Tomatoes Grown in Florida; Increased Assessment Rate, 84507-84510 [2016-28259]
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Federal Register / Vol. 81, No. 226 / Wednesday, November 23, 2016 / Proposed Rules
per hundred units to align it with
current industry practices, based on the
AFFI request.
7. AMS did not modify use of 450
gram samples in response to AFFI
questioning why we used 450 grams for
the individual sample sizes for styles
other than whole instead of 454 grams,
which equals one pound. AMS
responded that AQLs are based on
increments of 50 units so rounding to
the nearest AQL results in using 450
grams per sample unit or approximately
one pound. AFFI concurred with use of
450 gram samples.
8. In response to a request to revise
the definitions of ‘‘good appearance’’
and ‘‘reasonably good appearance’’
because they were too similar, AMS
added flowability, brightness, and
overall appearance to the description of
‘‘reasonably good appearance,’’ and also
added the classification and definition
for ‘‘poor appearance.’’ AFFI agreed to
the new terminology and additional
classification.
9. In response to a comment received,
AMS did not include a requirement for
heat treatment but added that option in
the product description, by means of
blanching. The revised statement is:
‘‘have been properly prepared, washed,
blanched or unblanched, and then
frozen in accordance with good
commercial practice and maintained at
temperatures necessary to preserve the
product.’’ AFFI concurred with the
revised product description.
10. In response to AFFI comments,
AMS agreed to limit the product
description to ‘‘individually quick
frozen’’ onions.
11. In accordance with AMS’ policy
requiring commodities covered by U.S.
grade standards to comply with all
federal, state, and local laws, AMS did
not include microbiological
requirements, storage temperatures,
shelf life requirements, and limits for
chemical and pesticide residues to the
proposed frozen onion grade standards.
Such requirements are not typically
included in the voluntary U.S. grade
standards. AFFI concurred.
12. In response to a request from AFFI
members, AMS changed the proposed
size descriptions for ‘‘whole’’ styles as
follows:
Type I from 3⁄4 inch (19mm) to 17⁄8
inch (48mm) changed to 7⁄8 inch (22mm)
to 17⁄8 inch (48mm).
Type II (Pearl) from 1⁄4 inch (6mm) to
7⁄8 inch (22mm) changed to 3⁄8 inch
(10mm) to 7⁄8 inch (22mm).
13. In reponse to an AFFI member’s
comment to the AMS’ Federal Register
notice published on June 1, 2011 (76 FR
31575), AMS revised the Defect Tables
and Definitions of the proposed
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standards. The AFFI member, a major
processor and distributor of strips and
diced styles of frozen onions, agreed
with most of the proposal, but provided
additional suggestions concerning
whole, strips, diced, and other styles
containing crown material defects in its
comments. The member also suggested
additional provisions for defects, such
as core material, sprouts, seed stems,
and root material; and, suggested that
portions of root crown exceeding 3⁄8
inch (10 mm) in diameter be listed in a
separate category. AMS agreed and
revised Defect Tables I (whole style) and
II (strips, diced, and other styles) of the
proposed grade standards and
definitions to include major and minor
defects in core material, to include root
crown, with dimensions listed
accordingly.
AMS sent a discussion draft of the
proposed standards to AFFI members
for concurrence. AMS received
confirmation in November 2015 that
AFFI members agreed with the changes,
and had no additional comments.
Conclusions
Frm 00002
Other Processed Food Products (7 CFR
52.1 to 52.83).
AMS is publishing this notice with a
60-day comment period that will
provide a sufficient amount of time for
interested persons to comment on the
proposed new grade standards for
frozen onions.
Authority: 7 U.S.C. 1621–1627
Dated: November 18, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2016–28255 Filed 11–22–16; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No. AMS–SC–16–0088; SC16–966–1
PR]
Tomatoes Grown in Florida; Increased
Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
These proposed standards would
establish the grade levels ‘‘A,’’ ‘‘B,’’ and
‘‘Substandard,’’ as well as proposed
AQL tolerances and acceptance
numbers for each quality factor as
defined for each grade level.
AMS used the standard format for
U.S. standards for grades using
‘‘individual attributes.’’ Specifically, the
proposed grade standards would
provide for tolerance limits for defects;
acceptance numbers of allowable
defects with single letter grade
designation based on a specified
number or weight of sample units; a
product description for frozen onions;
and, style designations for ‘‘whole,’’
‘‘strips,’’ ‘‘diced,’’ and ‘‘other’’ styles.
