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

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

589 

Vol. 83, No. 4 

Friday, January 5, 2018 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 927 

[Doc. No. AMS–SC–17–0045; SC17–927–1 

FR] 

Pears Grown in Oregon and 

Washington; Increased Assessment 

Rate for Processed Pears 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the Processed 

Pear Committee (Committee) to increase 

the assessment rate established for the 

2017–2018 and subsequent fiscal 

periods from $7.00 to $8.00 per ton of 

‘‘summer/fall’’ pears for canning. The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. This rule also 

makes administrative revisions to the 

subpart headings to bring the language 

into conformance with the Office of 

Federal Register requirements. 

DATES: Effective February 5, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Teresa Hutchinson or Gary Olson, 

Northwest Marketing Field Office, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (503) 326– 

2724, Fax: (503) 326–7440, or Email: 

Teresa.Hutchinson@ams.usda.gov or 

GaryD.Olson@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

proposes an amendment to regulations 

issued to carry out a marketing order as 

defined in 7 CFR 900.2(j). 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. Part 927 (hereinafter 

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, handlers, and processors of 

processed pears grown in Oregon and 

Washington, and a public member. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

13563 and 13175. This action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. Additionally, 

because this rule does not meet the 

definition of a significant regulatory 

action, it does not trigger the 

requirements contained in Executive 

Order 13771. See OMB’s Memorandum 

titled, ‘‘Interim Guidance Implementing 

Section 2 of the Executive Order of 

January 30, 2017, titled, ‘Reducing 

Regulation and Controlling Regulatory 

Costs’ ’’ (February 2, 2017). 

This rule 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 as issued herein will be 

applicable to all assessable ‘‘summer/ 

fall’’ pears for canning beginning July 1, 

2017, and to 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 increases the assessment 

rate established for the 2017–2018 and 

subsequent fiscal periods from $7.00 to 

$8.00 per ton for ‘‘summer/fall’’ pears 

for canning handled under the Order. 

The assessment rate for ‘‘winter’’ and 

‘‘other’’ pears for processing would 

remain unchanged at zero. 

The Order authorizes the Committee, 

with the approval of USDA, to formulate 

an annual budget of expenses and 

collect assessments from handlers to 

administer the program. The members 

of the Committee are growers, handlers, 

and processors of pears grown in 

Oregon and Washington, and a public 

member. 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 in a public 

meeting. Thus, all directly affected 

persons have an opportunity to 

participate and provide input. 

For the 2012–2013 and subsequent 

fiscal periods, the Committee 

recommended, and USDA approved, the 

following three base rates of assessment: 

(a) $7.00 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 on 

‘‘summer/fall’’ pears applies only to 

pears for canning and excludes pears for 

other methods of processing defined in 

§ 927.15, as pears for concentrate, 

freezing, dehydrating, pressing, or in 

any other way to convert pears into a 

processed product. This rate structure 

continues 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 May 31, 2017, 

and unanimously recommended 


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590 Federal Register / Vol. 83, No. 4 / Friday, January 5, 2018 / Rules and Regulations 

expenditures of $800,150 for the 2017– 

2018 fiscal period. In comparison, the 

previous fiscal period’s budgeted 

expenditures were $855,268. The 

assessment rate of $8.00 per ton for 

‘‘summer/fall’’ pears for canning 

established by this rule is $1.00 higher 

than the rate currently in effect. 

The major expenditures 

recommended by the Committee for the 

2017–2018 fiscal period include 

$605,606 for promotion and paid 

advertising, $147,694 for research, 

$25,000 for administration, and $21,850 

for Committee expenses. In comparison, 

major expenditures for the 2016–2017 

fiscal period included $682,130 for 

promotion and paid advertising, 

$127,288 for research, $25,000 for 

administration, and $20,850 for 

Committee expenses. 

Committee members estimate the 

2017–2018 crop to be 100,000 tons, 

which would be less than the 2016– 

2017 production of 103,000 tons by 

3,000 tons. Pear production tends to 

fluctuate due to the effects of weather, 

pollination, and tree health. Because of 

the anticipated smaller crop, the 

Committee recommended to both lower 

budgeted expenses and increase the 

assessment rate for ‘‘summer/fall’’ pears 

in order to align assessment income 

with expenses. 

