Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Rules and Regulations 7199 

the crop year and no fruit has been 

harvested. The producer elected the 75 

percent coverage level and has a 100 

percent share. The amount of insurance 

is $1,180 per acre, based on the 75 

percent coverage level, for the citrus 

crop, fruit type, and age of trees. The 

amount of potential production is 

24,530 boxes and the amount of 

damaged production is 17,171 boxes. 

The loss would be calculated as follows: 

1. 55 acres × $1,180 = $64,900 amount 

of insurance for the unit; 

2. 17,171 ÷ 24,530 = 70 percent 

average percent of damage; 

3. 70 percent damage ¥ 25 percent 

deductible (100 percent ¥ 75 percent) 

= 45 percent; 

4. 45 percent ÷ 75 percent = 60 

percent adjusted damage; and 

5. 60 percent × $64,900 = $38,940 

indemnity. 

(c) Citrus fruit crops IV, V, VII, and 

VIII that are seriously damaged by 

freeze, as determined by a fresh-fruit cut 

of a representative sample of fruit in the 

unit in accordance with the applicable 

provisions of the State of Florida Citrus 

Fruit Laws, or contained in standards 

issued by FCIC, and that are not or 

could not be marketed as fresh fruit, 

will be considered damaged to the 

following extent: 

(1) If less than 16 percent of the fruit 

in a sample shows serious freeze 

damage, the fruit will be considered 

undamaged; or 

(2) If 16 percent or more of the fruit 

in a sample shows serious freeze 

damage, the fruit will be considered 50 

percent damaged, except that: 

(i) For tangerines of Citrus IV, damage 

in excess of 50 percent will be the actual 

percent of damaged fruit; and 

(ii) Citrus IV (except tangerines), V, 

VII, and VIII, if it is determined that the 

juice loss in the fruit exceeds 50 

percent, such percent will be considered 

the percent of damage. 

(d) Notwithstanding the provisions of 

section 10(c) of these crop provisions as 

to citrus fruit of Citrus IV, V, VII, and 

VIII, in any unit that is mechanically 

separated using the specific-gravity 

(floatation) method into undamaged and 

freeze-damaged fruit, the amount of 

damage will be the actual percent of 

freeze-damaged fruit not to exceed 50 

percent and will not be affected by 

subsequent fresh-fruit marketing. 

However, the 50 percent limitation on 

mechanically separated, freeze-damaged 

fruit will not apply to tangerines of 

Citrus IV. 

(e) Any citrus fruit of Citrus I, II, III, 

and VI damaged by freeze, but that can 

be processed into products for human 

consumption, will be considered as 

marketable for juice. The percent of 

damage will be determined by relating 

the juice content of the damaged fruit to: 

(1) The average juice content of the 

fruit produced on the unit for the three 

previous crop years based on your 

records, if they are acceptable to us; or 

(2) The following juice content, if 

acceptable records are not furnished: 

(i) Citrus I—52 pounds of juice per 

box; 

(ii) Citrus II—54 pounds of juice per 

box; 

(iii) Citrus III—45 pounds of juice per 

box; and 

(iv) Citrus VI—43 pounds of juice per 

box; 

(f) Any individual citrus fruit on the 

ground that is not collected and 

marketed will be considered as 100 

percent damaged if the damage was due 

to an insured cause. 

(g) Any individual citrus fruit that is 

unmarketable either as fresh fruit or as 

juice because it is immature, 

unwholesome, decomposed, 

adulterated, or otherwise unfit for 

human consumption due to an insured 

cause will be considered as 100 percent 

damaged. 

(h) Individual citrus fruit of Citrus IV, 

V, VII, and VIII, that are unmarketable 

as fresh fruit due to serious damage 

from hail as defined in the applicable 

United States Standards for Grades of 

Florida fruit, or wind damage from a 

hurricane, tornado or other excess wind 

storms that results in the fruit not 

meeting the standards for packing as 

fresh fruit, will be considered 100 

percent damaged. 

11. Late and Prevented Planting 

The late and prevented planting 

provisions of the Basic Provisions are 

not applicable. 

Signed in Washington, DC, on January 31, 

2008. 

Eldon Gould, 

Manager, Federal Crop Insurance 

Corporation. 

[FR Doc. E8–2190 Filed 2–6–08; 8:45 am] 

BILLING CODE 3410–08–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 932 

[Docket No. AMS–FV–07–0155; FV08–932–

1 IFR] 

Olives Grown in California; Decreased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule decreases the 

assessment rate established for the 

California Olive Committee (committee) 

for the 2008 and subsequent fiscal years 

from $47.84 to $15.60 per assessable ton 

of olives handled. The committee 

locally administers the marketing order 

which regulates the handling of olives 

grown in California. Assessments upon 

olive handlers are used by the 

committee to fund reasonable and 

necessary expenses of the program. The 

fiscal year began January 1 and ends 

December 31. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Effective February 8, 2008. 