The proposal also would define quality
factors, AQLs, and tolerances for defects
in frozen onions, and determine sample
unit sizes for this commodity. The grade
of a sample unit of frozen onions would
be ascertained considering the factors of
varietal characteristics, color, flavor and
odor, appearance, absence of grit or dirt,
defects, and character.
These voluntary grade standards
would provide a common language for
trade, a means of measuring value in
marketing, and guidance in the effective
use of frozen onions.
The official grade of a lot of frozen
onions covered by these standards
would be determined by the procedures
set forth in the Regulations Governing
Inspection and Certification of
Processed Fruits and Vegetables,
Processed Products Thereof, and Certain
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This proposed rule would
implement a recommendation from the
Florida Tomato Committee (Committee)
to increase the assessment rate
established for the 2016–17 and
subsequent fiscal periods from $0.03 to
$0.035 per 25-pound carton of tomatoes
handled under the marketing order
(order). The Committee locally
administers the order and is comprised
of producers of tomatoes operating
within the area of production.
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 would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
December 8, 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
SUMMARY:
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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:
Steven W. Kauffman, 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: Steven.Kauffman@ams.usda.gov
or Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
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:
Richard.Lower@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This
proposed 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 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 tomato
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 tomatoes
beginning on August 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
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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 $0.03 to
$0.035 per 25-pound carton of 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 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 2015–16 and subsequent fiscal
periods, the Committee recommended,
and USDA approved, an assessment rate
of $0.03 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 16,
2016, and unanimously recommended
2016–17 expenditures of $1,494,600 and
an assessment rate of $0.035 per 25pound carton of tomatoes. In
comparison, last year’s budgeted
expenditures were $1,513,177. The
assessment rate of $0.035 is $0.005
higher than the rate currently in effect.
At the current assessment rate,
assessment income would equal only
$990,000, an amount insufficient to
cover the Committee’s anticipated
expenditures of $1,494,600. The
Committee considered the proposed
expenses and recommended increasing
the assessment rate.
The major expenditures
recommended by the Committee for the
2016–17 year include $450,000 for
salaries, $400,000 for research, and
$400,000 for education and promotion.
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Budgeted expenses for these items in
2015–16 were $435,377, $400,000, and
$400,000, respectively.
The assessment rate recommended by
the Committee was derived by dividing
anticipated expenses by expected
shipments of Florida tomatoes. Florida
tomato shipments for the 2016–17 year
are estimated at 33 million 25-pound
cartons, which should provide
$1,155,000 in assessment income.
Income derived from handler
assessments, along with interest income,
block grants, and funds from the
Committee’s authorized reserve, would
be adequate to cover budgeted expenses.
Funds in the reserve (approximately
$999,361) would 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 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
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small entities acting on their own
behalf.
There are approximately 100
producers of tomatoes in the production
area and approximately 80 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).
Based on industry and Committee
data, the average annual price for fresh
Florida tomatoes during the 2015–16
season was approximately $11.27 per
25-pound carton, and total fresh
shipments were approximately 28.2
million cartons. Using the average price
and shipment information, number of
handlers, and assuming a normal
distribution, the majority of handlers
have average annual receipts below
$7,500,000. In addition, based on
production data, an estimated grower
price of $6.25, and the total number of
Florida tomato growers, the average
annual grower revenue is above
$750,000. Thus, a majority of the
handlers of Florida tomatoes may be
classified as small entities while a
majority of the producers may be
classified as large 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 $0.03 to $0.035 per 25pound carton of tomatoes. The
Committee unanimously recommended
2016–17 expenditures of $1,494,600 and
an assessment rate of $0.035 per 25pound carton handled. The proposed
assessment rate of $0.035 is $.005 higher
than the 2015–16 rate. The quantity of
assessable tomatoes for the 2016–17
season is estimated at 33 million 25pound cartons. Thus, the $0.035 rate
should provide $1,155,000 in
assessment income. Income derived
from handler assessments, along with
funds from interest income, MAP funds,
and block grants, should provide
sufficient funds to meet this year’s
anticipated expenses.
The major expenditures
recommended by the Committee for the
2016–17 year include $450,000 for
salaries, $400,000 for research, and
$400,000 for education and promotion.
Budgeted expenses for these items in
2015–16 were $435,377, $400,000, and
$400,000, respectively.
