Federal Register / Vol. 70, No. 185 / Monday, September 26, 2005 / Rules and Regulations 56107 

revisions to the information collection 

requirements that were previously 

approved by OMB under control 

number 0560–0155. 

Federal Assistance Programs 

These changes affect the following 

FSA programs as listed in the Catalog of 

Federal Domestic Assistance: 

10.406—Farm Operating Loans 

10.407—Farm Ownership Loans 

List of Subjects in 7 CFR Part 762 

Agriculture, Loan programs—

Agriculture. 

■ Accordingly, 7 CFR chapter VII is 

amended as follows: 

PART 762—GUARANTEED FARM 

LOANS 

■ 1. The authority citation for part 762 

continues to read as follows: 

Authority: 5 U.S.C. 301, 7 U.S.C. 1989. 

§ 762.102 [Amended] 

■ 2. In § 762.102 remove the definitions 

of ‘‘Financially viable operation’’, 

‘‘Participation’’ and ‘‘Sale of guaranteed 

portion.’’

■ 3. Amend § 762.106 by removing 

paragraph (b)(8) and revising paragraph 

(c)(8) to read as follows: 

§ 762.106 Preferred and certified lender 

programs. 

* * * * * 

(c) * * * 

(8) Designate a person or persons, 

either by name, title, or position within 

the organization, to process and service 

PLP loans for the Agency. 

* * * * * 

■ 4. In § 762.126, remove paragraph 

(e)(1), redesignate paragraphs (e)(2), 

(e)(3), and (e)(4) as (e)(1), (e)(2), and 

(e)(3), respectively, and revise newly 

designated (e)(2) to read as follows: 

§ 762.126 Security requirements. 

(e) * * * 

(2) Junior lien positions are acceptable 

only if the total amount of debt with 

liens on the security, including the debt 

in junior lien position, is less than or 

equal to 85 percent of the value of the 

security. Junior liens on crops or 

livestock products will not be relied 

upon for security unless the lender is 

involved in multiple guaranteed loans 

to the same borrower and also has the 

first lien on the collateral. 

* * * * * 

■ 5. Revise § 762.145 (b)(6)(i) to read as 

follows: 

§ 762.145 Restructuring guaranteed loans. 

* * * * * 

(b) * * * 

(6) * * * 

(i) As a result of the capitalization of 

interest, a rescheduled promissory note 

may increase the amount of principal 

the borrower is required to pay. 

However, in no case will such principal 

amount exceed the statutory loan limits 

contained in § 761.8 of this chapter. 

* * * * * 

■ 6. Add § 762.159 to read as follows: 

§ 762.159 Pledging of guarantee. 

A lender may pledge all or part of the 

guaranteed or unguaranteed portion of 

the loan as security to a Federal Home 

Loan Bank, a Federal Reserve Bank, a 

Farm Credit System Bank, or any other 

funding source determined acceptable 

by the Agency. 

■ 7. Revise § 762.160 to read as follows: 

§ 762.160 Assignment of guarantee. 

(a) The following general 

requirements apply to assigning 

guaranteed loans: 

(1) Subject to Agency concurrence, 

the lender may assign all or part of the 

guaranteed portion of the loan to one or 

more holders at or after loan closing, if 

the loan is not in default. However, a 

line of credit cannot be assigned. The 

lender must always retain the 

unguaranteed portion in their portfolio, 

regardless of how the loan is funded. 

(2) The Agency may refuse to execute 

the Assignment of Guarantee and 

prohibit the assignment in case of the 

following: 

(i) The Agency purchased and is 

holder of a loan that was assigned by the 

lender that is requesting the assignment. 

(ii) The lender has not complied with 

the reimbursement requirements of 

§ 762.144(c)(7), except when the 180 

day reimbursement or liquidation 

requirement has been waived by the 

Agency. 

(3) The lender will provide the 

Agency with copies of all appropriate 

forms used in the assignment. 

(4) The guaranteed portion of the loan 

may not be assigned by the lender until 

the loan has been fully disbursed to the 

borrower. 

