11060 Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Proposed Rules 

(6) Earthquake; 

(7) Volcanic eruption; or 

(8) Failure of irrigation water supply, 

if caused by an insured peril that occurs 

during the insurance period. 

(b) In addition to the causes of loss 

excluded in section 12 of the Basic 

Provisions, we will not insure against 

damage or loss of production due to: 

(1) Phylloxera, regardless of cause; or 

(2) Inability to market the table grapes 

for any reason other than the actual 

physical damage from an insurable 

cause specified in this section. For 

example, we will not pay you an 

indemnity if you are unable to market 

due to quarantine, boycott, or refusal of 

any person to accept production. 

11. Duties in the Event of Damage or 

Loss. 

In addition to the requirements of 

section 14 of the Basic Provisions, the 

following will apply: 

* * * * * 

12. Settlement of Claim. 

* * * * * 

(b) * * * 

(2) Multiplying the result in section 

12(b)(1) by the respective price election 

for the variety or type; 

* * * * * 

(4) Multiplying the total production to 

be counted of the variety or type (see 

section 12(c)) by the respective price 

election; 

* * * * * 

(c) * * * 

(1) * * * 

(iii) Unharvested production that 

meets, or would meet if properly 

handled, the state quality standards or 

the appropriate USDA grade standard (if 

no state standard is applicable); and 

* * * * * 

Signed in Washington, DC, on February 21, 

2008. 

Eldon Gould, 

Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. E8–3850 Filed 2–28–08; 8:45 am] 

BILLING CODE 3410–08–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 959 

[Docket No. AMS–FV–07–0151; FV08–959–

1 PR] 

Onions Grown in South Texas; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

assessment rate established for the 

South Texas Onion Committee 

(Committee) for the 2007–08 and 

subsequent fiscal periods from $0.02 to 

$0.03 per 50-pound equivalent of onions 

handled. The Committee locally 

administers the marketing order which 

regulates the handling of onions grown 

in South Texas. Assessments upon 

onion handlers are used by the 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period begins August 1 and ends 

July 31. The assessment rate would 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Comments must be received by 

March 17, 2008. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http:// 

www.regulations.gov. Comments should 

reference the docket number and the 

date and page number of this issue of 

the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours, or can be viewed at: 

http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Belinda G. Garza, Regional Manager, 

Texas Marketing Field Office, Fruit and 

Vegetable Programs, AMS, USDA; 

Telephone: (956) 682–2833, Fax: (956) 

682–5942, or E-mail: 

Belinda.Garza@usda.gov. 

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. 

959, as amended (7 CFR part 959), 

regulating the handling of onions grown 

in South Texas, 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, 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 proposed herein 

would be applicable to all assessable 

onions beginning on August 1, 2007, 

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 would increase the 

assessment rate established for the 

Committee for the 2007–08 and 

subsequent fiscal periods from $0.02 to 

$0.03 per 50-pound equivalent of 

onions. 

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 2004–05 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 


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Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Proposed Rules 11061 

upon recommendation and information 

submitted by the Committee or other 

information available to USDA. 

The Committee met on November 16, 

2007, and unanimously recommended 

2007–08 expenditures of $202,315 and 

an assessment rate of $0.03 per 50- 

pound equivalent of onions. In 

comparison, last year’s budgeted 

expenditures were $193,315. The 

assessment rate of $0.03 is $0.01 higher 

than the rate currently in effect. The 

Committee recommended the increased 

rate to continue to support the increased 

budget for research started last season, 

while reducing the amount of funds 

drawn from the Committee’s authorized 

reserve. Without the increase, the 

Committee’s reserve funds would drop 

to $114,728. The Committee believes a 

reserve that low is not adequate for its 

operations. 

The major expenditures 

recommended by the Committee for the 

2007–08 fiscal period include $64,315 

for personnel and office expenses, 

$45,000 for compliance, $25,000 for 

promotion, and $30,000 for research. 

Budgeted expenses for these items in 

2006–07 were $62,315, $43,000, 

$25,000, and $25,000, respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenses by expected 

shipments of South Texas onions. 