Comments received by April 7, 2008 

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 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: 

Jennifer R. Garcia, Marketing Specialist, 

or Kurt J. Kimmel, Regional Manager, 

California Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487–

5901, Fax: (559) 487–5906; or E-mail: 

Jen.Garcia@usda.gov or 

Kurt.Kimmel@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 Agreement 

No. 148 and Order No. 932, both as 

amended (7 CFR part 932), regulating 

the handling of olives 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.’’


rfrederick on PROD1PC67 with RULES
7200 Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Rules and Regulations 

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 olive 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 olives 

beginning on January 1, 2008, 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 decreases the assessment 

rate established for the committee for 

the 2008 and subsequent fiscal years 

from $47.84 to $15.60 per ton of 

assessable olives from the applicable 

crop years. 

The California olive 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 fiscal year, 

which is the 12-month period between 

January 1 and December 31, begins after 

the corresponding crop year, which is 

the 12-month period beginning August 

1 and ending July 31 of the subsequent 

year. Fiscal year budget and assessment 

recommendations are made after the 

corresponding crop year olive tonnage is 

reported. The members of the committee 

are producers and handlers of California 

olives. They are familiar with the 

committee’s needs and with 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 discussed in 

a public meeting. Thus, all directly 

affected persons have an opportunity to 

participate and provide input. 

For the 2007 and subsequent fiscal 

years, the committee recommended, and 

USDA approved, an assessment rate that 

would continue in effect from fiscal year 

to fiscal year 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 December 5, 

2007, and unanimously recommended 

2008 fiscal year expenditures of 

$1,588,552 and an assessment rate of 

$15.60 per ton of assessable olives. In 

comparison, last year’s budgeted 

expenditures were $965,396. The 

assessment rate of $15.60 is $32.24 

lower than the rate currently in effect. 

The committee recommended the lower 

assessment rate because the 2007–08 

assessable olive receipts as reported by 

the California Agricultural Statistics 

Service (CASS) are 108,059 tons, which 

compares to 16,270 tons in 2006–07. 

The 2006–07 crop was unusually small 

in size due to unusual weather 

conditions. 

The major expenditures 

recommended by the committee for the 

2008 fiscal year include $500,000 for 

research, $750,000 for marketing 

activities, and $288,552 for 

administration. Budgeted expenditures 

for these items in 2007 were $365,775, 

$347,450, and $252,171, respectively. 

The committee recommended a larger 

2008 research budget so it can expand 

its ongoing research to develop a 

mechanical olive harvesting method. 

The committee also recommended an 

increase in the 2008 marketing budget to 

allow for a restructuring of its marketing 

program, which will focus on a new 

Web site and trade advertisements. 

Recommended increases in the 

administrative budget are due mainly to 

a necessary office move and increases in 

employee benefits. Another $50,000 is 

budgeted for 2008 for a possible 

inspection-related research project. 

The assessment rate recommended by 

the committee was derived by 

considering anticipated fiscal year 

expenses, actual olive tonnage received 

by handlers during the 2007–08 crop 

year, and additional pertinent factors. 

Actual assessable tonnage for the 2008 

fiscal year is expected to be higher than 

the 2007–08 crop receipts of 108,059 

tons reported by CASS because some 

olives may be diverted by handlers to 

uses that are exempt from marketing 

order requirements. Income derived 

from handler assessments, along with 

funds from the committee’s authorized 

reserve and interest income, would be 

adequate to cover budgeted expenses. 

Funds in the reserve would be kept 

within the maximum permitted by the 

order of approximately one fiscal year’s 

expenses (§ 932.40). 

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 is 

effective for an indefinite period, the 

committee would continue to meet prior 

to or during each fiscal 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 

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 would be 

undertaken as necessary. The 

committee’s 2008 budget and those for 

subsequent fiscal years will 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 745 

producers of olives in the production 

area and 2 handlers subject to regulation 

under the marketing order. Small 

agricultural producers are defined by 

the Small Business Administration (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. 

Based upon information from the 

committee, the majority of olive 

producers may be classified as small 


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Federal Register / Vol. 73, No. 26 / Thursday, February 7, 2008 / Rules and Regulations 7201 

entities. Both of the handlers may be 

classified as large entities. 

