This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

36952 

Vol. 74, No. 142 

Monday, July 27, 2009 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1207 

[Doc. No. AMS–FV–09–0024; FV–09–706] 

Potato Research and Promotion Plan; 

Assessment Increase 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule proposes to amend 

the Potato Research and Promotion Plan 

(Plan) to increase the assessment rate on 

handlers and importers of potatoes from 

2.5 cents to 3 cents per hundredweight. 

The increase is provided for under the 

Plan which is authorized by the Potato 

Research and Promotion Act (Act). The 

National Potato Promotion Board, which 

administers the Plan, recommended this 

action to sustain and expand their 

promotional, research, advertising and 

communications programs. 

DATES: Comments must be received by 

September 25, 2009. 

ADDRESSES: Interested persons are 

invited to submit written comments on 

the Internet at: http:// 

www.regulations.gov or to the Research 

and Promotion Branch, Fruit and 

Vegetable Programs, Agricultural 

Marketing Service (AMS), U.S. 

Department of Agriculture, Room 0632– 

S, Stop 0244, 1400 Independence 

Avenue, SW., Washington, DC 20250– 

0244; fax: (202) 205–2800. All 

comments should reference the docket 

number and the date and page number 

of this issue of the Federal Register and 

will be made available for public 

inspection in the above office during 

regular business hours or can be viewed 

at http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Deborah Simmons, Marketing 

Specialist, Research and Promotion 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., Room 0632, Stop 0244, 

Washington, DC 20250–0244; telephone: 

(202) 720–9915; or fax: (202) 205–2800; 

or email: 

Deborah.simmons@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Potato Research and 

Promotion Plan [7 CFR Part 1207] which 

became effective March 9, 1972. The 

Plan is authorized under the Potato 

Research and Promotion Act [7 U.S.C. 

2611–2627]. 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has waived the review process 

required by Executive Order 12866 for 

this action. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The rule is not intended to have 

retroactive effect and will not affect or 

preempt any other State or Federal law 

authorizing promotion or research 

relating to an agricultural commodity. 

The Act allows handlers and 

importers subject to the Plan to file a 

written petition with the Secretary of 

Agriculture (Secretary) if they believe 

that the Plan, any provision of the Plan, 

or any obligation imposed in connection 

with the Plan, is not in accordance with 

the law. In any petition, the person may 

request a modification of the Plan or an 

exemption from the Plan. The petitioner 

will have the opportunity for a hearing 

on the petition. Afterwards, an 

Administrative Law Judge (ALJ) will 

issue a decision. If the petitioner 

disagrees with the ALJ’s ruling, the 

petitioner has 30 days to appeal to the 

Judicial Officer, who will issue a ruling 

on behalf of the Secretary. If the 

petitioner disagrees with the Secretary’s 

ruling, the petitioner may file, within 20 

days, an appeal in the U.S. District 

Court for the district where the 

petitioner resides or conducts business. 

Initial Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (RFA) [5 U.S.C. 601 et 

seq.], 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 

action to scale on businesses subject to 

such action so that small businesses will 

not be disproportionately burdened. 

According to the National Potato 

Promotion Board (Board), there are 

approximately 1,600 potato growing 

operations, 1,143 handlers and 252 

importers who are subject to the 

provisions of the Plan. 

The Small Business Administration 

defines, in 13 CFR Part 121, small 

agricultural producers as those having 

annual receipts of no more than 

$750,000 and small agricultural service 

firms (handlers and importers) as those 

having annual receipts of no more than 

$7 million. Under these definitions, the 

majority of the handlers, producers and 

importers that would be affected by this 

rule would be considered small entities. 

Producers of less than 5 acres of 

potatoes are exempt from this program. 

Potato and potato products used for 

nonhuman food purposes, other than 

seed, are exempt from assessment but 

are subject to the disposition of 

exempted potatoes provisions of section 

1207.515 of the regulations. 