The Committee’s recommended 

assessment rate was derived by dividing 

the 2017–2018 anticipated expenses by 

the expected shipments of ‘‘summer/ 

fall’’ pears for canning, while also taking 

into account interest income and the 

Committee’s monetary reserve. 

Shipments of ‘‘summer/fall’’ pears for 

canning for 2017–2018 fiscal period are 

estimated at 100,000 tons, which should 

provide $800,000 (100,000 tons × $8.00 

per ton) in assessment income. The 

projected revenue from handler 

assessments, together with funds from 

interest income, should be adequate to 

cover the 2017–2018 fiscal period 

budgeted expenses of $800,150. 

Section 927.42(a) authorizes the 

Committee to carry over excess funds 

into subsequent fiscal periods as a 

reserve, provided that funds do not 

exceed approximately one year’s 

operational expenses. The Committee 

expects its monetary reserve, which was 

estimated to be $544,990 at the end of 

the 2016–2017 fiscal period, to remain 

unchanged during the 2017–2018 fiscal 

period. The reserve will be kept within 

the established limits of the Order and 

will provide the Committee with greater 

ability to absorb fluctuations in 

assessment income and expenses into 

the future. 

The assessment rate established in 

this final 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 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 

further modification of the assessment 

rate is needed. Further rulemaking will 

be undertaken as necessary. The 

Committee’s budgets for subsequent 

fiscal periods, would be reviewed and, 

as appropriate, approved by USDA. 

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 

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 

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 1,200 

growers of processed pears in the 

regulated production area and 

approximately 50 processed pear 

handlers subject to regulation under the 

Order. Small agricultural producers are 

defined by the Small Business 

Administration 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 $7,500,000 (13 CFR 121.201). 

According to the Noncitrus Fruits and 

Nuts 2016 Summary issued in June 2017 

by the National Agricultural Statistics 

Service, the total farm-gate value of 

‘‘summer/fall’’ processed pears grown in 

Oregon and Washington for 2016 was 

$27,874,000. Based on the number of 

‘‘summer/fall’’ processed pear growers 

in the Oregon and Washington, the 

average gross revenue for each grower 

can be estimated at approximately 

$23,228 ($27,874,000 divided by 1,200). 

Furthermore, based on Committee 

records, the Committee has estimated 

that all of the Oregon-Washington pear 

handlers currently ship less than 

$7,500,000 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. 

This rule increases the assessment 

rate collected from handlers, for the 

2017–2018 and subsequent fiscal 

periods from $7.00 to $8.00 per ton for 

‘‘summer/fall’’ pears for canning. The 

Committee unanimously recommended 

2017–2018 expenditures of $800,150 

and an assessment rate of $8.00 per ton 

for ‘‘summer/fall’’ pears for canning. 

The assessment rate of $8.00 is $1.00 

higher than the rate established for the 

2012–2013 fiscal period. Because of the 

anticipated smaller crop, the Committee 

recommended to both lower budgeted 

expenses and increase the assessment 

rate for ‘‘summer/fall’’ pears in order to 

align assessment income with expenses. 

The 2017–2018 estimate of ‘‘summer/ 

fall’’ pears for canning is 100,000 tons. 

At the $8.00 per ton assessment rate, the 

Committee anticipates that assessment 

income of approximately $800,000, 

along with interest income, should be 

adequate to cover budgeted expenses for 

the 2017–2018 fiscal period of $800,150. 

With the recommended assessment rate 

and budgeted expense level, the 

Committee does not anticipate utilizing 

any funds from the monetary reserve. As 

such, reserve funds are estimated to be 

$544,990 at the end of the 2017–2018 

fiscal period on June 30, 2018. That 

reserve level is within the maximum 

permitted by the Order of approximately 

one fiscal period’s operational expenses 

(§ 927.42(a)). 