At the current assessment rate,
assessment income would equal only
$990,000, an amount insufficient to
cover the Committee’s anticipated
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expenditures of $1,494,600. The
Committee considered the proposed
expenses and 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
Executive Subcommittee, Research
Subcommittee, and Education and
Promotion Subcommittee. Alternative
expenditure levels were discussed by
these groups, based upon the relative
value of various activities to the tomato
industry. The Committee determined
that 2016–17 expenditures of $1,494,600
were appropriate, and the recommended
assessment rate, along with funds from
interest income, block grants, and funds
from reserves, would be adequate to
cover budgeted expenses.
A review of historical information and
preliminary information pertaining to
the upcoming crop year indicates that
the average grower price for the 2016–
17 season could be approximately $6.50
per 25-pound carton of tomatoes.
Therefore, the estimated assessment
revenue for the 2016–17 crop year as a
percentage of total grower revenue
would be approximately 0.5 percent.
This action would increase the
assessment obligation imposed on
handlers. While assessments impose
some additional costs on handlers, the
costs are minimal and uniform on all
handlers. Some of the additional costs
may be passed on to producers.
However, these costs would be offset by
the benefits derived by the operation of
the marketing order.
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 16,
2016, 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. 0581–0178 Vegetable
and Specialty Crops. No changes in
those requirements are necessary as a
result of this action. Should any changes
become necessary, they would be
submitted to OMB for approval.
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84509
This proposed rule would impose 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 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 Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
A 15-day comment period is provided
to allow interested persons to respond
to this proposed rule. Fifteen days is
deemed appropriate because: (1) The
2016–17 fiscal period began on August
1, 2016, 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) the Committee needs to
have sufficient funds to pay its
expenses, which are incurred on a
continuous basis; and (3) handlers are
aware of this action, which was
unanimously recommended by the
Committee at a public meeting and is
similar to other assessment rate actions
issued in past years.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and
recordkeeping requirements, Tomatoes.
For the reasons set forth in the
preamble, 7 CFR part 966 is proposed to
be 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, 2016, an
assessment rate of $0.035 per 25-pound
carton is established for Florida
tomatoes.
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Dated: November 18, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing
Service.
be made public on the internet at the
address provided above.
FOR FURTHER INFORMATION CONTACT:
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 1150, 1160, 1205, 1206,
1207, 1208, 1209, 1210, 1212, 1214,
1215, 1216, 1217, 1218, 1219, 1222,
1230, 1250, and 1260
Provisions for Removing Commodity
Research and Promotion Board
Members and Staff
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
This proposal would amend
the research and promotion orders—or
the regulations under the orders—
overseen by the Agricultural Marketing
Service (AMS) to provide uniform
authority for the removal of board
members and staff who fail to perform
their duties or who engage in dishonest
actions or willful misconduct. The
removal provisions in 13 of the orders
would be modified to allow the U.S.
Department of Agriculture (USDA) to
take action necessary to ensure the
boards can continue to fulfill their
intended purposes with minimal
disruption. Removal provisions would
be added to the six orders that do not
currently provide for such action.
DATES: Comments must be received by
December 8, 2016.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments may be submitted on the
internet at: https://www.regulations.gov.
Written comments may also be sent to
Laurel L. May, Senior Marketing
Specialist, Order Formulation and
Enforcement Division, USDA/AMS/
Dairy Program, 1400 Independence
Avenue SW., Room 2967–S—Stop 0231,
Washington, DC 20250–0231; facsimile:
202–690–0552. All comments should
reference the document number and the
date and page number of this issue of
the Federal Register, and will be made
available for public inspection in the
above office during regular business
hours, or may be viewed at: https://
www.regluations.gov. Please be advised
that the identity of the individuals or
entities submitting the comments will
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This
proposed rule is issued under 19 of the
commodity research and promotion
orders established under the following
acts: Beef Promotion and Research Act
of 1985 (7 U.S.C. 2901–2911);
Commodity Promotion, Research, and
Information Act of 1996 (7 U.S.C. 7411–
7425); Cotton Research and Promotion
Act of 1966 (7 U.S.C. 2101–2118); Dairy
Production Stabilization Act of 1983 (7
U.S.C. 4501–4514); Egg Research and
Consumer Information Act of 1974 (7
U.S.C. 2701–2718); Fluid Milk
Promotion Act of 1990 (7 U.S.C. 6401–
6417); Hass Avocado Promotion,
Research, and Information Act of 2000
(U.S.C. 7801–7813); Mushroom
Promotion, Research, and Consumer
Information Act of 1990 (7 U.S.C. 6101–
6112); Popcorn Promotion, Research,
and Consumer Information Act of 1996
(7 U.S.C. 7481–7491); Pork Promotion,
Research, and Consumer Information
Act of 1985 (7 U.S.C. 4801–4819); Potato
Research and Promotion Act of 1971 (7
U.S.C. 2611–2627); and Watermelon
Research and Promotion Act (7 U.S.C.