Onion shipments for the fiscal period 

are estimated at 5,775,000 fifty-pound 

equivalents, which should provide 

$173,250 in assessment income. Income 

derived from handler assessments, along 

with interest income and funds from the 

Committee’s authorized reserve, would 

be adequate to cover budgeted expenses. 

Funds in the reserve (currently 

$196,543) would be kept within the 

maximum permitted by the order 

(approximately two fiscal periods’

expenses, § 959.43). 

The proposed assessment rate would 

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 would 

be in effect for an indefinite period, the 

Committee would 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 would evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The 

Committee’s 2007–08 budget and those 

for subsequent fiscal periods would be 

reviewed and, as appropriate, approved 

by USDA. 

Initial 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 initial 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. 

There are approximately 118 

producers of onions in the production 

area and approximately 34 handlers 

subject to regulation under the 

marketing order. Small agricultural 

producers are defined by the Small 

Business Administration (SBA) (13 CFR 

121.201) as those having annual receipts 

less than $750,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $6,500,000. 

Most of the handlers are vertically 

integrated corporations involved in 

producing, shipping, and marketing 

onions. For the 2006–07 marketing year, 

the industry’s 34 handlers shipped 

onions produced on 12,460 acres with 

the average and median volume handled 

being 179,457 and 171,537 fifty-pound 

equivalents, respectively. In terms of 

production value, total revenues for the 

34 handlers were estimated to be $86.7 

million, with average and median 

revenues being $2.55 million and $2.35 

million, respectively. 

The South Texas onion industry is 

characterized by producers and 

handlers whose farming operations 

generally involve more than one 

commodity, and whose income from 

farming operations is not exclusively 

dependent on the production of onions. 

Alternative crops provide an 

opportunity to utilize many of the same 

facilities and equipment not in use 

when the onion production season is 

complete. For this reason, typical onion 

producers and handlers either produce 

multiple crops or alternate crops within 

a single year. 

Based on the SBA’s definition of 

small entities, the Committee estimates 

that 32 of the 34 (94 percent) handlers 

regulated by the order would be 

considered small entities if only their 

spring onion revenues are considered. 

However, revenues from other 

productive enterprises would likely 

push a large number of these handlers 

above the $6,500,000 annual receipt 

threshold. All of the 118 producers may 

be classified as small entities based on 

the SBA definition if only their revenue 

from spring onions is considered. When 

revenues from all sources are 

considered, a majority of the producers 

would not be considered small entities 

because receipts would exceed 

$750,000. 

This rule would increase the 

assessment rate established for the 

Committee and collected from handlers 

for the 2007–08 and subsequent fiscal 

periods from $0.02 to $0.03 per 50- 

pound equivalent. The Committee 

unanimously recommended 2007–08 

expenditures of $202,315 and an 

assessment rate of $0.03 per 50-pound 

equivalent. The proposed assessment 

rate of $0.03 is $0.01 higher than the 

current rate. The quantity of assessable 

onions for the 2007–08 fiscal period is 

estimated at 5,775,000 fifty-pound 

equivalents. Thus, the $0.03 rate should 

provide $173,250 in assessment income. 

Income derived from handler 

assessments, along with interest income 

and funds from the Committee’s 

authorized reserve, would be more than 

adequate to cover budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2007–08 fiscal period include $64,315 

for personnel and office expenses, 

$45,000 for compliance, $25,000 for 

promotion, and $30,000 for research. 

Budgeted expenses for these items in 

2006–07 were $62,315, $43,000, 

$25,000, and $25,000, respectively. 

The Committee recommended the 

increased rate to continue funding a 

research project begun last year without 

having to draw a large amount from 

reserves. Without the increase, the 

Committee’s reserve funds would drop 

to $114,728. The Committee believes a 

reserve that low is not adequate for its 

operations. 

The Committee reviewed and 

unanimously recommended 2007–08 

expenditures of $202,315, which 

included increases in the management 

fee, compliance, and research. 

