Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; Increased Assessment Rate, 2908-2910 [2013-00599]
Download as PDF
2908
Proposed Rules
Federal Register
Vol. 78, No. 10
Tuesday, January 15, 2013
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS–FV–12–0045; FV12–905–1
PR]
Oranges, Grapefruit, Tangerines, and
Tangelos Grown in Florida; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
increase the assessment rate established
for the Citrus Administrative Committee
(Committee) for the 2012–13 and
subsequent fiscal periods from $0.0072
to $0.008 per 4⁄5 bushel carton of citrus
handled. The Committee locally
administers the marketing order which
regulates the handling of oranges,
grapefruit, tangerines, and tangelos
grown in Florida. Assessments upon
citrus 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 would
remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by
January 25, 2013.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments must be sent to the Docket
Clerk, Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938; or
Internet: https://www.regulations.gov.
Comments should reference the
document number and the date and
page number of this issue of the Federal
Register and will be available for public
inspection in the Office of the Docket
Clerk during regular business hours, or
can be viewed at: https://
www.regulations.gov. All comments
tkelley on DSK3SPTVN1PROD with
SUMMARY:
VerDate Mar<15>2010
16:42 Jan 14, 2013
Jkt 229001
submitted in response to this proposed
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Corey E. Elliott, 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:
Corey.Elliott@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
proposed 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
rulemaking is issued under Marketing
Order No. 905, amended (7 CFR part
905), regulating the handling of oranges,
grapefruit, tangerines, and tangelos
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 proposed rule in
conformance with Executive Order
12866.
This rulemaking has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the marketing
order now in effect, Florida citrus
handlers are subject to assessments.
Funds to administer the order are
derived from such assessments. It is
intended that the assessment rate as
proposed herein would be applicable to
all assessable citrus beginning on
August 1, 2012, 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
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
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 proposed rule would increase
the assessment rate established for the
Committee for the 2012–13 and
subsequent fiscal periods from $0.0072
to $0.008 per 4⁄5 bushel carton of citrus.
The Florida citrus 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 citrus. 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 July 17, 2012,
and unanimously recommended 2012–
13 expenditures of $223,500 and an
assessment rate of $0.008 per 4⁄5 bushel
carton of citrus. In comparison, last
year’s budgeted expenditures were also
$223,500. The assessment rate of $0.008
is $0.0008 higher than the rate currently
in effect.
The Committee estimates 2012–2013
production to be approximately 27.3
million 4⁄5 bushel cartons, down from
the 29.5 million 4⁄5 bushel cartons
estimated for last year. At the current
E:\FR\FM\15JAP1.SGM
15JAP1
tkelley on DSK3SPTVN1PROD with
Federal Register / Vol. 78, No. 10 / Tuesday, January 15, 2013 / Proposed Rules
assessment rate, assessment income
would equal only $196,560, an amount
insufficient to cover the Committee’s
anticipated expenditures. The
assessment rate increase would generate
additional revenue and would help
offset the amount of reserves needed to
fund the budget. Therefore, the
Committee recommended increasing the
assessment rate.
The major expenditures
recommended by the Committee for the
2012–13 year include $116,200 for
salaries, $25,000 for Florida Department
of Agriculture and Consumer Services
(FDACS) manifesting, and $18,250 for a
retirement plan. Budgeted expenses for
these items in 2011–12 were the same
as recommended for 2012–13 budgeted
expenditures, respectively.
The assessment rate recommended by
the Committee was derived by
reviewing anticipated expenses,
expected shipments of Florida citrus,
interest income, and available reserves.
Citrus shipments for the year are
estimated at 27.3 million 4⁄5 bushel
cartons which should provide $218,400
in assessment income. Income derived
from handler assessments, along with
interest income and funds from the
Committee’s authorized reserve would
be adequate to cover budgeted expenses.
Funds in the reserve (approximately
$34,000) would be kept within the
maximum permitted by the order of not
to exceed one half of one fiscal period’s
expenses as stated in § 905.42.