Under the current Plan, potato 

handlers and importers are required to 

pay a mandatory assessment of 2.5 cents 

per hundredweight. Handlers may 

collect assessments from the producer 

or deduct assessments from proceeds 

paid to the producer on whose potatoes 

the assessments are made. No more than 

one assessment shall be made on any 

potatoes or potato products. Funds 

collected by the board shall be used for 

research, development, advertising or 

promotion of potatoes and potato 

products and such other expenses for 

the administration, maintenance and 

functioning of the Board as may be 

authorized by the Secretary. The 

assessment at the current 2.5 cents per 

hundredweight generates about $10 

million in annual revenues. The 2.5 

cents per hundredweight assessment 

rate was established in August 2006 

when the Plan was amended. The Plan 

is administered by the Board under U.S. 

Department of Agriculture supervision. 

According to the Board, additional 

revenue is required in order to sustain 

and expand the promotional, research, 

advertising and communications 

programs. The Board approved the 

proposed assessment rate increase at its 

March 13, 2009, meeting. This proposed 

increase is consistent with section 

1207.342(a) of the Plan which states that 

funds to cover the Board’s expenses 

shall be acquired by the levying of 

assessments upon handlers and 

importers as designated in regulations 

recommended by the Board and issued 


hsrobinson on PROD1PC76 with PROPOSALS
Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 36953 

by the Secretary. Such assessments shall 

be levied at the rate fixed by the 

Secretary which shall not exceed onehalf of one per centum of the immediate 

past ten calendar years United States 

average price received for potatoes by 

growers as reported by the Department 

of Agriculture. Currently, section 

1207.510 of the Plan states that an 

assessment of 2.5 cents per 

hundredweight shall be levied on all 

potatoes produced within the 50 states 

of the United States and an assessment 

rate of 2.5 cents per hundredweight 

shall be levied on all tablestock potatoes 

imported into the United States for 

ultimate consumption by humans and 

all seed potatoes. An assessment rate of 

2.5 cents per hundredweight shall be 

levied on the fresh weight equivalents of 

imported frozen or processed potatoes 

for ultimate consumption by humans. 

Further, not more than one such 

assessment may be collected on any 

potatoes or potato products. 

In March 2007, the Board conducted 

its most recent ‘‘Evaluation of GrowerFunded Value-Added Activities by the 

United States Potato Board.’’ This study 

was completed by Dr. Timothy Richards 

and Dr. Paul Patterson of the Morrison 

School of Management and 

Agribusiness at Arizona State 

University. The study presented an 

econometric evaluation of the demand 

impact of board marketing, public 

relations and research activities and a 

simulation model that estimates the 

return on grower investment in board 

programs. The primary objective of this 

research was to estimate the long-run 

return on grower’s investment in each 

board activity, in both domestic and 

export marketing. 

The U.S. potato market was volatile 

over the five year period (CY 2002–CY 

2006). According to USDA data, the per 

capita consumption of potatoes, of all 

forms in the U.S., changed very little 

over this period. Grower prices, on the 

other hand, were strong in 2001, but fell 

through the 2004 marketing season. 

High prices may have been due to the 

activities of a newly formed potato 

industry cooperative comprising some 

65% of the U.S. potato supply. In 2001 

the board adopted a new business 

model for increasing potato 

consumption, eschewing traditional 

generic advertising programs for retail 

partnerships, public relations, 

marketing research, product 

development and active export 

promotion programming. The objective 

of this study was to determine the 

return on investment to grower funds 

invested in board marketing activities. 

The relevant markets for U.S. potatoes 

are defined as the domestic retail market 

(frozen, refrigerated, chips, bagged fresh, 

bulk fresh and dehydrated potatoes), the 

domestic food service market (skins, 

chips, formed products, hash browns, 

mashed, frozen, French fries, and whole 

potatoes), and export marketing for fresh 

(table stock and chipping stock), frozen, 

dehydrated and seed potatoes. 

Econometric models were used to 

estimate the demand impact of board 

activities. Five models were created for 

this purpose: Domestic Retail, Domestic 

Foodservice model, Domestic ‘‘Best 

Practices’’ model to estimate the effect 

of targeted category management 

programs, and two export marketing 

models: One for Fresh, Frozen and 

Dehydrated potatoes and another for 

Seed potatoes. All models are estimated 

with data made available from board 

records and include retail scanner data, 

food service supplier survey data and 

USDA export data. 

The study found that U.S. potato 

growers have received a significantly 

positive return on their investment in 

USPB activities over the FY–2002—FY– 

2006 period covered by the analysis. 

