Tomatoes Grown in Florida; Increased Assessment Rate, 43709-43711 [2012-18317]
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43709
Rules and Regulations
Federal Register
Vol. 77, No. 144
Thursday, July 26, 2012
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
[Doc. No. AMS–FV–11–0080; FV11–966–1
FR]
Tomatoes Grown in Florida; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule increases the
assessment rate established for the
Florida Tomato Committee (Committee)
for the 2011–12 and subsequent fiscal
periods from $0.0275 to $0.037 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: July 27, 2012.
FOR FURTHER INFORMATION CONTACT:
Doris Jamieson, Marketing Specialist, or
Christian D. Nissen, Regional Director,
Southeast Marketing Field Office,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 325–8793, or Email:
Doris.Jamieson@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Laurel May,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
rmajette on DSK2TPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
15:02 Jul 25, 2012
Jkt 226001
2491, Fax: (202) 720–8938, or Email:
Laurel.May@ams.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, 2011, and continue
until amended, suspended, or
terminated.
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 2011–12 and subsequent fiscal
periods from $0.0275 to $0.037 per 25pound 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
PO 00000
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Fmt 4700
Sfmt 4700
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 2009–10 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 23,
2011, and unanimously recommended
2011–12 expenditures of $1,496,452 and
an assessment rate of $0.037 per 25pound carton of tomatoes. In
comparison, last year’s budgeted
expenditures were $1,496,971. The
assessment rate of $0.037 is $0.0095
higher than the rate currently in effect.
The Committee estimates the 2011–
2012 crop to be approximately 35
million 25-pound cartons, down from
the 45 million cartons estimated for last
year. At the current assessment rate,
assessment income would equal only
$962,500, an amount insufficient to
cover the Committee’s anticipated
expenditures. Therefore, the Committee
voted to increase the assessment rate in
order to generate sufficient funds to
meet Committee expenses.
The major expenditures
recommended by the Committee for the
2011–12 year include $575,000 for
education and promotion, $436,372 for
salaries, $250,000 for research, and
$64,000 for office space. Budgeted
expenses for these items in 2010–11
were $535,500, $436,372, $250,000, and
$62,283, 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
35 million 25-pound cartons which
should provide $1,295,000 in
assessment income. Income derived
from handler assessments, along with
interest income, USDA Market Access
Program (MAP) funds, and funds from
the Committee’s authorized reserve,
E:\FR\FM\26JYR1.SGM
26JYR1
43710
Federal Register / Vol. 77, No. 144 / Thursday, July 26, 2012 / Rules and Regulations
should be adequate to cover budgeted
expenses. Funds in the reserve
(approximately $200,000) 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.
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 2011–12 budget and those
for subsequent fiscal periods would be
reviewed and, as appropriate, approved
by USDA.
rmajette on DSK2TPTVN1PROD with RULES
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 100
producers of tomatoes in the production
area and approximately 80 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).
VerDate Mar<15>2010
15:02 Jul 25, 2012
Jkt 226001
Based on industry and Committee
data, the average annual price for fresh
Florida tomatoes during the 2010–11
season was approximately $13.88 per
25-pound container, and total fresh
shipments for the 2010–11 season were
36,100,637 25-pound cartons of
tomatoes. Committee data indicates that
approximately 21 percent of the
handlers handle 90 percent of the total
volume shipped. Based on the average
price, about 80 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 2011–12
and subsequent fiscal periods from
$0.0275 to $0.037 per 25-pound carton
of tomatoes. The Committee
unanimously recommended 2011–12
expenditures of $1,496,452 and an
assessment rate of $0.037 per 25-pound
carton of tomatoes. The assessment rate
of $0.037 is $0.0095 higher than the
2010–11 rate. The quantity of assessable
tomatoes for the 2011–12 season is
estimated at 35 million cartons. Thus,
the $0.037 rate should provide
$1,295,000 in assessment income.
Income derived from handler
assessments, along with interest income,
MAP funds, and funds from the
Committee’s authorized reserve fund,
should be adequate to meet this year’s
expenses.