The major expenditures 

recommended by the Committee for the 

2017–2018 fiscal period include 

$605,606 for promotion and paid 

advertising; $147,694 for research; 

$25,000 for administration; and $21,850 

for Committee expenses. In comparison, 

major expenditures for the 2016–2017 

fiscal period included $682,130 for 

promotion and paid advertising; 

$127,288 for research; $25,000 for 

administration; and $20,850 for 

Committee expenses. 

The Committee discussed alternatives 

to this action, including recommending 

alternative expenditure levels and 

assessment rates. Although lower 

assessment rates were considered, none 

were selected because they would not 

have generated sufficient income to 

administer the Order. Similarly, the 


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Federal Register / Vol. 83, No. 4 / Friday, January 5, 2018 / Rules and Regulations 591 

Committee did not recommend lower 

levels of budgeted expenditures than it 

did because it would have reduced the 

effectiveness of the program. 

A review of historical data and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the grower price for the 2017–2018 

fiscal period could range between $325 

and $346 per ton of ‘‘summer/fall’’ 

processed pears. Therefore, the 

estimated assessment revenue for the 

2017–2018 fiscal period, as a percentage 

of total grower revenue, could range 

between 2.31 and 2.46 percent. 

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 growers. However, these costs are 

offset by the benefits derived by the 

operation of the Order. 

In addition, the Committee’s meeting 

was widely publicized throughout the 

processed 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 May 

31, 2017, meeting was a public meeting 

and all entities, both large and small, 

were able to express views on this issue. 

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 (Generic 

Fruit Crops). No changes in those 

requirements are necessary as a result of 

this action. Should any changes become 

necessary, they would be submitted to 

OMB for approval. 

This final rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large 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. As noted in the initial 

regulatory flexibility analysis, USDA 

has not identified any relevant Federal 

rules that duplicate, overlap, or conflict 

with this final rule. 

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. 

A proposed rule concerning this 

action was published in Federal 

Register on September 18, 2017 (82 FR 

43504). Copies of the proposed rule 

were emailed to the Committee office. 

Finally, the proposal was made 

available through the internet by USDA 

and the Office of the Federal Register. A 

15-day comment period ending October 

3, 2017, was provided for interested 

persons to respond to the proposal. 

Three comments were received during 

the comment period in response to the 

proposed rule. One comment was 

generally in support of the proposal. 

The other two comments, while not 

expressly opposed to the proposed 

action, raised concerns regarding the 

impact that the increased assessment 

rate would have on growers and 

consumers. 

Specifically, one of the two 

commenters questioned how the 

increased assessment rate would affect 

growers and whether the increased 

assessment would lead to an increase in 

farm profits. The commenter also 

questioned the impact on consumers 

and if the action would lead to higher 

canned pear prices. Lastly, the 

commenter wanted to know when 

growers and handlers will receive backpay for the ‘‘summer/fall’’ pears for 

canning that were sold after July 1, 

2017, and before the effective date of 

this final rule. The other commenter 

was concerned about the impact that the 

increased assessment rate would have 

on small growers. 

USDA considered the comments 

submitted and reached the following 

conclusions. First, marketing orders 

assess handlers, not growers. As such, 

growers will not be directly impacted by 

this action. However, as mentioned 

previously in this rule, some of the 

additional costs to handlers as a result 

of this action may be passed on to 

growers. Nevertheless, USDA believes 

that such additional costs would be 

offset by the economic benefits derived 

by the operation of the Order. Any 

impact of this action on growers would 

not affect small growers more than large 

growers. 

Additionally, as mentioned 

previously in this rule, assessments 

upon processed pear handlers are used 

by the Committee to fund the reasonable 

and necessary expenses of the Order. 

Section 927.15 authorizes the 

Committee, with the approval of USDA, 

to formulate an annual budget of 

expenses and collect assessments from 

handlers to administer the program. 

Assessments are not considered 

additional payments for sold product. 

Therefore, growers and handlers will 

not receive back-pay for previously sold 

‘‘summer/fall’’ pears for canning. 

Accordingly, no changes will be made 

to the rule as proposed, based on the 

comments 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/ 

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. 

This final rule also makes 

administrative revisions to the subpart 

headings of the regulations. 

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. 

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. 

Subpart A—[Amended] 

■ 2. Designate the subpart labeled 

‘‘Order Regulating Handling’’ as subpart 

A. 

