Source: https://regulations.justia.com/regulations/fedreg/2020/07/10/2020-13502.html
Timestamp: 2020-08-04 20:56:05
Document Index: 105790174

Matched Legal Cases: ['art 956', 'art 956', 'art 956', 'art 956', 'art 956', 'ART 956', 'art 956', '§ 956', 'art 985', 'art 985', 'art 985', 'art 956', 'ART 956']

Sweet Onions Grown in Walla Walla Valley of Southeast Washington and Northeast Oregon; Increased Assessment Rate, 41323-41325 [2020-13502] :: Agricultural Marketing Service :: Department Of Agriculture :: Regulation Tracker :: Justia
Justia Regulation Tracker Department Of Agriculture Agricultural Marketing Service Sweet Onions Grown in Walla Walla Valley of Southeast Washington and Northeast Oregon; Increased Assessment Rate, 41323-41325 [2020-13502]
Sweet Onions Grown in Walla Walla Valley of Southeast Washington and Northeast Oregon; Increased Assessment Rate, 41323-41325 [2020-13502]
Download as PDF Federal Register / Vol. 85, No. 133 / Friday, July 10, 2020 / Rules and Regulations The complete list of all eligible specialty crops and payment rates is available at https://www.farmers.gov/ cfap/specialty. USDA is still evaluating comments and will issue another document with additional determinations and payment rates. The correction in the payment rates and the resulting changes in the eligibility for specific types of payments per commodity will not change CFAP costs. Stephen L. Censky, Vice Chairman, Commodity Credit Corporation, and Deputy Secretary, U.S. Department of Agriculture. [FR Doc. 2020–14854 Filed 7–9–20; 8:45 am] BILLING CODE P DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 956 [Doc. No. AMS–SC–19–0115; SC20–956–1 FR] Sweet Onions Grown in Walla Walla Valley of Southeast Washington and Northeast Oregon; Increased Assessment Rate Agricultural Marketing Service, USDA. ACTION: Final rule. AGENCY: This rule implements a recommendation from the Walla Walla Sweet Onion Marketing Committee (Committee) to increase the assessment rate established for the 2020 and subsequent fiscal periods. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated. DATES: Effective August 10, 2020. FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing Specialist, or Gary Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326– 2724 or Email: Barry.Broadbent@ usda.gov or GaryD.Olson@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@usda.gov. SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, jbell on DSKJLSW7X2PROD with RULES SUMMARY: VerDate Sep<11>2014 16:12 Jul 09, 2020 Jkt 250001 implements an amendment to regulations issued to carry out a marketing order as defined in 7 CFR 900.2(j). This rule is issued under Marketing Agreement and Order No. 956, as amended (7 CFR part 956), regulating the handling of sweet onions grown in the Walla Walla Valley of Southeast Washington and Northeast Oregon. Part 956 (referred to as 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 Committee locally administers the Order and is comprised of producers and handlers of Walla Walla sweet onions operating within the production area, and a public member. The Department of Agriculture (USDA) is issuing this rule in conformance with Executive Orders 13563 and 13175. This rule falls within a category of regulatory actions that the Office of Management and Budget (OMB) exempted from Executive Order 12866 review. 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 Order now in effect, Walla Walla sweet onion handlers are subject to assessments. Funds to administer the Order are derived from such assessments. It is intended that the assessment rate be applicable to all assessable Walla Walla sweet onions for the 2020 fiscal period 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 no later than PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 41323 20 days after the date of the entry of the ruling. This final rule increases the assessment rate from $0.10 per 50pound bag or equivalent, the rate that was established for the 2017 and subsequent fiscal periods, to $0.15 per 50-pound bag or equivalent of Walla Walla sweet onions handled for the 2020 and subsequent fiscal periods. The Order provides authority for the Committee, with the approval of USDA, to formulate an annual budget of expenses and collect assessments from handlers to administer the program. The members are familiar with the Committee’s needs and with the costs of goods and services in their local area and are 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 2017 and subsequent fiscal periods, the Committee recommended, and USDA approved, an assessment rate of $0.10 per 50-pound bag or equivalent of Walla Walla sweet onions handled. That assessment rate continued in effect from fiscal period to fiscal period until modified, suspended, or terminated by USDA upon recommendation and information submitted by the Committee or other information available to USDA. The Committee met on February 13, 2020 and unanimously recommended expenditures of $84,200 and an assessment rate of $0.15 per 50-pound bag or equivalent of Walla Walla