Tomatoes Grown In Florida; Increased Assessment Rate, 855-857 [E9-174]
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Rules and Regulations
Federal Register
Vol. 74, No. 6
Friday, January 9, 2009
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. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Docket No. AMS–FV–08–0081; FV08–966–
1 FR]
Tomatoes Grown In Florida; Increased
Assessment Rate
yshivers on PROD1PC62 with RULES
AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Final rule.
SUMMARY: This rule increases the
assessment rate established for the
Florida Tomato Committee (Committee)
for the 2008–09 and subsequent fiscal
periods from $0.0325 to $0.0375 per 25pound carton of tomatoes handled. The
Committee locally administers the
marketing order which regulates the
handling of tomatoes grown in Florida.
Assessments upon 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 12, 2009.
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,
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15:07 Jan 08, 2009
Jkt 217001
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202)720–8938, or E-mail:
Jay.Guerber@usda.gov.
This final
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 on August 1, 2008, 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 2008–09 and subsequent fiscal
periods from $0.0325 to $0.0375 per 25pound carton of tomatoes.
SUPPLEMENTARY INFORMATION:
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Fmt 4700
Sfmt 4700
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 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 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 2007–08 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 14,
2008, and unanimously recommended
2008–09 expenditures of $2,438,200 and
an assessment rate of $0.0375 per 25pound carton of tomatoes. In
comparison, last year’s budgeted
expenditures were $2,101,000. The
assessment rate of $0.0375 is $0.005
higher than the rate currently in effect.
The assessment increase is needed to
offset the 2008–09 increase in education
and promotion expenses, salaries, and
employee retirement. Without the
increase in the assessment rate, the
Committee will need to utilize an
additional $250,000 from the authorized
reserve. Therefore, the Committee voted
to increase the assessment rate.
The major expenditures
recommended by the Committee for the
2008–09 year include $1,200,000 for
education and promotion, $505,500 for
salaries, $320,000 for research, and
$77,000 for employee retirement.
Budgeted expenses for these items in
2007–08 were $900,000, $467,000,
$320,000, and $71,000, respectively.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses, less anticipated
funds from the USDA Market Access
Program (MAP), by expected shipments
of Florida tomatoes. Tomato shipments
for the year are estimated at 50 million
25-pound cartons and should provide
$1,875,000 in assessment income.
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09JAR1
856
Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Rules and Regulations
yshivers on PROD1PC62 with RULES
Income derived from handler
assessments, along with interest income,
MAP funds, and funds from the
Committee’s authorized reserve, will be
adequate to cover budgeted expenses.
Funds in the reserve (currently
approximately $593,000) will be kept
within the maximum permitted by the
order of not to exceed one fiscal period’s
expenses as stated in § 966.44 of the
order.
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 2008–09 budget and those
for subsequent fiscal periods will be
reviewed and, as appropriate, approved
by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (5 U.S.C.
601–612) (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.
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
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15:07 Jan 08, 2009
Jkt 217001
$750,000, and small agricultural service
firms are defined as those whose annual
receipts are less than $7,000,000 (13
CFR 121.201).
Based on industry and Committee
data, the average annual price for fresh
Florida tomatoes during the 2007–08
season was approximately $13.71 per
25-pound container, and total fresh
shipments for the 2007–08 season were
45,177,457 25-pound 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 price, about
75 percent of handlers could be
considered small businesses under
SBA’s definition. In addition, based on
production data, 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 2008–09
and subsequent fiscal periods from
$0.0325 to $0.0375 per 25-pound carton
of tomatoes. The Committee
unanimously recommended 2008–09
expenditures of $2,438,200 and an
assessment rate of $0.0375 per 25-pound
carton. The assessment rate of $0.0375
is $0.005 higher than the 2007–08 rate.
The quantity of assessable tomatoes for
the 2008–09 season is estimated at 50
million 25-pound cartons. Thus, the
$0.0375 rate should provide $1,875,000
in assessments. Income derived from
handler assessments, along with interest
income and funds from the Committee’s
authorized reserve, and other income,
should be adequate to cover budgeted
expenses.
The major expenditures
recommended by the Committee for the
2008–09 year include $1,200,000 for
education and promotion, $505,500 for
salaries, $320,000 for research, and
$77,000 for employee retirement.
Budgeted expenses for these items in
2007–08 were $900,000, $467,000,
$320,000, and $71,000, respectively.
