Tomatoes Grown in Florida; Increased Assessment Rate, 9987-9989 [2014-03847]
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Federal Register / Vol. 79, No. 36 / Monday, February 24, 2014 / Rules and Regulations
to $0.0033 per hundredweight. The
decrease in the per hundredweight
assessment rate allows the Committee to
reduce its financial reserve while still
providing adequate funding to meet
program expenses.
rmajette on DSK2TPTVN1PROD with RULES
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
rule on small entities. Accordingly,
AMS has prepared this final regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
businesses 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 80 handlers of Colorado
Area No. 2 potatoes subject to regulation
under the order and approximately 180
producers in the regulated production
area. Small agricultural service firms are
defined by the Small Business
Administration (13 CFR 121.201) as
those having annual receipts of less than
$7,000,000, and small agricultural
producers are defined as those having
annual receipts of less than $750,000.
During the 2011–2012 fiscal period,
the most recent for which statistics are
available, 15,072,963 hundredweight of
Colorado Area No. 2 potatoes were
inspected under the order and sold into
the fresh market. Based on an estimated
average f.o.b. price of $12.60 per
hundredweight, the Committee
estimates that 66 Area No. 2 handlers,
or about 83 percent, had annual receipts
of less than $7,000,000. In view of the
foregoing, the majority of Colorado Area
No. 2 potato handlers may be classified
as small entities.
In addition, based on information
provided by the National Agricultural
Statistics Service, the average producer
price for the 2011 Colorado fall potato
crop was $10.70 per hundredweight.
Multiplying $10.70 by the shipment
quantity of 15,072,963 hundredweight
yields an annual crop revenue estimate
of $161,280,704. The average annual
fresh potato revenue for each of the 180
Colorado Area No. 2 potato producers is
therefore calculated to be approximately
$896,000 ($161,280,704 divided by 180),
which is greater than the SBA threshold
of $750,000. Consequently, on average,
many of the Colorado Area No. 2 potato
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15:17 Feb 21, 2014
Jkt 232001
producers may not be classified as small
entities.
This rule continues in effect the
action that decreased the assessment
rate established for the Committee and
collected from handlers for the 2013–
2014 and subsequent fiscal periods from
$0.0051 to $0.0033 per hundredweight
of potatoes. The Committee
unanimously recommended 2013–2014
expenditures of $55,745 and an
assessment rate of $0.0033. The
assessment rate of $0.0033 is $0.0018
lower than the 2012–2013 rate. The
quantity of assessable potatoes for the
2013–2014 fiscal period is estimated at
14,360,000. Thus, the $0.0033 rate
should provide $47,388 in assessment
income. Income derived from handler
assessments and funds from the
Committee’s authorized reserve will be
adequate to cover budgeted expenses.
This rule continues in effect the
action that decreased 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
Colorado Area No. 2 potato 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
18, 2013, meeting was a public meeting
and all entities, both large and small,
were able to express views on this issue.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178, Generic
Vegetable and Specialty Crops. No
changes in those requirements as a
result of this action are anticipated.
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 Colorado Area
No. 2 potato handlers. As with all
Federal marketing order programs,
reports and forms are periodically
reviewed to reduce information
requirements and duplication by
industry and public sector agencies.
USDA has not identified any relevant
Federal rules that duplicate, overlap or
conflict with this rule.
Comments on the interim rule were
required to be received on or before
January 21, 2014. No comments were
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9987
received. Therefore, for reasons given in
the interim rule, we are adopting the
interim rule as a final rule, without
change.
To view the interim rule, go to: https://
www.regulations.gov/
#!documentDetail;D=AMS-FV-13-00720001.
This action also affirms information
contained in the interim rule concerning
Executive Orders 12866, 12988, and
13563; the Paperwork Reduction Act (44
U.S.C. Chapter 35); and the E-Gov Act
(44 U.S.C. 101).
After consideration of all relevant
material presented, it is found that
finalizing the interim rule, without
change, as published in the Federal
Register (78 FR 69985, November 22,
2013) will tend to effectuate the
declared policy of the Act.
