Tomatoes Grown in Florida; Increased Assessment Rate, 1917-1919 [07-149]
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Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations
1917
TABLE 2.—UNIT RATES SERVICE 1—Continued
(c) Milled rice ........................................................................................................................................................................................
Factor analysis for any single factor (per factor):
(a) Milling yield (per sample) (Rough or Brown rice) ..........................................................................................................................
(b) All other factors (per factor) (all rice) .............................................................................................................................................
Total oil and free fatty acid ......................................................................................................................................................................
Interpretive line samples: 2
(a) Milling degree (per set) ..................................................................................................................................................................
(b) Parboiled light (per sample) ...........................................................................................................................................................
Faxed and extra copies of certificates (per copy) ...................................................................................................................................
Stowage Examination (service-on-request) 3
(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................
(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ...........................................................................
(c) Barge (per examination) .................................................................................................................................................................
(d) All other carriers (per examination) ................................................................................................................................................
29.30
36.60
17.60
57.20
124.90
30.60
3.00
50.50
50.50
40.50
15.50
1 Fees apply to determinations (original or appeals) for kind, class, grade, factor analysis, equal to type, milling yield, or any other quality designation as defined in the U.S. Standards for Rice or applicable instructions, whether performed singly or in combination at other than at the applicant’s facility.
2 Interpretive line samples may be purchased from the U.S. Department of Agriculture, GIPSA, FGIS, Technical Services Division, 10383 North
Ambassador Drive, Kansas City, Missouri 64153–1394. Interpretive line samples also are available for examination at selected FGIS field offices.
A list of field offices may be obtained from the Director, Field Management Division, USDA, GIPSA, FGIS, 1400 Independence Avenue, SW.,
STOP 3630, Washington, DC 20250–3630 or from the GIPSA Web site (https://www.gipsa.usda.gov). The interpretive line samples illustrate the
lower limit for milling degrees only and the color limit for the factor ‘‘Parboiled Light’’ rice.
3 If performed outside of normal business hours, 11⁄2 times the applicable unit fee will be charged.
James E. Link,
Administrator, Grain Inspection, Packers and
Stockyards Administration.
[FR Doc. 07–153 Filed 1–16–07; 8:45 am]
BILLING CODE 3410–KD–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Docket No. AMS–FV–06–0190; FV06–966–
2 FR]
Tomatoes Grown in Florida; Increased
Assessment Rate
AGENCY:
Agricultural Marketing Service,
USDA.
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ACTION:
Final rule.
SUMMARY: This rule increases the
assessment rate established for the
Florida Tomato Committee (Committee)
for the 2006–07 and subsequent fiscal
periods from $0.025 to $0.035 per 25pound container or equivalent of
tomatoes handled. The Committee
locally administers the marketing order
which regulates the handling of
tomatoes grown in Florida. Assessments
upon Florida tomato handlers are used
by the Committee to fund reasonable
and necessary expenses of the program.
The fiscal period begins August 1 and
ends July 31. The assessment rate will
remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Effective Date: January 18, 2007.
FOR FURTHER INFORMATION CONTACT:
William G. Pimental, Marketing
Specialist or Christian D. Nissen,
Regional Manager, Southeast Marketing
Field Office, Marketing Order
VerDate Aug<31>2005
13:05 Jan 16, 2007
Jkt 211001
Administration Branch, Fruit and
Vegetable Programs, AMS, USDA;
Telephone: (863) 324–3375, Fax: (863)
325–8793, or E-mail:
William.Pimental@usda.gov or
Christian.Nissen@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington,
DC 20250–0237; telephone: (202) 720–
2491, Fax: (202) 720–8938, or E-mail:
Jay.Guerber@usda.gov.