The major expenditures
recommended by the Committee for the
2011–12 year include $575,000 for
Education and Promotion, $436,372 for
salaries, $250,000 for research, and
$64,000 for office space. Budgeted
expenses for these items in 2010–11
were $535,500, $436,372, $250,000, and
$62,283, respectively.
The Committee estimates the 2011–12
crop to be approximately 35 million 25pound cartons, down from the 45
million cartons estimated for last year.
At the current assessment rate,
assessment income would equal only
$962,500, an amount insufficient to
cover the Committee’s anticipated
expenditures. Therefore, the Committee
voted to increase the assessment rate in
order to generate sufficient funds to
meet Committee expenses.
The Committee reviewed and
unanimously recommended 2011–12
expenditures of $1,496,452. Prior to
arriving at this budget, the Committee
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
considered information from various
sources, such as the Committee’s
Executive Subcommittee, Finance
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 $0.037
per 25-pound carton of assessable
tomatoes was then determined by
dividing the total recommended budget
by the quantity of assessable tomatoes,
estimated at 35 million 25-pound
cartons for the 2011–12 year. The
increased assessment rate should
provide $1,295,000 in assessment
income. This is approximately $201,452
below 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 2011–12 season
could range between $32.80 and $4.83
per 25-pound carton of tomatoes.
Therefore, the estimated assessment
revenue for the 2011–12 crop year as a
percentage of total grower revenue
could range between .1 and .8 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
23, 2011, meeting was a public meeting
and all entities, both large and small,
were able to express views on this issue.
In accordance with the Paperwork
Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178 Vegetable
and Specialty Crops. No changes in
those requirements as a result of this
action are necessary. Should any
changes become necessary, they would
be submitted to OMB for approval.
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
E:\FR\FM\26JYR1.SGM
26JYR1
Federal Register / Vol. 77, No. 144 / Thursday, July 26, 2012 / Rules and Regulations
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.
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 April 10, 2012 (77 FR
21492). Copies of the proposed rule
were also mailed or sent via facsimile to
all 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 April 25, 2012, was
provided for interested persons to
respond to the proposal. Three
comments were received in support of
the proposal. One commenter stated that
he initially had concerns regarding the
increase in the assessment rate.
However, after reviewing the
Committee’s budget of expenditures and
noting that the increase is paid
uniformly among all handlers, he stated
the increase was necessary and fairly
distributed. Another commenter noted
that the increase is necessary due to the
rising prices of goods and services and
is only proposed to cover budgeted
expenses. Another commenter stated the
increase would improve the income for
local farmers.
Accordingly, no changes will be made
to the rule as proposed, based on the
comments received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Laurel May at
the previously mentioned address in the
rmajette on DSK2TPTVN1PROD with RULES
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 2011–12
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15:02 Jul 25, 2012
Jkt 226001
crop tomatoes from growers; the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable tomatoes handled
during such period; and, 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 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.
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:
■
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, 2011, an
assessment rate of $0.037 per 25-pound
carton is established for Florida
tomatoes.
Dated: July 20, 2012.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
43711
paragraph c.
3. In Category 5:
A. On page 794, in part I, in 5A001,
add ‘‘or antennae’’ after ‘‘Unit:
Equipment’’.
B. On page 798, in part I, in 5A991,
remove the note following
paragraph c.2.
C. On page 803, in part II, in 5A003,
in the table for ‘‘License
Requirements’’, remove the entry
for EI and place it below the table
as an indented paragraph.
D. On page 805, in part II, above
5D002, add the headings ‘‘C.
Materials—[Reserved]’’ and ‘‘D.
Software’’.
E. On page 805, in part II, in 5D002,
in the table for ‘‘License
Requirements’’, remove the entry
for EI and place it below the table
as an indented paragraph.
F. On page 806, in part II, in 5E002,
in the License Requirement Note,
remove ‘‘5D002.a or 5D002.c’’ and
insert ‘‘5D002’’ in its place.
G. On page 806, in part II, in 5E002,
after the License Requirement Note,
remove ‘‘Refer to § 742.15 of the
EAR’’.
