Avocados Grown in South Florida; Increased Assessment Rate, 14019-14021 [2016-05834]
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14019
Proposed Rules
Federal Register
Vol. 81, No. 51
Wednesday, March 16, 2016
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 915
[Doc. No. AMS–SC–15–0083; SC16–915–2
PR]
Avocados Grown in South Florida;
Increased Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
implement a recommendation from the
Avocado Administrative Committee
(Committee) to increase the assessment
rate established for the 2016–17 and
subsequent fiscal periods from $0.30 to
$0.35 per 55-pound bushel container of
Florida avocados handled under the
marketing order (order). The Committee
locally administers the order and is
comprised of growers and handlers of
avocados operating within the area of
production. Assessments upon Florida
avocado handlers are used by the
Committee to fund reasonable and
necessary expenses of the program. The
fiscal period begins April 1 and ends
March 31. The assessment rate would
remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Comments must be received by
April 15, 2016.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments must be sent to the Docket
Clerk, Marketing Order and Agreement
Division, Specialty Crops 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://
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SUMMARY:
VerDate Sep<11>2014
16:39 Mar 15, 2016
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www.regulations.gov. All comments
submitted in response to this proposed
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Doris Jamieson, Marketing Specialist, or
Christian D. Nissen, Regional Director,
Southeast Marketing Field Office,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 291–8614, or Email:
Doris.Jamieson@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Antoinette
Carter, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This
proposed rule is issued under Marketing
Order No. 915, as amended (7 CFR part
915), regulating the handling of
avocados grown in South Florida,
hereinafter referred to as the ‘‘order.’’
The order is effective under the
Agricultural Marketing Agreement Act
of 1937, as amended (7 U.S.C. 601–674),
hereinafter referred to as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Orders
12866, 13563, and 13175.
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the marketing
order now in effect, Florida avocado
handlers are subject to assessments.
Funds to administer the order are
derived from such assessments. It is
intended that the assessment rate as
proposed herein would be applicable to
all assessable Florida avocados
beginning on April 1, 2016, 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
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Sfmt 4702
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing, USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
This proposed rule would increase
the assessment rate established for the
Committee for the 2016–17 and
subsequent fiscal periods from $0.30 to
$0.35 per 55-pound bushel container of
avocados.
The Florida avocado 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 avocados. 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 2013–14 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 December 9,
2015, and recommended 2016–17
expenditures of $302,553 and an
assessment rate of $0.35 per 55-pound
bushel container of avocados. In
comparison, last year’s budgeted
expenditures were $602,553. The
assessment rate of $0.35 is $0.05 higher
than the rate currently in effect. During
the 2015–16 season, the Committee used
its authorized reserves to fund several
large research projects to address the
Laurel Wilt fungus, which can infect
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Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 / Proposed Rules
and kill avocado trees. This
substantially reduced the funds in the
Committee’s reserves to $214,733.
Further, at the current assessment rate,
assessment income would equal only
$300,000, an amount insufficient to
cover the Committee’s anticipated
expenditures of $302,553. By increasing
the assessment rate by $0.05, assessment
income would be approximately
$350,000. This amount should provide
sufficient funds to meet 2016–2017
anticipated expenses and add money
back into the Committee’s authorized
reserves.
The major expenditures
recommended by the Committee for the
2016–17 year include $119,483 for
salaries, $51,500 for employee benefits,
and $25,500 for insurance and bonds.
Budgeted expenses for these items in
2015–16 were $119,483, $51,500, and
$25,500, respectively.
The assessment rate recommended by
the Committee was derived by
reviewing anticipated expenses,
expected shipments of Florida
avocados, and the level of funds in
reserve. As mentioned earlier, avocado
shipments for the year are estimated at
one million 55-pound bushel containers
which should provide $350,000 in
assessment income. Income derived
from handler assessments at the
proposed rate, along with interest
income, would be adequate to cover
budgeted expenses. Funds in the reserve
(currently $214,733) would be kept
within the maximum permitted by the
order (approximately three fiscal
periods’ expenses as authorized in
§ 915.42).
The proposed assessment rate would
continue in effect indefinitely unless
modified, suspended, or terminated by
USDA upon recommendation and
information submitted by the
Committee or other available
information.