sweet onions handled for the 2020 and subsequent fiscal periods. In comparison, last fiscal period’s budgeted expenditures were $99,800. The assessment rate of $0.15 is $0.05 higher than the rate previously in effect. The Committee recommended increasing the assessment rate to provide sufficient income, along with interest income and reserve funds, to cover all of the Committee’s budgeted expenses for the 2020 fiscal period. Funds in the reserve are expected to be $104,377 at the end of the 2020 fiscal period, which is within the Order’s requirement of no more than approximately two fiscal period’s budgeted expenses. The major expenditures recommended by the Committee for the 2020 fiscal period include $47,400 for administrative, $26,000 for promotions, $5,000 for travel, $5,000 for research, and $800 for miscellaneous expenses. Budgeted expenses for these items in 2019 were $47,400, $41,600, $5,000, $5,000, and $800 respectively. E:\FR\FM\10JYR1.SGM 10JYR1 41324 Federal Register / Vol. 85, No. 133 / Friday, July 10, 2020 / Rules and Regulations jbell on DSKJLSW7X2PROD with RULES The Committee derived the recommended assessment rate by considering anticipated expenses, an estimated crop of 389,952 50-pound bags or equivalents of Walla Walla sweet onions, and the amount of funds available in the authorized reserve. Income derived from handler assessments, calculated at $58,493 (389,952 50-pound bags or equivalent × $0.15 assessment rate), along with interest income and funds from the Committee’s authorized reserve, will be adequate to cover budgeted expenses of $84,200. 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 will be in effect for an indefinite period, the Committee 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 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 2020 budget and those for subsequent 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 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 15 producers of Walla Walla sweet onions in the regulated area and approximately 11 handlers of Walla Walla sweet onions VerDate Sep<11>2014 16:12 Jul 09, 2020 Jkt 250001 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 $1,000,000, and small agricultural service firms have been defined as those whose annual receipts are less than $30,000,000 (13 CFR 121.201). According to the National Agricultural Statistics Service (NASS), the national average producer price for non-storage onions for the 2011–2015 marketing years ranged from $15.10 to $22.10 per hundredweight. The average over those years was approximately $18.30 per hundredweight, or $9.15 per 50-pound equivalent. NASS suspended reporting of non-storage onion prices in 2015. With total production at 414,800 50-pound bags or equivalent for the 2019 season, and using the price range from the 2011–2015 years for which there is NASS data, the total 2019 farm gate value of the Walla Walla sweet onion crop could be estimated to be between $6,264,688 and $9,168,848. Dividing the crop value by the estimated number of producers (15) yields an estimated average receipt per producer of between $417,646 and $611,257 which is well below the SBA threshold for small producers. USDA Market News reported free on board (FOB) price of $1.00 per 50-pound bag or equivalent of Walla Walla sweet onions for the 2019 season. Multiplying this FOB price by total 2019 shipments of 414,880 50-pound bags or equivalent results in an estimated gross value of Walla Walla sweet onion shipments of $8,712,480. Dividing this figure by the number of handlers (11) yields estimated average annual handler receipts of $792,044, which is below the SBA threshold for small agricultural service firms. Therefore, using the above data and assuming a normal distribution, the majority of producers and all of the handlers of Walla Walla sweet onions may be classified as small entities. This rule increases the assessment rate collected from handlers for the 2020 and subsequent fiscal periods from $0.10 to $0.15 per 50-pound bag or equivalent of Walla Walla sweet onions. The Committee unanimously recommended 2020 expenditures of $84,200 and an assessment rate of $0.15 per 50-pound bag or equivalent of Walla Walla sweet onions. The assessment rate of $0.15 per 50-pound bag or equivalent is $0.05 higher than the rate previously in effect. The volume of assessable Walla Walla sweet onions for the 2020 fiscal period is estimated at 393,953 50pound bags or equivalent. Thus, the $0.15 per 50-pound bag or equivalent PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 rate should provide $58,493 in assessment income (389,952 50-pound bags or equivalent × $0.15 assessment rate). Income derived from handler assessments, along with interest income and funds from the Committee’s authorized reserve, will be adequate to cover budgeted expenses. The major expenditures recommended by the Committee for the 2020 fiscal period include $47,400 for administrative, $26,000 for promotions, $5,000 for travel, $5,000 for research, and $800 for miscellaneous expenses. Budgeted expenses for