The proposed assessment rate would
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 would
be in effect for an indefinite period, the
Committee would 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 would evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The
Committee’s 2012–13 budget and those
for subsequent fiscal periods would be
reviewed and, as appropriate, approved
by USDA.
VerDate Mar<15>2010
16:42 Jan 14, 2013
Jkt 229001
Initial 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
rulemaking on small entities.
Accordingly, AMS has prepared this
initial 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 45 handlers
subject to regulation under the
marketing order and approximately
8,000 producers of citrus in the
production area. Small agricultural
service firms 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).
Based on industry and Committee
data, the average annual f.o.b. price for
fresh Florida citrus during the 2010–11
season was approximately $12.16 per 4⁄5
bushel carton, and total fresh shipments
were approximately 30.4 million
cartons. Using the average f.o.b. price
and shipment data, about 55 percent of
the Florida citrus 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 citrus growers, the average
annual grower revenue is below
$750,000. Thus, assuming a normal
distribution, the majority of handlers
and producers of Florida citrus may be
classified as small entities.
This proposed rule would increase
the assessment rate established for the
Committee and collected from handlers
for the 2012–13 and subsequent fiscal
periods from $0.0072 to $0.008 per 4⁄5
bushel carton of citrus. The Committee
unanimously recommended 2012–13
expenditures of $223,500 and an
assessment rate of $0.008 per 4⁄5 bushel
carton of citrus. The proposed
assessment rate of $0.008 is $0.0008
higher than the 2011–12 rate. The
quantity of assessable citrus for the
2012–13 season is estimated at 27.3
million cartons. Thus, the $0.008 rate
should provide $218,400 in assessment
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
2909
income. Income derived from handler
assessments, along with interest income
and funds from the Committee’s
authorized reserve fund, would be
adequate to meet this year’s anticipated
expenses.
The major expenditures
recommended by the Committee for the
2012–13 year include $116,200 for
salaries, $25,000 for Florida Department
of Agriculture and Consumer Services
(FDACS) manifesting, and $18,250 for a
retirement plan. Budgeted expenses for
these items in 2011–12 were the same
as recommended for 2012–13 budgeted
expenditures, respectively.
As previously stated, the Committee
estimates the 2012–2013 production to
be approximately 27.3 million 4⁄5 bushel
cartons, down from the 29.5 million 4⁄5
bushel cartons estimated for last year.
At the current assessment rate,
assessment income would equal only
$196,560, an amount insufficient to
cover the Committee’s anticipated
expenditures. The assessment rate
increase would generate additional
revenue and would help offset the
amount of reserves needed to fund the
budget. Therefore, the Committee
recommended increasing the assessment
rate.
The Committee reviewed and
unanimously recommended 2012–13
expenditures of $223,500. Prior to
arriving at this budget, the Committee
considered information from the
Committee’s Executive Subcommittee.
Alternative expenditure levels were
discussed by this group. The assessment
rate of $0.008 per 4⁄5 bushel carton of
citrus was then determined by
reviewing anticipated expenses, total
expected shipments of citrus, interest
income, and the available reserves. The
increased assessment rate should
provide $218,400 in assessment income.
This is approximately $5,100 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 2012–13 season
could range between $3.83 and $10.13
per 4⁄5 bushel carton of citrus. Therefore,
the estimated assessment revenue for
the 2012–13 crop year as a percentage
of total grower revenue could range
between .08 and .2 percent.
This action would increase 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 would be offset by
the benefits derived by the operation of
E:\FR\FM\15JAP1.SGM
15JAP1
2910
Federal Register / Vol. 78, No. 10 / Tuesday, January 15, 2013 / Proposed Rules
the marketing order. In addition, the
Committee’s meeting was widely
publicized throughout the Florida citrus
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 17, 2012, meeting was
a public meeting and all entities, both
large and small, were able to express
views on this issue. Finally, interested
persons are invited to submit comments
on this proposed rule, including the
regulatory and informational impacts of
this action on small businesses.
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. 0581–0189 Generic
Fruit 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 proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
Florida citrus 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.