Although this assessment rate would
be in effect for an indefinite period, the
Committee would continue to meet
prior to or during each fiscal period to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA would evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking would be
undertaken as necessary. The
Committee’s 2016–17 budget and those
for subsequent fiscal periods would be
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16:39 Mar 15, 2016
Jkt 238001
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
proposed 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
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 approximately 400
producers of Florida avocados in the
production area and approximately 25
handlers subject to regulation under the
marketing order. Small agricultural
producers are defined by the Small
Business Administration (SBA) as those
having annual receipts less than
$750,000, and small agricultural service
firms are defined as those whose annual
receipts are less than $7,500,000 (13
CFR 121.201).
According to the National
Agricultural Statistical Service (NASS),
the average grower price paid for
Florida avocados during the 2014–15
season was approximately $18.00 per
55-pound bushel container and total
shipments were slightly higher than 1.2
million 55-pound bushels. Based on this
information, the majority of avocado
producers would have annual receipts
less than $750,000. In addition, based
on Committee information, the majority
of Florida avocado handlers could be
considered small business under SBA’s
definition. Thus, the majority of Florida
avocado producers and handlers may be
classified as small entities.
This proposal would increase the
assessment rate established for the
Committee and collected from handlers
for the 2016–17 and subsequent fiscal
periods from $0.30 to $0.35 per 55pound bushel container of avocados.
The Committee recommended 2016–17
expenditures of $302,553 and an
assessment rate of $0.35 per 55-pound
bushel container. The proposed
assessment rate of $0.35 is $0.05 higher
than the previous rate. The quantity of
assessable avocados for the 2016–17
season is estimated at one million 55pound bushel containers. Thus, the
$0.35 rate should provide $350,000 in
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Sfmt 4702
assessment income and be adequate to
meet this year’s expenses.
The major expenditures
recommended by the Committee for the
2016–17 fiscal period include $119,483
for salaries, $51,500 for employee
benefits, and $25,500 for insurance and
bonds. Budgeted expenses for these
items in 2015–16 were $119,483,
$51,500, and $25,500, respectively.
During the 2015–16 season, the
Committee used its authorized reserves
to fund several large research projects to
address the Laurel Wilt fungus. This
substantially reduced the funds in the
Committee’s reserves. Further, at the
current assessment rate and with the
2016–17 crop estimated to be one
million 55-pound bushel containers,
assessment income would equal only
$300,000, an amount insufficient to
cover the Committee’s anticipated
expenditures of $302,553. By increasing
the assessment rate by $0.05, assessment
income would be approximately
$350,000. This amount should provide
sufficient funds to meet 2016–2017
anticipated expenses and add money
back into the Committee’s authorized
reserves. Consequently, the Committee
recommended increasing the assessment
rate.
Prior to arriving at this budget and
assessment rate, the Committee
considered information from various
sources, such as the Committee’s Budget
and Personnel Committee. Alternative
expenditure levels were discussed by
this group, based upon the relative
value of various activities to the South
Florida avocado industry. The
Committee ultimately determined that
2016–17 expenditures of $302,553 were
appropriate, and the recommended
assessment rate, along with interest
income, would generate sufficient
revenue to meet its expenses.
A review of historical information and
preliminary information pertaining to
the upcoming season indicates that the
grower price for the 2016–17 season
should be around $18 per 55-pound
bushel container of avocados. Therefore,
the estimated assessment revenue for
the 2016–17 fiscal period as a
percentage of total grower revenue
would be approximately two percent.
This action would increase the
assessment obligation imposed on
handlers. While assessments impose
some additional costs on handlers, the
costs are minimal and uniform on all
handlers. Additionally, these costs
would be offset by the benefits derived
by the operation of the marketing order.
In addition, the Committee’s meeting
was widely publicized throughout the
Florida avocado industry and all
interested persons were invited to
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attend the meeting and participate in
Committee deliberations on all issues.
Like all Committee meetings, the
December 9, 2015, meeting was a public
meeting and all entities, both large and
small, were able to express views on
this issue. Finally, interested persons
are invited to submit comments on this
proposed rule, including the regulatory
and informational impacts of this action
on small businesses.
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0189 (Generic
Fruit Crops). No changes in those
requirements as a result of this action
are necessary. Should any changes
become necessary, they would be
submitted to OMB for approval.
This proposed rule would impose no
additional reporting or recordkeeping
requirements on either small or large
Florida avocado 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 action.