The assessment increase is needed to
offset the 2008–09 increase in education
and promotion expenses, salaries, and
employee retirement. Without the
increase in the assessment rate, the
Committee would need to utilize an
additional $250,000 from the authorized
reserve. Therefore, the Committee voted
to increase the assessment rate.
The Committee reviewed and
unanimously recommended 2008–09
expenditures of $2,438,200, which
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
included increases in education and
promotion, salaries, and employee
retirement. Prior to arriving at this
budget, the Committee considered
information from various sources, such
as the Committee’s Executive
Subcommittee, Finance Subcommittee,
Research Subcommittee, and Education
and Promotion Subcommittee.
Alternative expenditure levels were
discussed by these groups based upon
the relative value of various education
and promotion projects to the tomato
industry. The assessment rate of $0.0375
per 25-pound container of assessable
tomatoes was determined by examining
the anticipated expenses, expected
shipments, MAP funds, and available
reserves. The recommended assessment
rate should generate $1,875,000 in
income. Considering income from
assessments, interest, and other sources,
total income will be approximately
$27,000 below the anticipated expenses,
which the Committee determined to be
acceptable.
A review of historical information and
preliminary information pertaining to
the 2008–09 fiscal period indicates that
the grower price for the 2008–09 season
could range between $7.98 and $12.95
per 25-pound carton of tomatoes.
Therefore, the estimated assessment
revenue for the 2008–09 season as a
percentage of total grower revenue
could range between 0.3 and 0.5
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
14, 2008, 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. As noted in the initial
regulatory flexibility analysis, USDA
has not identified any relevant Federal
rules that duplicate, overlap, or conflict
with this final rule.
E:\FR\FM\09JAR1.SGM
09JAR1
Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Rules and Regulations
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.
A proposed rule concerning this
action was published in the Federal
Register on October 20, 2008 (73 FR
62218). Copies of the proposed rule
were mailed or sent via facsimile to all
Committee members and Florida tomato
handlers. Finally, the proposal was
made available through the Internet by
USDA and the Office of the Federal
Register. A 30-day comment period
ending November 19, 2008, 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/
AMSv1.0/ams.fetch
TemplateData.do?template=
TemplateN&page=MarketingOrders
SmallBusinessGuide. 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
handlers are already receiving tomatoes
from the 2008–09 crop, and the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable tomatoes handled
during such period. In addition, the
Committee needs to have sufficient
funds to pay its expenses which are
incurred on a continuous basis. Further,
handlers are aware of this rule which
was recommended at a public meeting.
Also, a 30-day comment period was
provided for in the proposed rule.
yshivers on PROD1PC62 with RULES
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and
recordkeeping requirements, Tomatoes.
For the reasons set forth in the
preamble, 7 CFR part 966 is amended as
follows:
■
VerDate Nov<24>2008
15:07 Jan 08, 2009
Jkt 217001
PART 966—TOMATOES GROWN IN
FLORIDA
1. The authority citation for 7 CFR
part 966 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 966.234 is revised to read
as follows:
■
§ 966.234
Assessment Rate.
On and after August 1, 2008, an
assessment rate of $0.0375 per 25-pound
carton is established for Florida
tomatoes.
Dated: January 5, 2009.
James E. Link,
Administrator, Agricultural Marketing
Service.
[FR Doc. E9–174 Filed 1–8–09; 8:45 am]
BILLING CODE 3410–02–P
FEDERAL TRADE COMMISSION
16 CFR Part 1
Federal Civil Penalties Inflation
Adjustment Act
AGENCY:
Federal Trade Commission
(FTC).
ACTION:
Final rule amendments.
SUMMARY: The FTC is making
adjustments to certain civil penalty
amounts within its jurisdiction, as
required by law. These adjustments
reflect inflation since the penalty
amounts were last adjusted.
EFFECTIVE DATE: February 9, 2009.
FOR FURTHER INFORMATION CONTACT:
Kathleen R. Johnson, Attorney, Office of
General Counsel, FTC, 600
Pennsylvania Avenue, NW, Washington,
DC 20580, (202) 326-2869,
kjohnson2@ftc.gov.
As
required at least once every four years
by the Federal Civil Penalties Inflation
Adjustment Act of 1990 (FCPIAA), 28
U.S.C. 2461 note, as amended by the
Debt Collection Improvement Act of
1996, Pub. L. 104-134, 31001(s)(1), 110
Stat. 1321-373, the FTC is making
certain regulatory adjustments to civil
penalty amounts within its jurisdiction.
