[Federal Register Volume 90, Number 181 (Monday, September 22, 2025)]
[Rules and Regulations]
[Pages 45313-45315]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-18340]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 90, No. 181 / Monday, September 22, 2025 /
Rules and Regulations
[[Page 45313]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 945
[Doc. No. AMS-SC-24-0042]
Irish Potatoes Grown in Certain Designated Counties in Idaho, and
Malheur County, Oregon; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This final rule implements 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 assessment rate will remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Effective October 22, 2025.
FOR FURTHER INFORMATION CONTACT: Virginia Tjemsland, Marketing
Specialist, or Barry M. Broadbent, Chief, Northwest Region Branch,
Market Development Division, Specialty Crops Program, AMS, USDA;
telephone: (503) 326-2724, 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,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This final 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 pursuant to 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 final rule
in conformance with Executive Orders 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 final 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 final 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 final 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 will 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 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 final rule increases 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 AMS approval, 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
[[Page 45314]]
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 and subsequent fiscal periods. In comparison, the
budgeted expenditures for fiscal period 2023-2024 were $99,703. The
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 estimated 34,000,000 hundredweight of Idaho-Eastern Oregon
potatoes from the 2024-2025 crop is expected to generate $102,000 in
assessment revenue at the new 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. The
reserve shall be established at an amount not to exceed approximately
one fiscal period's budgeted expenses.
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) should be adequate
to cover budgeted expenses ($99,522). Funds available in the financial
reserve (currently about $80,000) will be kept within the maximum
permitted by the Order (approximately one fiscal period's budgeted
expenses as authorized in Sec. 945.44).
The assessment rate will 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 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 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 fiscal period
budget, and those for subsequent fiscal periods, will be reviewed and,
as appropriate, approved by AMS.
Final 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 final 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 450 producers of Idaho-Eastern Oregon
potatoes in the production area and 32 handlers subject to regulation
under the Order. At the time this analysis was prepared, the Small
Business Administration (SBA) defined small agricultural service firms
as those having annual receipts equal to or less than $34,000,000
(North American Industry Classification System (NAICS) code 115114,
Postharvest Crop Activities), and small agricultural producers of
potatoes as those having annual receipts equal to or less than
$4,250,000 (NAICS code 111211, Potato Farming) (13 CFR 121.201).
According to the National Agricultural Statistics Service (NASS),
the average annual producer price received for fresh market potatoes in
Idaho, and Malheur County, Oregon, in 2022, the most recent full year
for which there is NASS data, was $12.50 per hundredweight. Total
shipments of Idaho-Eastern Oregon potatoes for the 2021-2022 season
were reported by the Committee to be 28,167,500 hundredweight. Using
the average producer price from 2022, the total 2021-2022 crop value of
Idaho-Eastern Oregon potatoes could therefore be estimated to be
$352,093,750 (28,167,500 hundredweight times $12.50 per hundredweight).
Dividing the crop value by the estimated number of producers (450)
yields an estimated average receipt per producer of $782,431. This
figure is well below the SBA small agricultural producer threshold of
$4,250,000 in annual receipts. Assuming a normal distribution, this
provides evidence that a large majority of potato producers would
likely be considered small agricultural producers according to the SBA
definition.
According to AMS Market News data, the reported average free on
board (FOB) price for potatoes from Idaho-Eastern Oregon over the 2021-
2022 fiscal period was $15.68 per 50-pound carton, depending upon
variety, size and grade, and shipping date. Multiplying this figure by
2 (to adjust to hundredweight) yields an average FOB price of $31.36
per hundredweight for the 2021-2022 fiscal period. Multiplying the
2021-2022 Idaho-Eastern Oregon potato production of 28,167,500
hundredweight by the estimated average price per hundredweight of
$31.36 equals $883,332,800. Dividing this figure by 32 regulated
handlers yields estimated average annual handler receipts of
$27,604,150 ($883,332,800 divided by 32 handlers), which is below the
SBA threshold for small agricultural service firms. Therefore,
according to the above data and assuming a normal distribution, most of
the producers, and many of the handlers, of Idaho-Eastern Oregon
potatoes may be classified as small entities.
