Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Decreased Assessment Rate, 13378-13380 [2018-06282]
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Federal Register / Vol. 83, No. 61 / Thursday, March 29, 2018 / Rules and Regulations
chilensis mite is found, the production
site will not qualify for certification as
a low-prevalence production site. Each
production site may have only one
opportunity per season to qualify as a
low-prevalence production site, and
certification of low prevalence will be
valid for one harvest season only. The
NPPO of Chile will present a list of
certified production sites to APHIS.
Fruit from those production sites that do
not meet the requirements for
certification as low-prevalence
production sites may still be imported
into the United States subject to
treatment as listed in paragraph (b)(1) of
this section.
(iii) Post-harvest processing. After
harvest, all damaged or diseased fruits
must be culled at the packinghouse and
remaining fruit must be packed into
new, clean boxes, crates, or other
APHIS-approved packing containers.
(iv) Phytosanitary inspection. Fruit
must be inspected in Chile at an APHISapproved inspection site under the
direction of APHIS inspectors in
coordination with the NPPO of Chile
following any post-harvest processing.
A biometric sample must be drawn and
examined from each consignment. Fresh
cherimoya fruit can be shipped to the
continental United States under the
systems approach only if the
consignment passes inspection. Any
consignment that does not meet the
requirements of this paragraph for
inspection can still be imported into the
United States subject to treatment as
listed in paragraph (b)(1) of this section.
Inspection procedures are as follows:
(A) Fruit presented for inspection
must be identified in the shipping
documents accompanying each lot of
fruit to specify the production site or
sites in which the fruit was produced
and the packing shed or sheds in which
the fruit was processed. This
identification must be maintained until
the fruit is released for entry into the
United States.
(B) A biometric sample of the boxes,
crates, or other APHIS-approved
packing containers from each
consignment will be selected by the
NPPO of Chile, and the fruit from these
boxes, crates, or other APHIS-approved
packing containers will be visually
inspected for quarantine pests. If a
single live B. chilensis mite is found
during the inspection process, the
certified low-prevalence production site
where the fruit was grown will lose its
certification for the remainder of the
harvest season.
(v) Phytosanitary certificate. Each
consignment of fresh cherimoya fruit
must be accompanied by a
phytosanitary certificate issued by the
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NPPO of Chile that contains an
additional declaration stating that the
fruit in the consignment was inspected
and found free of Brevipalpus chilensis
and was grown, packed, and shipped in
accordance with the requirements of
§ 319.56–82(b)(2).
(Approved by the Office of Management
and Budget under control number 0579–
0444)
Done in Washington, DC, this 23rd day of
March 2018.
Kevin Shea,
Administrator, Animal and Plant Health
Inspection Service.
[FR Doc. 2018–06289 Filed 3–28–18; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Doc. No. AMS–SC–17–0037; SC17–906–1
FR]
Oranges and Grapefruit Grown in the
Lower Rio Grande Valley in Texas;
Decreased Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the Texas Valley
Citrus Committee (Committee) to
decrease the assessment rate established
for the 2017–18 and subsequent fiscal
periods for oranges and grapefruit
handled under Marketing Order 906.
The assessment rate will remain in
effect indefinitely unless modified,
suspended, or terminated. This rule also
makes administrative revisions to the
subpart headings of the Order.
DATES: Effective April 30, 2018.
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 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.
SUMMARY:
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This
action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out
a marketing order as defined in 7 CFR
900.2(j). This rule is issued under
Marketing Agreement and Order No.
906, as amended (7 CFR part 906),
regulating the handling of oranges and
grapefruit grown in the Lower Rio
Grande Valley in Texas. Part 906
(referred to as 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 Committee locally
administers the Order and is comprised
of producers and handlers of oranges
and grapefruit operating within the
production area.
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Orders
13563 and 13175. This action falls
within a category of regulatory actions
that the Office of Management and
Budget (OMB) exempted from Executive
Order 12866 review. Additionally,
because this rule does not meet the
definition of a significant regulatory
action, it does not trigger the
requirements contained, in Executive
Order 13771. See OMB’s Memorandum
titled ‘‘Interim Guidance Implementing
Section 2 of the Executive Order of
January 30, 2017, titled ‘‘Reducing
Regulation and Controlling Regulatory
Costs’’ (February 2, 2017).
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the provisions of the
Order now in effect, Texas orange and
grapefruit handlers are subject to
assessments. Funds to administer the
Order are derived from such
assessments. It is intended that the
assessment rate will be applicable to all
assessable oranges and grapefruit
beginning on August 1, 2017, 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
SUPPLEMENTARY INFORMATION:
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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.
