Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; Increased Assessment Rate, 24327-24329 [2013-09814]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 78, Number 80 (Thursday, April 25, 2013)]
[Rules and Regulations]
[Pages 24327-24329]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09814]



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Federal Register / Vol. 78, No. 80 / Thursday, April 25, 2013 / Rules 
and Regulations

[[Page 24327]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-FV-12-0045; FV12-905-1 FR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule increases 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 that 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 will remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Effective Date: April 26, 2013.

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 
regulation by contacting Jeffrey Smutny, 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: Jeffrey.Smutny@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 905, as 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 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 citrus 
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 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 rule increases 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. Thus, they are 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 based upon a 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 assessment rate, 
assessment income would equal only $196,560, an amount insufficient to 
cover the Committee's anticipated expenditures. The assessment rate 
increase will generate additional revenue and will 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,

[[Page 24328]]

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 should be 
adequate to cover budgeted expenses. Funds in the reserve 
(approximately $34,000) will be kept within the maximum permitted by 
the order, not to exceed one half of one fiscal period's expenses as 
stated in Sec.  905.42.
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
based upon a 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 2012-13 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 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 rule increases 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 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 should 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 will generate additional 
revenue and will 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. Based 
on estimated shipments of 27.3 million cartons, the increased 
assessment rate should provide $218,400 in assessment income. This is 
approximately $5,100 less than 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 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 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.
    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 rule imposes no additional reporting or recordkeeping 
requirements

[[Page 24329]]

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. 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 January 15, 2013 (78 FR 2908). Copies of the proposed rule 
were also mailed or sent via facsimile to all Florida citrus handlers. 
Finally, the proposal was made available through the Internet by USDA 
and the Office of the Federal Register. A 10-day comment period ending 
January 25, 2013, was provided for interested persons to respond to the 
proposal. No comments were received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about 
the compliance guide should be sent to Jeffrey Smutny 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 that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because the crop year 
began August 1, handlers are already receiving 2012-13 citrus from 
growers, and the order requires that the rate of assessment apply to 
all assessable citrus handled during such period. In addition, the 
Committee needs to have sufficient funds to pay its expenses, which are 
incurred on a continuous basis. Further, handlers are aware of this 
rule, which was recommended at a public meeting. Also, a 10-day comment 
period was provided for in the proposed rule, and no comments were 
received.

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 
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: April 22, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-09814 Filed 4-24-13; 8:45 am]
BILLING CODE 3410-02-P