The study found that each is highly 

effective in increasing potato demand, 

although the final return varies widely 

among them. On a per dollar of 

investment basis the most likely 

estimate of the return to the Domestic 

Retail program is $4.4743 in long run 

grower profit, while the Foodservice 

program provides a return of $3.035 per 

dollar of investment. Considering the 

Best Practices program on its own, 

which is part of the Domestic Retail 

effort, category management 

investments provide incremental 

revenue of $1.018 per dollar of program 

cost. On the export side, Frozen 

Consumer program generates a return of 

$1.27, while Frozen Trade activities 

return $1.11 and $1.19, respectively, 

while Fresh Consumer and Trade 

activities yield $10.36 and $6.93 per 

dollar. In all cases, these Return on 

Investments estimates are at least as 

high as growers could earn on 

investments elsewhere and, in many 

cases, several times greater. 

The Board’s Executive Committee 

collectively recognized the need to 

sustain the momentum of current board 

programs, which continue to ‘‘Maximize 

Return on Grower Investment.’’ 

According to the Board, the board’s 

domestic and global market strategies to 

increase demand for U.S. Potatoes and 

Potato Products have been highly 

successful, but industry and economic 

conditions have eroded the board’s 

ability to fund the future needs of all its 

programs. The board’s Executive 

Committee proposed the 1⁄2 cent 

increase in the assessment rate in order 

to maintain the value in all programs. 

Over the last three fiscal years, however, 

several tends have asserted downward 

pressure on the board programs 

continued ability to sustain the industry 

recognized high level of return. Acreage 

decreases, produced by right-sizing 

supply with demand, and competition 

for acres to produce other crops, has 

reduced revenues to the board. Higher 

costs, driven by worldwide inflation 

have increased the expenses of 

implementing board programs. The 

weakened U.S. dollar, in relation to the 

exchange rates of foreign currencies, has 

reduced the Board’s purchasing power 

in obtaining needed goods and services 

to operate international marketing 

programs in foreign markets. 

Alternatives were also considered by 

the Board, which included cutting back 

funding of marketing programs, 

international programs, and the new 

‘‘Potatoes Goodness Unearthed’’ 

campaign. All of the alternatives were 

rejected by the Board. The Board 

believes that programs should not be 

reduced at a time when it’s absolutely 

critical that they continue providing 

them, that it’s a reasonable cost for 

keeping programs going and that the 

Board needs to maintain adequate 

reserves to handle food safety issues and 

other projects. The Board feels the 

direction it is going is in line with the 

grower’s vision and that the assessment 

fee is money well invested. The Board 

believes that in order to continue to 

fund these and new programs, an 

increase in the assessment rate by 1⁄2

cent per hundredweight is needed. 

Using the USDA previous 10-year 

average potato prices formula in the 

Plan, the assessment rate could be 

increased to 3.08 cents per 

hundredweight. However, it was 

determined that the rate would be 

increased 1⁄2 cent from 2.5 cents to 3 

cents per hundredweight and that 1⁄2

cent would be easy to understand, 

communicate and ultimately to put into 

a collection system and at a full year of 

collection will deliver enough revenue 

to maintain the current programs with 

modest expansion. The 1⁄2 cent increase 

falls within the allowed limits in the 

Plan. 

Using the 10-year average market 

price and average yield values of 

potatoes in the U.S., the increase in 

assessment rate to 3 cents per 

hundredweight will result in an average 

cost to growers of $11.93 per acre, 

which represents less than one half of 

one percent (0.445 percent) of potato 

revenue per acre. Calculated at the 

current market price for potatoes of 

$8.36 per cwt: At the 3 cents per cwt 

assessment the total assessment for 


hsrobinson on PROD1PC76 with PROPOSALS
36954 Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 

growers would be 0.359 percent of gross 

revenue per acre. 

All potatoes are assessed the same 

assessment rate into the program 

regardless of origin—either U.S. grown 

or imported as fresh potatoes or potato 

products. The same assessments for 

domestic production and imports will 

be unchanged by the rate increase. 

