[Federal Register Volume 89, Number 206 (Thursday, October 24, 2024)]
[Proposed Rules]
[Pages 84828-84831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24773]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 89, No. 206 / Thursday, October 24, 2024 / 
Proposed Rules

[[Page 84828]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 927

[Doc. No. AMS-SC-24-0045]


Pears Grown in Oregon and Washington; Increased Assessment Rate 
for Fresh Pears

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rulemaking would implement a recommendation from 
the Fresh Pear Committee (Committee) to increase the assessment rate 
established for the 2024-2025 and subsequent fiscal periods from $0.468 
to $0.516 per 44-pound standard box or equivalent for fresh ``summer/
fall'' pears and fresh ``winter'' pears grown in Oregon and Washington. 
The proposed assessment rate would remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Comments must be received by November 25, 2024.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rulemaking. Comments can be sent to the Docket 
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237. 
Comments can also be sent to the Docket Clerk electronically by Email: 
<a href="/cdn-cgi/l/email-protection#d09db1a2bbb5a4b9beb79fa2b4b5a293bfbdbdb5bea490a5a3b4b1feb7bfa6"><span class="__cf_email__" data-cfemail="2a674b58414f5e43444d65584e4f58694547474f445e6a5f594e4b044d455c">[email protected]</span></a> or via the internet at: https://www.regulations.gov. Comments should reference the document number and 
the date and page number of this issue of the Federal Register. 
Comments submitted in response to this proposed rulemaking will be 
included in the record, will be made available to the public, and can 
be viewed at: https://www.regulations.gov. 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: Joshua R. Wilde, Marketing Specialist, 
or Barry Broadbent, Chief, Northwest Region Branch, Market Development 
Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-
2724, or Email: <a href="/cdn-cgi/l/email-protection#1d57726e75687c334f334a747179785d686e797c337a726b"><span class="__cf_email__" data-cfemail="feb4918d968b9fd0acd0a997929a9bbe8b8d9a9fd0999188">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#fab89b888883d4b888959b9e989f948eba8f899e9bd49d958c"><span class="__cf_email__" data-cfemail="adefccdfdfd483efdfc2ccc9cfc8c3d9edd8dec9cc83cac2db">[email protected]</span></a>.
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Market Development Division, 
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 
0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, or Email: 
<a href="/cdn-cgi/l/email-protection#6f3d060c070e1d0b412300180a1d2f1a1c0b0e41080019"><span class="__cf_email__" data-cfemail="72201b111a1300165c3e1d05170032070116135c151d04">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes to amend regulations issued to carry out a marketing order as 
defined in 7 CFR 900.2(j). This proposed rulemaking is issued under 
Marketing Order No. 927, as amended (7 CFR part 927), regulating the 
handling of pears grown in Oregon and Washington. Part 927 (referred to 
as 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 Committee locally administers the Order 
and is comprised of growers and handlers of pears operating within the 
area of production, and a public member.
    The Agricultural Marketing Service (AMS) is issuing this proposed 
rulemaking in conformance with Executive Orders 12866, 13563, and 
14094. Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 14094 supplements and reaffirms Executive Order 12866 
and further directs agencies to solicit and consider input from a wide 
range of affected and interested parties through a variety of means. 
This proposed action falls within a category of regulatory actions that 
the Office of Management and Budget (OMB) exempted from Executive Order 
12866 review.
    This proposed rulemaking has been reviewed under Executive Order 
13175--Consultation and Coordination with Indian Tribal Governments, 
which requires Federal agencies to consider whether their rulemaking 
actions would have Tribal implications. AMS has determined that this 
proposed rulemaking is unlikely to have substantial direct effects on 
one or more Indian Tribes, on the relationship between the Federal 
Government and Indian Tribes, or on the distribution of power and 
responsibilities between the Federal Government and Indian Tribes.
    This proposed rulemaking has been reviewed under Executive Order 
12988--Civil Justice Reform. Under the Order now in effect, Oregon and 
Washington pear handlers are subject to assessments. Funds to 
administer the Order are derived from such assessments. It is intended 
that the assessment rate would be applicable to all assessable Oregon 
and Washington fresh pears for the 2024-2025 fiscal period, 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 proposed rulemaking would increase the assessment rate for 
Oregon and Washington fresh ``summer/fall'' pears and ``winter'' pears 
handled under the Order from $0.468 per 44-pound standard box or 
equivalent, the rate that was established for the 2021-2022 and 
subsequent fiscal periods, to $0.516 per

