Emergency Request Memo

USDA Agricultural
Marketing
MOM Service

1400 Independence Avenue, SW.
Room 3071-S, STOP 0201
Washington, D.C. 20250-0201

TO:

Julie Wise
Senior Desk Officer
Office of Management and Budget

THROUGH:

Charlene Parker acu,61.-Az ae-Z1 /6/
Departmental Clearance Officer
Marketing and Regulatory Programs

FROM:

Bruce Summers
Acting Administrator
Agricultural Marketing Service

SUBJECT:

Request for Emergency Approval of New Forms for the Cranberry
Marketing Committee

The Agricultural Marketing Service (AMS) is requesting emergency approval for new
information collection related to the Federal marketing order for cranberries. The, collection
would enable the Cranberry Marketing Committee (Committee) to encourage and monitor
cranberry handlers' compliance with a volume control mechanism.
The use of normal clearance procedures would delay the cranberry industry's ability to manage
its inventories in a way that complies with the industry-supported handler withholding program.
In anticipation of AMS publishing a final rule later in the year, a majority of the 65 handlers
operating across the 10-state production area have already begun managing their inventories
according to a recommendation the Committee forwarded to AMS. The Committee, as a result,
wants to begin tracking and monitoring compliance in October 2017.
The marketing order authorizes volume control that can be achieved through the use of handler
withholdings, producer allotments, or a combination of both. Under the withholding program,
USDA sets the "free" and "restricted" percentage of cranberries that can be handled. Handlers
can market "free" percentage cranberries through any channel, but "restricted" percentages must
be destroyed or diverted to noncompetitive markets (e.g., charitable donation, nonhuman food
use, new product development).
Last month, the Committee recommended AMS implement an 85-percent free/15-percent
restricted handler withhold program for the 2017-18 fiscal period. The industry has
approximately 115 percent of its average sales in inventory. This year is the first time since 2001
that the Committee reached consensus on volume regulation. The industry's marketing season
begins in September when harvest traditionally starts and runs throughout the year. The
Committee wants the handler withholding program in effect for the 2017-18 season that began
September 1. Because the rulemaking process and the forms-approval process take

Ms. Julie Wise
Page 2
approximately six months, the Committee asked AMS to expedite approval of five initial forms
so it can begin tracking handler activities meant to reduce cranberry deliveries placed in
marketing channels. AMS is clearing a notice with a 60-day comment period on the handler
withholding program for publication in the Federal Register.
Without the ability to distribute the fonns to handlers, the Committee would not be able to guide
handlers through the process of using only authorized outlets during a time of historically high
inventories and would not be able to undertake early outreach efforts that would boost handler
participation in the program. The five new forms would indicate the anticipated total quantity of
cranberries acquired by the respective handler, the amount withheld from handling, and the
disposition of such withheld cranberries during the crop year. The forms would also provide for
third-party confirmation and an appeal process.
Under AMS oversight, the Committee conducts research and promotion activities and, when
supply is deemed to exceed demand, is authorized to establish volume control percentages to
better manage inventories and avoid precipitous drops in grower prices. The marketing order
regulates the handling of cranberries grown in Massachusetts, Rhode Island, Connecticut, New
Jersey, Wisconsin, Michigan, Minnesota, Oregon, Washington, and Long Island in New York.
The program is funded by assessments paid by handlers to the Committee.
In compliance with OMB regulations (6 CFR 1320) which implement the Paperwork Reduction
Act of 1995 (Pub. L. 104-13), a 60-day notice for comment will be submitted to the Federal
Register for publication, and the information collection and recordkeeping requirements that may
be imposed by this action are submitted to OMB for emergency review and approval by October
16, 2017.
Attached are the OMB 83-I, the Supporting Statement, AMS-71, and a copy of each of the five
forms.
Attachments