Tomatoes Grown in Florida; Decreased Assessment Rate, 9307-9309 [2013-02816]
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9307
Rules and Regulations
Federal Register
Vol. 78, No. 27
Friday, February 8, 2013
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–12–0051; FV12–966–1
IR]
Tomatoes Grown in Florida; Decreased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule decreases the
assessment rate established for the
Florida Tomato Committee (Committee)
for the 2012–13 and subsequent fiscal
periods from $0.037 to $0.024 per 25pound carton of tomatoes handled. The
Committee locally administers the
marketing order which regulates the
handling of tomatoes grown in Florida.
Assessments upon Florida tomato
handlers are used by the Committee to
fund reasonable and necessary expenses
of the program. The fiscal period begins
August 1 and ends July 31. The
assessment rate will remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Effective February 11, 2013.
Comments received by April 9, 2013,
will be considered prior to issuance of
a final rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this 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
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SUMMARY:
VerDate Mar<15>2010
14:10 Feb 07, 2013
Jkt 229001
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
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 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
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 Florida
tomatoes beginning 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
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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 decreases the assessment
rate established for the Committee for
the 2012–13 and subsequent fiscal
periods from $0.037 per 25-pound
carton to $0.024 per 25-pound carton of
Florida 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 2011–12 and subsequent fiscal
periods, the Committee recommended,
and USDA approved, an assessment rate
that would continue in effect from fiscal
period to fiscal period unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on August 22,
2012, and unanimously recommended
2012–13 expenditures of $1,672,952 and
an assessment rate of $0.024 per 25pound carton of tomatoes. In
comparison, last year’s budgeted
expenditures were $1,561,952. The
assessment rate of $0.024 is $0.013
lower than the rate currently in effect.
The Committee recommended
decreasing the assessment rate by using
additional funds from reserves to help
reduce overall industry costs.
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Federal Register / Vol. 78, No. 27 / Friday, February 8, 2013 / Rules and Regulations
wreier-aviles on DSK7SPTVN1PROD with RULES
The major expenditures
recommended by the Committee for the
2012–13 year include $750,000 for
education and promotion, $436,372 for
salaries, $250,000 for research, $66,000
for office rent, and $48,000 for employee
health insurance. Budgeted expenses for
these items in 2011–12 were $640,500,
$436,372, $250,000, $64,000 and
$48,000, respectively.
The assessment rate recommended by
the Committee was derived by
reviewing anticipated expenses,
shipments, funds from block grants,
interest income, and available reserves.
Florida tomato shipments for the year
are estimated at 35 million 25-pound
cartons which should provide $840,000
in assessment income. Income derived
from handler assessments, along with
funds from the Committee’s authorized
reserve, interest income, and funds from
block grants, will be adequate to cover
budgeted expenses. Funds in the reserve
(currently $729,000) will be kept within
the maximum permitted by the order of
not to exceed one fiscal period’s
expenses as authorized 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 is
effective 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 2012–13 budget and those
for subsequent fiscal periods will 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
rule 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
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14:10 Feb 07, 2013
Jkt 229001
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 80 handlers
of tomatoes in the production area and
approximately 100 producers subject to
regulation under the marketing order.
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 price for fresh
Florida tomatoes during the 2011–12
season was approximately $6.62 per 25pound container, and total fresh
shipments for the 2011–12 season were
approximately 38,175,363 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 decreases the assessment
rate established for the Committee and
collected from handlers for the 2012–13
and subsequent fiscal periods from
$0.037 to $0.024 per 25-pound carton of
tomatoes. The Committee unanimously
recommended 2012–13 expenditures of
$1,672,952 and an assessment rate of
$0.024 per 25-pound carton of tomatoes.
The assessment rate of $0.024 is $0.013
lower than the 2011–12 rate. The
Committee recommended decreasing
the assessment rate by using additional
funds from reserves to help reduce
overall industry costs. The quantity of
assessable tomatoes for the 2012–13
season is estimated at 35 million
cartons. Thus, the $0.024 rate should
provide $840,000, in assessment
income. Income derived from handler
assessments, along with funds from the
Committee’s authorized reserve, interest
income, and funds from block grants,
will be adequate to cover budgeted
expenses.
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The major expenditures
recommended by the Committee for the
2012–13 year include $750,000 for
education and promotion, $436,372 for
salaries, $250,000 for research, $66,000
for office rent, and $48,000 for employee
health insurance. Budgeted expenses for
these items in 2011–12 were $640,500,
$436,372, $250,000, $64,000 and
$48,000, respectively.
The Committee reviewed and
unanimously recommended 2012–13
expenditures of $1,672,952. 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. The assessment rate
recommended by the Committee was
derived by reviewing anticipated
expenses and shipments of Florida
tomatoes, expected funds from block
grants, interest income, and available
reserves. Florida tomato shipments for
the year are estimated at 35 million 25pound cartons which should provide
$840,000 in assessment income.
Assessments, along with funds from
block grants and interest income, will be
approximately $42,952 less than the
anticipated expenses, which the
Committee determined to be acceptable.