List of Subjects in 7 CFR Part 948
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
PART 948—IRISH POTATOES GROWN
IN COLORADO
Accordingly, the interim rule
amending 7 CFR part 948, which was
published at 78 FR 69985 on November
22, 2013, is adopted as a final rule,
without change.
■
Dated: February 18, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–03848 Filed 2–21–14; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No. AMS–FV–13–0076; FV13–966–1
FR]
Tomatoes Grown in Florida; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule increases the
assessment rate established for the
Florida Tomato Committee (Committee)
for the 2013–14 and subsequent fiscal
periods from $0.024 to $0.0375 per 25pound carton of tomatoes handled. The
Committee locally administers the
Federal marketing order, which
regulates the handling of tomatoes
grown in Florida. Assessments upon
Florida tomato handlers are used by the
SUMMARY:
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9988
Federal Register / Vol. 79, No. 36 / Monday, February 24, 2014 / Rules and Regulations
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: February 25,
2014.
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 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 Orders
12866 and 13563.
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 on August 1, 2013,
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
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15:17 Feb 21, 2014
Jkt 232001
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 2013–14 and subsequent fiscal
periods from $0.024 to $0.0375 per 25pound 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 of goods and services in their local
area, and are therefore 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 2012–13 and subsequent fiscal
periods, the Committee recommended,
and USDA approved, an assessment rate
of $0.024 per 25-pound carton of
tomatoes 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,
2013, and unanimously recommended
2013–14 expenditures of $1,824,600 and
an assessment rate of $0.0375 per 25pound carton of Florida tomatoes. In
comparison, last year’s budgeted
expenditures were $1,672,952. The
assessment rate of $0.0375 is $0.0135
higher than the rate currently in effect.
The Committee depleted its reserve by
using the funds to help meet its annual
expenditures over the past year.
Therefore, the Committee recommended
increasing the assessment rate to
generate sufficient funds to cover
expenditures and increase its reserve
balance.
The major expenditures
recommended by the Committee for the
2013–14 year include $800,000 for
education and promotion, $458,500 for
salaries, and $300,000 for research.
Budgeted expenses for these items in
2012–13 were $750,000, $436,372, and
$250,000, respectively.
The assessment rate recommended by
the Committee was derived by
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reviewing anticipated expenses;
expected shipments of Florida tomatoes;
income from interest, Market Access
Program funds, and specialty crop block
grants; and the need to add additional
funds to the reserve. Florida tomato
shipments for the year are estimated at
35 million 25-pound cartons, which
should provide $1,312,500 in
assessment income. Income derived
from handler assessments, interest, and
other sources should be adequate to
cover budgeted expenses. Reserve funds
projected to be $440,500 will be kept
within the maximum permitted by the
order of no more than approximately
one fiscal period’s expenses as stated in
§ 966.44.
The assessment rate established in
this rule will continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate will be
in effect for an indefinite period, the
Committee will continue to meet prior
to or during each fiscal period to
recommend a budget of expenses and
consider recommendations to modify
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 2013–14 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
businesses 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.
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Federal Register / Vol. 79, No. 36 / Monday, February 24, 2014 / Rules and Regulations
There are approximately 80 handlers
of tomatoes subject to regulation under
the marketing order and approximately
100 producers 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
of less than $750,000 (13 CFR 121.201).
Based on industry and Committee
data, the average annual price for fresh
Florida tomatoes during the 2012–13
season was approximately $10.64 per
25-pound carton, and total fresh
shipments were approximately 35.5
million cartons. Based on the average
price, about 80 percent of the handlers
could be considered small businesses
under SBA’s definition. In addition,
based on production data, grower prices
as reported by the National Agricultural
Statistics Service, and the total number
of Florida tomato growers, the average
annual grower revenue is below
$750,000. Thus, the majority of handlers
and producers of Florida tomatoes may
be classified as small entities.
This rule increases the assessment
rate for the 2013–14 and subsequent
fiscal periods from the current rate of
$0.024 to $0.0375 per 25-pound carton
of tomatoes. The Committee
unanimously recommended the
increased assessment rate and 2013–14
expenditures of $1,824,600. The
increase was recommended to generate
sufficient funds to cover the
Committee’s expenditures and add to its
reserve. As previously stated, income
derived from handler assessments,
interest, and other income should be
adequate to meet this year’s anticipated
expenses.
