Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18023

This rule decreases the assessment

rate established for the Committee and

collected from handlers for the 1997–98

and subsequent fiscal periods from

$0.003 to $0.002 per hundredweight.

The Committee unanimously

recommended 1997–98 expenditures of

$44,400 and an assessment rate of

$0.002 per hundredweight of potatoes.

The assessment rate of $0.002 is $0.001

less than the rate currently in effect. As

the Committee’s reserve exceeds the

amount authorized in the order of two

fiscal periods’ operational expenses, the

Committee voted to lower its assessment

rate and use more of the reserve to cover

its expenses.

The Committee discussed alternatives

to this rule, including alternative

expenditure levels, but recommended

that the major expenditures for the

1997–98 fiscal period should include

$18,800 for an agreement with the

Washington State Potato Commission to

provide miscellaneous services to the

Committee and $6,000 for compliance

audits. The Committee also discussed

the alternative of not decreasing the

assessment rate. However, it decided

against this course of action because

continuation of the higher rate would

not allow it to bring its operating reserve

in line with the maximum amount

authorized under the order. The

reduced assessment rate will require the

Committee to use more of its reserve for

authorized expenses, and help bring the

reserve within authorized levels.

Potato shipments for the year are

estimated at 10,000,000 hundredweight,

which should provide $20,000 in

assessment income. Income derived

from handler assessments, along with

funds from the Committee’s authorized

reserve, will be adequate to cover

budgeted expenses. Funds in the reserve

will be kept within the maximum

permitted by the order.

Recent price information indicates

that the grower price for the 1997–98

marketing season will range between

$5.00 and $8.00 per hundredweight of

potatoes. Therefore, the estimated

assessment revenue for the 1997–98

fiscal period as a percentage of total

grower revenue will range between .025

and .04 percent.

This action will reduce the

assessment obligation imposed on

handlers. While this rule will impose

some additional costs on handlers, the

costs are minimal and in the form of

uniform assessments 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 Washington

potato industry and all interested

persons were invited to attend the

meeting and participate in Committee

deliberations on all issues. Like all

Committee meetings, the February 7,

1997, 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 information on the regulatory

and informational impacts of this action

on small businesses.

This action will not impose any

additional reporting or recordkeeping

requirements on either small or large

Washington potato 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.

After consideration of all relevant

matter 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 Committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) the 1997–98 fiscal period

begins on July 1, 1997, and the

marketing order requires that the rate of

assessment for each fiscal period apply

to all assessable potatoes handled

during such 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

final rule provides a 30-day comment

period, and all comments timely

received will be considered prior to

finalization of this rule.

List of Subjects in 7 CFR Part 946

Marketing agreements, Potatoes,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 946 is amended as

follows:

PART 946—IRISH POTATOES GROWN

IN WASHINGTON

1. The authority citation for 7 CFR

part 946 continues to read as follows:

Authority: 7 U.S.C. 601–674.

§ 946.248 [Amended]

2. Section 946.248 is amended by

removing ‘‘July 1, 1996,’’ and adding in

its place ‘‘July 1, 1997,’’ and by

removing ‘‘$0.003’’ and adding in its

place ‘‘$0.002.’’

Dated: April 7, 1997.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 97–9477 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 956

[FV96–956–3 FR]

Sweet Onions Grown in the Walla

Walla Valley of Southeast Washington

and Northeast Oregon; Establishment

of Container Marking Requirements

and Special Purpose Shipment

Exemptions

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: This final rule (1) establishes

container marking requirements for all

shipments of Walla Walla Sweet

Onions, and (2) establishes exemptions

from assessment and container marking

requirements for certain special purpose

shipments of Walla Walla Sweet

Onions. This rule will contribute to the

efficient marketing of Walla Walla

Sweet Onions and assist in program

compliance. This rule was

recommended by the Walla Walla Sweet

Onion Committee (Committee), the

agency responsible for the local

administration of the marketing order

for sweet onions grown in the Walla

Walla Valley.

EFFECTIVE DATE: This final rule becomes

effective April 15, 1997.