In order to sustain and expand the 

promotional, research, and 

communication programs, the Board 

decided to propose an increase 

assessment rate of 1⁄2 cent per 

hundredweight for a total assessment 

rate of 3 cents per hundredweight on all 

domestic and imported potatoes and 

potato products. 

This rule does not impose additional 

recordkeeping requirements on handlers 

or importers of potatoes. Producers of 

fewer than 5 acres of potatoes annually 

are exempt. 

There are no Federal rules that 

duplicate, overlap, or conflict with this 

rule. 

In accordance with the Office of 

Management and Budget (OMB) 

regulation [5 CFR Part 1320] which 

implements the Paperwork Reduction 

Act of 1995 [44 U.S.C. Chapter 35], the 

information collection and 

recordkeeping requirements that are 

imposed by the Plan have been 

approved previously under OMB 

control number 0581–0093. This rule 

does not result in a change to the 

information collection and 

recordkeeping requirements previously 

approved. 

We have performed this Initial 

Regulatory Flexibility Analysis 

regarding the impact of this proposed 

amendment to the Plan on small 

entities, and we invite comments 

concerning potential effects of this 

amendment on small businesses. 

Background 

Under the Plan, which became 

effective March 9, 1972, the Board 

administers a nationally coordinated 

program of research, development, 

advertising, and promotion designed to 

strengthen potatoes’ competitive 

position and expand domestic and 

foreign markets for potatoes and potato 

products. This program is financed by 

assessments on handlers and importers 

of potatoes and potato products. The 

Plan specifies that handlers are 

responsible for collecting and 

submitting assessments to the Board, 

reporting their handling of potatoes, and 

maintaining records necessary to verify 

their reporting. Handlers may collect 

assessments from producers or deduct 

assessments from the proceeds paid to 

the producer on whose potatoes the 

assessments are made. Importers are 

responsible for payment of assessments 

to the Board on potatoes imported into 

the United States through the U.S. 

Customs Service and Border Protection. 

Based on the most recent data 

available in March 2009 from USDA, the 

average price received for potatoes for 

the period 1999 to 2008 was $6.74 per 

hundredweight. One-half of 1 per 

centum of this average price would 

allow a maximum assessment rate of 

$0.0337 cents per hundredweight. If the 

board had elected to use $0.0337 cents 

per hundredweight in its fiscal year 

2008, when 449.7 million 

hundredweight of potatoes were 

assessed, the Board would have realized 

assessment dollars of $15,155,963 (vs. 

$11,243,296 actual collected in FY 

2008), an increase in assessment 

revenue of $3.9 million. 

This rule proposes to increase the 

assessment rate by 1⁄2 cent per 

hundredweight for handlers and 

importers. Currently, the assessment 

rate is 2.5 cents per hundredweight 

levied on potatoes handled within the 

50 States of the United States and 2.5 

cents per hundredweight on imports of 

potatoes and potato products. According 

to the Board, in order to sustain and 

expand the promotion, research, and 

communications programs at present 

levels, the Board contends that 

additional revenue is required. The 

proposed 1⁄2 cent per hundredweight 

assessment rate increase is estimated to 

generate $1 to $1.5 million in new 

revenue, depending upon production 

levels. 

Based on assessments collected for 

crop year 2008, about 87 percent of this 

production total was from domestic 

assessments, with the remainder from 

imports. The Board states that the 

proposed assessment rate increase 

would enable it to expand media 

services, educational programs, research 

programs, and establish, maintain, and 

expand domestic and foreign markets 

for potatoes. Some of the additional 

revenue, the Board states, would be 

used to increase the reserve fund over 

a two-year period to provide for 

adequate cash flow. Based on the 2008 

crop year production figures, the Board 

would have received $13,491.955 

million in total assessments at the 3 

cents per hundredweight assessment 

rate on potatoes. 

In addition, the Board, whose 

members represent all potato producing 

states as well as importers, voted to 

propose the assessment rate increase at 

its March 13, 2009 meeting, which was 

open to the public like all other 

meetings. The vote to recommend the 

assessment increase was 68 in favor and 

7 against, of the Board members present 

at the meeting. Most of the dissenting 

votes concerned the impact the increase 

would have on small growers. 