A review of historical information and
preliminary information pertaining to
the upcoming season indicates that the
grower price for the 2013–14 season
should average around $9.73 per 25pound carton of tomatoes. Utilizing this
estimate and the proposed assessment
rate of $0.0375, estimated assessment
revenue as a percentage of total grower
revenue would be approximately 0.4
percent for the season.
Alternative expenditure and
assessment levels were discussed prior
to arriving at this budget. However, the
Committee agreed on $1,824,600 in
expenditures, reviewed the quantity of
assessable tomatoes, the need to add
additional funds to the reserve, and
recommended an assessment rate of
$0.0375 per 25-pound carton of
tomatoes.
This action increases the assessment
obligation imposed on handlers. While
assessments impose some additional
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Jkt 232001
costs on handlers, the costs are minimal
and uniform on all handlers. These
costs are offset by the benefits derived
from the operation of the marketing
order. In addition, the Committee’s
meeting was widely publicized
throughout the Florida tomato industry
and all interested persons were invited
to attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the August
22, 2013, meeting was a public meeting
and all entities, both large and small,
were able to express views on this issue.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0178 Vegetable
and Specialty Crops. No changes in
those requirements as a result of this
action are necessary. Should any
changes become necessary, they would
be submitted to OMB for approval.
This rule imposes no additional
reporting or recordkeeping requirements
on either small or large Florida tomato
handlers. As with all Federal marketing
order programs, reports and forms are
periodically reviewed to reduce
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 December 24, 2013 (78 FR
77604). Copies of the proposed rule
were also mailed or sent via facsimile to
all Florida tomato handlers. Finally, the
proposal was made available through
the internet by USDA and the Office of
the Federal Register. A 15-day comment
period ending January 8, 2014, 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: https://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.
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9989
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,
2013, 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. Further, handlers are
aware of this rule, which was
unanimously recommended by the
Committee at a public meeting. Also, a
15-day comment period was provided
for in the proposed rule, and no
comments were received.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and
recordkeeping requirements, Tomatoes.
For the reasons set forth in the
preamble, 7 CFR part 966 is amended as
follows:
PART 966—TOMATOES GROWN IN
FLORIDA
1. The authority citation for 7 CFR
part 966 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 966.234 is revised to read
as follows:
■
§ 966.234
Assessment rate.
On and after August 1, 2013, an
assessment rate of $0.0375 per 25-pound
carton is established for Florida
tomatoes.
Dated: February 18, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2014–03847 Filed 2–21–14; 8:45 am]
BILLING CODE 3410–02–P
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Agencies
[Federal Register Volume 79, Number 36 (Monday, February 24, 2014)]
[Rules and Regulations]
[Pages 9987-9989]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03847]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No. AMS-FV-13-0076; FV13-966-1 FR]
Tomatoes Grown in Florida; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule increases the assessment rate established for the
Florida Tomato Committee (Committee) for the 2013-14 and subsequent
fiscal periods from $0.024 to $0.0375 per 25-pound carton of tomatoes
handled. The Committee locally administers the Federal marketing order,
which regulates the handling of tomatoes grown in Florida. Assessments
upon Florida tomato handlers are used by the
[[Page 9988]]
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: February 25, 2014.
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
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 Orders 12866 and 13563.
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 on August 1, 2013, 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 2013-14 and subsequent fiscal periods from $0.024 to
$0.0375 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 of goods and services in their local area, and are therefore 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 2012-13 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $0.024 per 25-
pound carton of tomatoes 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, 2013, and unanimously recommended
2013-14 expenditures of $1,824,600 and an assessment rate of $0.0375
per 25-pound carton of Florida tomatoes. In comparison, last year's
budgeted expenditures were $1,672,952. The assessment rate of $0.0375
is $0.0135 higher than the rate currently in effect. The Committee
depleted its reserve by using the funds to help meet its annual
expenditures over the past year. Therefore, the Committee recommended
increasing the assessment rate to generate sufficient funds to cover
expenditures and increase its reserve balance.