FOR FURTHER INFORMATION CONTACT:

Robert J. Curry, Northwest Marketing

Field Office, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, 1220

SW Third Avenue, room 369, Portland,

Oregon 97204–2807; telephone: (503)

326–2043; or George J. Kelhart,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room
18024 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

2525–S, Washington, DC 20090–6456;

telephone: (202) 690–3919. Small

businesses may request information on

compliance with this regulation by

contacting: Jay Guerber, Marketing

Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2525–S, Washington,

DC 20090–6456; telephone (202) 720–

2491; Fax (202) 720–5698.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

and Order No. 956 (7 CFR Part 956),

regulating the handling of sweet onions

grown in the Walla Walla Valley of

southeast Washington and northeast

Oregon, hereinafter referred to as the

‘‘order.’’ This order is authorized by 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

(Department) is issuing this rule in

conformance with Executive Order

12866.

This final rule has been reviewed

under Executive Order 12988, Civil

Justice Reform. It is not intended to

have retroactive effect. This rule will

not preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

the 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 the Secretary 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. A

handler is afforded the opportunity for

a hearing on the petition. After the

hearing the Secretary 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 the Secretary’s ruling on the

petition, provided an action is filed not

later than 20 days after date of the entry

of the ruling.

The Committee meets regularly

throughout each season to consider

recommendations for implementation,

modification, suspension, or

termination of the regulatory

requirements for Walla Walla Sweet

Onions. Committee meetings are open to

the public and interested persons may

express their views at these meetings.

The Department reviews Committee

recommendations in conjunction with

information submitted by the

Committee and from other industry and

government sources.

This final rule (1) establishes

container marking requirements for all

shipments of Walla Walla Sweet

Onions, and (2) establishes exemptions

from assessment and container marking

requirements for certain special purpose

shipments of Walla Walla Sweet

Onions. This rule will contribute to the

efficient marketing of Walla Walla

Sweet Onions and assist in program

compliance, and was recommended by

the Committee.

The Committee met twice to

recommend adding container marking

requirements and exemption for special

purpose shipments to the marketing

order’s Subpart—Rules and Regulations

provisions which are authorized in the

order. Section 956.62 provides authority

for the Committee, with the approval of

the Secretary, to establish a method for

fixing the markings of containers used

in the packaging or handling of Walla

Walla Sweet Onions. Further, based

upon recommendations submitted by

the Committee, § 956.63 provides

authority for the Secretary to issue

regulations in regard to assessment and

container marking requirements to

facilitate the handling of Walla Walla

Sweet Onions for specified purposes.

The Committee met October 8, 1996,

and recommended that all Walla Walla

Sweet Onions produced in the

production area and shipped to the

fresh market be packed in containers

marked with the ‘‘Genuine Walla Walla

Sweet Onion’’ logo. The Committee also

recommended exemption from

assessments for sweet onions shipped to

outlets specified in § 956.163.

At its next regularly scheduled

meeting on November 12, 1996, the

Committee reconfirmed the

recommendations to establish container

marking requirements and exempt

specified shipments from assessments.

At that meeting, the Committee also

recommended exempting shipments

specified in § 956.163 from container

marking requirements. This rule

combines the recommendations from

the two Committee meetings into one

rulemaking action.

The first action establishes container

marking requirements in § 956.162.

When the Walla Walla Sweet Onion

industry began the process of

formulating the order, a primary

objective was to help promote product

identity at wholesale, retail, and

consumer levels, while at the same time

deterring the marketing of non-sweet

onions, or onions grown outside the

production area, as Walla Walla Sweet

Onions. The Committee is authorized to

use a trademarked logo developed by

the Walla Walla Sweet Onion

Commission and the Walla Walla Area

Chamber of Commerce. The logo was

developed and patented by the Walla

Walla Sweet Onion Commission in

December 1991, and currently is widely

recognized by the onion industry.

The logo has been used by the

Committee on promotional material and

correspondence since the Committee

obtained the license to use it on April

19, 1996. During both the subcommittee

and the regular Committee meetings

held to develop the recommendation for

the regulation specified in § 956.162, all

participants agreed that containers of

Walla Walla Sweet Onions should be

marked with the Committee’s registered

logo. Discussion during the meetings

indicated that product identity, just as

it was during the formulation of the

order, continues to be a primary concern

for both promotional and compliance

purposes, and that effort should be

made to add specific container marking

regulations.

