Avocados Grown in South Florida; Increased Assessment Rate, 7095-7096 [2011-2888]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 76, Number 27 (Wednesday, February 9, 2011)]
[Rules and Regulations]
[Pages 7095-7096]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-2888]



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Federal Register / Vol. 76, No. 27 / Wednesday, February 9, 2011 / 
Rules and Regulations

[[Page 7095]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 915

[Doc. No. AMS-FV-10-0067; FV10-915-1 FIR]


Avocados Grown in South Florida; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that increased the assessment 
rate established for the Avocado Administrative Committee (Committee), 
for the 2010-11 and subsequent fiscal periods from $0.27 to $0.37 per 
55-pound bushel container of Florida avocados handled. The Committee 
locally administers the marketing order which regulates the handling of 
avocados grown in South Florida. The assessment rate will remain in 
effect indefinitely unless modified, suspended, or terminated.

DATES: Effective Date: Effective February 10, 2011.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, 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: Doris.Jamieson@ams.usda.gov or Christian.Nissen@ams.usda.gov.
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: https://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide; or by contacting Antoinette Carter, 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: 
Antoinette.Carter@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 915, as amended (7 CFR part 915), regulating the handling of 
avocados grown in South 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.''
    USDA is issuing this rule in conformance with Executive Order 
12866.
    Under the order, Florida avocado handlers are subject to 
assessments, which provide funds to administer the order. Assessment 
rates issued under the order are intended to be applicable to all 
assessable avocados for the entire fiscal period, and continue 
indefinitely until amended, suspended, or terminated. The Committee's 
fiscal period begins on April 1, and ends on March 31.
    In an interim rule published in the Federal Register on September 
15, 2010, and effective on September 16, 2010 (75 FR 55942, Doc. No. 
AMS-FV-10-0067; FV10-915-1 IR), Sec.  915.235 was amended by increasing 
the assessment rate established for the Committee for the 2010-11 and 
subsequent fiscal periods from $0.27 to $0.37 per 55-pound container or 
equivalent of Florida avocados. The increase in the per-unit assessment 
rate was necessary to fund research to find an insecticide that will 
kill or control the Red Bay Ambrosia beetle.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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 30 handlers of Florida avocados subject to 
regulation under the order and approximately 300 producers of avocados 
in the production area. Small agricultural service firms, which include 
avocado handlers, are defined by the Small Business Administration 
(SBA) as those whose annual receipts are less than $7,000,000, and 
small agricultural producers are defined as those having annual 
receipts less than $750,000 (13 CFR 121.201).
    According to Committee data and information from the National 
Agricultural Statistical Service, the average price for Florida 
avocados during the 2009-10 season was around $16.50 per 55-pound 
bushel container and total shipments were near 900,000 55-pound 
bushels. Using the average price and shipment information provided by 
the Committee, the majority of avocado handlers could be considered 
small businesses under SBA's definition. In addition, based on avocado 
production, producer prices, and the total number of Florida avocado 
producers, the average annual producer revenue is less than $750,000. 
Consequently, the majority of avocado handlers and producers may be 
classified as small entities.
    This rule continues in effect the action that increased the 
assessment rate established for the Committee and collected from 
handlers for the 2010-11 and subsequent fiscal periods from $0.27 to 
$0.37 per 55-pound bushel container of Florida avocados. The Committee 
unanimously recommended 2010-11 expenditures of $351,502 and an 
assessment rate of $0.37 per 55-pound bushel container. The assessment 
rate of $0.37 is $0.10 higher than the 2009-10 rate. The quantity of 
assessable Florida avocados for the 2010-11 season is estimated at 
1,000,000. Thus, the $0.37 rate should provide $370,000 in assessment 
income and be adequate to meet this year's expenses. Income derived 
from handler assessments, along with interest income and funds from the 
Committee's authorized reserve fund will be adequate to cover budgeted 
expenses.

[[Page 7096]]

    The major expenditures recommended by the Committee for the 2010-11 
year include $110,000 for research, $98,732 for salaries, $48,000 for 
employee benefits, and $25,300 for insurance and bonds. Budgeted 
expenses for these items in 2009-10 were $25,000, $94,030, $48,000, and 
$25,300, respectively.
    The increase in assessment rate is needed to fund research to find 
an insecticide that will kill or control the Red Bay Ambrosia beetle. 
The beetle carries the Laurel Wilt fungus which can infect and kill 
avocado trees. Research into the beetle and fungus had been funded by 
the University of Florida. However, the Committee was informed that 
funding ceased on August 1, 2010. Without funding, researchers would 
have been unable to continue testing to determine which insecticides 
work best to kill/control the beetle and at what application rate. The 
Committee believes it is essential for the industry that the research 
continues. Therefore, they voted to increase the assessment rate to 
provide the additional research money.
    Prior to arriving at this budget, alternative expenditure levels 
were discussed based upon the relative value of various research 
projects to the Florida avocado industry. The assessment rate of $0.37 
per 55-pound bushel container of assessable Florida avocados was then 
determined by dividing the total recommended budget by the quantity of 
assessable avocados, estimated at 1,000,000 55-pound bushel containers 
for the 2010-11 season. Considering income from assessments and 
interest, total income will be approximately $18,400 above the 
anticipated expenses, which the Committee determined to be acceptable.
    A review of historical information and preliminary information 
pertaining to the upcoming crop year indicates that the grower price 
for the 2010-11 season could range between $9.00 and $66.00 per 55-
pound bushel container of avocados. Therefore, the estimated assessment 
revenue for the 2010-11 season as a percentage of total grower revenue 
could range between .6 and 4 percent.
    This rule continues in effect the action that increased 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 avocado industry 
and all interested persons were invited to attend the meeting and 
participate in Committee deliberations on all issues. Like all 
Committee meetings, the July 22, 2010, meeting was a public meeting and 
all entities, both large and small, were able to express views on this 
issue.
    This action imposes no additional reporting or recordkeeping 
requirements on either small or large Florida avocado 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.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this rule.
    Comments on the interim rule were required to be received on or 
before November 15, 2010. No comments were received. Therefore, for the 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change. To view the interim rule, go to https://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480b4f5ec.
    This action also affirms information contained in the interim rule 
concerning the Executive Orders 12866 and 12988, the Paperwork 
Reduction Act (44 U.S.C. chapter 35), and the E-Gov Act (44 U.S.C. 
101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (75 FR 55942, September 15, 2010) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 915

    Avocados, Reporting and recordkeeping requirements.

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

0
Accordingly, the interim rule amending 7 CFR part 915, which was 
published at 75 FR 55942 on September 15, 2010, is adopted as a final 
rule, without change.

    Dated: February 3, 2011.
David R. Shipman,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2011-2888 Filed 2-8-11; 8:45 am]
BILLING CODE 3410-02-P