Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations 35593

economic impact on a substantial

number of small entities.

Pursuant to authority contained in

section 958.51 of the marketing order,

the Idaho-Eastern Oregon Onion

Committee (Committee), at its

November 16, 1995, meeting,

unanimously recommended changing

the minimum and maximum sizes set

forth in section 958.328(a)(3)(ii) of the

handling regulation. For this size

category, the Committee recommended

increasing the minimum diameter from

11⁄2 inches to 13⁄4 inches, and the

maximum diameter from 21⁄2 inches to

23⁄4 inches for all onions except white

or red varieties produced and handled

in the production area. Yellow onions

are the major variety produced in the

regulated production area.

This final rule modifies a marketing

order size category that is recognized by

the onion industry as ‘‘repacker’’ or

‘‘prepacker’’ size onions. Onions in this

size category are generally packed and

shipped in 50-pound sacks for later

repacking into various consumer packs.

The U.S. Standards for Grades of

Onions were recently amended to

include a classification for ‘‘repacker/

prepacker’’ size onions (60 FR 46976,

September 8, 1995), effective October

10, 1995. Section 51.2836 of the U.S.

Standards defines such onions as those

ranging from a minimum diameter of

13⁄4 inches to a maximum diameter of 3

inches. The U.S. Standards also specify

that not more than 5 percent of the

onions in a lot may be undersized and

that not more than 10 percent may be

oversized.

Recent trends in buyer preference

reflect an increasing demand for larger

size onions in the ‘‘repacker/prepacker’’

category. The Committee reports that

the current maximum diameter of 21⁄2

inches for this size category is too

restrictive and has resulted in a high

percentage of onions being packed in a

different category due to oversize. This

has resulted in fewer ‘‘repacker/

prepacker’’ size onions being available

for market. With an increase in the

maximum allowable diameter to 23⁄4

inches for ‘‘repacker/prepacker’’ size

onions, the Committee expects the

quantity of such onions available for

market to increase. The Committee

recommended an increase to 23⁄4 inches

rather than 3 inches, the upper limit of

the size range specified in the U.S.

Standards, because the smaller size is

more suitable for this industry and its

customers. In addition to the increase in

the maximum diameter for onions in

this category, the Committee

recommended that the minimum

diameter be increased from 11⁄2 inches

to 13⁄4 inches to be the same as the

recently amended U.S. Standards.

Any costs to handlers and producers

attributable to this regulation are

expected to be offset by the benefits

derived from improved returns. The

modification increases the volume of

onions marketed in this size category,

and is expected to result in higher

returns for producers and handlers.

Section 8e of the Act requires that

when certain domestically produced

commodities, including onions, are

regulated under a Federal marketing

order, imports of that commodity must

meet the same or comparable grade,

size, quality, or maturity requirements.

Section 8e also provides that whenever

two or more marketing orders regulating

the same commodity produced in

different areas of the United States are

concurrently in effect, the Secretary

shall determine which of the areas

produces the commodity in more direct

competition with the imported

commodity. Imports must then meet the

requirements established for the

particular area.

Grade, size, quality, and maturity

regulations have been issued regularly

under both Marketing Order 958 and

Marketing Order 959, which regulates

the handling of onions grown in South

Texas. Pursuant to section 8e of the Act,

the current import regulation (7 CFR

980.117) specifies that import

requirements for onions are to be based

on the seasonal categories of onions

grown in both marketing order areas.

The import regulation specifies that

imported onions must meet the

requirements of Marketing Order 958

during the June 5 through March 9

period each season (61 FR 25556; May

22, 1996), and Marketing Order 959

through the remainder of the year. The

current import regulation also provides

that all varieties of imported onions,

except for white varieties, must be a

minimum of 11⁄2 inches in diameter.

This final rule will change the import

requirements for the period June 5

through March 9 each marketing year to

provide that all varieties of onions

except white or red varieties shall be a

minimum of 13⁄4 inches in diameter.

While no changes are required in the

language of § 980.117, all imported

onions other than white or red varieties

will be required to meet the minimum

size requirement herein.

The proposed rule concerning this

action was published in the May 6,

1996, Federal Register (61 FR 20188),

with a 30-day comment period ending

June 5, 1996. No comments were

received.