The civil penalty amounts adjusted by
the FTC are set forth in Commission
Rule 1.98, 16 CFR 1.98. The FTC
published the original adjustments in
1996. See 61 FR 54548 (Oct. 21, 1996),
55840 (Oct. 29, 1996). No adjustments
were warranted under the law in 2000.
See 65 FR 69665 (Nov. 20, 2000). The
FTC published adjustments to civil
penalties under the Clayton Act section
11(l) and the Energy Policy and
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
857
Conservation Act section 525(a) in 2004.
See 69 FR 76611 (Dec. 22, 2004).
Adjustments are based on the increase
in the Consumer Price Index (CPI)
between June of the year in which the
prior adjustment was made and June of
the year preceding the year in which the
adjustment is being made. Thus, for
civil penalties adjusted in 2004, the
relevant CPI period is between June,
2004 and June, 2007. Within that time
frame, the CPI has increased from 189.7
to 208.352, or 9.8%. Applying this
percentage increase to currently
adjusted civil penalty amounts, the FTC
is adjusting civil penalty amounts
currently set at $6,500 under two
statutes: the Clayton Act section 11(l),
for violations of cease-and-desist orders
issued under section 11(b) of that Act;
and section 525(a) of the Energy Policy
and Conservation Act, for recycled oil
labeling violations. Each will be
adjusted to $7,500, in accordance with
the rounding rules of the adjustment
statute.
For civil penalties that were last
adjusted in 1996, the relevant CPI
period is between June, 1996 and June,
2007. During this period, the CPI
increased from 156.7 to 208.352 for a
total percentage increase of 32.96%.
Applying this percentage increase to the
civil penalties as they were adjusted in
1996 results in an increase from $11,000
to $16,000 for civil penalties in the
following statutes: premerger
notification violations under the HartScott-Rodino Antitrust Improvements
Act section 7A(g)(1), unfair or deceptive
acts or practices under the FTC Act
sections 5(l), (m)(1)(A) and (m)(1)(B),
and energy conservation violations
under the Energy Policy and
Conservation Act section 525(b).
Further, applying the CPI increase to
credit reporting violations under the
Fair Credit Reporting Act section
621(a)(2) raises that penalty amount
from $2,500 to $3,500.
The FTC is amending Commission
Rule 1.98 by modifying paragraphs (a)
through (e), (l) and (m) and adding
paragraph (n) to reflect these
adjustments, which will become
effective thirty days following
publication.
The FCPIAA rounding rules do not
authorize the FTC at this time to
increase the amounts of the other civil
penalties within its jurisdiction.
Increases in civil penalties of greater
than $100 and less than or equal to
$1,000 must be in $100 increments, and
the increase in the CPI was not high
enough to round up any adjustment to
$100. Accordingly, all other paragraphs
of Commission Rule 1.98 remain
unchanged.
E:\FR\FM\09JAR1.SGM
09JAR1
]]>Agencies
[Federal Register Volume 74, Number 6 (Friday, January 9, 2009)]
[Rules and Regulations]
[Pages 855-857]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-174]
========================================================================
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.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 74, No. 6 / Friday, January 9, 2009 / Rules
and Regulations
[[Page 855]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Docket No. AMS-FV-08-0081; FV08-966-1 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 2008-09 and subsequent
fiscal periods from $0.0325 to $0.0375 per 25-pound carton of tomatoes
handled. The Committee locally administers the marketing order which
regulates the handling of tomatoes grown in Florida. Assessments upon
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 12, 2009.
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 final 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 on August 1, 2008, 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 2008-09 and subsequent fiscal periods from $0.0325 to
$0.0375 per 25-pound carton of tomatoes.
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 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
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 2007-08 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 14, 2008, and unanimously recommended
2008-09 expenditures of $2,438,200 and an assessment rate of $0.0375
per 25-pound carton of tomatoes. In comparison, last year's budgeted
expenditures were $2,101,000. The assessment rate of $0.0375 is $0.005
higher than the rate currently in effect. The assessment increase is
needed to offset the 2008-09 increase in education and promotion
expenses, salaries, and employee retirement. Without the increase in
the assessment rate, the Committee will need to utilize an additional
$250,000 from the authorized reserve. Therefore, the Committee voted to
increase the assessment rate.
The major expenditures recommended by the Committee for the 2008-09
year include $1,200,000 for education and promotion, $505,500 for
salaries, $320,000 for research, and $77,000 for employee retirement.
