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Rules and Regulations Federal Register

56561 

Vol. 70, No. 187 

Wednesday, September 28, 2005 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 920 

[Docket No. FV05–920–2 FR] 

Kiwifruit Grown in California; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate and changes the 

assessable unit established for the 

Kiwifruit Administrative Committee 

(Committee) for the 2005–06 and 

subsequent fiscal periods from $0.002 

per pound of kiwifruit to $0.045 per 9- 

kilo volume-fill container or equivalent 

of kiwifruit. The Committee locally 

administers the marketing order which 

regulates the handling of kiwifruit 

grown in California. Assessments upon 

kiwifruit handlers are used by the 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period began on August 1 and 

ends July 31. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

EFFECTIVE DATE: September 29, 2005. 

FOR FURTHER INFORMATION CONTACT: 

Shereen Marino, Marketing Specialist, 

California Marketing Field Office, 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 Order No. 

920, as amended (7 CFR part 920), 

regulating the handling of kiwifruit 

grown in California, hereinafter referred 

to as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, California kiwifruit 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 kiwifruit 

beginning on August 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 and changes the assessable unit 

established for the Committee for the 

2005–06 and subsequent fiscal periods 

from $0.002 per pound of kiwifruit to 

$0.045 per 9-kilo volume-fill container 

or equivalent of kiwifruit. 

The California kiwifruit 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 of California kiwifruit. They 

are familiar with the Committee’s needs 

and 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 at a public meeting. Thus, all 

directly affected persons have an 

opportunity to participate and provide 

input. 

For the 2004–05 and subsequent fiscal 

periods, the Committee recommended, 

and USDA approved, an assessment rate 

that continued 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 28, 2005, 

and unanimously recommended 2005– 

06 expenditures of $91,989 and an 

assessment rate of $0.045 per 9-kilo 

volume-fill container or equivalent of 

kiwifruit. In comparison, last year’s 

budgeted expenditures were $91,839. 

The assessment rate of $0.045 per 9-kilo 

volume-fill container or equivalent is 

about $0.0003 per pound higher than 

the rate currently in effect. The higher 

assessment rate is needed because the 

2004–2005 crop was smaller than 

expected and assessment income fell 

short of expenses. Reserve funds were 

used to meet the shortfall. The higher 

assessment rate should generate 

sufficient income to cover anticipated 

2005–06 expenses and maintain an 

adequate reserve. 

The following table compares major 

budget expenditures recommended by 

the Committee for the 2004–05 and 

2005–06 fiscal periods: 

Budget expense 

categories 2004–05 2005–06 

Administrative Staff & 

Field Salaries ............ $61,000 $61,000 

Travel ............................ 6,500 6,500 

Office Costs/Annual 

Audit .......................... 14,555 14,705 

56562 Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Rules and Regulations 

Budget expense 

categories 2004–05 2005–06 

Vehicle Expense Account ......................... 9,784 9,784 

The assessment rate recommended by 

the Committee was derived by the 

following formula: Anticipated 

expenses ($91,989), plus the desired 

2006 ending reserve ($35,010), minus 

the 2005 beginning reserve ($15,524), 

divided by the total estimated 2005–06 

shipments (2,475,000 9-kilo volume-fill 

containers). An additional $100 in 

interest income is also anticipated, 

bringing the total projected 2005–06 

revenue to $111,475. This calculation 

requires the $0.045 per 9-kilo volumefill container assessment rate. This rate 

should provide sufficient funds to meet 

the anticipated expenses of $91,839 and 

result in a July 2006 ending reserve of 

$35,010, which is within the authorized 

reserve permitted by the order. The 

authorized reserve is approximately one 

fiscal period’s expenses (§ 920.41). 

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. 

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 

modification of the assessment rate is 

needed. Further rulemaking will be 

undertaken as necessary. The 

Committee’s 2005–06 budget and those 

for subsequent fiscal periods will 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 45 handlers 

of California kiwifruit subject to 

regulation under the marketing order 

and approximately 275 growers in the 

production area. Small agricultural 

service firms are defined by the Small 

Business Administration (13 CFR 

121.201) as those whose annual receipts 

are less than $6,000,000, and small 

agricultural producers are defined as 

those whose annual receipts are less 

than $750,000. 