This rule would amend the rules and 

regulations issued under the Plan, 

increasing the assessment rate 1⁄2 cent 

per hundredweight. The rate would 

increase from 2.5 cents to 3 cents per 

hundredweight. Handlers and importers 

of potatoes and potato products will 

each pay 3 cents per hundredweight on 

potatoes annually. This proposed 

increase is consistent with section 

308(e) of the Act that permits changes 

in the assessment rate through notice 

and comment procedures. Section 

1207.342(a) of the Plan states that 

assessment rates shall be fixed by the 

Secretary in accordance with section 

308(e) of the Act. Further, not more than 

one assessment may be collected on any 

lot of potatoes. The Board is 

recommending the proposed assessment 

rate increase based on continued 

inflation and rising cost expenditures 

since the current assessment rate places 

budget constraints on promotional, 

research, and communications programs 

and would result in reducing the 

programs in the future. 

A 60-day comment period is provided 

to allow interested persons to respond 

to this proposal. All written comments 

received in response to this rule by the 

date specified would be considered 

prior to finalizing this action. 

List of Subjects in 7 CFR Part 1207 

Administrative practice and 

procedure, Advertising, Consumer 

information, Marketing agreements, 

Potatoes, Promotion, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, Part 1207, Chapter XI of Title 

7 is proposed to be amended as follows: 

PART 1207—POTATO RESEARCH 

AND PROMOTION PLAN 

1. The authority citation for 7 CFR 

Part 1207 continues to read as follows: 

Authority: 7 U.S.C. 2611–2627 and 

7 U.S.C. 7401. 

2. Section 1207.510 is amended by 

revising paragraphs (a)(1), (b)(1) and the 

Table in paragraph (b)(3) as follows: 

§ 1207.510 Levy of assessments. 

(a) * * * (1) An assessment rate of 3 

cents per hundredweight shall be levied 

on all potatoes produced within the 50 

states of the United States. 

* * * * * 

(b) * * * (1) An assessment rate of 3 

cents per hundredweight shall be levied 

on all tablestock potatoes imported into 

the United States for ultimate 


hsrobinson on PROD1PC76 with PROPOSALS
Federal Register / Vol. 74, No. 142 / Monday, July 27, 2009 / Proposed Rules 36955 

consumption by humans and all seed 

potatoes imported into the United 

States. An assessment rate of 3 cents per 

hundredweight shall be levied on the 

fresh weight equivalents of imported 

frozen or processed potatoes for 

ultimate consumption by humans. The 

importer of imported tablestock 

potatoes, potato products, or seed 

potatoes shall pay the assessment to the 

board through the U.S. Customs Service 

and Border Protection at the time of 

entry or withdrawal for consumption of 

such potatoes and potato products into 

the United States. 

* * * * * 

(3) * * * 

Tablestock potatoes, 

frozen or processed 

potatoes, and seed 

potatoes 

Assessment 

Cents/cwt Cents/kg 

0701.10.0020 ............ 3 .0 0 .066 

0701.10.0040 ............ 3 .0 0 .066 

0701.90.1000 ............ 3 .0 0 .066 

0701.90.5010 ............ 3 .0 0 .066 

0701.90.5020 ............ 3 .0 0 .066 

0701.90.5030 ............ 3 .0 0 .066 

0701.90.5040 ............ 3 .0 0 .066 

0710.10.0000 ............ 6 .0 0 .132 

2004.10.4000 ............ 6 .0 0 .132 

2004.10.8020 ............ 6 .0 0 .132 

2004.10.8040 ............ 6 .0 0 .132 

2005.20.0070 ............ 4 .716 0 .104 

0712.90.3000 ............ 21 .429 0 .472 

1105.10.0000 ............ 21 .429 0 .472 

1105.20.0000 ............ 21 .429 0 .472 

2005.20.0040 ............ 21 .429 0 .472 

2005.20.0020 ............ 12 .240 0 .27 

1108.13.0010 ............ 27 .0 0 .595 

* * * * * 

Dated: July 21, 2009. 

David R. Shipman, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. E9–17804 Filed 7–24–09; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1218 

[Document Number AMS–FV–09–0021; FV– 

09–704] 

Blueberry Promotion, Research, and 

Information Order; Assessment 

Increase 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule proposes to amend 

the Blueberry Promotion, Research, and 

Information Order (Order) to increase 

the assessment rate on producers and 

importers who produce or import more 

than 2,000 pounds of highbush 

blueberries annually from $12 per ton to 

$24 per ton. The increase provided 

under the Order is authorized by the 

Commodity Promotion, Research, and 

Information Act of 1996 (Act). The U.S. 

