]
[Pages 27848-27849]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-11714]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 927

[Doc. No. AMS-FV-10-0072; FV10-927-1 FIR]

Pears Grown in Oregon and Washington; Amendment To Allow 
Additional Exemptions

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Adoption of interim rule as final.

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SUMMARY: The Department of Agriculture is adopting, as a final rule, 
without change, an interim rule that added an exemption to the 
marketing order for Oregon-Washington pears that provides for the sale 
of fresh pears directly to consumers without regard to regulation. For 
each customer, the interim rule provided an exemption for consumer-
direct sales of up to 220 pounds of fresh pears per transaction, for 
home use only, made directly at orchards, packing facilities, roadside 
stands, or farmers' markets without regard to the marketing order's 
assessment, reporting, handling, and inspection requirements. This 
action is intended to provide increased marketing flexibility to small 
pear handlers, while facilitating the sale of fresh, local pears 
directly to consumers.

DATES: Effective May 16, 2011.

FOR FURTHER INFORMATION CONTACT: Teresa Hutchinson or Gary Olson, 
Northwest Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, Portland, Oregon; 
Telephone: (503) 326-2724, Fax: (503) 326-7440, or E-mail: 
Teresa.Hutchinson@ams.usda.gov or Gary D.Olson@ams.usda.gov.
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/Marketing Orders Small Business 
Guide; or 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

[[Page 27849]]

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.
    The handling of pears grown in Oregon and Washington is regulated 
by 7 CFR part 927. This rule continues in effect the interim rule that 
added an exemption for consumer-direct sales of up to 220 pounds of 
fresh pears per customer and transaction, for home use only, and made 
directly at orchards, packing facilities, roadside stands, or farmers' 
markets. These consumer-direct sales are exempt from the marketing 
order's assessment, reporting, handling, and inspection requirements. 
The Committee believes that the volume represented by these pear sales 
is insignificant and will not adversely affect the domestic and 
international marketing of commercial quantities of fresh pears. The 
majority of promotional funds collected by the Committee are utilized 
for large-scale promotional efforts that do not have a direct 
relationship or benefit to these consumer-direct sales. This exemption 
provides regulatory flexibility to small pear handlers, while 
facilitating the sale of fresh, local pears directly to consumers.
    In an interim rule published in the Federal Register on January 25, 
2011, and effective on January 26, 2011, (76 FR 4202, Doc. No. AMS-FV-
10-0072, FV10-927-1 IR), a new Sec.  927.122 was added to the order's 
rules and regulations providing for the consumer-direct exemption.

Final 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 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 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 1,537 growers of fresh pears in the 
regulated production area and approximately 38 handlers 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 2010 by the National Agricultural Statistics Service, 
the average 2009 fresh pear price of $456 per ton places the farm-gate 
value of fresh pears grown in Oregon and Washington at $202,053,810. 
Based on the number of fresh pear growers in the Oregon-Washington 
production area, the average gross revenue for each grower can be 
estimated at approximately $131,460. Furthermore, based on Committee 
records, the Committee has estimated that 56 percent of Northwest pear 
handlers currently ship less than $7,000,000 worth of fresh pears on an 
annual basis. From this information, it is concluded that the majority 
of growers and handlers of Oregon and Washington pears may be 
classified as small entities.
    This rule continues in effect the action that exempts from 
regulation fresh pears that are sold directly to consumers--in 
quantities of 220 pounds or less per customer and transaction--at 
orchards, packing houses, roadside stands, and farmers' markets. This 
change provides small pear handlers with increased marketing 
flexibility while facilitating the sale of pears in local markets. 
Section Sec.  927.65(b) of the order authorizes the establishment of 
regulations that exempt specified quantities of pears, or types of pear 
shipments from the order.
    This action is expected to have a beneficial impact on the 
Northwest pear industry, especially on small growers and handlers. The 
Committee's goal is that this exemption will reduce overall costs to 
the pear industry, relax the burden on small businesses, and facilitate 
the distribution of fruit at the local level. The Committee believes 
that this action will be especially beneficial to small independent 
businesses because such agricultural operations tend to utilize 
roadside stands and farmers' markets more than do large, vertically 
integrated entities. The Committee has stated that the majority of pear 
handlers are small businesses under the SBA definition. Although this 
rule was recommended by the Committee with the goal of helping small 
pear grower handlers and handlers, it does not prevent large businesses 
from realizing the same benefits.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large 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. 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 Oregon-Washington pear industry and all interested persons were 
invited to participate in Committee deliberations. Like all Committee 
meetings, the April 22, 2010, meeting was a public meeting and all 
entities, both large and small, were able to express views on this 
issue.
    Comments on the interim rule were required to be received on or 
before March 28, 2011. No comments were received. Therefore, for the 
reasons given in the interim rule, USDA is adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-10-0072-0001.
    This action also affirms information contained in the interim 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 rule, without change, as published in the 
Federal Register (76 FR 4202, January 25, 2011) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 927

    Marketing agreements, Pears, Reporting and recordkeeping 
requirements.

PART 927--PEARS GROWN IN OREGON AND WASHINGTON

    Accordingly, the interim rule that amended 7 CFR part 927 and that 
was published at 76 FR 4202 on January 25, 2011, is adopted as a final 
rule, without change.

    Dated: May, 9, 2011.
Ellen King,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2011-11714 Filed 5-12-11; 8:45 am]
BILLING CODE 3410-02-P
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