This rule
is issued under Marketing Agreement
No. 125 and Order No. 966, both as
amended (7 CFR part 966), regulating
the handling of tomatoes grown in
Florida, hereinafter referred to as the
‘‘order.’’ 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 Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the marketing order now
in effect, Florida tomato handlers are
subject to assessments. Funds to
administer the order are derived from
such assessments. It is intended that the
assessment rate as issued herein will be
applicable to all assessable tomatoes
beginning August 1, 2006, and continue
until amended, suspended, or
terminated. This rule will not preempt
any State or local laws, regulations, or
SUPPLEMENTARY INFORMATION:
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policies, unless they present an
irreconcilable conflict with this rule.
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 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 rule increases the assessment
rate established for the Committee for
the 2006–07 and subsequent fiscal
periods from $0.025 to $0.035 per 25pound container or equivalent of
tomatoes handled.
The Florida tomato marketing order
provides authority for the Committee,
with the approval of USDA, to formulate
an annual budget of expenses and
collect assessments from handlers to
administer the program. The members
of the Committee are producers and
handlers of Florida tomatoes. They are
familiar with the Committee’s needs and
with the costs for goods and services in
their local area and are thus in a
position to formulate an appropriate
budget and assessment rate. The
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1918
Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations
assessment rate is formulated and
discussed in a public meeting. Thus, all
directly affected persons have an
opportunity to participate and provide
input.
For the 2003–04 and subsequent fiscal
periods, the Committee recommended,
and USDA approved, an assessment rate
that would continue in effect from fiscal
period to fiscal period unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on August 22,
2006, and unanimously recommended
2006–07 expenditures of $2,193,700 and
an assessment rate of $0.035 per 25pound container or equivalent of
tomatoes. In comparison, last year’s
budgeted expenditures were $2,161,800.
The assessment rate of $0.035 is $0.01
higher than the rate currently in effect.
The increase in the assessment rate is
needed to continue to support the
increased budget for advertising and
promotion started last season, while
reducing the amount of funds drawn
from the Committee’s authorized
reserve. Without the increase in the
assessment rate, the Committee would
need to utilize an additional $500,000
from the authorized reserve.
The major expenditures
recommended by the Committee for the
2006–07 fiscal period include
$1,000,000 for education and
promotions, $445,900 for salaries,
$320,000 for research, $67,000 for
employee retirement, and $63,800 for
employee health insurance. Budgeted
expenses for these items in 2005–06
were $1,000,000, $428,000, $320,000,
$65,000 and $63,800, respectively.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses by expected
shipments of Florida tomatoes. Tomato
shipments for the year are estimated at
50 million which should provide
$1,750,000 in assessment income.
Income derived from handler
assessments, along with interest income
and funds from the Committee’s
authorized reserve, should be adequate
to cover budgeted expenses. Funds in
the reserve (currently around $700,000)
will be kept within the maximum
permitted by the order of not to exceed
one fiscal period’s expenses as stated in
§ 966.44.
The assessment rate established in
this rule will continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
VerDate Aug<31>2005
13:05 Jan 16, 2007
Jkt 211001
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
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA will evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
Committee’s 2006–07 budget and those
for subsequent fiscal periods would be
reviewed and, as appropriate, approved
by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA), the
Agricultural Marketing Service (AMS)
has considered the economic impact of
this 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
business 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 100
producers of tomatoes in the production
area and approximately 70 handlers
subject to regulation under the
marketing order. Small agricultural
producers are defined by the Small
Business Administration (SBA) as those
having annual receipts less than
$750,000, and small agricultural service
firms are defined as those whose annual
receipts are less than $6,500,000 (13
CFR 121.201).
Based on industry and Committee
data, the average annual price for fresh
Florida tomatoes during the 2005–06
season was approximately $10.27 per
25-pound container or equivalent, and
total fresh shipments for the 2005–06
season were 47,880,303 25-pound
equivalent cartons of tomatoes.
Committee data indicates that
approximately 25 percent of the
handlers handle 94 percent of the total
volume shipped outside the regulated
area. Based on the average annual price
of $10.27 per 25-pound container, about
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75 percent of handlers could be
considered small businesses under
SBA’s definition. In addition, based on
production, grower prices as reported by
the National Agricultural Statistics
Service, and the total number of Florida
tomato growers, the average annual
grower revenue is below $750,000.
