[Federal Register Volume 90, Number 175 (Friday, September 12, 2025)]
[Proposed Rules]
[Pages 44151-44153]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-17700]
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Proposed Rules
Federal Register
________________________________________________________________________
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.
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Federal Register / Vol. 90, No. 175 / Friday, September 12, 2025 /
Proposed Rules
[[Page 44151]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 987
[Doc. No. AMS-SC-24-0049]
Domestic Dates Produced or Packed in Riverside County,
California; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
California Date Administrative Committee (Committee) to decrease the
assessment rate established for the 2024-2025 and subsequent crop years
from $0.15 to $0.05 per hundredweight for domestic dates produced or
packed in Riverside County, California. The proposed assessment rate
would remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Comments must be received by October 14, 2025.
ADDRESSES: 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 sent to the Docket Clerk electronically by Email:
[email protected] or via the internet at: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register.
Comments submitted in response to this proposed rule will be included
in the record, will be made available to the public, and can be viewed
at: https://www.regulations.gov. 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.
FOR FURTHER INFORMATION CONTACT: Bianca Bertrand, Marketing Specialist,
or Abigail Maharaj, Chief, West Region Branch, Market Development
Division, Specialty Crops Program, AMS, USDA; Telephone: (559) 487-
5901, or Email: [email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Market Development
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-8085, or
Email: [email protected].
SUPPLEMENTARY INFORMATION: 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
Order No. 987, as amended (7 CFR part 987), regulating the handling of
domestic dates produced or packed in Riverside County, California. Part
987 (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
dates operating within the area of production.
The Agricultural Marketing Service (AMS) is issuing this rule in
conformance with Executive Order 12866, as amended by Executive Order
13563. 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.
This 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 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, California date
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 dates for the 2024-2025 crop
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 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 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 proposed rule would decrease the assessment rate for
California dates handled under the Order from $0.15 per hundredweight,
the rate that was established for the 2023-2024 and subsequent crop
years, to $0.05 per hundredweight for the 2024-2025 and subsequent crop
years.
Sections 987.71 and 987.72 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 can
formulate an appropriate
[[Page 44152]]
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 2023-2024 and subsequent crop years, the Committee
recommended, and AMS approved, an assessment rate of $0.15 per
hundredweight of California dates within the production area. That rate
continues in effect from crop year to crop year 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 27, 2024, and unanimously recommended
2024-2025 crop year expenditures of $89,410 and an assessment rate of
$0.05 per hundredweight of California dates handled for the 2024-2025
and subsequent crop years. In comparison, last crop year's budgeted
expenditures were $75,800. The proposed assessment rate of $0.05 per
hundredweight is $0.10 lower than the rate currently in effect. The
Committee recommended decreasing the assessment rate to draw down its
reserve funds to within a level authorized under the marketing order.
The Committee projects 300,000 hundredweight of assessable California
dates for the 2024-2025 crop year, down from the 426,000 hundredweight
that the Committee initially projected for the 2023-2024 crop year.
The major expenditures recommended by the Committee for the 2024-
2025 crop year include $58,500 for management services, $19,410 for
office administration, and $11,500 for the financial audit. For
comparison, budgeted expenses for these items during the 2023-2024 crop
year were $48,000; $16,800; and $11,000, respectively.
The Committee derived the recommended assessment rate by
considering anticipated crop year expenses, expected volume of
assessable dates, and the amount of funds available in the authorized
reserve. The expected 300,000 hundredweight of assessable California
dates would generate $15,000 in assessment revenue at the proposed rate
(300,000 hundredweight multiplied by the $0.05 assessment rate). The
income generated from handler assessments, along with approximately
$68,310 in reserve funds and $6,100 of surplus allocation income from
the date cull program would be sufficient to meet the Committee's
estimated program expenditures of $89,410 for the 2024-2025 crop year.
Funds available in the financial reserve (currently about $129,000)
would be kept within the maximum permitted by the Order (not to exceed
the average of annual expenses for the preceding five years, as
authorized in Sec. 987.72).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by AMS 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 AMS.
Committee meetings are open to the public and interested persons may
express their views at these meetings. AMS 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 2024-2025 crop year budget,
and those for subsequent crop years, will be reviewed and, as
appropriate, approved by AMS.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), 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 11 handlers of California dates subject to
regulation under the Order and 70 producers of California dates in the
production area. At the time this analysis was prepared, the Small
Business Administration (SBA) defined small agricultural service firms
as those having annual receipts of equal to or less than $34,000,000
(North American Industry Classification System (NAICS) code 115114,
Postharvest Crop Activities), and small agricultural producers of dates
are defined as those having annual receipts equal to or less than
$3,500,000 (NAICS code 111339, Other Noncitrus Fruit Farming) (13 CFR
121.201).