Committee members and other

industry members agree that the use of

the widely recognized logo will have a

positive effect on the economic returns

for the entire industry. One of the major

problems for this industry has been the

marketing of non-Walla Walla Sweet

Onions, grown either in the traditional

production area or outside of it, as

Walla Walla Sweet Onions. It is the

Committee’s belief that, buyers, having

purchased onions represented to them

as being Walla Walla Sweet Onions, will

rarely return to purchase more due to

the lack of confidence such a sale

fostered. This had, and still has, the

effect of curtailing demand and

reducing returns to producers.

Some of the handler members on the

Committee recommended that this

regulation allow handlers a period of

time to utilize current packaging

inventory before being required to use

containers marked with the Committee’s

logo. These individuals expressed

concern that some handlers may have

significant container inventory with preprinted graphics and other markings.

Comments by handlers at the meeting

indicated that the expense and burden

of disposing of their container

inventory, or, alternatively, adding

decals, stickers, or stamps to the

existing containers would be significant.

The Committee agrees that, although

handlers should make every effort to

begin using the logo on containers as

soon as possible, a grace period of two

crop years allows adequate time for

handlers to exhaust current container

inventories. Section 956.162(b) provides

such a grace period, subject to
Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations 18025

Committee verification of handler

container inventories.

The Committee recommended that the

logo be clearly displayed as either a

decal or an imprint on all containers,

and that there should be no specific

requirements for the size and color of

the markings. As it is a common

industry practice to ship onions in field

pack bulk bins containing more than

500 pounds net weight from the field to

road-side stands and farmers’ markets

where they are bagged for resale, the

Committee recommended that the

container marking requirements should

not apply to shipments to these two

small outlets. This exemption is

specified in § 956.162(b). The proposed

rule on this action incorrectly stated

that this exemption was specified in

§ 956.163.

The container marking requirements

will contribute to the efficient marketing

of Walla Walla Sweet Onions by

ensuring better product identification,

building buyer confidence, increasing

returns to the industry, and enhancing

Committee compliance efforts. During

the shipping season, the Committee

manager frequently visits handling

operations to ensure that these

operations are complying with

marketing order requirements.

Requiring that the registered logo be

displayed on the container will decrease

the amount of time the manager spends

tracing and tracking these onions to

ensure that they are not non-sweet

onions, or onions from outside the

production area, being sold as Walla

Walla Sweet Onions.

When considering § 956.163, which

provides exemptions for shipments

made to certain non-fresh use outlets,

Committee members stated that most

Walla Walla Sweet Onions are shipped

into the fresh market. However, a small

percentage of the onions are utilized for

other purposes, including relief and

charitable organizations, livestock feed,

planting and plants, salad onions,

processing, disposal of culls, and seed.

For the exemption to apply to

shipments made to relief or charitable

organizations, the Committee included a

provision in its recommendation that

such shipments must be donated and

not sold.

Section 956.163 clearly indicates

which shipments are exempted from

assessments and container marking

requirements. This is intended to lessen

the chance of confusion on the part of

the regulated industry and alleviate

potential administrative and compliance

problems for the Committee, thereby

facilitating the marketing of Walla Walla

Sweet Onions.

Notice of this action was published in

the Federal Register (62 FR 5933) on

February 10, 1977. Interested persons

were invited to submit written

comments. The deadline for such

comments ended March 12, 1997. No

comments were received.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Agricultural Marketing Service (AMS)

has considered the economic impact of

this action on small entities.

Accordingly, the 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. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 35 handlers

of Walla Walla Sweet Onions subject to

regulation under the order and

approximately 60 producers in the

regulated production area. Small

agricultural service firms have been

defined by the Small Business

Administration (13 CFR 121.601) as

those having annual receipts of less than

$5,000,000, and small agricultural

producers are defined as those whose

annual receipts are less than $500,000.

The region in which Walla Walla

Sweet Onions are produced is a

relatively small production area,

encompassing only a portion of

Oregon’s Umatilla County and

Washington’s Walla Walla County.

