DATCP administers Wisconsin's agricultural marketing law which authorizes the creation of marketing orders for agricultural commodities. Each marketing order board collects assessments from producers of the applicable commodity. The assessments may be expended by the board for promotion, research or consumer education of the commodity. The provisions of ch. 96, Stats., and ch. ATCP 140, Wis. Adm. Code, and the applicable marketing order (chs. ATCP 141 to 148) govern the organization of each of the seven marketing order boards, the election of marketing board members, the assessment of producers, and the use of assessments.
Wisconsin produces more cranberries than any other state in the nation. In 2012 Wisconsin growers produced 4,830,000 barrels of cranberries. Cranberry is the state's No. 1 fruit crop in both value and acreage. The cranberry industry currently provides nearly $300 million annually to the state's economy and supports approximately 3,400 jobs across the state.
Cranberry assessments have been used effectively to expand the market for cranberries dramatically from a time when cranberries were thought of primarily for a relish at the Thanksgiving dinner to today when cranberries have become part of the everyday diet and are used in a wide range of dishes. Assessments also support crop and environmental research including sustainable production practices, nutrient management, water conservation and water quality protection. The current maximum rate of assessment of ten cents per barrel has existed since 1983. To continue the successful marketing and research, the Cranberry Board believes increased funding is required.
In order to make any change to a marketing order, in addition to conducting the traditional rulemaking process, the change must be approved at a referendum of the producers of the affected commodity.
Rule Contents
The proposed rule increases maximum assessment the cranberry marketing board may charge from ten cents per barrel to a maximum of 15 cents per barrel beginning the year this amendment to the marketing order becomes effective, to a maximum of 20 cents per barrel beginning in 2017 and to a maximum of 25 cents per barrel beginning in 2019.
Federal and surrounding state programs
Federal programs
There is a federal marketing order for cranberries under which assessments are collected in a manner similar to the state cranberry marketing order. The state and federal marketing orders are operated cooperatively to effectively use the assessments for the benefit of cranberry growers.
Surrounding state programs
There are very few cranberry producers in the surrounding states and none of the surrounding states have a cranberry marketing order.
Data and analytical methodologies
DATCP worked with representatives of the Wisconsin cranberry industry to determine the assessment changes proposed in this rule.
Analysis and supporting documents used to determine effect on small business
DATCP worked with representatives of the Wisconsin cranberry industry determine the effect of the proposed rule on small businesses.
Business Impact
Cranberry growers are all small businesses. In 2012 the growers collectively produced a total crop of 4,830,000 barrels valued at approximately $231 million. The price per barrel in 2012 was $47.80. At the assessment rate of 10 cents per barrel the assessment in 2012 equaled approximately .02 percent of the crop value. If the Cranberry Board assess at the maximum rates, the assessment, based on 2012 price per barrel, will equal .031% of the crop value in 2015 and 2016, .042% in 2017 and 2018 and .052% thereafter. The result is a modest cost increase for each grower. However, if the use of assessments produces the kind of market share increase that the industry has seen in recent years the increased assessment cost will be more than made up for by increased sales.
DATCP Contact
Stacie Ashby
Wisconsin Department of Agriculture, Trade and Consumer Protection
Division of Agricultural Development
2811 Agriculture Drive
P.O. Box 8911
Madison, WI 53708
(608) 224-5116
Initial Regulatory Flexibility Analysis
Rule Subject: Cranberry Marketing Order
Adm. Code Reference: Chapter ATCP 142
Rules Clearinghouse #: CR 14-042
DATCP Docket #:   13-R-15
Rule Summary
This rule increases the maximum assessment the cranberry marketing board may charge to cranberry producers under ch. ATCP 142, the cranberry marketing order as follow:
The maximum assessment the cranberry marketing board may charge increases from ten cents per barrel to a maximum of 15 cents per barrel beginning the year this amendment to the marketing order becomes effective, to a maximum of 20 cents per barrel beginning in 2017 and to a maximum of 25 cents per barrel beginning in 2019.
Small business affected
This rule affects cranberry growers. Cranberry growers are all small businesses. In 2012 the growers collectively produced a total crop of 4,830,000 barrels valued at approximately $231 million. The price per barrel in 2012 was $47.80. At the assessment rate of 10 cents per barrel the assessment in 2012 equaled approximately .02 percent of the crop value. If the Cranberry Board assess at the maximum rates, the assessment, based on the 2012 price per barrel, will equal .031% of the crop value in 2015 and 2016, .042% in 2017 and 2018 and .052% thereafter. The result is a modest cost increase for each grower. However, if the use of assessments produces the kind of market share increase that the industry has seen in recent years the increased assessment cost will be more than made up for by increased sales.
Reporting, bookkeeping, and other procedures
The proposed rule creates no reporting, bookkeeping or other procedures for small businesses.
Professional skills required
The proposed rule does not require any professional skills for small businesses.
Accommodation for small business
All of the businesses affected by this rule are “small businesses." This rule does not make special exceptions for small businesses because the purpose of the marketing order program is to have all members of the producer group share in the cost of joint promotion, research and education that will increase productivity and sales of the commodity.