Thus, the majority of handlers and
producers of Florida tomatoes may be
classified as small entities.
This rule increases the assessment
rate established for the Committee and
collected from handlers for the 2006–07
and subsequent fiscal periods from
$0.025 to $0.035 per 25-pound container
or equivalent of tomatoes. The
Committee unanimously recommended
2006–07 expenditures of $2,193,700 and
an assessment rate of $0.035 per 25pound container. The assessment rate of
$0.035 is $0.01 higher than the 2005–06
rate. The quantity of assessable tomatoes
for the 2006–07 season is estimated at
50 million cartons. Thus, the $0.035 rate
should provide $1,750,000 in
assessment income. Income derived
from handler assessments, along with
interest income and funds from the
Committee’s authorized reserve, should
be adequate to cover budgeted expenses.
The major expenditures
recommended by the Committee for the
2006–07 fiscal period include
$1,000,000 for education and
promotions, $445,900 for salaries,
$320,000 for research, $67,000 for
employee retirement, and $63,800 for
employee health insurance. Budgeted
expenses for these items in 2005–06
were $1,000,000, $428,000, $320,000,
$65,000, and $63,800, respectively.
As previously mentioned, the number
of assessable containers during 2006–07
is estimated to be 50 million and the
recommended assessment rate should
generate $1,750,000 in income. The
Committee’s financial reserve is now
estimated to be $700,000 and is
available to cover the deficit in
assessment income. The increase in the
assessment rate is needed to continue to
support the increased budget for
advertising and promotion started last
season, while reducing the amount of
funds drawn from the Committee’s
authorized reserve. Without the increase
in the assessment rate, the Committee
would need to utilize an additional
$500,000 from the authorized reserve.
The Committee reviewed and
unanimously recommended 2006–07
expenditures of $2,193,700 which
included increases in administrative
and office salaries. Prior to arriving at
this budget, the Committee considered
information from various sources, such
as the Committee’s Executive
Subcommittee, Finance Subcommittee,
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Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations
Research Subcommittee, and Education
and Promotion Subcommittee.
Alternative expenditure levels were
discussed by these groups, based upon
the relative value of various research
projects to the tomato industry. The
assessment rate of $0.035 per 25-pound
container of assessable tomatoes was
determined by examining the
anticipated expenses and expected
shipments and considering available
reserves. The assessment rate should
generate $1,750,000 in income.
Considering income from interest and
other sources of $190,000, with
assessments, total income should be
approximately $253,700 below the
anticipated expenses, which the
Committee determined to be acceptable.
A review of historical information and
preliminary information pertaining to
the upcoming season indicates that the
grower price for the 2006–07 season
could range between $8.27 and $12.95
per 25-pound container or equivalent of
tomatoes. Therefore, the estimated
assessment revenue for the 2006–07
fiscal period as a percentage of total
grower revenue could range between 0.3
and 0.4 percent.
This action increases the assessment
obligation imposed on handlers. While
assessments impose some additional
costs on handlers, the costs are minimal
and uniform on all handlers. Some of
the additional costs may be passed on
to producers. However, these costs are
offset by the benefits derived by the
operation of the marketing order. In
addition, the Committee’s meeting was
widely publicized throughout the
Florida tomato industry and all
interested persons were invited to
attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the August
22, 2006, meeting was a public meeting
and all entities, both large and small,
were able to express views on this issue.
This rule imposes no additional
reporting or recordkeeping requirements
on either small or large Florida tomato
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.
The 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.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
VerDate Aug<31>2005
13:05 Jan 16, 2007
Jkt 211001
A proposed rule concerning this
action was published in the Federal
Register on November 16, 2006 (71 FR
66702). Copies of the proposed rule
were also mailed or sent via facsimile to
all Florida tomato handlers. Finally, the
proposal was made available through
the Internet by USDA and the Office of
the Federal Register. A 15-day comment
period ending December 1, 2006, was
provided for interested persons to
respond to the proposal. No comments
were received.