After consideration of all relevant

matters presented, including the

information and recommendations

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.

In accordance with section 8e of the

Act, the United States Trade

Representative has concurred with the

issuance of this final rule.

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 action until 30 days after

publication in the Federal Register

because: (1) This action will provide

handlers more marketing flexibility in

meeting buyer preferences; (2) the 1996

crop harvest and shipments are

expected to begin in August and this

action needs to be effective promptly to

allow handlers to make their marketing

plans; and (3) interested persons were

invited to submit written comments and

no comments were submitted.

List of Subjects in 7 CFR Part 958

Marketing agreements, Onions,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 958 is hereby

amended as follows:

PART 958—ONIONS GROWN IN

CERTAIN DESIGNATED COUNTIES IN

IDAHO, AND MALHEUR COUNTY,

OREGON

1. The authority citation for 7 CFR

part 958 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 958.328 is amended by

revising paragraph (a)(3)(ii) to read as

follows:

§ 958.328 Handling Regulation.

* * * * *

(a) * * *

(3) * * *

(ii) U.S. No. 1, 13⁄4 inches minimum

to 23⁄4 maximum diameter; or

* * * * *

Dated: June 28, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96–17197 Filed 7–5–96; 8:45 am]

BILLING CODE 3410–02–P
35594 Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations

7 CFR Parts 997 and 998

[Docket No. FV96–998–2IFR]

Assessment Rate for Domestically

Produced Peanuts Handled by Persons

Not Subject to Peanut Marketing

Agreement No. 146 and for Marketing

Agreement No. 146 Regulating the

Quality of Domestically Produced

Peanuts

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This interim final rule

establishes an assessment rate for the

Peanut Administrative Committee

(Committee) under Marketing

Agreement No. 146 (agreement) for the

1996–97 and subsequent crop years. The

Committee is responsible for local

administration of the marketing

agreement which regulates the handling

of peanuts grown in 16 States.

Authorization to assess peanut handlers

who have signed the agreement enables

the Committee to incur expenses that

are reasonable and necessary to

administer the program. Public Law

103–66 requires the Department of

Agriculture (Department) to impose an

administrative assessment on farmers

stock peanuts received or acquired by

handlers who are not signatory (nonsignatory handlers) to the agreement.

Therefore, this same assessment rate

established under the agreement will

apply to all non-signatory handlers.

DATES: Effective on July 1, 1996.

Comments received by August 7, 1996,

will be considered prior to issuance of

a final rule.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent in triplicate to the Docket Clerk,

Fruit and Vegetable Division, AMS,

USDA, P.O. Box 96456, room 2523–S,

Washington, DC 20090–6456, FAX 202–

720–5698. 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.

FOR FURTHER INFORMATION CONTACT:

Martha Sue Clark, Program Assistant,

Marketing Order Administration

Branch, Fruit and Vegetable Division,

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

2523–S, Washington, DC 20090–6456,

telephone 202–720–9918, FAX 202–

720–5698, or William G. Pimental,

Marketing Specialist, Southeast

Marketing Field Office, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 2276, Winter Haven, FL 33883–

2276, telephone 941–299–4770, FAX

941–299–5169.

SUPPLEMENTARY INFORMATION: This rule

is issued pursuant to the requirements

of the Agricultural Marketing

Agreement Act of 1937, as amended (7

U.S.C. 601–674), and as further

amended December 12, 1989,

hereinafter referred to as the ‘‘Act’’;

public Law 101–220, section 4(1), (2),

103 Stat. 1878, December 12, 1989;

Public Law 103–66, section 8b(b)(1), 107

Stat. 312, August 10, 1993; and under

Marketing Agreement 146 (7 CFR part

998) regulating the quality of

domestically produced peanuts.

The Department is issuing this rule in

conformance with Executive Order

12866.

This rule has been reviewed under

Executive Order 12778, Civil Justice

Reform. Farmers’ stock peanuts received

or acquired by non-signatory handlers

and farmers’ stock peanuts received or

acquired by handlers signatory to the

agreement, other than from those

described in §§ 998.31(c) and (d), are

subject to assessments. It is intended

that the assessment rates issued herein

will be applicable to all assessable

peanuts beginning July 1, 1996, and

continuing 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. There are no administrative

procedures which must be exhausted

prior to any judicial challenge to the

provisions of this rule.