The 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 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.
This rule decreases the assessment
rate from $0.09, the rate that was
established for the 2016–17 and
subsequent fiscal periods, to $0.02 per
7/10-bushel carton or equivalent of
oranges and grapefruit handled for the
2017–18 and subsequent fiscal periods.
The decrease reflects a reduction in
expenses of more than $595,000 from
not funding the Mexican fruit fly control
program.
The Committee met on August 8,
2017, and unanimously recommended
2017–18 expenditures of $152,920 and
an assessment rate of $0.02 per 7/10bushel carton or equivalent of oranges
and grapefruit. The assessment rate of
$0.02 is $0.07 lower than the rate
currently in effect. The Committee
recommended decreasing the
assessment rate to reflect that they
would not be funding the Mexican fruit
fly control program, reducing their
budget by more than $595,000. Income
derived from handler assessments, along
with interest income and funds from the
Committee’s authorized reserve, will be
adequate to cover budgeted expenses.
Of the total $152,920 budgeted for the
2017–18 fiscal period, major
expenditures recommended by the
Committee include $79,220 for
management, $50,000 for compliance,
and $23,700 for operating expenses.
Compared to the previous fiscal year’s
budget of $751,148, budgeted expenses
for these items in 2016–17 were
$77,200, $50,000, and $23,700,
respectively.
The assessment rate recommended by
the Committee was derived by
considering anticipated expenses,
expected shipments, and the amount of
funds available in the authorized
reserve. Income derived from handler
assessments calculated at $150,000 (7.5
million 7/10-bushel cartons assessed at
$0.02 per carton), along with interest
income and funds from the Committee’s
authorized reserve, should be adequate
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to cover budgeted expenses of $152,920.
Funds in the reserve (currently
$282,572) will be kept within the
maximum permitted by the Order
(approximately one fiscal period’s
expenses as stated in § 906.35).
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 for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA will evaluate Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
Committee’s 2017–18 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.
There are approximately 170
producers of oranges and grapefruit in
the production area and 13 handlers
subject to regulation under the 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 Committee data, the
average price for Texas citrus during the
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13379
2015–16 season was approximately
$17.48 per box and total shipments were
7.5 million boxes. Using the average
price and shipment information, the
number of handlers (13), and assuming
a normal distribution, the majority of
handlers would have average annual
receipts of greater than $7,500,000.
Thus, the majority of Texas citrus
handlers may be classified as large
business entities.
In addition, based on information
from the National Agricultural Statistics
Service, the weighted grower price for
Texas citrus during the 2015–16 season
was approximately $14.64 per box.
Using the weighted average price and
shipment information, and assuming a
normal distribution, the majority of
producers would have annual receipts
of less than $750,000. Thus, the majority
of Texas citrus producers may be
classified as small business entities.
This rule decreases the assessment
rate collected from handlers for the
2017–18 and subsequent fiscal periods
from $0.09 to $0.02 per 7/10-weight
bushel carton or equivalent of Texas
citrus. The Committee unanimously
recommended 2017–18 expenditures of
$152,920 and an assessment rate of
$0.02 per 7/10-bushel carton or
equivalent handled. The assessment rate
of $0.02 is $0.07 lower than the 2016–
17 rate. The quantity of assessable
oranges and grapefruit for the 2017–18
fiscal period is estimated at 7.5 million
7/10-bushel cartons. Thus, the $0.02
rate should provide $150,000 in
assessment income. Income derived
from handler assessments, along with
interest income and funds from the
Committee’s authorized reserve, should
be adequate to cover budgeted expenses.
The major expenditures
recommended by the Committee for the
2017–18 year include $79,220 for
management, $50,000 for compliance,
and $23,700 for operating expenses.
Budgeted expenses for these items in
2016–17 were $77,200, $50,000, and
$23,700, respectively.
The Committee recommended
decreasing the assessment rate to reflect
that it would not be funding the
Mexican fruit fly control program,
reducing its budget by more than
$595,000.