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/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Antoinette
Carter at the previously-mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
A 30-day comment period is provided
to allow interested persons to respond
to this proposed rule. Thirty days is
deemed appropriate because: (1) The
2016–17 fiscal period begins on April 1,
2016, and the marketing order requires
that the rate of assessment for each
fiscal period apply to all assessable
avocados handled during such fiscal
period; (2) the Committee needs to have
sufficient funds to pay its expenses
which are incurred on a continuous
basis; and (3) handlers are aware of this
action which was recommended by the
Committee at a public meeting and is
similar to other assessment rate actions
issued in past years.
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Jkt 238001
List of Subjects in 7 CFR Part 915
Avocados, Marketing agreements,
Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 915 is proposed to
be amended as follows:
PART 915—AVOCADOS GROWN IN
SOUTH FLORIDA
1. The authority citation for 7 CFR
part 915 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 915.235 is revised to read
as follows:
■
§ 915.235
Assessment rate.
On and after April 1, 2016, an
assessment rate of $0.35 per 55-pound
container or equivalent is established
for avocados grown in South Florida.
Dated: March 10, 2016.
Elanor Starmer,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2016–05834 Filed 3–15–16; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 1250
[Doc. No. AMS–LPS–15–0042]
Egg Research and Promotion: Updates
to Patents, Copyrights, Trademarks,
and Information Provisions
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposed rule would
update the Patents, Copyrights,
Trademarks, and Information Language
(IP) of the Egg Research and Promotion
Rules and Regulations (Regulations).
The proposed amendment would model
current commodity research and
promotion program orders created
under the Commodity Promotion,
Research, and Information Act of 1996.
DATES: Comments must be received by
May 16, 2016.
FOR FURTHER INFORMATION CONTACT:
Kenneth R. Payne, Research and
Promotion Division; Livestock, Poultry,
and Seed Program; AMS, USDA; 1400
Independence Avenue SW., Room
2096–S; Washington, DC 20250;
telephone: (202) 720–5705; fax (202)
720–1125; or email: Kenneth.Payne@
ams.usda.gov.
SUMMARY:
SUPPLEMENTARY INFORMATION:
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14021
Executive Order 12866
The Office of Management and Budget
(OMB) has waived the review process
required by Executive Order 12866 for
this action.
Executive Order 12988
This proposed rule was reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have a retroactive effect. This action
would not preempt any State or local
laws, regulations, or policies unless they
present an irreconcilable conflict with
this proposed rule. The Egg Research
and Consumer Information Act (Act), 7
U.S.C. 2701 et seq., provides that
administrative proceedings be filed
before parties may consider suit in
court. Under section 14 of the Act, 7
U.S.C. 2713, a person subject to the Egg
Promotion and Research Order (Order)
may file a petition with the U.S.
Department of Agriculture (USDA)
stating that the Order, any provision of
the Order, or any obligation imposed in
connection with the Order, is not in
accordance with the law and request a
modification of the Order or an
exemption from the Order. The
petitioner is afforded the opportunity
for a hearing on the petition. After a
hearing, USDA would rule on the
petition. The Act provides that district
courts of the United States in any
district in which such person is an
inhabitant, or has their principal place
of business, has jurisdiction to review
USDA’s ruling on the petition, if a
complaint for this purpose is filed
within 20 days after the date of the entry
of the ruling.
Regulatory Flexibility Act
In accordance with the Regulatory
Flexibility Act (RFA) [5 U.S.C. 601–
612], the Agricultural Marketing Service
(AMS) has determined that this rule will
not have a significant economic impact
on a substantial number of small entities
as defined by RFA. The purpose of RFA
is to fit regulatory action to scale on
businesses subject to such action so that
small businesses will not be
disproportionately burdened. As such,
these changes will not impose a
significant impact on persons subject to
the program.
According to the American Egg Board
(Board), around 181 producers are
subject to the provisions of the Order,
including paying assessments. Under
the current Order, producers in the 48
contiguous United States and the
District of Columbia who own more
than 75,000 laying hens each currently
pay a mandatory assessment of 10 cents
per 30-dozen case of eggs. Handlers are
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]]>Agencies
[Federal Register Volume 81, Number 51 (Wednesday, March 16, 2016)]
[Proposed Rules]
[Pages 14019-14021]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05834]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 81, No. 51 / Wednesday, March 16, 2016 /
Proposed Rules
[[Page 14019]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 915
[Doc. No. AMS-SC-15-0083; SC16-915-2 PR]
Avocados Grown in South Florida; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Avocado Administrative Committee (Committee) to increase the assessment
rate established for the 2016-17 and subsequent fiscal periods from
$0.30 to $0.35 per 55-pound bushel container of Florida avocados
handled under the marketing order (order). The Committee locally
administers the order and is comprised of growers and handlers of
avocados operating within the area of production. Assessments upon
Florida avocado handlers are used by the Committee to fund reasonable
and necessary expenses of the program. The fiscal period begins April 1
and ends March 31. The assessment rate would remain in effect
indefinitely unless modified, suspended, or terminated.