(5) The lender is not permitted to 

assign any amount of the guaranteed or 

unguaranteed portion of the loan to the 

loan applicant or borrower, or members 

of their immediate families, their 

officers, directors, stockholders, other 

owners, or any parent, subsidiary, or 

affiliate. 

(6) Upon the lender’s assignment of 

the guaranteed portion of the loan, the 

lender will remain bound to all 

obligations indicated in the Guarantee, 

Lender’s Agreement, the Agency 

program regulations, and to future 

program regulations not inconsistent 

with the provisions of the Lenders 

Agreement. The lender retains all rights 

under the security instruments for the 

protection of the lender and the United 

States. 

(b) The following will occur upon the 

lender’s assignment of the guaranteed 

portion of the loan: 

(1) The holder will succeed to all 

rights of the Guarantee pertaining to the 

portion of the loan assigned. 

(2) The lender will send the holder 

the borrower’s executed note attached to 

the Guarantee. 

(3) The holder, upon written notice to 

the lender and the Agency, may assign 

the unpaid guaranteed portion of the 

loan. The holder must assign the 

guaranteed portion back to the original 

lender if requested for servicing or 

liquidation of the account. 

(4) The Guarantee or Assignment of 

Guarantee in the holder’s possession 

does not cover: 

(i) Interest accruing 90 days after the 

holder has demanded repurchase by the 

lender, except as provided in the 

Assignment of Guarantee and 

§ 762.144(c)(3)(iii). 

(ii) Interest accruing 90 days after the 

lender or the Agency has requested the 

holder to surrender evidence of debt 

repurchase, if the holder has not 

previously demanded repurchase. 

(c) Negotiations concerning 

premiums, fees, and additional 

payments for loans are to take place 

between the holder and the lender. The 

Agency will participate in such 

negotiations only as a provider of 

information. 

Signed in Washington, DC, on September 

1, 2005. 

James R. Little, 

Administrator, Farm Service Agency. 

[FR Doc. 05–19126 Filed 9–23–05; 8:45 am] 

BILLING CODE 3410–05–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 916 and 917 

[Docket No. FV05–916–3 FR] 

Nectarines and Peaches Grown in 

California; Increased Assessment 

Rates 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rates established for the 

Nectarine Administrative Committee 

56108 Federal Register / Vol. 70, No. 185 / Monday, September 26, 2005 / Rules and Regulations 

and the Peach Commodity Committee 

(committees) for the 2005–06 and 

subsequent fiscal periods from $0.195 

and $0.19, respectively, to $0.20 per 25- 

pound container or container equivalent 

of nectarines and peaches handled. The 

committees locally administer the 

marketing orders that regulate the 

handling of nectarines and peaches 

grown in California. Assessments upon 

nectarine and peach handlers are used 

by the committees to fund reasonable 

and necessary expenses of the programs. 

The fiscal period runs from March 1 

through the last day of February. The 

assessment rates will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective September 27, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Laurel May, California Marketing Field 

Office, Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487–

5901, Fax: (559) 487–5906; or George 

Kelhart, Technical Advisor, 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. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

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: 

Jay.Guerber@usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

Nos. 85 and 124 and Order Nos. 916 and 

917, both as amended (7 CFR parts 916 

and 917), regulating the handling of 

nectarines and peaches grown in 

California, respectively, hereinafter 

referred to as the ‘‘orders.’’ The 

marketing agreements and orders are 

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 orders 

now in effect, California nectarine and 

peach handlers are subject to 

assessments. Funds to administer the 

orders are derived from such 

assessments. It is intended that the 

assessment rates as issued herein will be 

applicable to all assessable nectarines 

and peaches beginning on March 1, 

2005, and continue until amended, 

suspended, or terminated. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this 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 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 Nectarine 

Administrative Committee (NAC) for the 

2005–06 and subsequent fiscal periods 

from $0.195 to $0.20 per 25-pound 

container or container equivalent of 

nectarines. This rule also increases the 

assessment rate established for the 

Peach Commodity Committee (PCC) for 

the 2005–06 and subsequent fiscal 

periods from $0.19 to $0.20 per 25- 

pound container or container equivalent 

of peaches. 