None of the 45 handlers subject to 

regulation have annual kiwifruit sales of 

at least $6,000,000. In addition, six 

growers subject to regulation have 

annual sales exceeding $750,000. 

Therefore, a majority of the kiwifruit 

handlers and growers may be classified 

as small entities. 

This rule increases the assessment 

rate and changes the assessable unit 

established for the Committee and 

collected from handlers for the 2005–06 

and subsequent fiscal periods from 

$0.002 per pound of kiwifruit to $0.045 

per 9-kilo volume-fill container or 

equivalent of kiwifruit. The Committee 

unanimously recommended 2005–06 

expenditures of $91,989 and an 

assessment rate of $0.045 per 9-kilo 

volume-fill container or equivalent of 

kiwifruit. The assessment rate of $0.045 

is $0.0003 higher than the 2004–05 rate. 

The quantity of assessable kiwifruit for 

the 2005–06 fiscal period is estimated at 

2,475,000 9-kilo volume-fill containers 

or equivalent of kiwifruit. Thus, the 

$0.045 rate should provide $111,375 in 

assessment income and be adequate to 

meet this year’s expenses. 

The following table compares major 

budget expenditures recommended by 

the Committee for the 2004–05 and 

2005–06 fiscal years: 

Budget expense 

categories 2004–05 2005–06 

Administrative Staff & 

Field Salaries ............ $61,000 $61,000 

Travel ............................ 6,500 6,500 

Office Costs/Annual 

Audit .......................... 14,555 14,705 

Vehicle Expense Account ......................... 9,784 9,784 

The Committee reviewed and 

unanimously recommended 2005–06 

expenditures of $91,989, which 

included an increase in audit expenses. 

Prior to arriving at this budget, the 

Committee considered alternative 

expenditure levels, but ultimately 

decided that the recommended levels 

were reasonable to properly administer 

the order. The assessment rate 

recommended by the Committee was 

derived by the following formula: 

Anticipated expenses ($91,989), plus 

the desired 2006 ending reserve 

($35,010), minus the 2005 beginning 

reserve ($15,524), divided by the total 

estimated 2005–06 shipments 

(2,475,000 9-kilo volume-fill 

containers). This calculation resulted in 

the $0.045 per 9-kilo volume-fill 

container assessment rate. This rate will 

provide sufficient funds to meet the 

anticipated expenses of $91,989 and 

result in a July 2006 ending reserve of 

$35,010, which is within the authorized 

reserve permitted by the order. The 

authorized reserve is approximately one 

fiscal period’s expenses (§ 920.41). An 

additional $100 in interest income is 

also anticipated, bringing the total 

projected 2005–06 revenue to $111,475. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the grower price for the 2005–06 

season could be about $8.09 per 9-kilo 

volume-fill container or equivalent of 

kiwifruit. Therefore, the estimated 

assessment revenue for the 2005–06 

fiscal period as a percentage of total 

grower revenue is estimated at about 

0.56 percent. 

This action will increase 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 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 California 

kiwifruit industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the June 28, 2005, 

meeting was a public meeting and all 

entities, both large and small, were able 

to express views on this issue. 

This final rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large California 

kiwifruit 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. 

Federal Register / Vol. 70, No. 187 / Wednesday, September 28, 2005 / Rules and Regulations 56563 

The proposed rule concerning this 

action was published in the Federal 

Register on August 16, 2005 (70 FR 

48082). Copies of the rule were mailed 

or sent via facsimile to all Committee 

members and kiwifruit handlers. 

Finally, the rule was made available 

through the Internet by USDA and the 

Office of the Federal Register. A 20-day 

comment period ending September 6, 

2005, was provided to allow interested 

persons to respond to the proposal. No 

comments were 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/ 

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 

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. 

It is further found that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register (5 

U.S.C. 553) because: (1) The 2005–06 

fiscal period began on August 1, 2005, 

and the marketing order requires that 

the rate of assessment for each fiscal 

period apply to all assessable kiwifruit 

handled during such fiscal period; (2) 

the Committee needs to have sufficient 

funds to pay its expenses which are 

incurred on a continuous basis and; (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. In addition, a 20- 

day comment period was provided for 

in the proposed rule. 