[[Page 84829]]

44-pound standard box or equivalent for the 2024-2025 and subsequent 
fiscal periods.
    Sections 927.40 and 927.41 of the Order authorize the Committee, 
with the approval of AMS, to formulate an annual budget of expenses and 
collect assessments from handlers to administer the program. The 
members of the Committee are familiar with the Committee's needs and 
with the costs of goods and services in their local area and are able 
to formulate an appropriate budget and assessment rate. The assessment 
rate is formulated and discussed in a public meeting, and all directly 
affected persons have an opportunity to participate and provide input.
    For the 2021-2022 and subsequent fiscal periods, the Committee 
recommended, and AMS approved, an assessment rate of $0.468 per 44-
pound standard box or equivalent of assessable fresh ``summer/fall'' 
pears and ``winter'' pears within the production area. That rate 
continues in effect from fiscal period to fiscal period until modified, 
suspended, or terminated by AMS upon recommendation and information 
submitted by the Committee or other information available to AMS.
    The Committee met on May 29, 2024, and recommended, with a vote of 
10 in favor, with 1 opposed, and 1 abstention, 2024-2025 fiscal period 
expenditures of $8,167,642 and an assessment rate of $0.516 per 44-
pound standard box or equivalent of fresh ``summer/fall'' and 
``winter'' pears for the 2024-2025 fiscal period. In comparison, last 
year's budgeted expenditures were $8,364,570. The member voting in 
opposition does not support any increase to the assessment rate. The 
member who abstained did not provide a justification. The proposed 
assessment rate of $0.516 per 44-pound standard box or equivalent is 
$0.048 higher than the rate currently in effect. The Committee 
recommended increasing the assessment rate due to a smaller estimated 
2024 crop and to provide adequate income to cover the Committee's 
budgeted expenses for the 2024-2025 fiscal period without needing to 
draw from the Committee's financial reserves. The Committee projects 
handler receipts of 16,000,000 44-pound standard boxes or equivalent of 
assessable fresh pears for the 2024-2025 fiscal period, down from the 
approximately 18,000,000 44-pound standard boxes or equivalent that the 
Committee initially projected for the 2023-2024 fiscal period.
    The major expenditures recommended by the Committee for the 2024-
2025 fiscal period include $6,928,000 for promotion and paid 
advertising, $621,148 for production research and market development, 
$435,321 for contracted administration and Committee expenses, and 
$183,173 for industry development. For comparison, budgeted expenses 
for these items during the 2023-2024 fiscal period were $6,930,000, 
$843,373, $415,238, and $175,959, respectively.
    The Committee derived the recommended assessment rate by 
considering anticipated expenses, the estimated volume of assessable 
fresh pears, and the amount of funds available in the authorized 
reserve. The expected 16,000,000 44-pound standard boxes or equivalent 
of assessable fresh ``summer/fall'' and ``winter'' pears would generate 
$8,256,000 in assessment revenue at the proposed assessment rate 
(16,000,000 44-pound standard boxes or equivalent multiplied by the 
$0.516 assessment rate). The income generated from handler assessments, 
along with $3,000 expected in interest income, should be sufficient to 
meet the Committee's estimated program expenditures of $8,167,642 
without needing to draw from the Committee's financial reserves. Funds 
available in the financial reserve (currently about $716,365) would be 
kept within the maximum permitted by the Order (approximately one 
fiscal period's expenses as authorized in Sec.  927.42).
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by AMS upon recommendation 
and information submitted by the Committee or other available 
information. Although this assessment rate would be in effect 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 AMS. Committee meetings are open to the public and interested 
persons may express their views at these meetings. AMS would evaluate 
Committee recommendations and other available information to determine 
whether modification of the assessment rate is needed. Further 
rulemaking would be undertaken as necessary. The Committee's 2024-2025 
fiscal period budget, and those for subsequent fiscal periods, will be 
reviewed and, as appropriate, approved by AMS.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this proposed rulemaking 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 
businesses 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 27 handlers subject to regulation under the 
Order and approximately 700 growers of fresh pears in the production 
area. At the time this analysis was prepared, the Small Business 
Administration (SBA) defined small agricultural service firms as those 
having annual receipts of less than $34,000,000 (North American 
Industry Classification System (NAICS) code 115114, Postharvest Crop 
Activities), and small agricultural producers of fresh pears as those 
having annual receipts of less than $3,500,000 (NAICS code 111339, 
Other Noncitrus Fruit Farming) (13 CFR 121.201).
    Data from USDA's National Agricultural Statistics Service (NASS), 
indicate a three-year average grower price for Oregon and Washington 
fresh pears of approximately $11.92 per 44-pound standard box or 
equivalent for the most recent seasons for which data is available 
(2020-2021 through 2022-2023 fiscal periods). Committee records 
indicate average annual fresh pear shipments of 15,246,095 44-pound 
standard boxes or equivalent over the same period. Based on these data, 
the average total annual value of assessable fresh pears over this 
period would have been approximately $181,733,452 (15,246,095 44-pound 
standard boxes or equivalent multiplied by $11.92 per box). Dividing 
that figure by the number of fresh pear growers (700) yields an average 
annual crop value per grower of approximately $259,619. This figure is 
well below the SBA small agricultural producer threshold of $3,500,000 
in annual sales. Assuming a normal distribution, this provides evidence 
that a large majority of pear growers would likely be considered small 
agricultural producers according to the SBA definition.
    According to USDA Market News data, the most recent shipping point 
price for fresh pears out of the Yakima Valley and Wenatchee District 
ranged between $36.25 and $45.05 per 44-pound standard box or 
equivalent. Using this data to assume an average shipping point price 
of $40.65 for all