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/
fv/moab.html. Any questions about the
compliance guide should be sent to Jay
Guerber at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it also found
and determined that good cause exists
for not postponing the effective date of
this rule until 30 days after publication
in the Federal Register because: (1) The
2006–07 fiscal period began on August
1, 2006, and the marketing order
requires that the rate of assessment for
each fiscal period apply to all assessable
Florida tomatoes handled during such
fiscal period; (2) the Committee needs to
have sufficient funds to pay its expenses
which are incurred on a continuous
basis; and (3) handlers are aware of this
action which was unanimously
recommended by the Committee at a
public meeting and is similar to other
assessment rate actions issued in past
fiscal periods. Also, a 15-day comment
period was provided for in the proposed
rule.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and
recordkeeping requirements, Tomatoes.
I For the reasons set forth in the
preamble, 7 CFR part 966 is amended as
follows:
PART 966—TOMATOES GROWN IN
FLORIDA
1. The authority citation for 7 CFR
part 966 continues to read as follows:
I
Authority: 7 U.S.C. 601–674.
2. Section 966.234 is revised to read
as follows:
I
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§ 966.234
1919
Assessment rate.
On and after August 1, 2006, an
assessment rate of $0.035 per 25-pound
container or equivalent is established
for Florida tomatoes.
Dated: January 11, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 07–149 Filed 1–11–07; 4:45 pm]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Docket No. FVO6–966–1 FR]
Tomatoes Grown in Florida; Partial
Exemption to the Minimum Grade
Requirements
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: This rule provides a partial
exemption to the minimum grade
requirements under the marketing order
for tomatoes grown in Florida (order).
The Florida Tomato Committee
(Committee) locally administers the
order. Under the order, Florida tomatoes
must meet at least a U.S. No. 2 grade
before they can be shipped and sold
outside the regulated area. This rule
exempts UglyRipeTM (UglyRipe)
tomatoes from the shape requirements
associated with the U.S. No. 2 grade.
This change increases the volume of
UglyRipe tomatoes that will meet the
order requirements, and will help
increase shipments and availability of
these tomatoes for consumers.
EFFECTIVE DATE: This final rule becomes
effective January 18, 2007.
FOR FURTHER INFORMATION CONTACT:
William Pimental, Marketing Specialist,
or Christian Nissen, Regional Manager,
Southeast Marketing Field Office,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 325–8793, or e-mail:
William.Pimental@USDA.gov, or
Christian.Nissen@usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; telephone: (202) 720–
2491, Fax: (202) 720–8938, or e-mail:
Jay.Guerber@usda.gov.
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]]>Agencies
[Federal Register Volume 72, Number 10 (Wednesday, January 17, 2007)]
[Rules and Regulations]
[Pages 1917-1919]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-149]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Docket No. AMS-FV-06-0190; FV06-966-2 FR]
Tomatoes Grown in Florida; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule increases the assessment rate established for the
Florida Tomato Committee (Committee) for the 2006-07 and subsequent
fiscal periods from $0.025 to $0.035 per 25-pound container or
equivalent of tomatoes handled. The Committee locally administers the
marketing order which regulates the handling of tomatoes grown in
Florida. Assessments upon Florida tomato handlers are used by the
Committee to fund reasonable and necessary expenses of the program. The
fiscal period begins August 1 and ends July 31. The assessment rate
will remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective Date: January 18, 2007.
