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Federal Register / Vol. 86, No. 90 / Wednesday, May 12, 2021 / Proposed Rules
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upon recommendation and information submitted by the Committee or other available information.
Although this assessment rate would be in effect for an indefinite period, the Committee will continue to meet prior to or during each crop year to recommend a budget of expenses and consider recommendations for modification of the assessment rate. The dates and times of Committee meetings are available from the Committee or USDA. Committee meetings are open to the public and interested persons may express their views at these meetings.
USDA would 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 Committees 202021 crop year budget, and those for subsequent crop years, would be reviewed and, as appropriate, approved by USDA.
Initial Regulatory Flexibility Analysis Pursuant to requirements set forth in the Regulatory Flexibility Act RFA 5
U.S.C. 601612, the Agricultural Marketing Service AMS has considered the economic impact of this proposed rule on small entities.
Accordingly, AMS has prepared this initial regulatory flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of 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 800
producers of dried prunes in the production area and 20 handlers subject to the 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 California dried prunes for the 201920
crop year was $1,510 per ton.
Committee data indicates that the California dried prune total production was 110,000 tons in the 201920 crop year. The total 201920 crop year value of California dried prunes was $166,100,000 110,000 tons times $1,510

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per ton equals $166,100,000. Dividing the crop value by the estimated number of producers 800 yields an estimated average receipt per producer of $207,625.
According to USDA Market News data, the reported terminal price for 2019 for California dried prunes ranged between $30.02 to $32.59 per 28-pound carton. The average of this range is $31.31 $30.02 plus $32.59 divided by 2
equals $31.31. Dividing the average value by the 28-pound carton yields an estimated average price per pound of $1.12 $31.31 average value for 28pound carton divided by 28. The handler price for prunes is $2,240 per ton $1.12 per pound multiplied by 2000 pounds per ton equals $2,240 per ton. Multiplying the 201920 California dried prune total production of 110,000
tons by the estimated average price per ton of $2,240 equals $246,400,000.
Dividing this figure by 20 regulated handlers yields estimated average annual handler receipts of $12,320,000.
Therefore, using the above data, the majority of producers and handlers of California dried prunes may be classified as small entities.
As noted above, the average price received per ton by producers in the preceding crop year was $1,510 per ton of salable dried prunes. Given the estimated tonnage of 50,000 tons salable dried prunes for the 202021 crop year, the total producer revenue is estimated to be $75,500,000. The total assessment revenue is expected to be $14,000
50,000 tons multiplied by $0.28 per ton. Thus, the total assessment revenue compared to total producer revenue is 0.019 percent.
This proposal would increase the assessment rate collected from handlers for the 202021 and subsequent crop years from $0.25 to $0.28 per ton of salable California dried prunes. The Committee unanimously recommended 202021 expenditures of $24,550 and an assessment rate of $0.28 per ton of salable dried prunes. The proposed assessment rate of $0.28 per ton salable dried prunes is $0.03 higher than the current rate. The volume of assessable dried prunes for the 202021 crop year is estimated to be 50,000 tons. Thus, the $0.28 per ton of salable dried prunes should provide $14,000 in assessment income 50,000 multiplied by $0.28.
Income derived from handler assessments, along with carryforward/
contingency funds and interest income, would be adequate to cover budgeted expenses for the 202021 crop year.
The major expenditures recommended by the Committee for the 202021 crop year include $13,700 for personnel expenses, and $10,850 for
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operating expenses. Budgeted expenses for these items in the 201920 crop year were $13,300, and $11,200 respectively.
The Committee recommended increasing the assessment rate due to a smaller crop, and to provide adequate income along with carryforward/
contingency funds and interest income to cover the Committees budgeted expenses for the 202021 crop year.
Prior to arriving at this budget and assessment rate recommendation, the Committee discussed various alternatives, including maintaining the current assessment rate of $0.25 per ton of salable dried prunes, and increasing the assessment rate by a different amount. However, the Committee determined that the recommended assessment rate, along with carryforward/contingency funds and interest income would fund budgeted expenses.
This proposed rule would increase 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 would be offset by the benefits derived by the operation of the Order.
The Committees meeting was widely publicized throughout the California prune industry. All interested persons were invited to attend the meeting and encouraged to participate in Committee deliberations on all issues. Like all Committee meetings, the December 10, 2020, meeting was a public meeting, and all entities, both large and small, were able to express views on this issue.
Interested persons are invited to submit comments on this proposed 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 Orders information collection requirements have been previously approved by OMB and assigned OMB No. 05810178, Vegetable and Specialty Crops. No changes in those requirements would be necessary as a result of this proposed rule. Should any changes become necessary, they would be submitted to OMB for approval.
This proposed rule would not impose any additional reporting or recordkeeping requirements on either small or large California prune 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.

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