FR 2021-03470

The document under discussion is a proposed rule by the Agricultural Marketing Service (AMS) concerning the Lamb Promotion, Research, and Information Order. This rule proposes changes to the way assessments, or fees, on lamb sales are collected and remitted. Initially, the comment period for this proposal was set from October 5 to December 4, 2020, but it has now been extended to March 24, 2021, to allow additional feedback from stakeholders.

General Summary

The core change suggested by the proposal is that market agencies, such as auction markets or commission merchants, would be responsible for collecting the entire assessment on live lamb sales and sending these to the relevant Board. The idea is to streamline the process and ensure the assessments are collected consistently. However, the reopening of the comment period indicates AMS's willingness to receive further input, particularly on how this process might be adapted to reduce burdens on smaller market agencies.

Significant Issues and Concerns

One significant concern with the proposal is the lack of specific criteria for what constitutes a "low-volume" or "seasonal" market agency, which would qualify for more flexible remittance schedules, such as quarterly or annually, instead of monthly. This flexibility seeks to accommodate smaller agencies that might find monthly remittance obligations burdensome due to lower sales volumes. However, without clear definitions or thresholds, it is unclear who exactly would benefit from these flexibilities.

Furthermore, there is uncertainty regarding the scale of the impact this change might have. The document does not provide detailed data on how many market agencies could be categorized as low-volume or seasonal, nor does it offer any analysis on how these changes would affect the overall administration of lamb assessments.

Potential Impact on the Public

For the broader public, this proposed change could have mixed implications. On one hand, ensuring that assessments are collected and remitted efficiently could support more effective lamb promotion and research activities, potentially benefiting consumers through improved products and information. On the other hand, unclear or overly complex regulations might lead to confusion among market agencies, possibly affecting the consistency and reliability of lamb assessment processes.

Impact on Specific Stakeholders

For market agencies, especially those operating on a smaller scale, the proposed rule could be highly impactful. If implemented with flexibility, small agencies might find the administrative burden reduced, thus potentially enabling them to focus more on their core business activities. However, larger agencies might see this flexibility as unfair or could perceive it as creating an uneven playing field.

Stakeholders in the agricultural sector, particularly those directly involved in the lamb supply chain, may need to carefully consider the proposed changes and provide feedback. This is an opportunity for them to potentially steer the rule in a direction that balances the need for effective assessment collection with the realistic operational capabilities of different-sized agencies.

In conclusion, the AMS's proposal reflects an attempt to refine and improve the lamb assessment process, but it needs more specificity and data to fully realize its potential. The extended comment period presents a valuable opportunity for stakeholders to clarify and influence the outcome in a way that might benefit all parties involved.