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 proposed rule.
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
tkelley on DSK3SPTVN1PROD with
FOR FURTHER INFORMATION CONTACT
section.
A 10-day comment period is provided
to allow interested persons to respond
to this proposed rule. Ten days is
deemed appropriate because: (1) The
2012–13 fiscal period began on August
1, 2012, and the marketing order
requires that the rate of assessment for
each fiscal period apply to all assessable
citrus 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
VerDate Mar<15>2010
16:42 Jan 14, 2013
Jkt 229001
action which was unanimously
recommended by the Committee at a
public meeting and is similar to other
assessment rate actions issued in past
years.
List of Subjects in 7 CFR Part 905
Grapefruit, Oranges, Reporting and
recordkeeping requirements, Tangelos,
Tangerines.
For the reasons set forth in the
preamble, 7 CFR part 905 is proposed to
be amended as follows:
PART 905—ORANGES, GRAPEFRUIT,
TANGERINES, AND TANGELOS
GROWN IN FLORIDA
1. The authority citation for 7 CFR
part 905 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 905.235 is revised to read
as follows:
■
§ 905.235
Assessment rate.
On and after August 1, 2012, an
assessment rate of $0.008 per 4⁄5 bushel
carton or equivalent is established for
Florida citrus covered under the order.
Dated: January 9, 2013.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2013–00599 Filed 1–14–13; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2012–0013; Directorate
Identifier 2012–CE–046–AD]
RIN 2120–AA64
Airworthiness Directives; GROB–
WERKE Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Notice of proposed rulemaking
(NPRM).
AGENCY:
We propose to adopt a new
airworthiness directive (AD) for GROB–
WERKE Model G115EG airplanes. This
proposed AD results from mandatory
continuing airworthiness information
(MCAI) originated by an aviation
authority of another country to identify
and correct an unsafe condition on an
aviation product. The MCAI describes
the unsafe condition as cracks in the
elevator trim tab arms on several Grob
G 115 airplanes, which could result in
SUMMARY:
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
failure of the part and consequent loss
of control. We are issuing this proposed
AD to require actions to address the
unsafe condition on these products.
DATES: We must receive comments on
this proposed AD by March 1, 2013.
ADDRESSES: You may send comments by
any of the following methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: (202) 493–2251.
• Mail: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE.,
Washington, DC 20590.
• Hand Delivery: U.S. Department of
Transportation, Docket Operations, M–
30, West Building Ground Floor, Room
W12–140, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays.
For service information identified in
this proposed AD, contact Grob Aircraft
AG, Lettenbachstrasse 9, D–86874
Tussenhausen-Mattsies, Germany;
phone: +49 (0) 8268 998 139; fax: +49
(0) 8268 998 200; email:
productsupport@grob-aircraft.de;
Internet: www.grob-aircraft.com/
index.php/g-115e.html. You may review
copies of the referenced service
information at the FAA, Small Airplane
Directorate, 901 Locust, Kansas City,
Missouri 64106. For information on the
availability of this material at the FAA,
call (816) 329–4148.
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov; or in person at the
Docket Management Facility between 9
a.m. and 5 p.m., Monday through
Friday, except Federal holidays. The AD
docket contains this proposed AD, the
regulatory evaluation, any comments
received, and other information. The
street address for the Docket Office
(telephone (800) 647–5527) is in the
ADDRESSES section. Comments will be
available in the AD docket shortly after
receipt.
FOR FURTHER INFORMATION CONTACT:
Taylor Martin, Aerospace Engineer,
FAA, Small Airplane Directorate, 901
Locust, Room 301, Kansas City,
Missouri 64106; telephone: (816) 329–
4138; fax: (816) 329–4090; email:
taylor.martin@faa.gov.