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, and the
Research Committee. Alternative
expenditure levels were discussed by
these committees who reviewed the
relative value of various activities to the
Texas citrus industry. These committees
determined that all program activities
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were adequately funded and essential to
the functionality of the Order, thus no
alternate expenditure levels were
deemed appropriate. Additionally,
alternate assessment rates of $0.01 and
$0.015 per 7/10 bushel-carton were
discussed. However, it was determined
that these lower assessment rates would
draw too heavily from reserves, roughly
$78,000 and $43,000, respectively. The
proposed rate of $0.02 per 7/10 bushelcarton would draw an anticipated
$2,800 from reserves, thereby leaving
reserves intact for future needs.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal period indicates
that the average grower price for the
2017–18 season should be
approximately $15.50 per 7/10-bushel
carton or equivalent of oranges and
grapefruit. Therefore, the estimated
assessment revenue for the 2017–18
crop year as a percentage of total grower
revenue would be about 0.1 percent.
This action decreases the assessment
obligation imposed on handlers.
Assessments are applied uniformly on
all handlers, and some of the costs may
be passed on to producers. However,
decreasing the assessment rate reduces
the burden on handlers, and may reduce
the burden on producers.
The Committee’s meeting was widely
publicized throughout the Texas citrus
industry and all interested persons were
invited to attend the meeting and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the August 8, 2017, 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 OMB and
assigned OMB No. 0581–0189, Fruit
Crops. No changes in those
requirements as a result of this action
are necessary. Should any changes
become necessary, they would be
submitted to OMB for approval.
This rule imposes no additional
reporting or recordkeeping requirements
on either small or large Texas orange
and grapefruit 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
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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 4, 2017 (82 FR
57164). Copies of the proposed rule
were also mailed or sent via facsimile to
all Texas citrus handlers. Finally, the
proposal was made available through
the internet by USDA and the Office of
the Federal Register. A 30-day comment
period ending January 3, 2018, was
provided for interested persons to
respond to the proposal. Two comments
were received, one in support of the
change, and one comment outside the
scope of this action. One commenter in
support of the action stated that the
reduced rate is fair and continues to
allow the Committee to pay its
expenses. Administrative revisions to
the subpart headings were included in
the proposed rule. No comments were
received on those changes. Accordingly,
no changes will be made to the rule as
proposed, based on the comments
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/
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.
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 will tend to effectuate the
declared policy of the Act.
List of Subjects in 7 CFR Part 906
Grapefruit, Marketing agreements,
Oranges, Reporting and recordkeeping
requirements.
For the reasons set forth in the
preamble, 7 CFR part 906 is amended as
follows:
PART 906—ORANGES AND
GRAPEFRUIT GROWN IN LOWER RIO
GRANDE VALLEY IN TEXAS
1. The authority citation for 7 CFR
part 906 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
[Subpart Redesignated as Subpart A]
2. Redesignate ‘‘Subpart—Order
Regulating Handling’’ as ‘‘Subpart A—
Order Regulating Handling.’’
■
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[Subpart Redesignated as Subpart B
and Amended]
3. Redesignate ‘‘Subpart—Rules and
Regulations’’ as subpart B and revise the
heading to read as follows:
■
Subpart B—Administrative
Requirements
4. Section 906.235 is revised to read
as follows:
■
§ 906.235
Assessment rate.
On and after August 1, 2017, an
assessment rate of $0.02 per 7/10-bushel
carton or equivalent is established for
oranges and grapefruit grown in the
Lower Rio Grande Valley in Texas.
[Subpart Redesignated as Subpart C]
5. Redesignate ‘‘Subpart—Container
and Pack Requirements’’ as ‘‘Subpart
C—Container and Pack Requirements.’’
■
Dated: March 23, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–06282 Filed 3–28–18; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2017–1011; Product
Identifier 2017–SW–004–AD; Amendment
39–19232; AD 2018–07–01]
RIN 2120–AA64
Airworthiness Directives; Airbus
Helicopters Deutschland GmbH (Type
Certificate Previously Held by
Eurocopter Deutschland GmbH)
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
We are superseding
Airworthiness Directive (AD) 2013–16–
14 for Eurocopter Deutschland GmbH
(now Airbus Helicopters Deutschland
GmbH) Model EC 135 P1, P2, P2+, T1,
T2, and T2+ helicopters. AD 2013–16–
14 required installing a washer in and
modifying the main transmission filter
housing upper part. Since we issued AD
2013–16–14, Airbus Helicopters
Deutschland GmbH has extended the
overhaul interval for the main
transmission and determined that other
models may have the same unsafe
condition. This AD retains the
requirements of AD 2013–16–14, adds
models to the applicability, and revises
SUMMARY:
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]]>Agencies
[Federal Register Volume 83, Number 61 (Thursday, March 29, 2018)]
[Rules and Regulations]
[Pages 13378-13380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06282]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Doc. No. AMS-SC-17-0037; SC17-906-1 FR]
Oranges and Grapefruit Grown in the Lower Rio Grande Valley in
Texas; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the Texas Valley
Citrus Committee (Committee) to decrease the assessment rate
established for the 2017-18 and subsequent fiscal periods for oranges
and grapefruit handled under Marketing Order 906. The assessment rate
will remain in effect indefinitely unless modified, suspended, or
terminated. This rule also makes administrative revisions to the
subpart headings of the Order.