The nectarine and peach marketing 

orders provide authority for the 

committees, with the approval of USDA, 

to formulate annual budgets of expenses 

and collect assessments from handlers 

to administer the programs. The 

members of the NAC and PCC are 

producers of California nectarines and 

peaches, respectively. They are familiar 

with the committees’ needs, and with 

the costs for goods and services in their 

local area and are, therefore, in a 

position to formulate appropriate 

budgets and assessment rates. The 

assessment rates are formulated and 

discussed in public meetings. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

NAC Assessment and Expenses 

The NAC recommended, for the 

2004–05 fiscal period, and USDA 

approved, an assessment rate of $0.195 

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 NAC met on April 28, 2005, and 

discussed and unanimously 

recommended 2005–06 expenditures 

and an assessment rate of $0.20 per 25- 

pound container or container equivalent 

of nectarines. Subsequently, the NAC 

revised its budget recommendation 

because it anticipated higher 

administrative overhead expenses than 

it had forecast earlier. In a mail vote 

completed on June 28, 2005, the NAC 

unanimously recommended 2005–06 

expenditures of $4,919,049. In 

comparison, the budgeted expenditures 

for 2004–05 were $5,162,866. The 

assessment rate of $0.20 is $0.005 higher 

than the rate currently in effect. 

The rate increase was recommended 

to ensure that the NAC could meet its 

2005–06 anticipated expenses and carry 

over a financial reserve that would 

provide adequate funds for promotional 

and other activities at the beginning of 

the 2006 season before assessment 

collections begin. Increasing the 

assessment rate from $0.195 to $0.20 per 

25-pound container is expected to 

provide about $103,410 in additional 

assessment revenue, and should allow 

the NAC to start the 2006 season with 

about $342,347. 

Expenditures recommended by the 

NAC for the 2005–06 fiscal period 

include $899,288 for administration, 

$1,167,381 for inspection, $203,230 for 

research, and $2,649,149 for domestic 

and international promotion. Budgeted 

expenses for these items in 2004–05 

were $538,770 for administration, 

$1,153,676 for inspection, $308,568 for 

research, and $3,161,852 for domestic 

and international promotion. 

The 2004–05 and 2005–06 budgeted 

expenses differ significantly because 

some individual line items have been 

moved to different expense categories 

for 2005–2006. However, NAC expenses 

are generally expected to be lower 

during the 2005–06 fiscal year 

compared to the 2004–05 fiscal year. 

The 2005–06 NAC assessment rate 

was derived after considering 

anticipated fiscal year expenses; the 

estimated assessable nectarines of 

22,004,000 25-pound containers or 

container equivalents; the estimated 

income from other sources, such as 

interest; and the need for an adequate 

financial reserve to carry the NAC into 

the 2006 season. The committee desires 

to maintain a financial reserve of 

approximately $340,000 to meet its 

obligations in the early part of each 

season, before handler assessments are 

Federal Register / Vol. 70, No. 185 / Monday, September 26, 2005 / Rules and Regulations 56109 

billed and received. To meet these goals, 

the NAC recommended an assessment 

rate of $0.20 per 25-pound containers or 

container equivalent. According to the 

committee, that assessment rate should 

result in an adequate financial reserve, 

yet one well within the maximum of 

approximately one year’s expenses 

permitted by the order (§ 916.42). 

PCC Assessment and Expenses 

The PCC recommended for the 2004–

05 fiscal period, and USDA approved, 

an assessment rate of $0.19 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 PCC met on April 28, 2005, and 

discussed and unanimously 

recommended 2005–06 expenditures 

and an assessment rate of $0.20 per 25- 

pound container or container equivalent 

of peaches. Subsequently, the PCC 

revised its budget recommendation 

because it anticipated higher 

administrative overhead expenses than 

it had forecast earlier. In a mail vote 

completed on June 28, 2005, the PCC 

unanimously recommended 2005–06 

expenditures of $5,095,709. In 

comparison, last year’s budgeted 

expenditures were $5,178,003. The 

assessment rate of $0.20 is $0.01 higher 

than the rate currently in effect. 