FOR FURTHER INFORMATION CONTACT: William G. Pimental, Marketing
Specialist or Christian D. Nissen, Regional Manager, Southeast
Marketing Field Office, Marketing Order Administration Branch, Fruit
and Vegetable Programs, AMS, USDA; Telephone: (863) 324-3375, Fax:
(863) 325-8793, or E-mail: William.Pimental@usda.gov or
Christian.Nissen@usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington, DC 20250-0237; telephone: (202)
720-2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 125 and Order No. 966, both as amended (7 CFR part 966),
regulating the handling of tomatoes grown in Florida, hereinafter
referred to as the ``order.'' 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 Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing order now in effect, Florida tomato
handlers are subject to assessments. Funds to administer the order are
derived from such assessments. It is intended that the assessment rate
as issued herein will be applicable to all assessable tomatoes
beginning August 1, 2006, and continue until amended, suspended, or
terminated. This rule will not preempt any State or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
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 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 rule increases the assessment rate established for the
Committee for the 2006-07 and subsequent fiscal periods from $0.025 to
$0.035 per 25-pound container or equivalent of tomatoes handled.
The Florida tomato marketing order provides authority for the
Committee, with the approval of USDA, to formulate an annual budget of
expenses and collect assessments from handlers to administer the
program. The members of the Committee are producers and handlers of
Florida tomatoes. They are familiar with the Committee's needs and with
the costs for goods and services in their local area and are thus in a
position to formulate an appropriate budget and assessment rate. The
[[Page 1918]]
assessment rate is formulated and discussed in a public meeting. Thus,
all directly affected persons have an opportunity to participate and
provide input.
For the 2003-04 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on August 22, 2006, and unanimously recommended
2006-07 expenditures of $2,193,700 and an assessment rate of $0.035 per
25-pound container or equivalent of tomatoes. In comparison, last
year's budgeted expenditures were $2,161,800. The assessment rate of
$0.035 is $0.01 higher than the rate currently in effect. The increase
in the assessment rate is needed to continue to support the increased
budget for advertising and promotion started last season, while
reducing the amount of funds drawn from the Committee's authorized
reserve. Without the increase in the assessment rate, the Committee
would need to utilize an additional $500,000 from the authorized
reserve.
The major expenditures recommended by the Committee for the 2006-07
fiscal period include $1,000,000 for education and promotions, $445,900
for salaries, $320,000 for research, $67,000 for employee retirement,
and $63,800 for employee health insurance. Budgeted expenses for these
items in 2005-06 were $1,000,000, $428,000, $320,000, $65,000 and
$63,800, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Florida
tomatoes. Tomato shipments for the year are estimated at 50 million
which should provide $1,750,000 in assessment income. Income derived
from handler assessments, along with interest income and funds from the
Committee's authorized reserve, should be adequate to cover budgeted
expenses. Funds in the reserve (currently around $700,000) will be kept
within the maximum permitted by the order of not to exceed one fiscal
period's expenses as stated in Sec. 966.44.
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
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 USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2006-07 budget and those
for subsequent fiscal periods would be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this 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
business 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 100 producers of tomatoes in the production
area and approximately 70 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (SBA) as those having annual receipts less than
$750,000, and small agricultural service firms are defined as those
whose annual receipts are less than $6,500,000 (13 CFR 121.201).
Based on industry and Committee data, the average annual price for
fresh Florida tomatoes during the 2005-06 season was approximately
$10.27 per 25-pound container or equivalent, and total fresh shipments
for the 2005-06 season were 47,880,303 25-pound equivalent cartons of
tomatoes. Committee data indicates that approximately 25 percent of the
handlers handle 94 percent of the total volume shipped outside the
regulated area. Based on the average annual price of $10.27 per 25-
pound container, about 75 percent of handlers could be considered small
businesses under SBA's definition. In addition, based on production,
grower prices as reported by the National Agricultural Statistics
Service, and the total number of Florida tomato growers, the average
annual grower revenue is below $750,000. Thus, the majority of handlers
and producers of Florida tomatoes may be classified as small entities.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2006-07 and subsequent
fiscal periods from $0.025 to $0.035 per 25-pound container or
equivalent of tomatoes. The Committee unanimously recommended 2006-07
expenditures of $2,193,700 and an assessment rate of $0.035 per 25-
pound container. The assessment rate of $0.035 is $0.01 higher than the
2005-06 rate. The quantity of assessable tomatoes for the 2006-07
season is estimated at 50 million cartons. Thus, the $0.035 rate should
provide $1,750,000 in assessment income. Income derived from handler
assessments, along with interest income and funds from the Committee's
authorized reserve, should be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2006-07
fiscal period include $1,000,000 for education and promotions, $445,900
for salaries, $320,000 for research, $67,000 for employee retirement,
and $63,800 for employee health insurance. Budgeted expenses for these
items in 2005-06 were $1,000,000, $428,000, $320,000, $65,000, and
$63,800, respectively.