List of Subjects in 7 CFR Part 920 

Kiwifruit, Marketing agreements, 

Reporting and record keeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 920 is amended as 

follows: 

PART 920—KIWIFRUIT GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 920 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 920.213 is revised to read 

as follows: 

§ 920.213 Assessment rate. 

On and after August 1, 2005, an 

assessment rate of $0.045 per 9-kilo 

volume-fill container or equivalent of 

kiwifruit is established for kiwifruit 

grown in California. 

Dated: September 22, 2005. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 05–19309 Filed 9–27–05; 8:45 am] 

BILLING CODE 3410–02–P 

FEDERAL RESERVE SYSTEM 

12 CFR Part 201 

[Regulation A] 

Extensions of Credit by Federal 

Reserve Banks 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Final rule. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) has 

adopted final amendments to its 

Regulation A to reflect the Board’s 

approval of an increase in the primary 

credit rate at each Federal Reserve Bank. 

The secondary credit rate at each 

Reserve Bank automatically increased 

by formula as a result of the Board’s 

primary credit rate action. 

DATES: The amendments to part 201 

(Regulation A) are effective September 

28, 2005. The rate changes for primary 

and secondary credit were effective on 

the dates specified in 12 CFR 201.51, as 

amended. 

FOR FURTHER INFORMATION CONTACT: 

Jennifer J. Johnson, Secretary of the 

Board ((202) 452–3259); for users of 

Telecommunication Devices for the Deaf 

(TDD) only, contact (202) 263–4869. 

SUPPLEMENTARY INFORMATION: The 

Federal Reserve Banks make primary 

and secondary credit available to 

depository institutions as a backup 

source of funding on a short-term basis, 

usually overnight. The primary and 

secondary credit rates are the interest 

rates that the twelve Federal Reserve 

Banks charge for extensions of credit 

under these programs. In accordance 

with the Federal Reserve Act, the 

primary and secondary credit rates are 

established by the boards of directors of 

the Federal Reserve Banks, subject to 

the review and determination of the 

Board. 

The Board approved requests by the 

Reserve Banks to increase by 25 basis 

points the primary credit rate in effect 

at each of the twelve Federal Reserve 

Banks, thereby increasing from 4.50 

percent to 4.75 percent the rate that 

each Reserve Bank charges for 

extensions of primary credit. As a result 

of the Board’s action on the primary 

credit rate, the rate that each Reserve 

Bank charges for extensions of 

secondary credit automatically 

increased from 5.00 percent to 5.25 

percent under the secondary credit rate 

formula. The final amendments to 

Regulation A reflect these rate changes. 

The 25-basis-point increase in the 

primary credit rate was associated with 

a similar increase in the target for the 

federal funds rate (from 3.50 percent to 

3.75 percent) approved by the Federal 

Open Market Committee (Committee) 

and announced at the same time. A 

press release announcing these actions 

indicated that: 

Output appeared poised to continue 

growing at a good pace before the tragic toll 

of Hurricane Katrina. The widespread 

devastation in the Gulf region, the associated 

dislocation of economic activity, and the 

boost to energy prices imply that spending, 

production, and employment will be set back 

in the near term. In addition to elevating 

premiums for some energy products, the 

disruption to the production and refining 

infrastructure may add to energy price 

volatility. 

While these unfortunate developments 

have increased uncertainty about near-term 

economic performance, it is the Committee’s 

view that they do not pose a more persistent 

threat. Rather, monetary policy 

accommodation, coupled with robust 

underlying growth in productivity, is 

providing ongoing support to economic 

activity. Higher energy and other costs have 

the potential to add to inflation pressures. 

However, core inflation has been relatively 

low in recent months and longer-term 

inflation expectations remain contained. 

The Committee perceives that, with 

appropriate monetary policy action, the 

upside and downside risks to the attainment 

of both sustainable growth and price stability 

should be kept roughly equal. With 

underlying inflation expected to be 

contained, the Committee believes that 

policy accommodation can be removed at a 

pace that is likely to be measured. 

Nonetheless, the Committee will respond to 

changes in economic prospects as needed to 

fulfill its obligation to maintain price 

stability. 

Regulatory Flexibility Act Certification 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. 605(b)), the Board certifies 

that the new primary and secondary 

credit rates will not have a significantly 

adverse economic impact on a 

substantial number of small entities 

because the final rule does not impose 

any additional requirements on entities 

affected by the regulation.