these items in 2019 were $47,400, $41,600, $5,000, $5,000, and $800 respectively. In recent years, the Committee has utilized its reserve funds to partially fund its budget expenditures. The Committee recommended increasing the assessment rate to fully fund budgeted expenditures without drawing down the funds held in reserve too quickly. This action will maintain the Committee’s reserve balance at a level that the Committee believes is appropriate and is compliant with the provisions of the Order. Prior to arriving at this budget and assessment rate the Committee discussed various alternatives, including maintaining the current assessment rate of $0.10 per 50-pound bag or equivalent rate and increasing the assessment rate to a different amount. However, the Committee determined that the recommended assessment rate will fully fund budgeted expenses and avoid drawing down reserves at an unsustainable rate. This rule increases 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, these costs are expected to be offset by the benefits derived by the operation of the Order. The Committee’s meeting was widely publicized throughout the Walla Walla sweet onion industry. All interested persons were invited to attend the meeting and participate in Committee deliberations on all issues. Like all Committee meetings, the February 13, 2020, meeting was a public meeting, and all entities, both large and small, were able to express views on this issue. Finally, interested persons were invited to submit comments on this rule, including the regulatory and information collection impacts of this action on small businesses. 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 the OMB and E:\FR\FM\10JYR1.SGM 10JYR1 Federal Register / Vol. 85, No. 133 / Friday, July 10, 2020 / Rules and Regulations assigned OMB No. 0581–0178 Vegetable and Specialty Crops. No changes in those requirements will be necessary as a result of this rule. Should any changes become necessary, they would be submitted to OMB for approval. This rule will not impose any additional reporting or recordkeeping requirements on either small or large Walla Walla sweet onion handlers. As with all Federal marketing order programs, reports and forms are periodically reviewed to reduce information requirements and duplication by industry and public sector agencies. 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 March 31, 2020 (85 FR 17768). Copies of the proposed rule were also mailed or sent via email to all Walla Walla sweet onion handlers. The proposal was made available through the internet by USDA and the Office of the Federal Register. A 60-day comment period ending June 1, 2020, was provided for interested persons to respond to the proposal. No comments were received. Accordingly, no changes will be made to the proposed rule. A small business guide on complying with fruit, vegetable, and specialty crop marketing agreements and orders may be viewed at: https:// 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 Committee and other available information, it is hereby found that this rule will tend to effectuate the declared policy of the Act. jbell on DSKJLSW7X2PROD with RULES List of Subjects in 7 CFR Part 956 Marketing agreements, Reporting and recordkeeping requirements, Walla Walla sweet onions. For the reasons set forth in the preamble, 7 CFR part 956 is amended as follows: VerDate Sep<11>2014 16:12 Jul 09, 2020 Jkt 250001 PART 956—WALLA WALLA SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY OF SOUTHEAST WASHINGTON AND NORTHEAST OREGON 1. The authority citation for 7 CFR part 956 continues to read as follows: ■ Authority: 7 U.S.C. 601–674. 2. Section 956.202 is revised to read as follows: ■ § 956.202 Assessment rate. On and after January 1, 2020, an assessment rate of $0.15 per 50-pound bag or equivalent is established for Walla Walla sweet onions. Bruce Summers, Administrator, Agricultural Marketing Service. [FR Doc. 2020–13502 Filed 7–9–20; 8:45 am] BILLING CODE P DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 985 [Doc. No. AMS–SC–20–0029; SC20–985–2 FR] Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Increased Assessment Rate Agricultural Marketing Service, USDA. ACTION: Final rule. AGENCY: This final rule implements a recommendation from the Far West Spearmint Oil Administrative Committee (Committee) to increase the assessment rate established for the 2020–2021 and subsequent marketing years. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated. DATES: Effective August 10, 2020. FOR FURTHER INFORMATION CONTACT: Joshua Wilde, Marketing Specialist, or Gary Olson, Regional Director, Northwest Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326– 2055, Fax: (503) 326–7440, or Email: Joshua.R.Wilde@usda.gov or GaryD.Olson@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, SUMMARY: PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 41325 DC 20250–0237; Telephone: (202) 720– 2491, Fax: (202) 720–8938, or Email: Richard.Lower@usda.gov. SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, amends regulations issued to carry out a marketing order as defined in 7 CFR 900.2(j). This final rule is issued under Marketing Order No. 985, as amended (7 CFR part 985), regulating the handling of spearmint oil produced in the Far West. Part 985 (referred to as 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 Committee locally administers the Order and is comprised of spearmint oil producers operating within the production area, and a public member. The Department of Agriculture (USDA) is issuing this rule in conformance with Executive Orders 13563 and 13175. This final rule falls within a category of regulatory actions that the Office of Management and Budget (OMB) exempted from Executive Order 12866 review. 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 Order now in effect, Far West spearmint oil handlers are subject to assessments. Funds to administer the Order are obtained from such assessments. The assessment rate will be applicable to all assessable spearmint oil for the 2020–2021 marketing year, 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 E:\FR\FM\10JYR1.SGM 10JYR1
[Pages 41323-41325]
[FR Doc No: 2020-13502]
[Doc. No. AMS-SC-19-0115; SC20-956-1 FR]
Sweet Onions Grown in Walla Walla Valley of Southeast Washington
and Northeast Oregon; Increased Assessment Rate
Sweet Onion Marketing Committee (Committee) to increase the assessment
rate established for the 2020 and subsequent fiscal periods. The
assessment rate will remain in effect indefinitely unless modified,
FOR FURTHER INFORMATION CONTACT: Barry Broadbent, Senior Marketing
Specialist, or Gary Olson, Regional Director, Northwest Marketing Field
Office, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (503) 326-2724 or Email:
implements an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This rule is issued under Marketing
Southeast Washington and Northeast Oregon. Part 956 (referred to as the
``Act.'' The Committee locally administers the Order and is comprised
of producers and handlers of Walla Walla sweet onions operating within
the production area, and a public member.
conformance with Executive Orders 13563 and 13175. This rule falls
Regulatory Costs''' (February 2, 2017).
Justice Reform. Under the Order now in effect, Walla Walla sweet onion
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the assessment rate
be applicable to all assessable Walla Walla sweet onions for the 2020
fiscal period and continue until amended, suspended, or terminated.
This final rule increases the assessment rate from $0.10 per 50-
pound bag or equivalent, the rate that was established for the 2017 and
subsequent fiscal periods, to $0.15 per 50-pound bag or equivalent of
Walla Walla sweet onions handled for the 2020 and subsequent fiscal
The Order provides authority for the Committee, with the approval
of USDA, to formulate an annual budget of expenses and collect
assessments from handlers to administer the program. The members are
familiar with the Committee's needs and with the costs of goods and
services in their local area and are 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 2017 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $0.10 per 50-
pound bag or equivalent of Walla Walla sweet onions handled. That
assessment rate continued in effect from fiscal period to fiscal period
until modified, suspended, or terminated by USDA upon recommendation
and information submitted by the Committee or other information
available to USDA.
The Committee met on February 13, 2020 and unanimously recommended
expenditures of $84,200 and an assessment rate of $0.15 per 50-pound
bag or equivalent of Walla Walla sweet onions handled for the 2020 and
subsequent fiscal periods. In comparison, last fiscal period's budgeted
expenditures were $99,800. The assessment rate of $0.15 is $0.05 higher
than the rate previously in effect. The Committee recommended
increasing the assessment rate to provide sufficient income, along with
interest income and reserve funds, to cover all of the Committee's
budgeted expenses for the 2020 fiscal period. Funds in the reserve are
expected to be $104,377 at the end of the 2020 fiscal period, which is
within the Order's requirement of no more than approximately two fiscal
period's budgeted expenses.
The major expenditures recommended by the Committee for the 2020
fiscal period include $47,400 for administrative, $26,000 for
promotions, $5,000 for travel, $5,000 for research, and $800 for
miscellaneous expenses. Budgeted expenses for these items in 2019 were
$47,400, $41,600, $5,000, $5,000, and $800 respectively.
[[Page 41324]]
The Committee derived the recommended assessment rate by
considering anticipated expenses, an estimated crop of 389,952 50-pound
bags or equivalents of Walla Walla sweet onions, and the amount of
funds available in the authorized reserve. Income derived from handler
assessments, calculated at $58,493 (389,952 50-pound bags or equivalent
x $0.15 assessment rate), along with interest income and funds from the
Committee's authorized reserve, will be adequate to cover budgeted
expenses of $84,200.