DATES: Effective April 30, 2018.
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: [email protected] or [email protected].
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: [email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This rule is issued under Marketing Agreement and Order
No. 906, as amended (7 CFR part 906), regulating the handling of
oranges and grapefruit grown in the Lower Rio Grande Valley in Texas.
Part 906 (referred to as 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 Committee locally
administers the Order and is comprised of producers and handlers of
oranges and grapefruit operating within the production area.
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Orders 13563 and 13175. This action falls
within a category of regulatory actions that the Office of Management
and Budget (OMB) exempted from Executive Order 12866 review.
Additionally, because this rule does not meet the definition of a
significant regulatory action, it does not trigger the requirements
contained, in Executive Order 13771. See OMB's Memorandum titled
``Interim Guidance Implementing Section 2 of the Executive Order of
January 30, 2017, titled ``Reducing Regulation and Controlling
Regulatory Costs'' (February 2, 2017).
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the provisions of the Order now in effect, Texas
orange and grapefruit handlers are subject to assessments. Funds to
administer the Order are derived from such assessments. It is intended
that the assessment rate will be applicable to all assessable oranges
and grapefruit beginning on August 1, 2017, 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
[[Page 13379]]
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.
The 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 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.
This rule decreases the assessment rate from $0.09, the rate that
was established for the 2016-17 and subsequent fiscal periods, to $0.02
per 7/10-bushel carton or equivalent of oranges and grapefruit handled
for the 2017-18 and subsequent fiscal periods. The decrease reflects a
reduction in expenses of more than $595,000 from not funding the
Mexican fruit fly control program.
The Committee met on August 8, 2017, and unanimously recommended
2017-18 expenditures of $152,920 and an assessment rate of $0.02 per 7/
10-bushel carton or equivalent of oranges and grapefruit. The
assessment rate of $0.02 is $0.07 lower than the rate currently in
effect. The Committee recommended decreasing the assessment rate to
reflect that they would not be funding the Mexican fruit fly control
program, reducing their budget by more than $595,000. Income derived
from handler assessments, along with interest income and funds from the
Committee's authorized reserve, will be adequate to cover budgeted
expenses.
Of the total $152,920 budgeted for the 2017-18 fiscal period, major
expenditures recommended by the Committee include $79,220 for
management, $50,000 for compliance, and $23,700 for operating expenses.
Compared to the previous fiscal year's budget of $751,148, budgeted
expenses for these items in 2016-17 were $77,200, $50,000, and $23,700,
respectively.
The assessment rate recommended by the Committee was derived by
considering anticipated expenses, expected shipments, and the amount of
funds available in the authorized reserve. Income derived from handler
assessments calculated at $150,000 (7.5 million 7/10-bushel cartons
assessed at $0.02 per carton), along with interest income and funds
from the Committee's authorized reserve, should be adequate to cover
budgeted expenses of $152,920. Funds in the reserve (currently
$282,572) will be kept within the maximum permitted by the Order
(approximately one fiscal period's expenses as stated in Sec. 906.35).
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 for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2017-18 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.
There are approximately 170 producers of oranges and grapefruit in
the production area and 13 handlers subject to regulation under the
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 Committee data, the average price for Texas citrus
during the 2015-16 season was approximately $17.48 per box and total
shipments were 7.5 million boxes. Using the average price and shipment
information, the number of handlers (13), and assuming a normal
distribution, the majority of handlers would have average annual
receipts of greater than $7,500,000. Thus, the majority of Texas citrus
handlers may be classified as large business entities.
In addition, based on information from the National Agricultural
Statistics Service, the weighted grower price for Texas citrus during
the 2015-16 season was approximately $14.64 per box. Using the weighted
average price and shipment information, and assuming a normal
distribution, the majority of producers would have annual receipts of
less than $750,000. Thus, the majority of Texas citrus producers may be
classified as small business entities.