The rate increase was recommended 

to ensure that the PCC could meet its 

2005–06 anticipated expenses and carry 

over a financial reserve that would 

provide adequate funds for promotional 

and other activities at the beginning of 

the 2006 season before assessment 

collections begin. Increasing the 

assessment rate from $0.19 to $0.20 per 

25-pound container is expected to 

provide about $211,800 in additional 

assessment revenue, and should allow 

the PCC to start the 2006 season with 

about $418,201. 

Expenditures recommended by the 

PCC for the 2005–06 fiscal period 

include $918,736 for administration, 

$1,260,160 for inspection, $204,833 for 

research, and $2,711,980 for domestic 

and international promotion. Budgeted 

expenses for these items in 2004–05 

were $540,456 for administration, 

$1,240,520 for inspection, $208,570 for 

research, and $3,188,457 for domestic 

and international promotion. 

The 2004–05 and 2005–06 budgeted 

expenses differ because some individual 

line items have been moved to different 

expense categories for 2005–2006. 

However, the PCC expenses are 

generally expected to be lower during 

the 2005–06 fiscal year compared to the 

2004–05 fiscal year. 

The 2005–06 PCC assessment rate was 

derived after considering anticipated 

PCC expenses; the estimated assessable 

peaches of 21,180,000 25-pound 

containers or container equivalents; the 

estimated income from other sources, 

such as interest; and the need for an 

adequate reserve to carry the PCC into 

the 2006 season. The committee desires 

to maintain a financial reserve of 

approximately $420,000 to meet its 

obligations in the early part of each 

season, before handler assessments are 

billed and received. To meet these goals, 

the PCC recommended an assessment 

rate of $0.20 per 25-pound container or 

container equivalent. According to the 

committee, that assessment rate should 

result in an adequate financial reserve, 

yet one well within the maximum of 

approximately one year’s expenses 

permitted by the order (§ 917.38). 

Continuance of Assessment Rates 

The assessment rates established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the committees or other 

available information. 

Although these assessment rates will 

be in effect for an indefinite period, the 

committees 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 rates. 

The dates and times of committee 

meetings are available from the 

committees’ Web site or USDA. 

Committee meetings are open to the 

public and interested persons may 

express their views at these meetings. 

USDA will evaluate the committees’

recommendations and other available 

information to determine whether 

modification of the assessment rate for 

each committee is needed. Further 

rulemaking will be undertaken as 

necessary. The committee’s 2005–06 

budget and those 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), 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 

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. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 210 

California nectarine and peach handlers 

subject to regulation under the orders 

covering nectarines and peaches grown 

in California, and about 1,500 producers 

of these fruits in California. Small 

agricultural service firms, which 

include handlers, are defined by the 

Small Business Administration [13 CFR 

121.201] as those whose annual receipts 

are less than $6,000,000. Small 

agricultural producers are defined by 

the Small Business Administration as 

those having annual receipts of less than 

$750,000. A majority of these handlers 

and producers may be classified as 

small entities. 

The committees’ staff has estimated 

that there are fewer than 26 handlers in 

the industry who could be defined as 

other than small entities. For the 2004 

season, the committees’ staff estimated 

that the average handler price received 

was $8.00 per container or container 

equivalent of nectarines or peaches. A 

handler would have to ship at least 

750,000 containers to have annual 

receipts of $6,000,000. Given data on 

shipments maintained by the 

committees’ staff and the average 

handler price received during the 2004 

season, the committees’ staff estimates 

that small handlers represent 

approximately 87 percent of all the 

handlers within the industry. 