This rule decreases the assessment 

rate established for the committee and 

collected from handlers for the 2008 and 

subsequent fiscal years from $47.84 to 

$15.60 per ton of assessable olives. The 

committee unanimously recommended 

2008 expenditures of $1,558,552 and an 

assessment rate of $15.60 per ton. The 

proposed assessment rate of $15.60 is 

$32.24 lower than the 2007 rate. The 

lower assessment rate is necessary 

because assessable olive receipts for the 

2007–08 crop year were reported by 

CASS to be 108,059 tons, compared to 

16,270 tons for the 2006–07 crop year. 

Actual assessable tonnage for the 2008 

fiscal year is expected to be lower 

because some of the receipts may be 

diverted by handlers to exempt outlets 

on which assessments are not paid. 

Income generated from the $15.60 per 

ton assessment rate should be adequate 

to meet this year’s expenses when 

combined with funds from the 

authorized reserve and interest income. 

Funds in the reserve would be kept 

within the maximum permitted by the 

order of about one fiscal year’s expenses 

(§ 932.40). 

Expenditures recommended by the 

committee for the 2008 fiscal year 

include $500,000 for research, $750,000 

for marketing activities, and $288,552 

for administration. Budgeted 

expenditures for these items in 2007 

were $365,775, $332,450, and $252,171, 

respectively. The committee 

recommended a larger 2008 research 

budget so it can expand its ongoing 

research to develop a mechanical olive 

harvesting method. The committee also 

recommended an increase in the 2008 

marketing budget to allow for a 

restructuring of its marketing program, 

which will focus on a new Web site and 

trade advertisements. Recommended 

increases in the administrative budget 

are due mainly to a necessary office 

move and increases in employee 

benefits. Another $50,000 is budgeted 

for a possible inspection-related 

research project. 

Prior to arriving at this budget, the 

committee considered information from 

various sources, such as the committee’s 

Executive, Market Development, and 

Research Subcommittees. Alternate 

spending levels were discussed by these 

groups, based upon the relative value of 

various research and marketing projects 

to the olive industry. The assessment 

rate of $15.60 per ton of assessable 

olives was derived by considering 

anticipated expenses, the volume of 

assessable olives, and additional 

pertinent factors. 

A review of historical information 

indicates that the grower price for the 

2007–08 crop year was approximately 

$1,007.78 per ton for canning fruit and 

$378.51 per ton for limited-use sizes, 

leaving the balance as unusable cull 

fruit. Approximately 81 percent of a ton 

of olives are canning fruit sizes and 18 

percent are limited use sizes, leaving the 

balance as unusable cull fruit. Grower 

revenue on 108,059 total tons of canning 

and limited-use sizes would be 

$95,322,099 given the current grower 

prices for those sizes. Therefore, the 

assessment revenue for the 2007–08 

fiscal year is expected to be 

approximately 2 percent of grower 

revenue. 

This action decreases the assessment 

obligation imposed on handlers. 

Assessments are applied uniformly on 

all handlers, and some of the costs may 

be passed on to producers. However, 

decreasing the assessment rate reduces 

the burden on handlers, and may reduce 

the burden on producers. In addition, 

the committee’s meeting was widely 

publicized throughout the California 

olive industry and all interested persons 

were invited to attend the meeting and 

participate in committee deliberations 

on all issues. Like all committee 

meetings, the December 5, 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 

information on the regulatory and 

informational impacts of this action on 

small businesses. 

This action imposes no additional 

reporting or recordkeeping requirements 

on either small or large California olive 

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. 

After consideration of all relevant 

material presented, including the 

information and recommendation 

submitted by the committee and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the act. 

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

found and determined upon good cause 

that it is impractical, 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 rule until 30 days after 

publication in the Federal Register 

because: (1) The 2008 fiscal year began 

on January 1, 2008, and the marketing 

order requires that the rate of 

assessment for each fiscal year apply to 

all assessable olives handled during 

such fiscal year; (2) the committee needs 

sufficient funds to pay its expenses, 

which are incurred on a continuous 

basis; and (3) handlers are aware of this 

action, which was discussed by the 

committee and unanimously 

recommended at a public meeting, and 

is similar to other assessment rate 

actions issued in past years; and (4) this 

interim final rule provides a 60-day 

comment period, and all comments 

timely received will be considered prior 

to finalization of this rule. 

List of Subjects in 7 CFR Part 932 

Olives, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 932 is amended as 

follows: 

PART 932—OLIVES GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 932 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 932.230 is revised to read 

as follows: 

§ 932.230 Assessment rate. 

On and after January 1, 2008, an 

assessment rate of $15.60 per ton is 

established for California olives. 

Dated: February 1, 2008. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E8–2193 Filed 2–6–08; 8:45 am] 

BILLING CODE 3410–02–P 


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