4901–4916). These acts are collectively
referred to as ‘‘commodity research and
promotion laws’’ or ‘‘acts.’’
The preceding acts provide that
administrative proceedings must be
exhausted before parties may file suit in
court. Under those acts, any person
subject to an order may file a petition
with the Secretary of Agriculture
(Secretary) stating that the order, any
provision of the order, or any obligation
imposed in connection with the order is
not in accordance with laws and request
a modification of the order or to be
exempted therefrom. The petitioner is
afforded the opportunity for a hearing
on the petition. After the hearing, the
Secretary will make a ruling on the
petition. The acts provide that the
district courts of the United States in
any district in which the person is an
inhabitant, or has his or her principal
place of business, has the jurisdiction to
review the Secretary’s rule, provided a
complaint is filed within 20 days from
the date of the entry of the ruling. There
are no administrative proceedings that
must be exhausted prior to any judicial
SUPPLEMENTARY INFORMATION:
[Document Number AMS–DA–16–0101]
VerDate Sep<11>2014
Executive Order 12866 and Executive
Order 13563
Laurel L. May, Senior Marketing
Specialist, USDA/AMS/Dairy Program,
telephone 202–690–1366, or email
Laurel.May@ams.usda.gov; or Whitney
Rick, Director; Promotion, Research, and
Planning Division; USDA/AMS/Dairy
Program; telephone 202–720–6961; or
email Whitney.Rick@ams.usda.gov.
[FR Doc. 2016–28259 Filed 11–22–16; 8:45 am]
SUMMARY:
challenge to the provision of the Beef
Promotion and Research Act of 1985.
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USDA is issuing this proposed rule in
conformance with Executive Orders
12866 and 13563. Executive Orders
12866 and 13563 direct agencies to
assess all costs and benefits of available
regulatory alternatives and, if regulation
is necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health, and safety
effects, distributive impacts, and
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits,
reducing costs, harmonizing rules, and
promoting flexibility. This action has
been designated as a ‘‘non-significant
regulatory action’’ under section 3(f) of
Executive Order 12866. Accordingly,
the Office of Management and Budget
has waived the review process.
Executive Order 13175
This proposed rule has been reviewed
in accordance with the requirements of
Executive Order 13175, Consultation
and Coordination with Indian Tribal
Governments. The review reveals that
this regulation would not have
substantial and direct effects on Tribal
governments and would not have
significant Tribal implications.
Executive Order 12988
Beef Promotion and Research Act of
1985
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 11 of the
Beef Promotion and Research Act of
1985 (7 U.S.C. 2910) provides that it
shall not preempt or supersede any
other program relating to beef
promotion organized and operated
under the laws of the United States or
any State.
Commodity Promotion, Research, and
Information Act of 1996
This proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. It is not intended to
have retroactive effect. Section 524 of
the Commodity Promotion, Research,
and Information Act of 1996 (7 U.S.C.
7423) provides that it shall not affect or
preempt any other Federal or State law
authorizing promotion or research
relating to an agricultural commodity.
E:\FR\FM\23NOP1.SGM
23NOP1
]]>Agencies
[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)]
[Proposed Rules]
[Pages 84507-84510]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28259]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No. AMS-SC-16-0088; SC16-966-1 PR]
Tomatoes Grown in Florida; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
Florida Tomato Committee (Committee) to increase the assessment rate
established for the 2016-17 and subsequent fiscal periods from $0.03 to
$0.035 per 25-pound carton of tomatoes handled under the marketing
order (order). The Committee locally administers the order and is
comprised of producers of tomatoes operating within the area of
production. 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
would remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Comments must be received by December 8, 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
[[Page 84508]]
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: Steven W. Kauffman, 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: Steven.Kauffman@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Richard Lower, 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: Richard.Lower@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This proposed 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 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
tomato 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 tomatoes beginning on August 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
$0.03 to $0.035 per 25-pound carton of 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 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 2015-16 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate of $0.03 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 16, 2016, and unanimously recommended
2016-17 expenditures of $1,494,600 and an assessment rate of $0.035 per
25-pound carton of tomatoes. In comparison, last year's budgeted
expenditures were $1,513,177. The assessment rate of $0.035 is $0.005
higher than the rate currently in effect. At the current assessment
rate, assessment income would equal only $990,000, an amount
insufficient to cover the Committee's anticipated expenditures of
$1,494,600. The Committee considered the proposed expenses and
recommended increasing the assessment rate.