[[Page 84830]]

Oregon and Washington fresh pears yields a total crop value of 
approximately $619,753,762 (15,246,095 44-pound standard boxes 
multiplied by $40.65 per box). Dividing this figure by 27 regulated 
handlers yields estimated average annual handler receipts of 
approximately $22,953,843. Therefore, according to the above data, the 
majority of growers and handlers of Oregon and Washington fresh pears 
may be classified as small entities.
    As noted above, the average price received by growers in the 
previous three crop years was $11.92 per 44-pound standard box or 
equivalent of assessable fresh ``summer/fall'' pears and ``winter'' 
pears. Given the Committee-estimated production of 16,000,000 44-pound 
standard boxes or equivalent of assessable fresh pears for the 2024-
2025 crop year, total grower revenue is estimated to be $190,720,000. 
Total assessment revenue is expected to be $8,256,000 (16,000,000 boxes 
multiplied by $0.516 per box). Therefore, estimated assessment revenue 
as a percentage of total grower revenue would be about 4.3 percent 
($8,256,000 divided by $190,720,000 multiplied by 100).
    This proposal would increase the assessment rate collected from 
handlers for the 2024-2025 and subsequent fiscal periods from $0.468 to 
$0.516 per 44-pound standard box or equivalent of fresh ``summer/fall'' 
and ``winter'' pears. The Committee recommended 2024-2025 fiscal period 
expenditures of $8,167,642 and an assessment rate of $0.516 per 44-
pound standard box or equivalent of assessable fresh ``summer/fall'' 
and ``winter'' pears handled. The proposed assessment rate of $0.516 is 
$0.048 higher than the rate currently in effect. The Committee expects 
the industry to handle 16,000,000 44-pound standard boxes or equivalent 
of assessable fresh ``summer/fall'' pears and ``winter'' pears during 
the 2024-2025 fiscal period. Thus, the $0.516 per 44-pound standard box 
or equivalent assessment rate should provide $8,256,000 in assessment 
income (16,000,000 44-pound standard boxes or equivalent multiplied by 
the $0.516 assessment rate). The income generated from handler 
assessments, along with $3,000 expected in interest income, should be 
sufficient to meet budgeted expenditures for the 2024-2025 fiscal 
period.
    The major expenditures recommended by the Committee for the 2024-
2025 fiscal period include $6,928,000 for promotion and paid 
advertising, $621,148 for production research and market development, 
$435,321 for contracted administration and Committee expenses, and 
$183,173 for industry development. For comparison, budgeted expenses 
for these items during the 2023-2024 fiscal period were $6,930,000, 
$843,373, $415,238, and $175,959, respectively.
    The Committee recommended increasing the assessment rate to provide 
adequate income to cover the Committee's budgeted expenses for the 
2024-2025 fiscal period without needing to draw from the Committee's 
financial reserves. The Committee projects handler receipts of 
16,000,000 44-pound standard boxes or equivalent of assessable fresh 
pears for the 2024-2025 fiscal period, down from the estimated 
18,000,000 44-pound standard boxes or equivalent that the Committee 
initially projected for the 2023-2024 fiscal period.
    Prior to arriving at this budget and assessment rate 