The committees’ staff has also 

estimated that fewer than 20 percent of 

the producers in the industry could be 

defined as other than small entities. For 

the 2004 season, the committees’

estimated the average producer price 

received was $5.00 per container or 

container equivalent for nectarines and 

peaches. A producer would have to 

produce at least 150,500 containers of 

nectarines and peaches to have annual 

receipts of $750,000. Given data 

maintained by the committees’ staff and 

the average producer price received 

during the 2004 season, the committees’

staff estimates that small producers 

represent more than 80 percent of the 

producers within the industry. 

With an average producer price of 

$5.00 per container or container 

equivalent, and a combined packout of 

nectarines and peaches of 40,438,536 

containers, the value of the 2004 

packout is estimated to be $202,192,680. 

Dividing this total estimated grower 

revenue figure by the estimated number 

56110 Federal Register / Vol. 70, No. 185 / Monday, September 26, 2005 / Rules and Regulations 

of producers (1,500) yields an estimate 

of average revenue per producer of 

about $134,795 from the sales of 

peaches and nectarines. 

This rule increases the assessment 

rates established for the NAC for the 

2005–06 and subsequent fiscal periods 

from $0.195 to $0.20 per 25-pound 

container or container equivalent of 

nectarines and for the PCC for the 2005–

06 and subsequent fiscal periods from 

$0.19 to $0.20 per 25-pound container 

or container equivalent of peaches. 

The NAC recommended 2005–06 

fiscal period expenditures of $4,919,049 

for nectarines and an assessment rate of 

$0.20 per 25-pound container or 

container equivalent of nectarines. The 

assessment rate of $0.20 is $0.005 higher 

than the 2004–05 rate. The PCC 

recommended 2005–06 fiscal period 

expenditures of $5,095,709 for peaches 

and an assessments rate of $0.20 per 25- 

pound container or container equivalent 

of peaches. The assessment rate of $0.20 

is $0.01 higher than the 2004–05 rate. 

Analysis of NAC Budget 

The quantity of assessable nectarines 

for the 2005–06 fiscal period is 

estimated at 20,682,000 25-pound 

container or container equivalents. 

Thus, the $0.20 rate should provide 

$4,136,400 in assessment income. 

Income derived from handler 

assessments, along with interest income, 

research grants, and funds from the 

committee’s reserve, should be adequate 

to cover budgeted expenses and 

maintain their desired reserve. 

The major expenditures 

recommended by the NAC for the 2005–

06 year include 899,288 for 

administration, $1,167,381 for 

inspection, $203,230 for research, and 

$2,649,149 for domestic and 

international promotion. Budgeted 

expenses for these items in 2004–05 

were $538,770, $1,050,000, $138,018, 

and $2,574,160, respectively. 

The NAC recommended an increase 

in the assessment rate to meet 

anticipated 2005–06 expenses and 

preserve an acceptable financial reserve. 

A reserve of approximately $340,000 is 

needed to fund expenses for the 

following year until assessments for that 

year are received. The NAC reviewed 

and recommended 2005–06 

expenditures of $4,919,049 and the 

increased assessment rate. 

Analysis of PCC Budget 

The quantity of assessable peaches for 

the 2005–06 fiscal year is estimated at 

21,180,000 25-pound container or 

container equivalents. Thus, the $0.20 

rate should provide $4,236,000 in 

assessment income. Income derived 

from handler assessments, along with 

interest income, research grants, and 

funds from the committee’s reserves 

should be adequate to cover budgeted 

expenses and maintain their desired 

reserve. 

The major expenditures 

recommended by the PCC for the 2005–

06 year include $918,736 for 

administration, $1,260,160 for 

inspection, $204,833 for research, and 

$2,711,980 for domestic and 

international promotion. Budgeted 

expenses for these items in 2004–05 

were $540,456, $1,240,520, $208,570, 

and $3,188,457, respectively. 