This rule decreases the assessment rate collected from handlers for
the 2017-18 and subsequent fiscal periods from $0.09 to $0.02 per 7/10-
weight bushel carton or equivalent of Texas citrus. The Committee
unanimously recommended 2017-18 expenditures of $152,920 and an
assessment rate of $0.02 per 7/10-bushel carton or equivalent handled.
The assessment rate of $0.02 is $0.07 lower than the 2016-17 rate. The
quantity of assessable oranges and grapefruit for the 2017-18 fiscal
period is estimated at 7.5 million 7/10-bushel cartons. Thus, the $0.02
rate should provide $150,000 in assessment income. Income derived from
handler assessments, along with interest income and funds from the
Committee's authorized reserve, should be adequate to cover budgeted
expenses.
The major expenditures recommended by the Committee for the 2017-18
year include $79,220 for management, $50,000 for compliance, and
$23,700 for operating expenses. Budgeted expenses for these items in
2016-17 were $77,200, $50,000, and $23,700, respectively.
The Committee recommended decreasing the assessment rate to reflect
that it would not be funding the Mexican fruit fly control program,
reducing its budget by more than $595,000.
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, and the Research Committee. Alternative
expenditure levels were discussed by these committees who reviewed the
relative value of various activities to the Texas citrus industry.
These committees determined that all program activities
[[Page 13380]]
were adequately funded and essential to the functionality of the Order,
thus no alternate expenditure levels were deemed appropriate.
Additionally, alternate assessment rates of $0.01 and $0.015 per 7/10
bushel-carton were discussed. However, it was determined that these
lower assessment rates would draw too heavily from reserves, roughly
$78,000 and $43,000, respectively. The proposed rate of $0.02 per 7/10
bushel-carton would draw an anticipated $2,800 from reserves, thereby
leaving reserves intact for future needs.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the average
grower price for the 2017-18 season should be approximately $15.50 per
7/10-bushel carton or equivalent of oranges and grapefruit. Therefore,
the estimated assessment revenue for the 2017-18 crop year as a
percentage of total grower revenue would be about 0.1 percent.
This action decreases the assessment obligation imposed on
handlers. Assessments are applied uniformly on all handlers, and some
of the costs may be passed on to producers. However, decreasing the
assessment rate reduces the burden on handlers, and may reduce the
burden on producers.
The Committee's meeting was widely publicized throughout the Texas
citrus industry and all interested persons were invited to attend the
meeting and participate in Committee deliberations on all issues. Like
all Committee meetings, the August 8, 2017, 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 OMB and assigned OMB No. 0581-0189, Fruit Crops.
No changes in those requirements as a result of this action are
necessary. Should any changes become necessary, they would be submitted
to OMB for approval.
This rule imposes no additional reporting or recordkeeping
requirements on either small or large Texas orange and grapefruit
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 4, 2017 (82 FR 57164). Copies of the proposed rule
were also mailed or sent via facsimile to all Texas citrus handlers.
Finally, the proposal was made available through the internet by USDA
and the Office of the Federal Register. A 30-day comment period ending
January 3, 2018, was provided for interested persons to respond to the
proposal. Two comments were received, one in support of the change, and
one comment outside the scope of this action. One commenter in support
of the action stated that the reduced rate is fair and continues to
allow the Committee to pay its expenses. Administrative revisions to
the subpart headings were included in the proposed rule. No comments
were received on those changes. Accordingly, no changes will be made to
the rule as proposed, based on the comments 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/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.
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 will tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 906
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 906 is
amended as follows:
PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY
IN TEXAS
0
1. The authority citation for 7 CFR part 906 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
[Subpart Redesignated as Subpart A]
0
2. Redesignate ``Subpart--Order Regulating Handling'' as ``Subpart A--
Order Regulating Handling.''
[Subpart Redesignated as Subpart B and Amended]
0
3. Redesignate ``Subpart--Rules and Regulations'' as subpart B and
revise the heading to read as follows:
Subpart B--Administrative Requirements
0
4. Section 906.235 is revised to read as follows:
Sec. 906.235 Assessment rate.
On and after August 1, 2017, an assessment rate of $0.02 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit
grown in the Lower Rio Grande Valley in Texas.
[Subpart Redesignated as Subpart C]
0
5. Redesignate ``Subpart--Container and Pack Requirements'' as
``Subpart C--Container and Pack Requirements.''
Dated: March 23, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-06282 Filed 3-28-18; 8:45 am]
BILLING CODE 3410-02-P