Produced on an estimated 850 acres, the

industry’s total 1996 Walla Walla Sweet

Onion pack-out approximated

20,106,200 pounds. Based on

assessments collected on 50-pound

cartons or sacks, Committee records for

the 1996 season show that 18 handlers

shipped 500 or fewer units, eight

handlers shipped between 500 and

5,000 units, four handlers shipped

between 5,000 and 50,000 units, and

five handlers shipped between 50,000

and 100,000 units.

Information provided by the

Department’s Fresh Fruit and Vegetable

Market News officials in Yakima,

Washington, indicates that 1996 F.O.B.

prices on jumbo Walla Walla Sweet

Onions, packed in 50-pound cartons,

ranged from a high of $16.00 early in the

season to a low at the end of the season

of $10.00. On the other end of the scale,

medium Walla Walla Sweet Onions,

packed in 50-pound mesh sacks, ranged

from early season, high returns of

$14.00 per sack down to a low at the

season’s conclusion of $6.00 per sack.

Handlers have stated that packing costs

average between $4.00 and $5.00 per 50-

pound carton, and around $3.00 per 50-

pound sack. Committee records indicate

that individual farms currently have

acreage dedicated to the production of

Walla Walla Sweet Onions in the range

from 1 to 160 acres.

About 25 of the 35 regulated handlers

of Walla Walla Sweet Onions are also

producers and generally pack their own

onions in the field while harvesting

them. These onions are usually

marketed direct to consumers through

road-side stands and farmers’ markets or

through mail order sales. Only about 10

of these handlers own and operate

commercially sized packing facilities

and market the majority of their onions

through large wholesale and retail

outlets. Based on current information,

the majority of Walla Walla Sweet

Onion handlers and producers may be

classified as small entities.

The only alternative to the proposal

discussed at the meetings was to not

recommend the rulemaking action at all.

The Committee determined that such an

alternative would not be acceptable to

the industry because of the significant

benefits expected as a result of these

regulations. Without container marking

requirements, the Committee believes

that the current marketing and

compliance problems, basic reasons

behind the promulgation of the

marketing order, will not be alleviated.

As for the foregoing special purpose

shipment exemptions, the Committee

concluded that the absence of a list of

shipments exempt from assessments

and container marking requirements

would perpetuate confusion and

compliance problems, as well as

increase the economic, reporting and

recordkeeping burden on handlers.

This final rule provides that

containers of Walla Walla Sweet Onions

for shipment to fresh markets be marked

with the Committee’s registered logo,

and that specified shipments of Walla

Walla Sweet Onions be exempt from

such container marking requirements

and from assessments. This action will

not impose any additional reporting or

recordkeeping requirements on either

small or large handlers of Walla Walla

Sweet Onions. Additionally, the

benefits of this rule are not expected to

be disproportionately greater or less for

small handlers or producers than for

larger entities.

As with all Federal marketing order

programs, reports and forms are

periodically reviewed to reduce

information requirements and

duplication by industry and public
18026 Federal Register / Vol. 62, No. 71 / Monday, April 14, 1997 / Rules and Regulations

sector agencies. The Department has not

identified any relevant Federal rules

that duplicate, overlap, or conflict with

this rule.

The Committee’s meetings were

widely publicized throughout the

production area. All interested persons

were invited to attend the meetings. The

Committee actively seeks participation

in its deliberations at all of its meetings.

Both the October 8 and November 12,

1996, meetings were open to the public

and representatives of both large and

small entities expressed their views on

these and related issues. The majority of

the Committee, composed of six

producers and three handlers, as well as

a public member and respective

alternates for each position, represent

small entities. Additionally, in the

proposed rule published in the Federal

Register (62 FR 5933) on February 10,

1997, interested persons were invited to

submit information on the regulatory

and informational impacts of this action

on small businesses. A copy of the

proposal was also made available on the

Internet by the U. S. Government

Printing Office. The comment period

ended March 12, 1997, and no

comments were received concerning the

impacts of this action on small

businesses.

After consideration of all relevant

matter 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 1997 shipping season

begins in June; (2) handlers are well

aware of this action which was

discussed at two open public meetings

which were widely publicized in the

production area; and (3) a proposed rule

was published on this action and

provided for a 30-day comment period.