Conclusion
The result of the proposed rule is a modest cost increase for each grower. However, if the use of assessments produces the kind of market share increase that the industry has seen in recent years the increased assessment cost will be more than made up for by increased sales. This rule will not have a significant adverse effect on “small business," and is not subject to the delayed “small business" effective date provided in s. 227.22 (2) (e), Stats.
ADMINISTRATIVE RULES
FISCAL ESTIMATE
AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original Updated Corrected
Administrative Rule Chapter, Title and Number
Ch. ATCP 142, Cranberry Marketing Order
Subject
Pesticide Use and Control
Fund Sources Affected
Chapter 20 , Stats. Appropriations Affected
GPR FED PRO PRS X SEG SEG-S
None
Fiscal Effect of Implementing the Rule
X No Fiscal Effect
Indeterminate
Increase Existing Revenues
Decrease Existing Revenues
Increase Costs
Could Absorb Within Agency's Budget
Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
State's Economy
Local Government Units
X Specific Businesses/Sectors
Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million?
Yes X No
Policy Problem Addressed by the Rule
This rule increases the maximum assessment the cranberry marketing board may charge to cranberry producers under Chapter ATCP 142, the cranberry marketing order as follow:
  The maximum assessment the cranberry marketing board may charge increases from ten cents per barrel to a maximum of 15 cents per barrel beginning the year this amendment to the marketing order becomes effective, to a maximum of 20 cents per barrel beginning in 2017 and to a maximum of 25 cents per barrel beginning in 2019.
DATCP administers Wisconsin's agricultural marketing law which authorizes the creation of marketing orders for agricultural commodities. Each marketing order board collects assessments from producers of the applicable commodity. The assessments may be expended by the board for promotion, research or consumer education of the commodity. The provisions of Ch. 96, Stats., and Ch. ATCP 140 Wis. Adm. Code and the applicable marketing order (Chs. ATCP 141 to 148) govern the organization of each of the seven marketing order boards, the election of marketing board members, the assessment of producers and the use of assessments.
Wisconsin produces more cranberries than any other state in the nation. In 2012 Wisconsin growers produced 4,830,000 barrels of cranberries. Cranberry is the state's No. 1 fruit crop in both value and acreage. The cranberry industry currently provides nearly $300 million annually to the state's economy and supports approximately 3,400 jobs across the state.
Cranberry assessments have been used effectively to expand the market for cranberries dramatically from a time when cranberries were thought of primarily for a relish at the Thanksgiving dinner to today when cranberries have become part of the everyday diet and are used in a wide range of dishes. Assessments also support crop and environmental research including sustainable production practices, nutrient management, water conservation and water quality protection. The current maximum rate of assessment of ten cents per barrel has existed since 1983. To continue the successful marketing and research, the Cranberry Board believes increased funding is required.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
Local Governments
This rule will not impact local governments.
Cranberry Growers
In 2012 cranberry growers collectively produced a total crop of 4,830,000 barrels valued at approximately $231 million. The price per barrel in 2012 was $47.80. At the assessment rate of 10 cents per barrel the assessment in 2012 equaled approximately .02 percent of the crop value. If the Cranberry Board assess at the maximum rates, the assessment, based on 2012 price per barrel, will equal .031 % of the crop value in 2015 and 2016, .042% in 2017 and 2018 and .052% thereafter. The result is a modest cost increase for each grower. However, if the use of assessments produces the kind of market share increase that the industry has seen in recent years the increased assessment cost will be more than made up for by increased sales.
Utility Rate Payers
The rule will have no impact on utility rate payers.
General Public
This rule indirectly affects the general public by increasing the ability of an important segment of the Wisconsin economy to maintain the impressive growth it has experienced in recent years.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Benefits
This rule will benefit cranberry growers by providing funding through increased assessments needed to produce the kind of market share increase that the industry has seen in recent years
General Public
The general public will benefit from this rule as a result of continued growth of an important segment of the Wisconsin economy.
Alternatives
The alternative is to leave cranberry assessments at the current level which has existed since 1983. To continue the successful marketing and research, the Cranberry Board believes increased funding is required.
Long Range Implications of Implementing the Rule
Long-term, implementing the rule will benefit business, the general public, and the Wisconsin economy as increased assessment funding will help to continue the impressive growth of the cranberry industry in Wisconsin.
Compare With Approaches Being Used by Federal Government
There is a federal marketing order for cranberries under which assessments are collected in a manner similar to the state cranberry marketing order. The state and federal marketing orders are operated cooperatively to effectively use the assessments for the benefit of cranberry growers.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)
There are very few cranberry producers in the surrounding states and none of the surrounding states have a cranberry marketing order.
Comments Received in Response to Web Posting and DATCP Response
No comments were received in response either to the posting on the DATCP external website or the statewide administrative rules website.
Notice of Hearings
Natural Resources
Environmental Protection — General, Chs. NR 100
(DNR # CF-13-13)
NOTICE IS HEREBY GIVEN THAT pursuant to ss. 227.16 and 227.17, Stats, the Department of Natural Resources, hereinafter the Department, will hold a public hearing on the repeal and recreation of Chapter NR 162, relating to the implementation of the Clean Water Fund Program on the date(s) and at the time(s) and location(s) listed below.