The PCC recommended an increase in 

the assessment rate to meet anticipated 

2005–06 expenses and preserve an 

acceptable financial reserve. A reserve 

of approximately $420,000 is needed to 

fund expenses for the following year 

until assessments for that year are 

received. The PCC reviewed and 

recommended 2005–06 expenditures of 

$5,095,709 and the increased 

assessment rate. 

Considerations in Determining 

Expenses and Assessment Rates 

Prior to arriving at these budgets, the 

committees considered information and 

recommendations from various sources, 

including, but not limited to: The 

Executive Committee, the Research 

Subcommittee, the International 

Programs Subcommittee, the Grade and 

Size Subcommittee, and the Domestic 

Promotion Subcommittee. 

Each of the committees then reviewed 

the proposed expenses; the total 

estimated assessable 25-pound 

containers or container equivalents; and 

the estimated income from other 

sources, such as interest income and 

research grants, prior to recommending 

a final assessment rate. The NAC 

decided that an assessment rate of $0.20 

per 25-pound container or container 

equivalent would allow it to meet its 

2005–06 expenses and carry over an 

operating reserve of approximately 

$342,000, which is in line with the 

committee’s financial needs. The PCC 

decided that an assessment rate of $0.20 

per 25-pound container or container 

equivalent would allow it to meet its 

2003–04 expenses and carry over an 

operating reserve of approximately 

$420,000, which is in line with the 

committee’s financial needs. The 

committees then unanimously 

recommended these rates to USDA 

A review of historical and preliminary 

information pertaining to the upcoming 

fiscal period indicates that the grower 

price for nectarines and peaches for the 

2005–06 season could range between 

$4.00 and $6.00 per 25-pound container 

or container equivalent. Therefore, the 

estimated assessment revenue for the 

2005–06 fiscal period as a percentage of 

total grower revenue could range 

between 3.33 and 5.0 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 producers. However, these costs are 

offset by the benefits derived from the 

operation of the marketing orders. In 

addition, the committees’ meetings were 

widely publicized throughout the 

California nectarine and peach 

industries and all interested persons 

were invited to attend the meetings and 

participate in the committees’

deliberations on all issues. Like all 

committee meetings, the April 28, 2004, 

meetings were public meetings and all 

entities, both large and small, were able 

to express views on this issue. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large 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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A proposed rule concerning this 

action was published n the Federal 

Register on August 22, 2005 (70 FR 

48900). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all nectarine and peach handlers. 

Finally, the proposal was made 

available through the Internet by USDA 

and the Office of the Federal Register. A 

10-day comment period ending 

September 1, 2005, was provided for 

interested persons to respond to the 

proposal. Two comments supporting the 

proposal were received. Both cited 

reduced crop yields and the need to 

fund pre-harvest expenses next year as 

justification for the assessment rate 

increases. An additional response was 

received, but it was not relevant to the 

proposed assessment increase. 

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/ 

fv/moab.html. Any questions about the 

compliance guide should be sent to Jay 

Guerber at the previously mentioned 

address in the FOR FURTHER INFORMATION

CONTACT section. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

Federal Register / Vol. 70, No. 185 / Monday, September 26, 2005 / Rules and Regulations 56111 

submitted by the NAC and PCC 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 2005–06 fiscal period 

began on March 1, 2005, and the 

marketing orders require that the 

assessment rates for each fiscal period 

apply to all nectarines and peaches 

handled during such fiscal period; (2) 

the committees need to have sufficient 

funds to pay their expenses, which are 

incurred on a continuous basis; and (3) 

handlers are aware of this action, which 

was discussed by the committees at 

public meetings and unanimously 

recommended by a mail vote, and is 

similar to other assessment rate actions 

issued in past years. Also, a 10-day 

comment period was provided for in the 

proposed rule and the comments 

received have been considered in 

reaching a final decision on this matter. 

List of Subjects 

7 CFR Part 916 

Marketing agreements, Nectarines, 

Reporting and recordkeeping 

requirements. 