DATES: Comments must be received by April 15, 2016.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Specialty Crops Program,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this
proposed rule will be included in the record and will be made available
to the public. Please be advised that the identity of the individuals
or entities submitting the comments will be made public on the internet
at the address provided above.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist,
or Christian D. Nissen, Regional Director, Southeast Marketing Field
Office, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or
Email: Doris.Jamieson@ams.usda.gov or Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, Marketing Order and
Agreement Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938, or Email:
Antoinette.Carter@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing
Order No. 915, as amended (7 CFR part 915), regulating the handling of
avocados grown in South Florida, hereinafter referred to as the
``order.'' The order is effective under the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter
referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 12866, 13563, and 13175.
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the marketing order now in effect, Florida
avocado handlers are subject to assessments. Funds to administer the
order are derived from such assessments. It is intended that the
assessment rate as proposed herein would be applicable to all
assessable Florida avocados beginning on April 1, 2016, and continue
until amended, suspended, or terminated.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing, USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This proposed rule would increase the assessment rate established
for the Committee for the 2016-17 and subsequent fiscal periods from
$0.30 to $0.35 per 55-pound bushel container of avocados.
The Florida avocado 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 avocados. 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 2013-14 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 December 9, 2015, and recommended 2016-17
expenditures of $302,553 and an assessment rate of $0.35 per 55-pound
bushel container of avocados. In comparison, last year's budgeted
expenditures were $602,553. The assessment rate of $0.35 is $0.05
higher than the rate currently in effect. During the 2015-16 season,
the Committee used its authorized reserves to fund several large
research projects to address the Laurel Wilt fungus, which can infect
[[Page 14020]]
and kill avocado trees. This substantially reduced the funds in the
Committee's reserves to $214,733. Further, at the current assessment
rate, assessment income would equal only $300,000, an amount
insufficient to cover the Committee's anticipated expenditures of
$302,553. By increasing the assessment rate by $0.05, assessment income
would be approximately $350,000. This amount should provide sufficient
funds to meet 2016-2017 anticipated expenses and add money back into
the Committee's authorized reserves.
The major expenditures recommended by the Committee for the 2016-17
year include $119,483 for salaries, $51,500 for employee benefits, and
$25,500 for insurance and bonds. Budgeted expenses for these items in
2015-16 were $119,483, $51,500, and $25,500, respectively.
The assessment rate recommended by the Committee was derived by
reviewing anticipated expenses, expected shipments of Florida avocados,
and the level of funds in reserve. As mentioned earlier, avocado
shipments for the year are estimated at one million 55-pound bushel
containers which should provide $350,000 in assessment income. Income
derived from handler assessments at the proposed rate, along with
interest income, would be adequate to cover budgeted expenses. Funds in
the reserve (currently $214,733) would be kept within the maximum
permitted by the order (approximately three fiscal periods' expenses as
authorized in Sec. 915.42).
The proposed assessment rate would continue in effect indefinitely
unless modified, suspended, or terminated by USDA upon recommendation
and information submitted by the Committee or other available
information.
Although this assessment rate would be in effect for an indefinite
period, the Committee would continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA would evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking would
be undertaken as necessary. The Committee's 2016-17 budget and those
for subsequent fiscal periods would be reviewed and, as appropriate,
approved by USDA.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS)
has considered the economic impact of this proposed 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
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 approximately 400 producers of Florida avocados in the
production area and approximately 25 handlers subject to regulation
under the marketing order. Small agricultural producers are defined by
the Small Business Administration (SBA) as those having annual receipts
less than $750,000, and small agricultural service firms are defined as
those whose annual receipts are less than $7,500,000 (13 CFR 121.201).
According to the National Agricultural Statistical Service (NASS),
the average grower price paid for Florida avocados during the 2014-15
season was approximately $18.00 per 55-pound bushel container and total
shipments were slightly higher than 1.2 million 55-pound bushels. Based
on this information, the majority of avocado producers would have
annual receipts less than $750,000. In addition, based on Committee
information, the majority of Florida avocado handlers could be
considered small business under SBA's definition. Thus, the majority of
Florida avocado producers and handlers may be classified as small
entities.