Budgeted expenses for these items in 2007-08 were $900,000, $467,000,
$320,000, and $71,000, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses, less anticipated funds from the USDA
Market Access Program (MAP), by expected shipments of Florida tomatoes.
Tomato shipments for the year are estimated at 50 million 25-pound
cartons and should provide $1,875,000 in assessment income.
[[Page 856]]
Income derived from handler assessments, along with interest income,
MAP funds, and funds from the Committee's authorized reserve, will be
adequate to cover budgeted expenses. Funds in the reserve (currently
approximately $593,000) 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 of the order.
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 2008-09 budget and those
for subsequent fiscal periods will be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (5 U.S.C. 601-612) (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.
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 $7,000,000 (13 CFR 121.201).
Based on industry and Committee data, the average annual price for
fresh Florida tomatoes during the 2007-08 season was approximately
$13.71 per 25-pound container, and total fresh shipments for the 2007-
08 season were 45,177,457 25-pound 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 price, about 75 percent of handlers could be considered
small businesses under SBA's definition. In addition, based on
production data, 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 2008-09 and subsequent
fiscal periods from $0.0325 to $0.0375 per 25-pound carton of tomatoes.
The Committee unanimously recommended 2008-09 expenditures of
$2,438,200 and an assessment rate of $0.0375 per 25-pound carton. The
assessment rate of $0.0375 is $0.005 higher than the 2007-08 rate. The
quantity of assessable tomatoes for the 2008-09 season is estimated at
50 million 25-pound cartons. Thus, the $0.0375 rate should provide
$1,875,000 in assessments. Income derived from handler assessments,
along with interest income and funds from the Committee's authorized
reserve, and other income, should be adequate to cover budgeted
expenses.
The major expenditures recommended by the Committee for the 2008-09
year include $1,200,000 for education and promotion, $505,500 for
salaries, $320,000 for research, and $77,000 for employee retirement.
Budgeted expenses for these items in 2007-08 were $900,000, $467,000,
$320,000, and $71,000, respectively.
The assessment increase is needed to offset the 2008-09 increase in
education and promotion expenses, salaries, and employee retirement.
Without the increase in the assessment rate, the Committee would need
to utilize an additional $250,000 from the authorized reserve.
Therefore, the Committee voted to increase the assessment rate.
The Committee reviewed and unanimously recommended 2008-09
expenditures of $2,438,200, which included increases in education and
promotion, salaries, and employee retirement. Prior to arriving at this
budget, the Committee considered information from various sources, such
as the Committee's Executive Subcommittee, Finance Subcommittee,
Research Subcommittee, and Education and Promotion Subcommittee.
Alternative expenditure levels were discussed by these groups based
upon the relative value of various education and promotion projects to
the tomato industry. The assessment rate of $0.0375 per 25-pound
container of assessable tomatoes was determined by examining the
anticipated expenses, expected shipments, MAP funds, and available
reserves. The recommended assessment rate should generate $1,875,000 in
income. Considering income from assessments, interest, and other
sources, total income will be approximately $27,000 below the
anticipated expenses, which the Committee determined to be acceptable.
A review of historical information and preliminary information
pertaining to the 2008-09 fiscal period indicates that the grower price
for the 2008-09 season could range between $7.98 and $12.95 per 25-
pound carton of tomatoes. Therefore, the estimated assessment revenue
for the 2008-09 season as a percentage of total grower revenue could
range between 0.3 and 0.5 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
14, 2008, 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. As noted in the
initial regulatory flexibility analysis, USDA has not identified any
relevant Federal rules that duplicate, overlap, or conflict with this
final rule.
[[Page 857]]
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.
A proposed rule concerning this action was published in the Federal
Register on October 20, 2008 (73 FR 62218). Copies of the proposed rule
were mailed or sent via facsimile to all Committee members and Florida
tomato handlers. Finally, the proposal was made available through the
Internet by USDA and the Office of the Federal Register. A 30-day
comment period ending November 19, 2008, 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/AMSv1.0/
ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBus
inessGuide. 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 handlers are
already receiving tomatoes from the 2008-09 crop, and the marketing
order requires that the rate of assessment for each fiscal period apply
to all assessable tomatoes handled during such period. In addition, the
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis. Further, handlers are aware of this
rule which was recommended at a public meeting. Also, a 30-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, 2008, an assessment rate of $0.0375 per 25-
pound carton is established for Florida tomatoes.
Dated: January 5, 2009.
James E. Link,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-174 Filed 1-8-09; 8:45 am]
BILLING CODE 3410-02-P
