Irish Potatoes Grown in Certain Designated Counties in Idaho, and Malheur County, Oregon; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE <SUBAGY>Agricultural Marketing Service</SUBAGY> <CFR>7 CFR Part 945</CFR> <DEPDOC>[Doc. No. AMS-SC-24-0042]</DEPDOC> <SUBJECT>Irish Potatoes Grown in Certain Designated Counties in Idaho, and Malheur County, Oregon; Increased Assessment Rate</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Agricultural Marketing Service, USDA. <HD SOURCE="HED">ACTION:</HD> Proposed rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> This proposed rule would implement a recommendation from the Idaho-Eastern Oregon Potato Committee (Committee) to increase the assessment rate established for the 2024-2025 fiscal period and subsequent fiscal periods from $0.002 to $0.003 per hundredweight of potatoes handled under the marketing order. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> Comments must be received by October 28, 2024. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> Interested persons are invited to submit written comments concerning this proposed rule. Comments can be sent to the Docket Clerk, Market Development Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237. Comments can also be submitted to the Docket Clerk electronically by Email: <E T="03">MarketingOrderComment@usda.gov</E> or via the internet at: <E T="03">https://www.regulations.gov.</E> Comments should reference the document number and the date and page number of this issue of the <E T="04">Federal Register</E> . Comments submitted in response to this proposed rule will be included in the record and made available to the public and can be viewed at: <E T="03">https://www.regulations.gov.</E> Please be advised that the identity of the individuals or entities submitting the comments will be made public on the internet at the address provided above. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Gregory A. Breasher, Marketing Specialist, or Barry M. Broadbent, Chief, Northwest Region Branch, Market Development Division, Specialty Crops Program, AMS, USDA; Telephone: (503) 326-2282, or Email: <E T="03">gregory.breasher@usda.gov</E> or <E T="03">barry.broadbent@usda.gov.</E> Small businesses may request information on complying with this regulation by contacting Richard Lower, Market Development Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, or Email: <E T="03">Richard.Lower@usda.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> This action, pursuant to 5 U.S.C. 553, proposes to amend regulations issued to carry out a marketing order as defined in 7 CFR 900.2(j). This proposed rule is issued under Marketing Agreement No. 98 and Marketing Order No. 945, both as amended (7 CFR part 945), regulating the handling of potatoes grown in certain counties in Idaho, and Malheur County, Oregon. Part 945 (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 comprises producers and handlers of potatoes operating within the area of production. The Agricultural Marketing Service (AMS) is issuing this proposed rule in conformance with Executive Orders 12866, 13563, and 14094. Executive Orders 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, reducing costs, harmonizing rules, and promoting flexibility. Executive Order 14094 reaffirms, supplements, and updates Executive Order 12866 and further directs agencies to solicit and consider input from a wide range of affected and interested parties through a variety of means. This proposed action falls within a category of regulatory actions that the Office of Management and Budget (OMB) exempted from Executive Order 12866 review. This proposed rule has been reviewed under Executive Order 13175—Consultation and Coordination with Indian Tribal Governments, which requires Federal agencies to consider whether their rulemaking actions would have Tribal implications. AMS has determined that this proposed rule is unlikely to have substantial direct effects on one or more Indian Tribes, on the relationship between the Federal Government and Indian Tribes, or on the distribution of power and responsibilities between the Federal Government and Indian Tribes. This proposed rule has been reviewed under Executive Order 12988—Civil Justice Reform. Under the Order now in effect, Idaho-Eastern Oregon potato handlers are subject to assessments. Funds to administer the Order are derived from such assessments. It is intended that the assessment rate would be applicable to all assessable Idaho-Eastern Oregon potatoes for the 2024-2025 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 8c(15)(A) of the Act (7 U.S.C. 608(c)(15)(A)), any handler subject to an order may file with the U.S. Department of Agriculture (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 requesting 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 proposed rule would increase the assessment rate for Idaho-Eastern Oregon potatoes handled under the Order from $0.002 per hundredweight, the rate that was established for the 2017-2018 fiscal period and subsequent fiscal periods (82 FR 28550), to $0.003 per hundredweight for the 2024-2025 fiscal period and subsequent fiscal periods. Sections 945.41 and 945.42 of the Order authorize the Committee, with the approval of AMS, to formulate an annual budget of expenses and collect assessments from handlers to administer the program. The members of the Committee are familiar with the Committee's needs and with the costs of goods and services in their local area and are able to formulate an appropriate budget and assessment rate. The assessment rate is formulated and discussed in a public meeting, and all directly affected persons have an opportunity to participate and provide input. For the 2017-2018 fiscal period and subsequent fiscal periods, the Committee recommended, and AMS approved, an assessment rate of $0.002 per hundredweight of Idaho-Eastern Oregon potatoes within the production area (82 FR 28550). That rate continues in effect from fiscal period to fiscal period until modified, suspended, or terminated by AMS upon recommendation and information submitted by the Committee or other information available to AMS. The Committee met on June 5, 2024, and unanimously recommended 2024-2025 fiscal period expenditures of $99,522 and an assessment rate of $0.003 per hundredweight of Idaho Eastern-Oregon potatoes handled for the 2024-2025 fiscal period and subsequent fiscal periods. In comparison, the budgeted expenditures for fiscal period 2023-2024 were $99,703. The proposed assessment rate of $0.003 per hundredweight is $0.001 higher than the rate currently in effect. The Committee recommended increasing the assessment rate to better align assessment revenue with budgeted expenses and to replenish reserves which were depleted between August 2017 and June 2024. The Committee estimates shipments for the 2024-2025 season to be approximately 34,000,000 hundredweight, an increase from the 28,167,500 hundredweight handled for the 2023-2024 fiscal period. The major expenditures recommended by the Committee for the 2024-2025 fiscal period include $75,489 in administrative expenses; $10,013 for operational expenses; $4,670 for insurance/banking expenses; $4,000 for annual audit/compliance expenses; $2,950 for committee travel expenses and $2,400 for IT support. For comparison, budgeted expenses for these items during the 2023-2024 fiscal period were $74,960, $10,013, $4,880, $4,500, $2,950, and $2,400, respectively. The expected 34,000,000 hundredweight of Idaho-Eastern Oregon potatoes from the 2024-2025 crop would generate $102,000 in assessment revenue at the proposed assessment rate (34,000,000 hundredweight of potatoes multiplied by $0.003 assessment rate). The assessment rate increase should be appropriate to ensure the Committee has sufficient revenue to fully fund its recommended 2024-2025 fiscal period budgeted expenditures and begin replenishing the Committee's reserve funds to a level that the Committee believes is appropriate. The Committee derived the recommended assessment rate by considering anticipated fiscal period expenses, expected shipments of potatoes, and the amount of funds available in the financial reserve. Income derived from handler assessments ($102,000) would be adequate to cover budgeted expenses ($99,522). Funds available in the financial reserve (currently about $80,000) would be kept within the maximum permitted by the Order (approximately one fiscal period's expenses as authorized in § 945.44). The proposed assessment rate would co ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 21k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━