H. On page 807, in part II, in 5E002,
after ‘‘Related Controls’’ and before
‘‘Items’’, add ‘‘Related Definitions:
N/A’’.
[FR Doc. 2012–18365 Filed 7–25–12; 8:45 am]
BILLING CODE 1505–01–D
DEPARTMENT OF ENERGY
[FR Doc. 2012–18317 Filed 7–25–12; 8:45 am]
BILLING CODE 3410–02–P
Federal Energy Regulatory
Commission
DEPARTMENT OF COMMERCE
18 CFR Part 284
Bureau of Industry and Security
[Docket No. RM96–1–037; Order No.
587–V]
15 CFR Part 774
Standards for Business Practices of
Interstate Natural Gas Pipelines
The Commerce Control List
In Title 15 of the Code of Federal
Regulations, Parts 300 to 799, revised as
of January 1, 2012, in supplement no. 1
to part 774, make the following
corrections:
1. In Category 3:
A. On page 766, in 3A001, remove the
second entry for c.1.b.1.
B. On page 768, in 3A002, remove the
second paragraph ‘‘CIV’’.
C. On page 782, in 3C001, under
‘‘Items:’’ remove ‘‘a. Silicon;’’.
2. In Category 4:
A. On page 790, in 4A994, in the
heading correct ‘‘therefore’’ to read
‘‘therefor’’.
B. On page 793, in 4E993, remove
PO 00000
Frm 00003
Fmt 4700
Federal Energy Regulatory
Commission.
ACTION: Final rule.
AGENCY:
CFR Correction
Sfmt 4700
In this Final Rule, the Federal
Energy Regulatory Commission
(Commission) amends its regulations to
incorporate by reference the latest
version (Version 2.0) of certain business
practice standards adopted by the
Wholesale Gas Quadrant (WGQ) of the
North American Energy Standards
Board (NAESB) applicable to natural gas
pipelines. In addition, based on the
minor corrections and errata made by
NAESB and reported to the Commission
on May 4, 2012, the Commission will
incorporate by reference certain
standards that it earlier proposed not to
SUMMARY:
E:\FR\FM\26JYR1.SGM
26JYR1
]]>Agencies
[Federal Register Volume 77, Number 144 (Thursday, July 26, 2012)]
[Rules and Regulations]
[Pages 43709-43711]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-18317]
========================================================================
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. 77, No. 144 / Thursday, July 26, 2012 / Rules
and Regulations
[[Page 43709]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No. AMS-FV-11-0080; FV11-966-1 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 2011-12 and subsequent
fiscal periods from $0.0275 to $0.037 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: July 27, 2012.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist,
or Christian D. Nissen, Regional Director, Southeast Marketing Field
Office, Marketing Order and Agreement Division, Fruit and Vegetable
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 325-8793, or
Email: Doris.Jamieson@ams.usda.gov or Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Laurel May, Marketing Order and Agreement
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: Laurel.May@ams.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, 2011, and continue until amended, suspended, or
terminated.
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 2011-12 and subsequent fiscal periods from $0.0275 to
$0.037 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 2009-10 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 23, 2011, and unanimously recommended
2011-12 expenditures of $1,496,452 and an assessment rate of $0.037 per
25-pound carton of tomatoes. In comparison, last year's budgeted
expenditures were $1,496,971. The assessment rate of $0.037 is $0.0095
higher than the rate currently in effect.
The Committee estimates the 2011-2012 crop to be approximately 35
million 25-pound cartons, down from the 45 million cartons estimated
for last year. At the current assessment rate, assessment income would
equal only $962,500, an amount insufficient to cover the Committee's
anticipated expenditures. Therefore, the Committee voted to increase
the assessment rate in order to generate sufficient funds to meet
Committee expenses.
The major expenditures recommended by the Committee for the 2011-12
year include $575,000 for education and promotion, $436,372 for
salaries, $250,000 for research, and $64,000 for office space. Budgeted
expenses for these items in 2010-11 were $535,500, $436,372, $250,000,
and $62,283, 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 35 million 25-
pound cartons which should provide $1,295,000 in assessment income.