Subpart B—Administrative Provisions 

■ 3. Designate the subpart labeled 

‘‘Rules and Regulations’’ as subpart B 

and revise the heading as shown above. 

■ 4. Amend § 927.237 by revising the 

introductory text and paragraph (a) to 

read as follows: 

§ 927.237 Processed pear assessment 

rate. 

On and after July 1, 2017, the 

following base rates of assessment for 

pears for processing are established for 

the Processed Pear Committee: 

(a) $8.00 per ton for any or all 

varieties or subvarieties of pears for 

canning classified as ‘‘summer/fall’’ 

excluding pears for other methods of 

processing; 

* * * * * 


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592 Federal Register / Vol. 83, No. 4 / Friday, January 5, 2018 / Rules and Regulations 

Dated: December 29, 2017. 

Bruce Summers, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2017–28505 Filed 1–4–18; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 959 

[Doc. No. AMS–SC–17–0040; SC17–959–1 

FR] 

Onions Grown in South Texas; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the South Texas 

Onion Committee (Committee) to 

increase the assessment rate established 

for the 2017–18 and subsequent fiscal 

periods from $0.05 to $0.065 per 50- 

pound equivalent of onions handled 

under the Marketing Order (Order). The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective February 5, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Doris Jamieson, Marketing Specialist or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 291–8614, or Email: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202)720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

proposes an amendment to regulations 

issued to carry out a marketing order as 

defined in 7 CFR 900.2(j). This rule is 

issued under Marketing Order No. 959, 

as amended (7 CFR part 959), regulating 

the handling of onions grown in South 

Texas. Part 959 (hereinafter 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 producers 

and handlers of onions operating within 

the area of production. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

13563 and 13175. This action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. Additionally, 

because this rule does not meet the 

definition of a significant regulatory 

action, it does not trigger the 

requirements contained in Executive 

Order 13771. See OMB’s Memorandum 

titled ‘‘Interim Guidance Implementing 

Section 2 of the Executive Order of 

January 30, 2017, titled ‘Reducing 

Regulation and Controlling Regulatory 

Costs’ ’’ (February 2, 2017). 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the Marketing Order now 

in effect, South Texas onion 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 onions 

beginning on August 1, 2017, 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 increases the assessment 

rate established for the 2017–18 and 

subsequent fiscal periods from $0.05 to 

$0.065 per 50-pound equivalent of 

onions handled. 

The South Texas Onion 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 

members of the Committee are 

producers and handlers of South Texas 

onions. 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 in a public meeting. 

Thus, all directly affected persons have 

an opportunity to participate and 

provide input. 

For the 2015–16 and subsequent fiscal 

periods, the Committee recommended, 

and USDA approved, an assessment rate 

that 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 7, 2017, 

and unanimously recommended 2017– 

18 expenditures of $149,807, the same 

as budgeted last fiscal year, and an 

assessment rate of $0.065 per 50-pound 

equivalent of onions. The assessment 

rate of $0.065 is $0.015 higher than the 

rate currently in effect. The Committee 

recommended the increase so 

assessments would be sufficient to cover 

the Committee’s anticipated 

expenditures while providing additional 

funds to help replenish the Committee’s 

reserve fund, which has been depleted 

due to declines in production. With the 

Committee’s recommended $0.015 

increase and estimated shipments of 

approximately three million 50-pound 

equivalents, assessment income should 

be approximately $195,000. 

The major expenditures 

recommended by the Committee for the 

2017–18 fiscal year include $50,000 for 

compliance, $37,050 for administrative, 

and $32,942 for management costs. 

Budgeted expenses for these items were 

the same in 2016–17. 

The assessment rate recommended by 

the Committee was derived by 

considering anticipated expenses, 

expected shipments of South Texas 

onions, and the level of funds in 

reserve. As mentioned earlier, onion 

shipments for the year are estimated at 

three million 50-pound equivalents, 

which should provide $195,000 in 

assessment income. Income derived 

from handler assessments would be 

adequate to cover budgeted expenses. 

The Committee currently has no money 

in reserves. 

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. 


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