As previously mentioned, the number of assessable containers during
2006-07 is estimated to be 50 million and the recommended assessment
rate should generate $1,750,000 in income. The Committee's financial
reserve is now estimated to be $700,000 and is available to cover the
deficit in assessment income. The increase in the assessment rate is
needed to continue to support the increased budget for advertising and
promotion started last season, while reducing the amount of funds drawn
from the Committee's authorized reserve. Without the increase in the
assessment rate, the Committee would need to utilize an additional
$500,000 from the authorized reserve.
The Committee reviewed and unanimously recommended 2006-07
expenditures of $2,193,700 which included increases in administrative
and office salaries. Prior to arriving at this budget, the Committee
considered information from various sources, such as the Committee's
Executive Subcommittee, Finance Subcommittee,
[[Page 1919]]
Research Subcommittee, and Education and Promotion Subcommittee.
Alternative expenditure levels were discussed by these groups, based
upon the relative value of various research projects to the tomato
industry. The assessment rate of $0.035 per 25-pound container of
assessable tomatoes was determined by examining the anticipated
expenses and expected shipments and considering available reserves. The
assessment rate should generate $1,750,000 in income. Considering
income from interest and other sources of $190,000, with assessments,
total income should be approximately $253,700 below the anticipated
expenses, which the Committee determined to be acceptable.
A review of historical information and preliminary information
pertaining to the upcoming season indicates that the grower price for
the 2006-07 season could range between $8.27 and $12.95 per 25-pound
container or equivalent of tomatoes. Therefore, the estimated
assessment revenue for the 2006-07 fiscal period as a percentage of
total grower revenue could range between 0.3 and 0.4 percent.
This action increases the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
are offset by the benefits derived by the operation of the marketing
order. In addition, the Committee's meeting was widely publicized
throughout the Florida tomato industry and all interested persons were
invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the August
22, 2006, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large Florida tomato 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.
The 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on November 16, 2006 (71 FR 66702). Copies of the proposed
rule were also mailed or sent via facsimile to all Florida tomato
handlers. Finally, the proposal was made available through the Internet
by USDA and the Office of the Federal Register. A 15-day comment period
ending December 1, 2006, was provided for interested persons to respond
to the proposal. No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because: (1) The
2006-07 fiscal period began on August 1, 2006, and the marketing order
requires that the rate of assessment for each fiscal period apply to
all assessable Florida tomatoes handled during such fiscal period; (2)
the Committee needs to have sufficient funds to pay its expenses which
are incurred on a continuous basis; and (3) handlers are aware of this
action which was unanimously recommended by the Committee at a public
meeting and is similar to other assessment rate actions issued in past
fiscal periods. Also, a 15-day comment period was provided for in the
proposed rule.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
0
For the reasons set forth in the preamble, 7 CFR part 966 is amended as
follows:
PART 966--TOMATOES GROWN IN FLORIDA
0
1. The authority citation for 7 CFR part 966 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 966.234 is revised to read as follows:
Sec. 966.234 Assessment rate.
On and after August 1, 2006, an assessment rate of $0.035 per 25-
pound container or equivalent is established for Florida tomatoes.
Dated: January 11, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 07-149 Filed 1-11-07; 4:45 pm]
BILLING CODE 3410-02-P