SUPPLEMENTARY INFORMATION:
Comments Invited
We invite you to send any written
relevant data, views, or arguments about
this proposed AD. Send your comments
E:\FR\FM\15JAP1.SGM
15JAP1
Agencies
[Federal Register Volume 78, Number 10 (Tuesday, January 15, 2013)]
[Proposed Rules]
[Pages 2908-2910]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-00599]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 78, No. 10 / Tuesday, January 15, 2013 /
Proposed Rules
[[Page 2908]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS-FV-12-0045; FV12-905-1 PR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would increase the assessment rate
established for the Citrus Administrative Committee (Committee) for the
2012-13 and subsequent fiscal periods from $0.0072 to $0.008 per \4/5\
bushel carton of citrus handled. The Committee locally administers the
marketing order which regulates the handling of oranges, grapefruit,
tangerines, and tangelos grown in Florida. Assessments upon citrus
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 would remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by January 25, 2013.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Fruit and Vegetable
Program, AMS, USDA, 1400 Independence Avenue SW., STOP 0237,
Washington, DC 20250-0237; Fax: (202) 720-8938; or Internet: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this
proposed rule will be included in the record and will be made available
to the public. Please be advised that the identity of the individuals
or entities submitting the comments will be made public on the Internet
at the address provided above.
FOR FURTHER INFORMATION CONTACT: Corey E. Elliott, 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: Corey.Elliott@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
proposed 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 rulemaking is issued under Marketing
Order No. 905, amended (7 CFR part 905), regulating the handling of
oranges, grapefruit, tangerines, and tangelos 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 proposed rule
in conformance with Executive Order 12866.
This rulemaking has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the marketing order now in effect, Florida
citrus handlers are subject to assessments. Funds to administer the
order are derived from such assessments. It is intended that the
assessment rate as proposed herein would be applicable to all
assessable citrus beginning on August 1, 2012, 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 proposed rule would increase the assessment rate established
for the Committee for the 2012-13 and subsequent fiscal periods from
$0.0072 to $0.008 per \4/5\ bushel carton of citrus.
The Florida citrus 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 citrus. 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 July 17, 2012, and unanimously recommended
2012-13 expenditures of $223,500 and an assessment rate of $0.008 per
\4/5\ bushel carton of citrus. In comparison, last year's budgeted
expenditures were also $223,500. The assessment rate of $0.008 is
$0.0008 higher than the rate currently in effect.
The Committee estimates 2012-2013 production to be approximately
27.3 million \4/5\ bushel cartons, down from the 29.5 million \4/5\
bushel cartons estimated for last year. At the current
[[Page 2909]]
assessment rate, assessment income would equal only $196,560, an amount
insufficient to cover the Committee's anticipated expenditures. The
assessment rate increase would generate additional revenue and would
help offset the amount of reserves needed to fund the budget.
Therefore, the Committee recommended increasing the assessment rate.
The major expenditures recommended by the Committee for the 2012-13
year include $116,200 for salaries, $25,000 for Florida Department of
Agriculture and Consumer Services (FDACS) manifesting, and $18,250 for
a retirement plan. Budgeted expenses for these items in 2011-12 were
the same as recommended for 2012-13 budgeted expenditures,
respectively.
The assessment rate recommended by the Committee was derived by
reviewing anticipated expenses, expected shipments of Florida citrus,
interest income, and available reserves. Citrus shipments for the year
are estimated at 27.3 million \4/5\ bushel cartons which should provide
$218,400 in assessment income. Income derived from handler assessments,
along with interest income and funds from the Committee's authorized
reserve would be adequate to cover budgeted expenses. Funds in the
reserve (approximately $34,000) would be kept within the maximum
permitted by the order of not to exceed one half of one fiscal period's
expenses as stated in Sec. 905.42.
The proposed assessment rate would 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 would be in effect for an indefinite
period, the Committee would 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 would evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2012-13 budget and those
for subsequent fiscal periods would be reviewed and, as appropriate,
approved by USDA.
Initial 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 rulemaking on small
entities. Accordingly, AMS has prepared this initial 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 45 handlers subject to regulation under the
marketing order and approximately 8,000 producers of citrus in the
production area. Small agricultural service firms 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).