The major expenditures recommended by the Committee for the 2016-17
year include $450,000 for salaries, $400,000 for research, and $400,000
for education and promotion. Budgeted expenses for these items in 2015-
16 were $435,377, $400,000, and $400,000, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Florida
tomatoes. Florida tomato shipments for the 2016-17 year are estimated
at 33 million 25-pound cartons, which should provide $1,155,000 in
assessment income. Income derived from handler assessments, along with
interest income, block grants, and funds from the Committee's
authorized reserve, would be adequate to cover budgeted expenses. Funds
in the reserve (approximately $999,361) would 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 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
[[Page 84509]]
small entities acting on their own behalf.
There are approximately 100 producers of tomatoes in the production
area and approximately 80 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).
Based on industry and Committee data, the average annual price for
fresh Florida tomatoes during the 2015-16 season was approximately
$11.27 per 25-pound carton, and total fresh shipments were
approximately 28.2 million cartons. Using the average price and
shipment information, number of handlers, and assuming a normal
distribution, the majority of handlers have average annual receipts
below $7,500,000. In addition, based on production data, an estimated
grower price of $6.25, and the total number of Florida tomato growers,
the average annual grower revenue is above $750,000. Thus, a majority
of the handlers of Florida tomatoes may be classified as small entities
while a majority of the producers may be classified as large 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 $0.03 to $0.035 per 25-pound carton of
tomatoes. The Committee unanimously recommended 2016-17 expenditures of
$1,494,600 and an assessment rate of $0.035 per 25-pound carton
handled. The proposed assessment rate of $0.035 is $.005 higher than
the 2015-16 rate. The quantity of assessable tomatoes for the 2016-17
season is estimated at 33 million 25-pound cartons. Thus, the $0.035
rate should provide $1,155,000 in assessment income. Income derived
from handler assessments, along with funds from interest income, MAP
funds, and block grants, should provide sufficient funds to meet this
year's anticipated expenses.
The major expenditures recommended by the Committee for the 2016-17
year include $450,000 for salaries, $400,000 for research, and $400,000
for education and promotion. Budgeted expenses for these items in 2015-
16 were $435,377, $400,000, and $400,000, respectively.
At the current assessment rate, assessment income would equal only
$990,000, an amount insufficient to cover the Committee's anticipated
expenditures of $1,494,600. The Committee considered the proposed
expenses and 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
Executive Subcommittee, Research Subcommittee, and Education and
Promotion Subcommittee. Alternative expenditure levels were discussed
by these groups, based upon the relative value of various activities to
the tomato industry. The Committee determined that 2016-17 expenditures
of $1,494,600 were appropriate, and the recommended assessment rate,
along with funds from interest income, block grants, and funds from
reserves, would be adequate to cover budgeted expenses.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the average grower
price for the 2016-17 season could be approximately $6.50 per 25-pound
carton of tomatoes. Therefore, the estimated assessment revenue for the
2016-17 crop year as a percentage of total grower revenue would be
approximately 0.5 percent.
This action would increase the assessment obligation imposed on
handlers. While assessments impose some additional costs on handlers,
the costs are minimal and uniform on all handlers. Some of the
additional costs may be passed on to producers. However, these costs
would be offset by the benefits derived by the operation of the
marketing order.
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 16, 2016, 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. 0581-0178 Vegetable and Specialty Crops. No changes in
those requirements are necessary as a result of this action. 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 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 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 Richard Lower at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 15-day comment period is provided to allow interested persons to
respond to this proposed rule. Fifteen days is deemed appropriate
because: (1) The 2016-17 fiscal period began on August 1, 2016, 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) the Committee needs to have sufficient funds to pay
its expenses, which are incurred on a continuous basis; and (3)
handlers are aware of this action, which was unanimously recommended by
the Committee at a public meeting and is similar to other assessment
rate actions issued in past years.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
For the reasons set forth in the preamble, 7 CFR part 966 is
proposed to be 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, 2016, an assessment rate of $0.035 per 25-
pound carton is established for Florida tomatoes.
[[Page 84510]]
Dated: November 18, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-28259 Filed 11-22-16; 8:45 am]
BILLING CODE 3410-02-P