This rule increases the assessment rate collected from handlers for
the 2024-2025 and subsequent fiscal periods from $0.002 to $0.003 per
hundredweight of Idaho-Eastern Oregon potatoes. The Committee
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. The new assessment rate of $0.003 per
hundredweight is
[[Page 45315]]
$0.001 higher than the rate currently in effect. The Committee
estimates the industry will handle 34,000,000 hundredweight of Idaho-
Eastern Oregon potatoes during the 2024-2025 fiscal period. Thus, the
$0.003 per hundredweight rate should provide $102,000 in assessment
income (34,000,000 hundredweight multiplied by $0.003). The Committee
expects that income generated from handler assessments will be
sufficient to meet budgeted expenditures for the 2024-2025 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.
In recent years, the Committee has utilized reserve funds to
partially fund its budgeted expenditures. The Committee recommended
increasing the assessment rate to fully fund 2024-2025 fiscal period
budgeted expenditures and replenish the reserve funds. This action is
expected to add an estimated $2,478 to the Committee's financial
reserve fund. The reserve shall be established at an amount not to
exceed approximately one fiscal period's budgeted expenses.
Prior to arriving at this budget and assessment rate
recommendation, the Committee discussed various alternatives, including
maintaining the current assessment rate of $0.002 per hundredweight and
increasing the assessment rate by different amounts. However, the
Committee determined that the assessment rate as established herein
will fully fund budgeted expenses and replenish reserves to appropriate
levels. The assessment rate of $0.003 per hundredweight of Idaho-
Eastern Oregon potatoes was derived by considering anticipated
expenses, the projected volume of assessable Idaho-Eastern Oregon
potatoes, the projected monetary balance held in reserve, and
additional pertinent factors.
A review of NASS information indicates that the average producer
price for the 2021-2022 fiscal period was $12.50 per hundredweight of
potatoes in the production area. Therefore, utilizing the assessment
rate of $0.003 per hundredweight, assessment revenue for the 2021-2022
fiscal period, as a percentage of total producer revenue, would have
been approximately 0.024 percent of total producer revenue ($0.003
divided by $12.50 multiplied by 100).
This action increases the assessment obligation imposed on Idaho-
Eastern Oregon potato 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
production area. The Idaho-Eastern Oregon potato 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 5, 2024, 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 OMB and assigned OMB No. 0581-0178, Vegetable
and Specialty Crops. No changes in those requirements will be necessary
as a result of this final rule. Should any changes become necessary,
they would be submitted to OMB for approval.
This final rule will not impose any additional reporting or
recordkeeping requirements on either small or large Idaho-Eastern
Oregon potato 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 and 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 final rule.
A proposed rule concerning this action published in the Federal
Register on September 27, 2024 (89 FR 79175). Copies of the proposed
rule were provided to all Idaho-Eastern Oregon potato handlers. In
addition, the proposal was made available through the internet by AMS
and the Office of the Federal Register via https://www.regulations.gov.
A 30-day comment period ending October 28, 2024, was provided for
interested persons to respond to the proposal. AMS received one comment
during the comment period that did not address the merits of the
proposal. Accordingly, AMS made no changes to the 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/rulesregulations/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 rule tends to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 945
Marketing agreements, Potatoes, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 945 as follows:
PART 945--IRISH POTATOES GROWN IN CERTAIN DESIGNATED COUNTIES IN
IDAHO, AND MALHEUR COUNTY, OREGON.
0
1. The authority citation for 7 CFR part 945 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 945.249 to read as follows:
Sec. 945.249 Assessment rate.
On and after August 1, 2024, an assessment rate of $0.003 per
hundredweight is established for Idaho-Eastern Oregon potatoes.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-18340 Filed 9-19-25; 8:45 am]
BILLING CODE 3410-02-P