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.

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.

There are approximately 45 handlers

of peanuts who have not signed the

agreement and, thus, will be subject to

the regulations specified herein. Also,

there are approximately 47,000

producers of peanuts in the 16 States

covered under the agreement and

approximately 32 handlers subject to

regulation under the agreement. Small

agricultural producers have been

defined by the Small Business

Administration (13 CFR 121.601) as

those having annual receipts of less than

$500,000, and small agricultural service

firms are defined as those whose annual

receipts are less than $5,000,000. A

majority of the producers and the nonsignatory handlers may be classified as

small entities, and some of the handlers

covered under the agreement are small

entities.

The peanut marketing agreement

provides authority for the Committee,

with the approval of the Department, to

formulate an annual budget of expenses

and collect assessments from handlers

to administer the program. Funds to

administer the peanut agreement

program are paid to the Committee and

are derived from signatory handler

assessments. The members of the

Committee are handlers and producers

of peanuts. They are familiar with the

Committee’s needs and with the costs

for goods and services in their local

areas and, thus, are in a position to

formulate an appropriate budget and

assessment rate. The assessment rate is

formulated and discussed in public

meetings. Thus, all directly affected

persons have an opportunity to

participate and provide input. The

handlers of peanuts who are directly

affected have signed the marketing

agreement authorizing the expenses that

may be incurred and the imposition of

assessments.

The Committee met on March 19,

1996, and unanimously recommended

1996–97 administrative expenditures of

$1,025,500 and an administrative

assessment rate of $0.70 per net ton of

assessable farmers’ stock peanuts

received or acquired by handlers. The

Committee met again on May 23, 1996,

and with 17 favorable votes and one

abstention voted not to recommend an

assessment rate for indemnification for

handler losses due to aflatoxin

contamination. Adequate funds are

included in the Committee’s

indemnification reserve for such

expenses during the 1996–97 crop year.

In comparison, last year’s budgeted

administrative expenditures were

$1,067,500. The assessment rate of $0.70

is the same as last year’s initially

established rate. An interim final rule

has been published on June 13, 1996 (61

FR 29926) increasing last year’s

administrative assessment rate to $0.83

per ton.

Major expenditures recommended by

the Committee for the 1996–97 year

include $112,450 for executive salaries,

$131,500 for clerical salaries, $296,700

for field representatives salaries,

$42,000 for payroll taxes, $148,000 for

employee benefits, $40,000 for

committee members travel, $5,000 for

staff travel, $110,000 for field

representatives travel, $9,800 for

insurance and bonds, $46,200 for office

rent and parking, $14,000 for office

supplies and stationery, $13,200 for

postage and mailing, $15,000 for
Federal Register / Vol. 61, No. 131 / Monday, July 8, 1996 / Rules and Regulations 35595

telephone and telegraph, $6,000 for

repairs and maintenance agreements,

$10,400 for the audit fee, and $10,250

for the contingency reserve. Budgeted

expenses for these items in 1995–96

were $145,051, $138,856, $304,344,

$44,000, $148,000, $40,000, $5,000,

$110,000, $9,500, $44,360, $14,000,

$13,200, $15,000, $6,000, $10,400, and

$4,789, respectively.

The assessment rate recommended by

the Committee was derived by dividing

anticipated expenses by expected

receipts and acquisitions of farmers’

stock peanuts. Farmers’ stock peanuts

received or acquired by non-signatory

handlers and farmers’ stock peanuts

received or acquired by handlers

signatory to the agreement, other than

from those described in §§ 998.31(c) and

(d), are subject to the assessments.

Assessments are due on the 15th of the

month following the month in which

the farmers’ stock peanuts are received

or acquired. Peanut shipments for the

year under the agreement are estimated

at 1,465,000 tons, which should provide

$1,025,500 in assessment income.

Approximately 95 percent of the

domestically produced peanut crop is

marketed by handlers who are signatory

to the agreement.

Public Law 101–220 amended section

608b of the Act to require that all

peanuts handled by persons who have

not entered into the agreement (nonsigners) be subject to quality and

inspection requirements to the same

extent and manner as are required under

the Agreement. Approximately 5

percent of the U.S. peanut crop is

marketed by non-signer handlers.