Highbush Blueberry Council (Council) 

which administers the Order 

recommended this action to expand 

their promotional activities and add an 

advertising component to bridge the 

potential gap between highbush 

blueberry demand and future supply. 

Furthermore, the Council recommended 

to use the additional revenue to 

strengthen existing consumer, food 

service, and food manufacturer 

publicity; to expand their health 

research; to develop an educational 

campaign on good management 

practices and food safety within the 

United States as well as internationally. 

DATES: Comments must be received by 

September 25, 2009. 

ADDRESSES: Interested persons are 

invited to submit written comments on 

the Internet at: http:// 

www.regulations.gov or to the Research 

and Promotion Branch, Fruit and 

Vegetable Programs, Agricultural 

Marketing Service (AMS), U.S. 

Department of Agriculture 

(Department), Room 0632–S, Stop 0244, 

1400 Independence Avenue, SW., 

Washington, DC 20250–0244; facsimile: 

(202) 205–2800. All comments should 

reference the docket number and the 

date and page number of this issue of 

the Federal Register and will be made 

available for public inspection in the 

above office during regular business 

hours or can be viewed at http:// 

www.regulations.gov. All comments 

received will be posted without change, 

including any personal information 

provided. 

FOR FURTHER INFORMATION CONTACT: 

Jeanette Palmer, Marketing Specialist, 

Research and Promotion Branch, Fruit 

and Vegetable Programs, AMS, U.S. 

Department of Agriculture, Stop 0244, 

1400 Independence Avenue, SW., Room 

0632–S, Washington, DC 20250–0244; 

telephone: (888) 720–9917; facsimile: 

(202) 205–2800; or electronic mail: 

Jeanette.Palmer@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Blueberry 

Promotion, Research, and Information 

Order [7 CFR Part 1218]. The Order is 

authorized under the Commodity 

Promotion, Research, and Information 

Act of 1996 [7 U.S.C. 7401–7425]. 

Executive Order 12866 

The Office of Management and Budget 

(OMB) has waived the review process 

required by Executive Order 12866 for 

this action. 

Executive Order 12988 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. The rule is not intended to have 

retroactive effect and will not affect or 

preempt any other State or Federal law 

authorizing promotion or research 

relating to an agricultural commodity. 

The Act provides that any person 

subject to an order may file a written 

petition with the Department if they 

believe that the order, any provision of 

the order, or any obligation imposed in 

connection with the order, is not 

established in accordance with law. In 

any petition, the person may request a 

modification of the order or an 

exemption from the order. The 

petitioner 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 petitioner resides 

or conducts business shall have the 

jurisdiction to review the Department’s 

ruling on the petition, provided a 

complaint is filed not later than 20 days 

after the date of the entry of the ruling. 

Initial Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act (RFA) [5 U.S.C. 601 et 

seq.], the Agricultural Marketing Service 

has considered the economic impact of 

this action on the small producers, first 

handlers, and importers that would be 

affected by this rule. The purpose of the 

RFA is to fit regulatory action to scale 

on businesses subject to such action so 

that small businesses will not be 

disproportionately burdened. 

The Small Business Administration 

defines, in 13 CFR Part 121, small 

agricultural producers as those having 

annual receipts of no more than 

$750,000 and small agricultural service 

firms as those having annual receipts of 

no more than $7 million. There are 

approximately 2,000 producers, 200 first 

handlers, 50 importers, and 4 exporters 

of highbush blueberries subject to the 

program. Most of the producers would 

be classified as small businesses under 

the criteria established by the Small 

Business Administration. Most 

importers, first handlers, and exporters 

would not be classified as small 

businesses. Producers who produce less 

than 2,000 pounds of highbush 

blueberries annually are exempt from 

this program. Importers who import less 

than 2,000 pounds of fresh and frozen 

highbush blueberries annually are also 

exempt from this program. 


hsrobinson on PROD1PC76 with PROPOSALS