No comments were received.

List of Subjects in 7 CFR Part 956

Marketing agreements, Onions,

Reporting and record keeping

requirements.

For the reasons set forth in the

preamble, 7 CFR Part 956 is amended as

follows:

PART 956—SWEET ONIONS GROWN

IN THE WALLA WALLA VALLEY OF

SOUTHEAST WASHINGTON AND

NORTHEAST OREGON

1. The authority citation for 7 CFR

Part 956 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. New sections 956.162 and 956.163

are added to Subpart—Rules and

Regulations to read as follows:

§ 956.162 Container markings.

Effective April 15, 1997, no handler

shall ship any container of Walla Walla

Sweet Onions except in accordance

with the following terms and

provisions:

(a) Each container of Walla Walla

Sweet Onions shall be conspicuously

marked with the ‘‘Genuine Walla Walla

Sweet Onion’’ logo. The marking may be

in the form of a decal or a stamped

imprint of any color and size: Provided,

That the decal or stamped imprint must

be placed in plain sight and easy to

read.

(b) Walla Walla Sweet Onions may be

handled not subject to the marking

requirements of this section when

handlers ship such onions pursuant to

§ 956.163, or ship such onions in field

packed bulk bins containing more than

500 pounds net weight for sale to

roadside stands and farmers’ market

operators for repacking and direct

consumer sale: Provided, That subject to

Committee verification of handler

container inventories, handlers may use

their existing inventories of unmarked

containers until April 15, 1999.

§ 956.163 Handling for specified purposes.

(a) Assessment and container marking

requirements specified in this part shall

not be applicable to shipments of onions

for any of the following purposes:

(1) Shipments of Walla Walla Sweet

Onions for relief or to charitable

institutions: Provided, That such

shipments must be donated and not sold

in order for this exemption to apply;

(2) Shipments of Walla Walla Sweet

Onions for livestock feed;

(3) Shipments of Walla Walla Sweet

Onions for planting and for plants;

(4) Shipments of Walla Walla Sweet

Onions as salad onions;

(5) Shipments of Walla Walla Sweet

Onions for all processing uses

including, pickling, peeling,

dehydration, juicing, or other

processing;

(6) Shipments of Walla Walla Sweet

Onions for disposal;

(7) Shipments of Walla Walla Sweet

Onions for seed.

(b) [Reserved]

Dated: April 7, 1997.

Sharon Bomer Lauritsen,

Acting Director, Fruit and Vegetable Division.

[FR Doc. 97–9479 Filed 4–11–97; 8:45 am]

BILLING CODE 3410–02–P

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 982

[Docket No. FV96–982–2 FIR]

Hazelnuts Grown in Oregon and

Washington; Establishment of Interim

and Final Free and Restricted

Percentages for the 1996–97 Marketing

Year

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

which established interim and final free

and restricted percentages for domestic

inshell hazelnuts for the 1996–97

marketing year under the Federal

marketing order for hazelnuts grown in

Oregon and Washington. The

percentages allocate the quantity of

domestically produced hazelnuts which

may be marketed in the domestic inshell

market. The percentages are intended to

stabilize the supply of domestic inshell

hazelnuts to meet the limited domestic

demand for such hazelnuts and provide

reasonable returns to producers. This

rule was recommended unanimously by

the Hazelnut Marketing Board (Board),

which is the agency responsible for

local administration of the order.

EFFECTIVE DATE: May 14, 1997.

FOR FURTHER INFORMATION CONTACT:

Teresa L. Hutchinson, Marketing

Specialist, Northwest Marketing Field

Office, Fruit and Vegetable Division,

Agricultural Marketing Service, USDA,

1220 SW Third Ave., Room 369,

Portland, OR 97204; telephone (503)

326–2055 or Mark A. Slupek, Marketing

Specialist, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, Room

2525–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone (202) 205–

2830. Small businesses may request

information on compliance with this

regulation by contacting: Jay Guerber,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, Room

2525–S, Washington, DC 20090–6456;

telephone (202) 720–2491; FAX (202)

720–5698.