Based on industry and Committee data, the average annual f.o.b.
price for fresh Florida citrus during the 2010-11 season was
approximately $12.16 per \4/5\ bushel carton, and total fresh shipments
were approximately 30.4 million cartons. Using the average f.o.b. price
and shipment data, about 55 percent of the Florida citrus 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 citrus growers, the average annual grower revenue is below
$750,000. Thus, assuming a normal distribution, the majority of
handlers and producers of Florida citrus may be classified as small
entities.
This proposed rule would increase the assessment rate established
for the Committee and collected from handlers for the 2012-13 and
subsequent fiscal periods from $0.0072 to $0.008 per \4/5\ bushel
carton of citrus. The Committee unanimously recommended 2012-13
expenditures of $223,500 and an assessment rate of $0.008 per \4/5\
bushel carton of citrus. The proposed assessment rate of $0.008 is
$0.0008 higher than the 2011-12 rate. The quantity of assessable citrus
for the 2012-13 season is estimated at 27.3 million cartons. Thus, the
$0.008 rate should provide $218,400 in assessment income. Income
derived from handler assessments, along with interest income and funds
from the Committee's authorized reserve fund, would be adequate to meet
this year's anticipated expenses.
The major expenditures recommended by the Committee for the 2012-13
year include $116,200 for salaries, $25,000 for Florida Department of
Agriculture and Consumer Services (FDACS) manifesting, and $18,250 for
a retirement plan. Budgeted expenses for these items in 2011-12 were
the same as recommended for 2012-13 budgeted expenditures,
respectively.
As previously stated, the Committee estimates the 2012-2013
production to be approximately 27.3 million \4/5\ bushel cartons, down
from the 29.5 million \4/5\ bushel cartons estimated for last year. At
the current assessment rate, assessment income would equal only
$196,560, an amount insufficient to cover the Committee's anticipated
expenditures. The assessment rate increase would generate additional
revenue and would help offset the amount of reserves needed to fund the
budget. Therefore, the Committee recommended increasing the assessment
rate.
The Committee reviewed and unanimously recommended 2012-13
expenditures of $223,500. Prior to arriving at this budget, the
Committee considered information from the Committee's Executive
Subcommittee. Alternative expenditure levels were discussed by this
group. The assessment rate of $0.008 per \4/5\ bushel carton of citrus
was then determined by reviewing anticipated expenses, total expected
shipments of citrus, interest income, and the available reserves. The
increased assessment rate should provide $218,400 in assessment income.
This is approximately $5,100 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 2012-13 season could range between $3.83 and $10.13 per \4/5\
bushel carton of citrus. Therefore, the estimated assessment revenue
for the 2012-13 crop year as a percentage of total grower revenue could
range between .08 and .2 percent.
This action would increase 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
would be offset by the benefits derived by the operation of
[[Page 2910]]
the marketing order. In addition, the Committee's meeting was widely
publicized throughout the Florida citrus 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 17,
2012, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue. Finally, interested
persons are invited to submit comments on this proposed rule, including
the regulatory and informational impacts of this action on small
businesses.
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. 0581-0189 Generic Fruit 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 proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large Florida citrus
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.
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 proposed rule.
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.
A 10-day comment period is provided to allow interested persons to
respond to this proposed rule. Ten days is deemed appropriate because:
(1) The 2012-13 fiscal period began on August 1, 2012, and the
marketing order requires that the rate of assessment for each fiscal
period apply to all assessable citrus 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 years.
List of Subjects in 7 CFR Part 905
Grapefruit, Oranges, Reporting and recordkeeping requirements,
Tangelos, Tangerines.
For the reasons set forth in the preamble, 7 CFR part 905 is
proposed to be amended as follows:
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
0
1. The authority citation for 7 CFR part 905 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 905.235 is revised to read as follows:
Sec. 905.235 Assessment rate.
On and after August 1, 2012, an assessment rate of $0.008 per \4/5\
bushel carton or equivalent is established for Florida citrus covered
under the order.
Dated: January 9, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-00599 Filed 1-14-13; 8:45 am]
BILLING CODE 3410-02-P