Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Rules and Regulations 41827 

M. media Marvel (PPAF) 

* * * * * 

Done in Washington, DC, this 30th day of 

August 2017. 

Michael C. Gregoire, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. 2017–18712 Filed 9–1–17; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Doc. No. AMS–SC–16–0104; SC16–930–4 

FR] 

Tart Cherries Grown in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington and 

Wisconsin; Modification of Allocation 

of Assessments 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the Tart Cherry 

Industry Administrative Board (Board) 

to increase the portion of assessments 

allocated to research and promotion 

activities from $0.005 to $0.0065 per 

pound of tart cherries and decrease the 

portion allocated to administrative 

expenses from $0.0025 to $0.001 per 

pound of tart cherries handled under 

the marketing order (order). This rule 

also corrects the allocation numbers 

from $0.006 per pound for research and 

promotion activities and $0.0015 per 

pound for administrative expenses as 

stated in the proposed rule based on a 

comment received. The overall 

assessment rate remains unchanged at 

$0.0075 per pound of tart cherries. The 

Board locally administers the order and 

is comprised of producers and handlers 

of tart cherries operating within the area 

of production, and one public member. 

Assessments upon tart cherry handlers 

are used by the Board to fund 

reasonable and necessary expenses of 

the program. The fiscal period begins 

October 1 and ends September 30. The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective September 6, 2017. 

FOR FURTHER INFORMATION CONTACT: 

Jennie M. Varela, Marketing Specialist, 

or Christian D. Nissen, Regional 

Director, Southeast Marketing Field 

Office, Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 291–8614, or Email: 

Jennie.Varela@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 930, both as amended (7 

CFR part 930), regulating the handling 

of tart cherries produced in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington and 

Wisconsin, 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 final rule in 

conformance with Executive Orders 

13563 and 13175. This rule does not 

meet the definition of a significant 

regulatory action contained in section 

3(f) of Executive Order 12866 and is not 

subject to review by the Office of 

Management and Budget (OMB). 

Additionally, because this rule does not 

meet the definition of a significant 

regulatory action, it does not trigger the 

requirements contained in Executive 

Order 13771. See OMB’s Memorandum 

titled, ‘‘Interim Guidance Implementing 

Section 2 of the Executive Order of 

January 30, 2017, titled ‘Reducing 

Regulation and Controlling Regulatory 

Costs’ ’’ (February 2, 2017). 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, tart cherry 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 tart cherries 

beginning on October 1, 2016, and 

continue until amended, suspended, or 

terminated. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, USDA would rule on the 

petition. The Act provides that the 

district court of the United States in any 

district in which the handler is an 

inhabitant, or has his or her principal 

place of business, has jurisdiction to 

review USDA’s ruling on the petition, 

provided an action is filed not later than 

20 days after the date of the entry of the 

ruling. 

This rule increases the portion of the 

assessment rate allocated to research 

and promotion activities from $0.005 to 

$0.0065 per pound of tart cherries 

handled and decreases the portion 

allocated to administrative expenses 

from $0.0025 to $0.001 per pound of tart 

cherries handled under the order. This 

rule also corrects the allocation numbers 

from $0.006 per pound for research and 

promotion activities and $0.0015 per 

pound for administrative expenses as 

stated in the proposed rule based on a 

comment received. The overall 

assessment rate for the 2016–17 and 

subsequent fiscal periods remains 

unchanged at $0.0075 per pound of tart 

cherries. 

The tart cherry marketing order 

provides authority for the Tart Cherry 

Industry Administrative Board (Board), 

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 Board are producers and handlers 

of tart cherries, and one public member. 

They are familiar with the Board’s needs 

and with the costs of goods and services 

in their local areas 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 2010–11 and subsequent fiscal 

periods, the Board recommended, and 

USDA approved, an assessment rate of 

$0.0075 per pound of tart cherries that 

would continue in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

information available to USDA. 

The Board met on September 8, 2016, 

and unanimously recommended 2016– 

17 expenditures of $2,523,550 and an 

assessment rate of $0.0075 per pound of 

tart cherries. In comparison, last year’s 

budgeted expenditures were $1,725,000. 

The total assessment rate remains 

unchanged by this action. However, this 

rule increases the portion of the 

assessment rate allocated to research 

and promotion activities from $0.005 to 

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41828 Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Rules and Regulations 

$0.0065 per pound of tart cherries 

handled and decreases the portion 

allocated to administrative expenses 

from $0.0025 to $0.001 per pound of tart 

cherries handled under the order. This 

shift in allocation will allow for 

expanded research and promotion 

activities to help market this season’s 

above-average crop, while helping to 

ensure that funds held in the Board’s 

authorized reserve are consistent with 

the order’s limits on the reserve. 

The major expenditures 

recommended by the Board for the 

2016–17 fiscal year include $2,045,550 

for promotion, $255,000 for personnel, 

and $106,000 for office expenses. 

Budgeted expenses for these items in 

2015–16 were $1,150,000, $236,000, and 

$102,000, respectively. 