The major expenditures recommended by the Committee for the 2013-14
year include $800,000 for education and promotion, $458,500 for
salaries, and $300,000 for research. Budgeted expenses for these items
in 2012-13 were $750,000, $436,372, and $250,000, respectively.
The assessment rate recommended by the Committee was derived by
reviewing anticipated expenses; expected shipments of Florida tomatoes;
income from interest, Market Access Program funds, and specialty crop
block grants; and the need to add additional funds to the reserve.
Florida tomato shipments for the year are estimated at 35 million 25-
pound cartons, which should provide $1,312,500 in assessment income.
Income derived from handler assessments, interest, and other sources
should be adequate to cover budgeted expenses. Reserve funds projected
to be $440,500 will be kept within the maximum permitted by the order
of no more than approximately one fiscal period's expenses as stated in
Sec. 966.44.
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
upon recommendation and information submitted by the Committee or other
available information.
Although this assessment rate will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations to modify 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 2013-14 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
businesses 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.
[[Page 9989]]
There are approximately 80 handlers of tomatoes subject to
regulation under the marketing order and approximately 100 producers 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 of less than $750,000 (13 CFR 121.201).
Based on industry and Committee data, the average annual price for
fresh Florida tomatoes during the 2012-13 season was approximately
$10.64 per 25-pound carton, and total fresh shipments were
approximately 35.5 million cartons. Based on the average price, about
80 percent of the handlers could be considered small businesses under
SBA's definition. In addition, based on production data, grower prices
as reported by the National Agricultural Statistics Service, and the
total number of Florida tomato growers, the average annual grower
revenue is below $750,000. Thus, the majority of handlers and producers
of Florida tomatoes may be classified as small entities.
This rule increases the assessment rate for the 2013-14 and
subsequent fiscal periods from the current rate of $0.024 to $0.0375
per 25-pound carton of tomatoes. The Committee unanimously recommended
the increased assessment rate and 2013-14 expenditures of $1,824,600.
The increase was recommended to generate sufficient funds to cover the
Committee's expenditures and add to its reserve. As previously stated,
income derived from handler assessments, interest, and other income
should be adequate to meet this year's anticipated expenses.
A review of historical information and preliminary information
pertaining to the upcoming season indicates that the grower price for
the 2013-14 season should average around $9.73 per 25-pound carton of
tomatoes. Utilizing this estimate and the proposed assessment rate of
$0.0375, estimated assessment revenue as a percentage of total grower
revenue would be approximately 0.4 percent for the season.
Alternative expenditure and assessment levels were discussed prior
to arriving at this budget. However, the Committee agreed on $1,824,600
in expenditures, reviewed the quantity of assessable tomatoes, the need
to add additional funds to the reserve, and recommended an assessment
rate of $0.0375 per 25-pound carton of tomatoes.
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. These costs are
offset by the benefits derived from the operation of the marketing
order. In addition, the Committee's meeting was widely publicized
throughout the Florida tomato industry and all interested persons were
invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the August
22, 2013, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0178 Vegetable and Specialty Crops. No changes in
those requirements as a result of this action are necessary. Should any
changes become necessary, they would be submitted to OMB for approval.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large Florida tomato handlers. As with
all Federal marketing order programs, reports and forms are
periodically reviewed to reduce 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 December 24, 2013 (78 FR 77604). Copies of the proposed
rule were also mailed or sent via facsimile to all Florida tomato
handlers. Finally, the proposal was made available through the internet
by USDA and the Office of the Federal Register. A 15-day comment period
ending January 8, 2014, 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: https://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, 2013, 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. Further, handlers are aware
of this rule, which was unanimously recommended by the Committee at a
public meeting. Also, a 15-day comment period was provided for in the
proposed rule, and no comments were received.
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, 2013, an assessment rate of $0.0375 per 25-
pound carton is established for Florida tomatoes.
Dated: February 18, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-03847 Filed 2-21-14; 8:45 am]
BILLING CODE 3410-02-P