recommendation, the Committee discussed various alternatives, including 
maintaining the current assessment rate of $0.468 per 44-pound standard 
box or equivalent of assessable fresh pears and increasing the 
assessment rate by a different amount. However, the Committee 
determined that the recommended assessment rate would adequately fund 
budgeted expenses for the 2024-2025 fiscal period without needing to 
draw from the Committee's financial reserves. Consequently, those 
alternatives were rejected.
    This proposed action would increase the assessment obligation 
imposed on handlers. Assessments are applied uniformly on all handlers, 
and some of the costs may be passed on to growers. However, these costs 
are expected to be offset by the benefits derived by the operation of 
the Order.
    The Committee's meetings are widely publicized throughout the 
Oregon and Washington pear industry and all interested persons are 
invited to attend the meetings and participate in Committee 
deliberations on all issues. Like all Committee meetings, the May 29, 
2024, 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 proposed rulemaking, 
including the regulatory and information collection impacts of this 
action on small businesses.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0189, Fruit Crops. 
No changes in those requirements would be necessary as a result of this 
proposed rulemaking. Should any changes become necessary, they would be 
submitted to OMB for approval.
    This proposed rulemaking would not impose any additional reporting 
or recordkeeping requirements on either small or large Oregon and 
Washington 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.
    AMS has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed rulemaking.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any 
questions about the compliance guide should be sent to Richard Lower at 
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendations submitted by the Committee and 
other available information, AMS has determined that this proposed 
rulemaking is consistent with and would effectuate the purposes of the 
Act.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposed rulemaking. All written comments timely 
received will be considered before a final determination is made on 
this rulemaking.

List of Subjects in 7 CFR Part 927

    Marketing agreements, Pears, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service proposes to amend 7 CFR part 927 as follows:

PART 927--PEARS GROWN IN OREGON AND WASHINGTON

0
1. The authority citation for part 927 continues to read as follows:

    Authority: 7 U.S.C. 601-674.

0
2. Amend Sec.  927.236 by revising the introductory text and paragraphs 
(a) and (b) to read as follows:

[[Page 84831]]

Sec.  927.236  Fresh pear assessment rate.

    On and after July 1, 2024, the following base rates of assessment 
for fresh pears are established for the Fresh Pear Committee:
    (a) $0.516 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``summer/fall'';
    (b) $0.516 per 44-pound net weight standard box or container 
equivalent for any or all varieties or subvarieties of fresh pears 
classified as ``winter''; and
* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-24773 Filed 10-23-24; 8:45 am]
BILLING CODE P


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