Numerous alternative expenditure 

levels were discussed based upon the 

relative value of the research project to 

the onion industry. The assessment rate 

of $0.03 per 50-pound equivalent of 

assessable onions was then determined 


rfrederick on PROD1PC67 with PROPOSALS
11062 Federal Register / Vol. 73, No. 41 / Friday, February 29, 2008 / Proposed Rules 

by dividing the total recommended 

budget by the quantity of assessable 

onions, estimated at 5,775,000 fiftypound equivalents for the 2007–08 

fiscal period. The assessment rate 

should generate $173,250 in income. 

Considering income from interest and 

assessments, total income should be 

approximately $24,065 below the 

anticipated expenses, which the 

Committee determined to be acceptable. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the grower price for the 2007–08 

fiscal period could range between 

$10.00 and $28.00 per 50-pound 

equivalent of onions. Therefore, the 

estimated assessment revenue for the 

2007–08 fiscal period as a percentage of 

total grower revenue could range 

between .11 and .30 percent. 

This action would 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 would be offset by 

the benefits derived by the operation of 

the marketing order. In addition, the 

Committee’s meeting was widely 

publicized throughout the South Texas 

onion industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the November 16, 

2007, meeting was a public meeting and 

all entities, both large and small, were 

able to express views on this issue. 

Finally, interested persons are invited to 

submit comments on this proposed rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

South Texas onion handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the Internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

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. 

A 15-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Fifteen days is 

deemed appropriate because: (1) The 

2007–08 fiscal period began on August 

1, 2007, and the marketing order 

requires that the rate of assessment for 

each fiscal period apply to all assessable 

onions 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. 

List of Subjects in 7 CFR Part 959 

Marketing agreements, Onions, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 959 is proposed to 

be amended as follows: 

PART 959—ONIONS GROWN IN 

SOUTH TEXAS 

1. The authority citation for 7 CFR 

part 959 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

2. Section 959.237 is revised to read 

as follows: 

§ 959.237 Assessment rate. 

On and after August 1, 2007, an 

assessment rate of $0.03 per 50-pound 

equivalent is established for South 

Texas onions. 

Dated: February 26, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 08–898 Filed 2–26–08; 3:31 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 1005, 1006 and 1007 

[AMS–DA–07–0059; AO–388–A22, AO–356–

A43 and AO–366–A51; Docket No. DA–07–

03–B] 

Milk in the Appalachian, Florida and 

Southeast Marketing Areas; Partial 

Recommended Decision and 

Opportunity To File Written Exceptions 

on Proposed Amendments to Tentative 

Marketing Agreements and Orders 

7 CFR part Marketing 

area AO No. 

1005 ........ Appalachian .. AO–388–A22 

1006 ........ Florida ........... AO–356–A43 

1007 ........ Southeast ...... AO–366–A51 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule, Partial 

recommended decision. 

SUMMARY: This decision recommends 

adoption of proposals that would 

increase the maximum administrative 

assessment rate in the Appalachian, 

Florida and Southeast Federal milk 

marketing orders. 

DATES: Comments must be submitted on 

or before April 29, 2008. 

ADDRESSES: Comments (six copies) 

should be filed with the Hearing Clerk, 

United States Department of 

Agriculture, STOP 9200–Room 1031, 

1400 Independence Avenue, SW., 

Washington, DC 20250–1031. You may 

send your comments by the electronic 

process available at the Federal 

eRulemaking portal: http:// 

www.regulations.gov or by submitting 

comments to 

amsdairycomments@usda.gov. 

Reference should be made to the title of 

the action and docket number. 

FOR FURRTHER INFORMATION CONTACT: 

Gino M. Tosi, Associate Deputy 

Administrator, Order formulation and 

Enforcement Branch, USDA/AMS/Dairy 

Programs, STOP 0231–Room 2971, 1400 

Independence Ave., SW., Washington, 

DC 20250–0231, (202) 690–1366, e-mail 

address: gino.tosi@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

decision recommends adoption of 

amendments that would allow the 

market administrator in the 

Appalachian, Florida and Southeast 

marketing areas to increase the 

maximum administrative assessment 

rate up to 8 cents per cwt on all pooled 

milk, if necessary, to maintain the 

mandated reserve fund level. 


rfrederick on PROD1PC67 with PROPOSALS