Public Law 103–66 (107 Stat. 312)

provides for mandatory assessment of

farmer’s stock peanuts acquired by nonsignatory peanut handlers. Under this

law, paragraph (b) of section 1001, of

the Agricultural Reconciliation Act of

1993, specifies that: (1) Any assessment

(except indemnification assessments)

imposed under the Agreement on

signatory handlers also shall apply to

non-signatory handlers, and (2) such

assessment shall be paid to the

Secretary.

While this action will impose some

additional costs on handlers, the costs

are in the form of uniform assessments

on all handlers signatory to the

agreement. Some of the additional costs

may be passed on to producers.

However, these costs will be

significantly offset by the benefits

derived from the operation of the

marketing agreement. This

administrative assessment is required by

law to be applied uniformly to all nonsignatory handlers and should be of

benefit to all. Therefore, the AMS has

determined that this rule will not have

a significant economic impact on a

substantial number of small entities.

The assessment rates established in

this rule will continue in effect

indefinitely unless modified,

suspended, or terminated by the

Secretary upon recommendation and

information submitted by the

Committee or other available

information.

Although these assessment rates are

effective for an indefinite period, the

Committee will continue to meet prior

to or during each crop year 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 the

Department. Committee meetings are

open to the public and interested

persons may express their views at these

meetings. The Department 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 1996–97 budget and those

for subsequent crop years will be

reviewed and, as appropriate, approved

by the Department.

After consideration of all relevant

matter presented, including the

information and recommendation

submitted by the Committee and other

available information, it is hereby found

that this rule, as hereinafter set forth,

will tend to effectuate the declared

policy of the Act.

Pursuant to 5 U.S.C. 553, it is also

found and determined upon good cause

that it is impracticable, unnecessary,

and contrary to the public interest to

give preliminary notice prior to putting

this rule into effect and that good cause

exists for not postponing the effective

date of this action until 30 days after

publication in the Federal Register

because: (1) The Committee needs to

have sufficient funds to pay its expenses

which are incurred on a continuous

basis; (2) Public Law 103–66 requires

the Department to impose an

administrative assessment on peanuts

received or acquired for the account of

non-signatory handlers; (3) the 1996–97

crop year begins on July 1, 1996, and the

marketing agreement and Public Law

103–66 require that the rate of

assessment for each crop year apply to

all peanuts handled during such crop

year; (4) handlers are aware of this

action which was unanimously

recommended by the Committee at a

public meeting and is similar to other

assessment rate actions issued in past

years; and (5) this interim final rule

provides a 30-day comment period, and

all comments timely received will be

considered prior to finalization of this

rule.

List of Subjects

7 CFR Part 997

Food grades and standards, Peanuts,

Reporting and recordkeeping

requirements.

7 CFR Part 998

Marketing agreements, Peanuts,

Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR parts 997 and 998 are

amended as follows:

1. The authority citation for 7 CFR

parts 997 and 998 continues to read as

follows:

Authority: 7 U.S.C. 601–674.

Note: These amendments will appear in

the Code of Federal Regulations.

PART 997—[AMENDED]

2. In part 997, a new undesignated

center heading, Assessment Rates, and

§ 997.101 are added to read as follows:

Assessment Rates

§ 997.101 Assessment rate.

On and after July 1, 1996, an

administrative assessment rate of $0.70

per net ton of assessable farmers stock

peanuts received or acquired by each

non-signatory first handler is

established for peanuts.

PART 998—[AMENDED]

3. In part 998, a new undesignated

center heading, Assessment Rates, and

§ 998.409 are added to read as follows:

Subpart—Assessment Rates

§ 998.409 Assessment rate.

On and after July 1, 1996, an

administrative assessment rate of $0.70

per net ton of farmers’ stock peanuts

received or acquired other than from

those described in §§ 998.31 (c) and (d)

is established for handlers signatory to

the agreement. Assessments are due on

the 15th of the month following the

month in which the farmers’ stock

peanuts are received or acquired.

Dated: June 28, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96–17196 Filed 7–5–96; 8:45 am]

BILLING CODE 3410–02–P