According to the USDA's National Agricultural Statistics Service
(NASS), data for the most-recently completed crop year (2023) shows
that the average price producers received for California dates was
$2,630 per ton, with an estimated production of 35,300 tons. Using the
average price producers received, production information, and the
number of producers, the majority of producers have estimated annual
receipts of less than $3,500,000 ($2,630 multiplied by 35,300 tons
equals $92,839,000, divided by 70 producers equals $1,326,271 per
producer). Thus, the majority of California date producers may be
classified as small entities according to the SBA definition.
In addition, USDA Market News reported an average terminal market
price of $43.09 per 11-pound carton for the 2023 calendar year
(California origin, Medjool variety, non-organic, all terminal markets,
all grades and sizes). With approximately 70,600,000 pounds handled,
the industry would have shipped an estimated 6,418,182, 11-pound
cartons (70,600,000 divided by 11-pound carton) of packaged dates for a
total value of $276,559,462 (6,418,182 multiplied by $43.09). With 11
date handlers within the production area, the 2023 average revenue per
handler is estimated to be $25,141,769 ($276,559,462 divided by 11),
which is below the $34.5 million SBA size threshold for handlers. Thus,
assuming a normal distribution, most California date handlers may be
classified as small entities.
This proposal would decrease the assessment rate collected from
handlers for the 2024-2025 and subsequent crop years from $0.15 to
$0.05 per hundredweight of assessable California dates. The Committee
unanimously recommended 2024-2025 crop year expenditures of $89,410 and
an assessment rate of $0.05 per hundredweight of California dates. The
proposed assessment rate of $0.05 is $0.10 lower than the rate
currently in effect. The Committee expects the industry to handle
300,000 hundredweight of assessable California dates during the 2024-
2025 crop year. Thus, the $0.05 per hundredweight rate should provide
$15,000 in assessment income (300,000 hundredweight multiplied by $0.05
per hundredweight). Income derived from handler assessments along with
reserve funds should be sufficient to meet budgeted expenditures for
the 2024-2025 crop year.
The major expenditures recommended by the Committee for the
[[Page 44153]]
2024-2025 crop year include $58,500 for management services, $19,410
for office administration, and $11,500 for the financial audit. In
comparison, budgeted expenses for these items during the 2023-2024 crop
year were $48,000; $16,800; and $11,000, respectively.
The Committee recommended decreasing the assessment rate to utilize
funds from its reserve to meet necessary expenses for the 2024-2025
crop year, and ensure the reserve is maintained at a level in
compliance with order requirements.
Prior to arriving at this budget and assessment rate
recommendation, the Committee discussed various alternatives, including
reducing the assessment rate more and/or less than the rate proposed
herein. However, the Committee determined that the recommended
assessment rate would achieve its goals of both adequately funding
Committee operations and reducing the reserve to an appropriate level.
Consequently, those alternatives were rejected.
A review of historical and preliminary information pertaining to
the upcoming crop year indicates the average producer price for the
2024-2025 crop year should be approximately $2,847 per ton ($142.35 per
hundredweight) of California dates. Therefore, the estimated assessment
revenue for the 2024-2025 crop year as a percentage of total producer
revenue would be about 0.04 percent ($0.05 per hundredweight assessment
rate divided by $142.35 and multiplied by 100).
This proposed action would decrease the assessment obligation
imposed on California date 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 meetings are widely publicized throughout the
California date industry and all interested persons are invited to
attend the meetings and participate in Committee deliberations on all
issues. Like all Committee meetings, the June 27, 2024, meeting was a
public meeting and all entities, both large and small, were able to
express views on this issue. Finally, 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 Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0178, 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 date
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.
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.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this 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 Antoinette
Carter at the previously mentioned address in the FOR FURTHER
INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, AMS has determined that this proposed rule
is consistent with and would effectuate the purposes of the Act.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. All written comments timely received
will be considered before a final determination is made on this
rulemaking.
List of Subjects in 7 CFR Part 987
Dates, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 987 as follows:
PART 987--DOMESTIC DATES PRODUCED OR PACKED IN RIVERSIDE COUNTY,
CALIFORNIA
0
1. The authority citation for 7 CFR part 987 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 987.339 to read as follows:
Sec. 987.339 Assessment rate.
On and after October 1, 2024, an assessment rate of $0.05 per
hundredweight is established for dates produced or packed in Riverside
County, California.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-17700 Filed 9-11-25; 8:45 am]
BILLING CODE P