The assessment rate recommended by 

the Board was derived by considering 

expected shipments of tart cherries and 

examining the needs of the industry 

with regard to research and promotion 

and the authorized reserve. Tart cherry 

shipments for the 2016–17 year are 

estimated at 314.7 million pounds, 

which should provide $2,360,250 in 

assessment income. Income derived 

from handler assessments, interest 

income, and funds from the Board’s 

authorized reserve should be adequate 

to cover budgeted expenses. Funds in 

the reserve (approximately $894,000) 

will be kept within the maximum 

permitted by the order of no more than 

approximately one year’s operational 

expenses as stated in § 930.42(a). 

The assessment rate will continue in 

effect indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Board or other 

available information. 

Although this assessment rate will be 

in effect for an indefinite period, the 

Board will continue to meet prior to or 

during each fiscal period to recommend 

a budget of expenses and consider 

recommendations for modification of 

the assessment rate. The dates and times 

of Board meetings are available from the 

Board or USDA. Board meetings are 

open to the public, and interested 

persons may express their views at these 

meetings. USDA will evaluate Board 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The Board’s 

budget for future fiscal periods will be 

reviewed and, as appropriate, approved 

by USDA. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

rule on small entities. Accordingly, 

AMS has prepared this final regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and 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 600 

producers of tart cherries in the 

regulated area and approximately 40 

handlers of tart cherries who are subject 

to regulation under the order. Small 

agricultural producers are defined by 

the Small Business Administration 

(SBA) as those having annual receipts of 

less than $750,000, and small 

agricultural service firms have been 

defined as those whose annual receipts 

are less than $7,500,000 (13 CFR 

121.201). 

According to the National 

Agricultural Statistics Service and 

Board data, the average annual grower 

price for tart cherries during the 2015– 

16 season was approximately $0.347 per 

pound. With total utilization at 251.1 

million pounds, the total 2015–16 crop 

value is estimated at $87 million. 

Dividing the crop value by the estimated 

number of producers (600) yields an 

estimated average receipt per producer 

of $145,000. This is well below the SBA 

threshold for small producers. In 2015, 

The Food Institute estimated a free on 

board (f.o.b.) price of $0.96 per pound 

for frozen tart cherries, which make up 

the majority of processed tart cherries. 

Multiplying the f.o.b price by total 

utilization of 251.1 million pounds 

results in an estimated handler-level tart 

cherry value of $241 million. Dividing 

this figure by the number of handlers 

(40) yields an estimated average annual 

handler receipts of $6 million, which is 

below the SBA threshold for small 

agricultural service firms. Assuming a 

normal distribution, the majority of 

producers and handlers of tart cherries 

may be classified as small entities. 

This rule increases the portion of the 

assessment rate allocated to research 

and promotion activities from $0.005 to 

$0.0065 per pound of tart cherries 

handled and decreases the portion 

allocated to administrative expenses 

from $0.0025 to $0.001 per pound of tart 

cherries handled under the order. This 

rule also corrects the allocation numbers 

from $0.006 per pound for research and 

promotion activities and $0.0015 per 

pound for administrative expenses as 

stated in the proposed rule based on a 

comment received. The overall 

assessment rate established for the 

Board for the 2016–17 and subsequent 

fiscal periods remains unchanged at 

$0.0075 per pound of tart cherries. The 

quantity of assessable tart cherries for 

the 2016–17 season is estimated at 314.7 

million pounds. Thus, the $0.0075 rate 

should provide $2,360,250 in 

assessment income. Income derived 

from handler assessments, interest 

income, and funds from the Board’s 

authorized reserve should provide 

sufficient funds to meet this year’s 

anticipated expenses. 

The major expenditures 

recommended by the Board for the 

2016–17 year include $2,045,550 for 

promotion, $255,000 for personnel, and 

$106,000 for office expenses. Budgeted 

expenses for these items in 2015–16 

were $1,150,000, $236,000, and 

$102,000, respectively. 

This rule shifts the allocation of the 

assessment rate to increase the portion 

allocated for research and promotion, 

while decreasing the portion allocated 

for administrative costs. This 

adjustment will allow for expanded 

research and promotion activities to 

help market this season’s above-average 

crop, while helping to ensure that funds 

held in the Board’s authorized reserve 

are consistent with the order’s limits on 

the reserve. 

Prior to arriving at this budget and 

assessment rate, the Board considered 

production history, crop estimates, its 

financial statements, and the need to 

both reduce financial reserves and 

increase its marketing efforts to increase 

demand for tart cherries. The Board also 

considered not taking this action but 

determined that 2016–17 expenditures 

of $2,523,550 were appropriate, and the 

recommended assessment rate and 

allocation, along with funds from 

interest income, block grants, and funds 

from reserves, would be adequate to 

cover budgeted expenses. 

A review of historical information and 

preliminary information pertaining to 

the upcoming crop year indicates that 

the average grower price for the 2016– 

17 season could be approximately 

$0.348 per pound of tart cherries. 

Therefore, the estimated assessment 

revenue for the 2016–17 crop year as a 

percentage of total grower revenue 

could be approximately 2 percent. 