Funds from the Committee’s financial
reserve will be used to make up the
shortfall in revenue.
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 $3.68 and $12.09
per 25-pound carton of tomatoes.
Therefore, the estimated assessment
revenue for the 2012–13 crop year as a
percentage of total grower revenue
could range between .2 and .7 percent.
This action decreases the assessment
obligation imposed on handlers.
Assessments are applied uniformly on
all handlers, and some of the costs may
be passed on to producers. However,
decreasing the assessment rate reduces
the burden on handlers, and may reduce
the burden on producers. In addition,
the Committee’s meeting was widely
publicized throughout the Florida
tomato industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations on all issues. Like all
Committee meetings, the August 22,
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 interim rule,
including the regulatory and
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Federal Register / Vol. 78, No. 27 / Friday, February 8, 2013 / Rules and Regulations
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. 0581–0178 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 action 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.
AMS is committed to complying with
the E-Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A 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
wreier-aviles on DSK7SPTVN1PROD 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 is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect, and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The 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 Florida tomatoes
handled during such fiscal period; (2)
this action decreases the assessment rate
for assessable Florida tomatoes
beginning with the 2012–13 fiscal
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Jkt 229001
period; (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; and (4) this interim rule provides
a 60-day comment period, and all
comments timely received will be
considered prior to finalization of this
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.
9309
component record card for each T–T
strap, and revising the airworthiness
limitations section of the maintenance
manual to reflect the changes to the
retirement life. This AD was prompted
by a report from the T–T strap
manufacturer that, over a period of time,
moisture may reduce the strength of a
T–T strap. The actions are intended to
prevent failure of a T–T strap, loss of
directional control and subsequent loss
of control of the helicopter.
DATES: This AD is effective March 15,
2013.
ADDRESSES: For service information
identified in this AD, contact MD
Helicopters, Inc., Attn: Customer
Support Division, 4555 E. McDowell
Rd., Mail Stop M615, Mesa, Arizona
85215–9734, telephone 1–800–388–
3378, fax 480–346–6813, or on the web
at https://www.mdhelicopters.com. You
may review a copy of the referenced
service information at the FAA, Office
of the Regional Counsel, Southwest
Region, 2601 Meacham Blvd., Room
663, Fort Worth Texas 76137.
AGENCY:
Examining the AD Docket
You may examine the AD docket on
the Internet at https://
www.regulations.gov or in person at the
Docket Operations Office between 9
a.m. and 5 p.m., Monday through
Friday, except Federal holidays. The AD
docket contains this AD, any
incorporated-by-reference service
information, the economic evaluation,
any comments received, and other
information. The street address for the
Docket Operations Office (phone: 800–
647–5527) is U.S. Department of
Transportation, Docket Operations
Office, M–30, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue SE., Washington, DC 20590.
FOR FURTHER INFORMATION CONTACT: John
Cecil, Aviation Safety Engineer, Los
Angeles Aircraft Certification Office,
Transport Airplane Directorate, FAA,
3960 Paramount Blvd., Lakewood,
California 90712; telephone (562) 627–
5228; email john.cecil@faa.gov.
SUPPLEMENTARY INFORMATION:
We are adopting a new
airworthiness directive (AD) for MD
Helicopters, Inc. (MDHI) Model 500N,
600N and MD900 helicopters to require
determining the cure date for each
NOTAR fan blade tension-torsion strap
(T–T strap), establishing a calendar-time
retirement life for certain T–T straps,
reducing the retirement life of certain
T–T straps, marking each T–T strap
with the expiration date, creating a
Discussion
On July 19, 2012, at 77 FR 42459, the
Federal Register published our notice of
proposed rulemaking (NPRM), which
proposed to amend 14 CFR part 39 to
include an AD that would apply to
MDHI Model 500N and 600N
helicopters with a NOTAR fan blade T–
T strap part number (P/N) 500N5311–5
and MDHI Model MD900 helicopters
with a T–T strap, P/N 500N5311–5, P/
N 900R3442009–101, P/N
900R3442009–103, or P/N
On and after August 1, 2012, an
assessment rate of $0.024 per 25-pound
carton is established for Florida
tomatoes.
Dated: February 4, 2013.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2013–02816 Filed 2–7–13; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2012–0746; Directorate
Identifier 2008–SW–035–AD; Amendment
39–17337; AD 2013–03–03]
RIN 2120–AA64
Airworthiness Directives; MD
Helicopters, Inc., Helicopters
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
SUMMARY:
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]]>Agencies
[Federal Register Volume 78, Number 27 (Friday, February 8, 2013)]
[Rules and Regulations]
[Pages 9307-9309]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02816]
========================================================================
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. 78, No. 27 / Friday, February 8, 2013 / Rules
and Regulations
[[Page 9307]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No. AMS-FV-12-0051; FV12-966-1 IR]
Tomatoes Grown in Florida; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule decreases the assessment rate established for the
Florida Tomato Committee (Committee) for the 2012-13 and subsequent
fiscal periods from $0.037 to $0.024 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
Florida tomato handlers are used by the Committee to fund reasonable
and necessary expenses of the program. The fiscal period begins August
1 and ends July 31. The assessment rate will remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Effective February 11, 2013. Comments received by April 9, 2013,
will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this 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 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 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
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 Florida tomatoes
beginning 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 rule decreases the assessment rate established for the
Committee for the 2012-13 and subsequent fiscal periods from $0.037 per
25-pound carton to $0.024 per 25-pound carton of Florida 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 2011-12 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on August 22, 2012, and unanimously recommended
2012-13 expenditures of $1,672,952 and an assessment rate of $0.024 per
25-pound carton of tomatoes. In comparison, last year's budgeted
expenditures were $1,561,952. The assessment rate of $0.024 is $0.013
lower than the rate currently in effect. The Committee recommended
decreasing the assessment rate by using additional funds from reserves
to help reduce overall industry costs.