7 CFR Part 917 

Marketing agreements, Peaches, Pears, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR parts 916 and 917 are 

amended as follows: 

■ 1. The authority citation for 7 CFR 

parts 916 and 917 continue to read as 

follows: 

Authority: 7 U.S.C. 601–674. 

PART 916—NECTARINES GROWN IN 

CALIFORNIA 

■ 2. Section 916.234 is revised to read 

as follows: 

§ 916.234 Assessment rate. 

On and after March 1, 2005, an 

assessment rate of $0.20 per 25-pound 

container or container equivalent of 

nectarines is established for California 

nectarines. 

PART 917—PEACHES GROWN IN 

CALIFORNIA 

■ 3. Section 917.258 is revised to read 

as follows: 

§ 917.258 Assessment rate. 

On and after March 1, 2005, an 

assessment rate of $0.20 per 25-pound 

container or container equivalent of 

peaches is established for California 

peaches. 

Dated: September 20, 2005. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 05–19085 Filed 9–23–05; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1033 

[Docket No. AO–166–A39; DA–05–01–A] 

Milk in the Mideast Marketing Area; 

Interim Order Amending the Order 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule. 

SUMMARY: This order amends certain 

features of the pooling standards of the 

Mideast milk marketing order on an 

interim basis. More than the required 

number of producers in the Mideast 

marketing area have approved the 

issuance of the interim order as 

amended. 

DATES: Effective October 1, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Gino M. Tosi, Associate Deputy 

Administrator, Stop 0231, Room 2971, 

USDA/AMS/Dairy Programs, Order 

Formulation and Enforcement Branch, 

1400 Independence Avenue, SW., 

Washington, DC 20250–0231, (202) 690–

1366, e-mail address: 

gino.tosi@usda.gov. 

SUPPLEMENTARY INFORMATION: 

Specifically, this decision adopts 

provisions that will: (1) Prohibit the 

ability to simultaneously pool the same 

milk on the Mideast Federal milk order 

and on a marketwide equalization pool 

administered by another government 

entity; (2) Lower the diversion limit 

standards; and (3) Increase the 

performance standards for supply 

plants. 

This administrative rule is governed 

by the provisions of sections 556 and 

557 of title 5 of the United States Code 

and, therefore, is excluded from the 

requirements of Executive Order 12866. 

This interim rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have a retroactive effect. This rule 

will not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

The Agricultural Marketing 

Agreement Act of 1937 (the Act), as 

amended (7 U.S.C. 601–674), 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 

request modification or exemption from 

such order by filing with the 

Department of Agriculture (Department) 

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 the law. A 

handler is afforded the opportunity for 

a hearing on the petition. After a 

hearing, the Department 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 its principal place of 

business, has jurisdiction in equity to 

review the Department’s ruling on the 

petition, provided a bill in equity is 

filed not later than 20 days after the date 

of the entry of the ruling. 

Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.), the 

Agricultural Marketing Service has 

considered the economic impact of this 

action on small entities and has certified 

that this interim rule will not have a 

significant economic impact on a 

substantial number of small entities. For 

the purpose of the Regulatory Flexibility 

Act, a dairy farm is considered a ‘‘small 

business’’ if it has an annual gross 

revenue of less than $750,000, and a 

dairy products manufacturer is a ‘‘small 

business’’ if it has fewer than 500 

employees. 

For the purposes of determining 

which dairy farms are ‘‘small 

businesses,’’ the $750,000 per year 

criterion was used to establish a 

production guideline of 500,000 pounds 

per month. Although this guideline does 

not factor in additional monies that may 

be received by dairy producers, it 

should be an inclusive standard for 

most ‘‘small’’ dairy farmers. For 

purposes of determining a handler’s 

size, if the plant is part of a larger 

company operating multiple plants that 

collectively exceed the 500-employee 

limit, the plant will be considered a 

large business even if the local plant has 

fewer than 500 employees. 

During March 2005, the month during 

which the hearing occurred, there were 

9,767 dairy producers pooled on, and 36 

handlers regulated by, the Mideast 

order. Approximately 9,212 producers,