Hearing Information
Date:   Tuesday, July 29, 2014
Time:  
9:00 a.m. to 10:30 a.m.
Location:
  UWEX Pyle Center
  702 Langdon St.
  Madison, WI
Date:   Tuesday, July 29, 2014
Time:  
9:00 a.m. to 10:30 a.m.
Location:
  UW Green Bay
  2420 Nicolet Drive
  Room IS1034
  Green Bay, WI
Date:   Tuesday, July 29, 2014
Time:  
9:00 a.m. to 10:30 a.m.
Location:
  UW Eau Claire Schofield Hall
  105 Garfield St.
  Room 1132
  Eau Claire, WI
Date:   Tuesday, July 29, 2014
Time:  
9:00 a.m. to 10:30 a.m.
Location:
  UW Milwaukee School of Continuing
  Education
  161 W. Wisconsin Ave.
  Milwaukee, WI
Date:   Tuesday, July 29, 2014
Time:  
9:00 a.m. to 10:30 a.m.
Location:
  UW—Marathon County
  518 S. 7th Ave.
  Room 218
  Wausau, WI
Reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Contact Cindy Wheeler, Environmental Loans Program, 101 South Webster Street, P.O. Box 7921, Madison, WI 53707; by E-mail to cynthia.wheeler@wisconsin.gov or by calling (608) 266-9955. A request must include specific information and be received at least 10 days before the date of the scheduled hearing.
Availability of the proposed rules and fiscal estimate
The proposed rule and supporting documents, including the fiscal estimate, may be viewed and downloaded from the Administrative Rules System Web site which can be accessed through the link https://health.wisconsin.gov/admrules/ public/Home. If you do not have Internet access, a printed copy of the proposed rule and supporting documents, including the fiscal estimate, may be obtained free of charge by contacting Cindy Wheeler, Environmental Loans Program, 101 South Webster Street, P.O. Box 7921, Madison, WI 53707; by E-mail to cynthia.wheeler@wisconsin.gov or by calling (608) 266-9955.
Submitting Comments
Comments on the proposed rule must be received on or before August 5, 2014. Written comments may be submitted by U.S. mail, fax, E-mail, or through the Internet and will have the same weight and effect as oral statements presented at the public hearing. Written comments and any questions on the proposed rules should be submitted to:
Robin Schmidt
Department of Natural Resources
Bureau of Community Financial Assistance
101 S Webster St, Madison, WI 53703
Phone:   608-266-3915
Fax:   608-267-1496
Internet:   Use the Administrative Rules System Web site accessible through the link provided.
Analysis Prepared by the Department of Natural Resources
Statute interpreted, statutory authority and explanation
Section 281.58 (2), Stats., authorizes the department to promulgate rules necessary for the execution of its responsibilities under the Clean Water Fund program. This program provides financial assistance to municipalities for water infrastructure projects including wastewater treatment plants, collection systems and stormwater systems.
Related statutes or rules
Concurrent with this effort, the department is also repealing and recreating ch. NR 166, relating to the Safe Drinking Water Loan Program. The Clean Water Fund Program and the Safe Drinking Water Loan Program are part of the Environmental Improvement Fund.
Plain language analysis
Revisions to ch. NR 162, Wis. Adm. Code, relating to the Clean Water Fund Program, clarify eligibility criteria, streamline processes, revise the scoring system, and update implementation issues since the rule was last revised. No new significant changes to the program result from the rule revisions. The main topics for revision include:
  Eligible projects/activities — updates language to incorporate current practices
  Dates for ITA/PERF submittals — changed to Oct 31st and allows for on-line submittals
  PERF scoring system — revised system to incorporate permit limits, automate the scoring process, and require on-line, annual submittals
  Interim financing costs — increased from $7500 to up to $15,000
  Refinancing — clarifies that a municipality cannot already have “long-term affordable debt" outstanding for its completed or substantially completed project"; any project that has been substantially completed for more than 3 years is not eligible for financing.
  Disadvantaged Business Enterprise — updated requirements to refer to federal requirements
  Median Household Income — clarifies the source of this data as the American Community Survey (as part of the US Census Bureau) and provides options for sanitary districts.
Summary of, and comparison with, existing or proposed federal statutes and regulations
All state programs must comply with the federal requirements for the program, as outlined in 33 USC 1251 to 1376 and 33 USC 1381 to 1387. This rule complies with the requirements of the Federal Clean Water Act.
Comparison with similar rules in adjacent states
Each state implements the Clean Water Act consistently with the associated state statutes and federal requirements. Each state loan program has unique features, but all of the programs are designed to meet federal Clean Water Act requirements. Each state has a unique priority scoring system based on state priorities but consistent with federal priorities. The EPA reviews program implementation to ensure consistency with the federal requirements.
Summary of factual data and analytical methodologies used and how any related findings support the regulatory approach chosen
The implementation of the Clean Water Fund Program does not include regulatory activities. Refinements to the program were established with both internal and external advisory groups with the intent of streamlining processes and clarifying criteria for program implementation.
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