Income derived from handler assessments, along with interest income,
USDA Market Access Program (MAP) funds, and funds from the Committee's
authorized reserve,
[[Page 43710]]
should be adequate to cover budgeted expenses. Funds in the reserve
(approximately $200,000) 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 2011-12 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) (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 100 producers of tomatoes in the production
area and approximately 80 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 2010-11 season was approximately
$13.88 per 25-pound container, and total fresh shipments for the 2010-
11 season were 36,100,637 25-pound cartons of tomatoes. Committee data
indicates that approximately 21 percent of the handlers handle 90
percent of the total volume shipped. Based on the average price, about
80 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 2011-12 and subsequent
fiscal periods from $0.0275 to $0.037 per 25-pound carton of tomatoes.
The Committee unanimously recommended 2011-12 expenditures of
$1,496,452 and an assessment rate of $0.037 per 25-pound carton of
tomatoes. The assessment rate of $0.037 is $0.0095 higher than the
2010-11 rate. The quantity of assessable tomatoes for the 2011-12
season is estimated at 35 million cartons. Thus, the $0.037 rate should
provide $1,295,000 in assessment income. Income derived from handler
assessments, along with interest income, MAP funds, and funds from the
Committee's authorized reserve fund, should be adequate to meet this
year's expenses.
The major expenditures recommended by the Committee for the 2011-12
year include $575,000 for Education and Promotion, $436,372 for
salaries, $250,000 for research, and $64,000 for office space. Budgeted
expenses for these items in 2010-11 were $535,500, $436,372, $250,000,
and $62,283, respectively.
The Committee estimates the 2011-12 crop to be approximately 35
million 25-pound cartons, down from the 45 million cartons estimated
for last year. At the current assessment rate, assessment income would
equal only $962,500, an amount insufficient to cover the Committee's
anticipated expenditures. Therefore, the Committee voted to increase
the assessment rate in order to generate sufficient funds to meet
Committee expenses.
The Committee reviewed and unanimously recommended 2011-12
expenditures of $1,496,452. Prior to arriving at this budget, the
Committee considered information from various sources, such as the
Committee's Executive Subcommittee, Finance 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 $0.037 per 25-pound carton of assessable tomatoes was then
determined by dividing the total recommended budget by the quantity of
assessable tomatoes, estimated at 35 million 25-pound cartons for the
2011-12 year. The increased assessment rate should provide $1,295,000
in assessment income. This is approximately $201,452 below 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 2011-12 season could range between $32.80 and $4.83 per 25-
pound carton of tomatoes. Therefore, the estimated assessment revenue
for the 2011-12 crop year as a percentage of total grower revenue could
range between .1 and .8 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
23, 2011, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0178 Vegetable and Specialty Crops. No changes in
those requirements as a result of this action are necessary. Should any
changes become necessary, they would be submitted to OMB for approval.
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
[[Page 43711]]
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.
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 April 10, 2012 (77 FR 21492). Copies of the proposed rule
were also mailed or sent via facsimile to all 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 April
25, 2012, was provided for interested persons to respond to the
proposal. Three comments were received in support of the proposal. One
commenter stated that he initially had concerns regarding the increase
in the assessment rate. However, after reviewing the Committee's budget
of expenditures and noting that the increase is paid uniformly among
all handlers, he stated the increase was necessary and fairly
distributed. Another commenter noted that the increase is necessary due
to the rising prices of goods and services and is only proposed to
cover budgeted expenses. Another commenter stated the increase would
improve the income for local farmers.
Accordingly, no changes will be made to the rule as proposed, based
on the comments received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about
the compliance guide should be sent to Laurel May 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 2011-12 crop tomatoes from growers; the marketing
order requires that the rate of assessment for each fiscal period apply
to all assessable tomatoes handled during such period; and, 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 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.
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, 2011, an assessment rate of $0.037 per 25-
pound carton is established for Florida tomatoes.
Dated: July 20, 2012.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2012-18317 Filed 7-25-12; 8:45 am]
BILLING CODE 3410-02-P