[[Page 9308]]
The major expenditures recommended by the Committee for the 2012-13
year include $750,000 for education and promotion, $436,372 for
salaries, $250,000 for research, $66,000 for office rent, and $48,000
for employee health insurance. Budgeted expenses for these items in
2011-12 were $640,500, $436,372, $250,000, $64,000 and $48,000,
respectively.
The assessment rate recommended by the Committee was derived by
reviewing anticipated expenses, shipments, funds from block grants,
interest income, and available reserves. Florida tomato shipments for
the year are estimated at 35 million 25-pound cartons which should
provide $840,000 in assessment income. Income derived from handler
assessments, along with funds from the Committee's authorized reserve,
interest income, and funds from block grants, will be adequate to cover
budgeted expenses. Funds in the reserve (currently $729,000) will be
kept within the maximum permitted by the order of not to exceed one
fiscal period's expenses as authorized 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 is effective 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 2012-13 budget and those
for subsequent fiscal periods will 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 rule 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 80 handlers of tomatoes in the production
area and approximately 100 producers subject to regulation under the
marketing order. 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 price for
fresh Florida tomatoes during the 2011-12 season was approximately
$6.62 per 25-pound container, and total fresh shipments for the 2011-12
season were approximately 38,175,363 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 decreases the assessment rate established for the
Committee and collected from handlers for the 2012-13 and subsequent
fiscal periods from $0.037 to $0.024 per 25-pound carton of tomatoes.
The Committee unanimously recommended 2012-13 expenditures of
$1,672,952 and an assessment rate of $0.024 per 25-pound carton of
tomatoes. The assessment rate of $0.024 is $0.013 lower than the 2011-
12 rate. The Committee recommended decreasing the assessment rate by
using additional funds from reserves to help reduce overall industry
costs. The quantity of assessable tomatoes for the 2012-13 season is
estimated at 35 million cartons. Thus, the $0.024 rate should provide
$840,000, in assessment income. Income derived from handler
assessments, along with funds from the Committee's authorized reserve,
interest income, and funds from block grants, will be adequate to cover
budgeted expenses.
The major expenditures recommended by the Committee for the 2012-13
year include $750,000 for education and promotion, $436,372 for
salaries, $250,000 for research, $66,000 for office rent, and $48,000
for employee health insurance. Budgeted expenses for these items in
2011-12 were $640,500, $436,372, $250,000, $64,000 and $48,000,
respectively.
The Committee reviewed and unanimously recommended 2012-13
expenditures of $1,672,952. 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. The assessment rate recommended by the
Committee was derived by reviewing anticipated expenses and shipments
of Florida tomatoes, expected funds from block grants, interest income,
and available reserves. Florida tomato shipments for the year are
estimated at 35 million 25-pound cartons which should provide $840,000
in assessment income. Assessments, along with funds from block grants
and interest income, will be approximately $42,952 less than the
anticipated expenses, which the Committee determined to be acceptable.
Funds from the Committee's financial reserve will be used to make up
the shortfall in revenue.
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 $3.68 and $12.09 per 25-
pound carton of tomatoes. Therefore, the estimated assessment revenue
for the 2012-13 crop year as a percentage of total grower revenue could
range between .2 and .7 percent.
This action decreases the assessment obligation imposed on
handlers. Assessments are applied uniformly on all handlers, and some
of the costs may be passed on to producers. However, decreasing the
assessment rate reduces the burden on handlers, and may reduce the
burden on producers. In addition, the Committee's meeting was widely
publicized throughout the Florida tomato industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the August
22, 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 interim rule, including
the regulatory and
[[Page 9309]]
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. 0581-0178 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 action 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.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A 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 is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and that good cause exists for not postponing the effective
date of this rule until 30 days after publication in the Federal
Register because: (1) The 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 Florida tomatoes handled
during such fiscal period; (2) this action decreases the assessment
rate for assessable Florida tomatoes beginning with the 2012-13 fiscal
period; (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; and (4) this
interim rule provides a 60-day comment period, and all comments timely
received will be considered prior to finalization of this 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, 2012, an assessment rate of $0.024 per 25-
pound carton is established for Florida tomatoes.
Dated: February 4, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-02816 Filed 2-7-13; 8:45 am]
BILLING CODE 3410-02-P