This action does not 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 costs may be 

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Federal Register / Vol. 82, No. 170 / Tuesday, September 5, 2017 / Rules and Regulations 41829 

passed on to producers. However, these 

costs are offset by the benefits derived 

by the operation of the marketing order. 

The Board’s meetings were widely 

publicized throughout the tart cherry 

industry, and all interested persons 

were invited to attend the meetings and 

participate in Board deliberations on all 

issues. Like all Board meetings, the June 

23, 2016, and September 8, 2016, 

meetings were public meetings, and all 

entities, both large and small, were able 

to express views on this issue. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by OMB and 

assigned OMB No. 0581–0177, Tart 

Cherries Grown in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington, and 

Wisconsin. No changes in those 

requirements are necessary as a result of 

this action. Should any changes become 

necessary, they would be submitted to 

OMB for approval. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large tart cherry 

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. As noted in the initial 

regulatory flexibility analysis, USDA 

has not identified any relevant Federal 

rules that duplicate, overlap, or conflict 

with this final rule. 

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. 

A proposed rule concerning this 

action was published in the Federal 

Register on May 25, 2017(82 FR 24080). 

Copies of the proposed rule were also 

mailed or sent via facsimile to all tart 

cherry handlers. Finally, the proposal 

was made available through the internet 

by USDA and the Office of the Federal 

Register. A 30-day comment period 

ending June 26, 2017, was provided for 

interested persons to respond to the 

proposal. 

One comment was received from 

Board staff indicating that the Board 

minutes stated the recommendation was 

for assessment allocation of $0.0065 per 

pound of tart cherries for promotion and 

$0.001 per pound of tart cherries for 

administration rather than the $0.006 

and $0.0015, respectively, as published 

in the proposed rule. Accordingly, the 

allocation numbers were revised based 

on the comment received. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

rules-regulations/moa/small-businesses. 

Any questions about the compliance 

guide should be sent to Richard Lower 

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 Board 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 that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because the fiscal year ends on 

September 30, 2017, and the change in 

allotment of assessments collected is 

necessary to ensure sufficient funds are 

available to cover the increase in 

research and promotion expenses that 

were incurred to help market the 2016– 

17 above-average crop. Further, 

handlers are aware of this rule, which 

was recommended at a public meeting. 

Also, a 30-day comment period was 

provided for in the proposed rule and 

no negative comments were received. 

List of Subjects in 7 CFR Part 930 

Marketing agreements, Reporting and 

recordkeeping requirements, Tart 

cherries. 

For the reasons set forth in the 

preamble, 7 CFR part 930 is amended as 

follows: 

PART 930—TART CHERRIES GROWN 

IN THE STATES OF MICHIGAN, NEW 

YORK, PENNSYLVANIA, OREGON, 

UTAH, WASHINGTON, AND 

WISCONSIN 

■ 1. The authority citation for 7 CFR 

part 930 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 930.200 is revised to read 

as follows: 

§ 930.200 Assessment rate. 

On and after October 1, 2016, the 

assessment rate imposed on handlers 

shall be $0.0075 per pound of tart 

cherries grown in the production area 

and utilized in the production of tart 

cherry products. Included in this rate is 

$0.0065 per pound of tart cherries to 

cover the cost of the research and 

promotion program and $0.001 per 

pound of tart cherries to cover 

administrative expenses. 

Dated: August 30, 2017. 

Bruce Summers, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2017–18756 Filed 9–1–17; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1205 

[Doc. # AMS–CN–17–0003] 

Cotton Board Rules and Regulations: 

Adjusting Supplemental Assessment 

on Imports (2017 Amendments) 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Direct final rule. 

SUMMARY: The Agricultural Marketing 

Service (AMS) is amending the Cotton 

Board Rules and Regulations, increasing 

the value assigned to imported cotton 

for the purposes of calculating 

supplemental assessments collected for 

use by the Cotton Research and 

Promotion Program. This amendment is 

required each year to ensure that 

assessments collected on imported 

cotton and the cotton content of 

imported products will be the same as 

those paid on domestically produced 

cotton. In addition, AMS is updating the 

Harmonized Tariff Schedule (HTS) 

statistical reporting numbers that were 

amended since the last assessment 

adjustment in 2016. 

DATES: This direct rule is effective 

November 6, 2017, without further 

action or notice, unless significant 

adverse comment is received by October 

5, 2017. If significant adverse comment 

is received, AMS will publish a timely 

withdrawal of the amendment in the 

Federal Register. 

ADDRESSES: Written comments may be 

submitted to the addresses specified 

below. All comments will be made 

available to the public. Please do not 

include personally identifiable 

information (such as name, address, or 

other contact information) or 

confidential business information that 

you do not want publically disclosed. 

All comments may be posted on the 

Internet and can be retrieved by most 

Internet search engines. Comments may 

be submitted anonymously. 

Comments, identified by AMS–CN– 

17–0003, may be submitted 

electronically through the Federal 

eRulemaking Portal at http://

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