be undertaken as necessary. The Committee's 2020 budget and those for
subsequent fiscal periods will be reviewed and, as appropriate,
There are approximately 15 producers of Walla Walla sweet onions in
the regulated area and approximately 11 handlers of Walla Walla sweet
onions 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 $1,000,000, and
small agricultural service firms have been defined as those whose
annual receipts are less than $30,000,000 (13 CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
the national average producer price for non-storage onions for the
2011-2015 marketing years ranged from $15.10 to $22.10 per
hundredweight. The average over those years was approximately $18.30
per hundredweight, or $9.15 per 50-pound equivalent. NASS suspended
reporting of non-storage onion prices in 2015. With total production at
414,800 50-pound bags or equivalent for the 2019 season, and using the
price range from the 2011-2015 years for which there is NASS data, the
total 2019 farm gate value of the Walla Walla sweet onion crop could be
estimated to be between $6,264,688 and $9,168,848. Dividing the crop
value by the estimated number of producers (15) yields an estimated
average receipt per producer of between $417,646 and $611,257 which is
well below the SBA threshold for small producers.
USDA Market News reported free on board (FOB) price of $1.00 per
50-pound bag or equivalent of Walla Walla sweet onions for the 2019
season. Multiplying this FOB price by total 2019 shipments of 414,880
50-pound bags or equivalent results in an estimated gross value of
Walla Walla sweet onion shipments of $8,712,480. Dividing this figure
by the number of handlers (11) yields estimated average annual handler
receipts of $792,044, which is below the SBA threshold for small
agricultural service firms. Therefore, using the above data and
assuming a normal distribution, the majority of producers and all of
the handlers of Walla Walla sweet onions may be classified as small
This rule increases the assessment rate collected from handlers for
the 2020 and subsequent fiscal periods from $0.10 to $0.15 per 50-pound
bag or equivalent of Walla Walla sweet onions. The Committee
unanimously recommended 2020 expenditures of $84,200 and an assessment
rate of $0.15 per 50-pound bag or equivalent of Walla Walla sweet
onions. The assessment rate of $0.15 per 50-pound bag or equivalent is
$0.05 higher than the rate previously in effect. The volume of
assessable Walla Walla sweet onions for the 2020 fiscal period is
estimated at 393,953 50-pound bags or equivalent. Thus, the $0.15 per
50-pound bag or equivalent rate should provide $58,493 in assessment
income (389,952 50-pound bags or equivalent x $0.15 assessment rate).
Income derived from handler assessments, along with interest income and
funds from the Committee's authorized reserve, will be adequate to
cover budgeted expenses.
In recent years, the Committee has utilized its reserve funds to
partially fund its budget expenditures. The Committee recommended
increasing the assessment rate to fully fund budgeted expenditures
without drawing down the funds held in reserve too quickly. This action
will maintain the Committee's reserve balance at a level that the
Committee believes is appropriate and is compliant with the provisions
Prior to arriving at this budget and assessment rate the Committee
discussed various alternatives, including maintaining the current
assessment rate of $0.10 per 50-pound bag or equivalent rate and
increasing the assessment rate to a different amount. However, the
Committee determined that the recommended assessment rate will fully
fund budgeted expenses and avoid drawing down reserves at an
This rule increases the assessment obligation imposed on handlers.
costs may be passed on to producers. However, these costs are expected
to be offset by the benefits derived by the operation of the Order.
The Committee's meeting was widely publicized throughout the Walla
Walla sweet onion industry. All interested persons were invited to
attend the meeting and participate in Committee deliberations on all
issues. Like all Committee meetings, the February 13, 2020, meeting was
a public meeting, and all entities, both large and small, were able to
express views on this issue. Finally, interested persons were invited
to submit comments on this rule, including the regulatory and
information collection impacts of this action on small businesses.
previously approved by the OMB and
[[Page 41325]]
assigned OMB No. 0581-0178 Vegetable and Specialty Crops. No changes in
those requirements will be necessary as a result of this rule. Should
relevant Federal rules that duplicate, overlap, or conflict with this
Register on March 31, 2020 (85 FR 17768). Copies of the proposed rule
were also mailed or sent via email to all Walla Walla sweet onion
June 1, 2020, was provided for interested persons to respond to the
proposal. No comments were received. Accordingly, no changes will be
made to the proposed rule.
PART 956--WALLA WALLA SWEET ONIONS GROWN IN THE WALLA WALLA VALLEY
OF SOUTHEAST WASHINGTON AND NORTHEAST OREGON
On and after January 1, 2020, an assessment rate of $0.15 per 50-
[FR Doc. 2020-13502 Filed 7-9-20; 8:45 am]