This proposal would increase the assessment rate established for
the Committee and collected from handlers for the 2016-17 and
subsequent fiscal periods from $0.30 to $0.35 per 55-pound bushel
container of avocados. The Committee recommended 2016-17 expenditures
of $302,553 and an assessment rate of $0.35 per 55-pound bushel
container. The proposed assessment rate of $0.35 is $0.05 higher than
the previous rate. The quantity of assessable avocados for the 2016-17
season is estimated at one million 55-pound bushel containers. Thus,
the $0.35 rate should provide $350,000 in assessment income and be
adequate to meet this year's expenses.
The major expenditures recommended by the Committee for the 2016-17
fiscal period include $119,483 for salaries, $51,500 for employee
benefits, and $25,500 for insurance and bonds. Budgeted expenses for
these items in 2015-16 were $119,483, $51,500, and $25,500,
respectively.
During the 2015-16 season, the Committee used its authorized
reserves to fund several large research projects to address the Laurel
Wilt fungus. This substantially reduced the funds in the Committee's
reserves. Further, at the current assessment rate and with the 2016-17
crop estimated to be one million 55-pound bushel containers, assessment
income would equal only $300,000, an amount insufficient to cover the
Committee's anticipated expenditures of $302,553. By increasing the
assessment rate by $0.05, assessment income would be approximately
$350,000. This amount should provide sufficient funds to meet 2016-2017
anticipated expenses and add money back into the Committee's authorized
reserves. Consequently, the Committee recommended increasing the
assessment rate.
Prior to arriving at this budget and assessment rate, the Committee
considered information from various sources, such as the Committee's
Budget and Personnel Committee. Alternative expenditure levels were
discussed by this group, based upon the relative value of various
activities to the South Florida avocado industry. The Committee
ultimately determined that 2016-17 expenditures of $302,553 were
appropriate, and the recommended assessment rate, along with interest
income, would generate sufficient revenue to meet its expenses.
A review of historical information and preliminary information
pertaining to the upcoming season indicates that the grower price for
the 2016-17 season should be around $18 per 55-pound bushel container
of avocados. Therefore, the estimated assessment revenue for the 2016-
17 fiscal period as a percentage of total grower revenue would be
approximately two percent.
This action would increase the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Additionally, these
costs would be offset by the benefits derived by the operation of the
marketing order. In addition, the Committee's meeting was widely
publicized throughout the Florida avocado industry and all interested
persons were invited to
[[Page 14021]]
attend the meeting and participate in Committee deliberations on all
issues. Like all Committee meetings, the December 9, 2015, meeting was
a public meeting and all entities, both large and small, were able to
express views on this issue. Finally, interested persons are invited to
submit comments on this proposed rule, including the regulatory and
informational impacts of this action on small businesses.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0189 (Generic Fruit Crops). No changes in those
requirements as a result of this action are necessary. Should any
changes become necessary, they would be submitted to OMB for approval.
This proposed rule would impose no additional reporting or
recordkeeping requirements on either small or large Florida avocado
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 action.
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/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Antoinette Carter at the
previously-mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 30-day comment period is provided to allow interested persons to
respond to this proposed rule. Thirty days is deemed appropriate
because: (1) The 2016-17 fiscal period begins on April 1, 2016, and the
marketing order requires that the rate of assessment for each fiscal
period apply to all assessable avocados handled during such fiscal
period; (2) the Committee needs to have sufficient funds to pay its
expenses which are incurred on a continuous basis; and (3) handlers are
aware of this action which was recommended by the Committee at a public
meeting and is similar to other assessment rate actions issued in past
years.
List of Subjects in 7 CFR Part 915
Avocados, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 915 is
proposed to be amended as follows:
PART 915--AVOCADOS GROWN IN SOUTH FLORIDA
0
1. The authority citation for 7 CFR part 915 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 915.235 is revised to read as follows:
Sec. 915.235 Assessment rate.
On and after April 1, 2016, an assessment rate of $0.35 per 55-
pound container or equivalent is established for avocados grown in
South Florida.
Dated: March 10, 2016.
Elanor Starmer,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2016-05834 Filed 3-15-16; 8:45 am]
BILLING CODE 3410-02-P
