Tomatoes Grown in Florida; Decreased Assessment Rate, 14357-14359 [2018-06883]
Download as PDF
Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Rules and Regulations
[Subpart Redesignated as Subpart A]
Subpart B—Administrative
Requirements
2. Redesignate ‘‘Subpart—Order
Regulating Handling’’ as ‘‘Subpart A—
Order Regulating Handling’’.
■
■
4. Add § 929.107 to read as follows:
§ 929.107
[Subpart Redesignated as Subpart B
and Amended]
3. Redesignate ‘‘Subpart—Rules and
Regulations’’ as subpart B and revise the
heading to read as follows:
■
Conversion.
During a year of volume regulation,
cranberry concentrate and other
processed products made from excess or
restricted cranberries harvested in that
year may be diverted according to the
provisions of this part. Any handler
disposing of concentrate or other
processed products must report the
14357
whole-berry equivalent to the
Committee so that all excess or
restricted cranberries are accounted for
and reported per rules and regulations
in effect. Table 1-Conversion Table
provides a conversion rate for
concentrate to barrels of whole berries
based on Brix average by production
region. Should requests be made to use
other processed products for diversion,
conversion rates for those products
would be provided by the Committee
based on information provided by the
requesting handler.
TABLE 1 TO § 929.107—CONVERSION TABLE
Region
Brix average
Oregon ................................................................................................................
Washington .........................................................................................................
New Jersey .........................................................................................................
Wisconsin ...........................................................................................................
Massachusetts ....................................................................................................
All others ............................................................................................................
■
5. Add § 929.108 to read as follows:
§ 929.108 Outlets for restricted
cranberries.
In accordance with § 929.57,
restricted cranberries may be diverted
only to the following noncommercial or
noncompetitive outlets:
(a) Foreign countries, except Canada,
provided that restricted cranberries
diverted under this provision may not
be converted into canned, frozen, or
dehydrated cranberries or other
cranberry products by any commercial
process, prior to diversion;
(b) Charitable institutions;
(c) Any nonhuman food use, or;
(d) Research and development
projects approved by the Committee
dealing with the development of foreign
and domestic markets, including, but
not limited to dehydration radiation,
freeze drying, or freezing of cranberries.
[Subpart Redesignated as Subpart C]
9.8
9.3
8.8
8.7
8.4
8.7
processed products as provided in
§ 929.107 to account for up to 50
percent of their restriction.
(c) Organically grown fruit shall be
exempt from the volume regulation
requirements of this section. Small
handlers who process less than 125,000
barrels during the 2017–18 fiscal year
are exempt from the restriction. Any
handlers who do not have carryover
inventory at the end of the 2017–18
fiscal year are also exempt.
Dated: March 30, 2018.
Erin Morris,
Associate Administrator, Agricultural
Marketing Service.
[FR Doc. 2018–06875 Filed 4–3–18; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
6. Redesignate ‘‘Subpart—Assessment
Rate’’ as ‘‘Subpart C—Assessment Rate’’.
■ 7. Add § 929.252 to read as follows:
7 CFR Part 966
§ 929.252 Free and restricted percentages
for the 2017–18 crop year.
Tomatoes Grown in Florida; Decreased
Assessment Rate
amozie on DSK30RV082PROD with RULES
■
(a) The percentages for cranberries
handled by handlers during the crop
year beginning on September 1, 2017,
which shall be free and restricted,
respectively are designated as follows:
Free percentage, 85 percent and
restricted percentage, 15 percent.
(b) Handlers have the option to
process restricted cranberries into
dehydrated cranberries or other
processed products. Handlers also have
the option to divert concentrate or other
VerDate Sep<11>2014
16:41 Apr 03, 2018
Jkt 244001
[Doc. No. AMS–SC–17–0051; SC17–966–1
FR]
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
This rule implements a
recommendation from the Florida
Tomato Committee (Committee) for a
decrease of the assessment rate
established for the 2017–18 and
subsequent fiscal periods for tomatoes
grown in Florida, handled under the
SUMMARY:
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
Concentrate yield for one barrel of cranberries
1.91
1.81
1.72
1.70
1.64
1.70
gallons
gallons
gallons
gallons
gallons
gallons
50
50
50
50
50
50
Brix
Brix
Brix
Brix
Brix
Brix
concentrate.
concentrate.
concentrate.
concentrate.
concentrate.
concentrate.
Marketing Order. The assessment rate
will remain in effect indefinitely unless
modified, suspended, or terminated.
This rule also makes administrative
revisions to the subpart headings to
bring the language into conformance
with the Office of Federal Register
requirements.
DATES:
Effective May 4, 2018.
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
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 No. 125 and
Order No. 966, as amended (7 CFR part
966), regulating the handling of
tomatoes grown in Florida. Part 966,
(referred to as the ‘‘Order’’), is effective
under the Agricultural Marketing
Agreement Act of 1937, as amended (7
E:\FR\FM\04APR1.SGM
04APR1
amozie on DSK30RV082PROD with RULES
14358
Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Rules and Regulations
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act.’’ The Committee locally
administers the Order and is comprised
of producers of tomatoes operating
within the area of production.
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Orders
13563 and 13175. This rule 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 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 will be applicable to all
assessable tomatoes 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
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
This rule decreases the assessment
rate established for the 2017–18 and
subsequent fiscal periods from $0.035 to
$0.025 per 25-pound container or
equivalent of tomatoes handled.
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 of the Committee are
producers of Florida tomatoes. They are
familiar with the Committee’s needs and
VerDate Sep<11>2014
16:41 Apr 03, 2018
Jkt 244001
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 2016–17 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 August 22,
2017, and unanimously recommended
2017–18 expenditures of $1,494,600 and
an assessment rate of $0.025 per 25pound container or equivalent of
tomatoes. Last year’s budgeted
expenditures were also $1,494,600. The
assessment rate of $0.025 is $0.010
lower than the rate currently in effect.
The Committee recommended
decreasing the assessment rate to reduce
the assessment burden on handlers and
utilize funds from the authorized
reserve to help cover Committee
expenses.
The major expenditures
recommended by the Committee for the
2017–18 year include $450,000 for staff
salaries, $400,000 for research, and
$400,000 for education and promotion.
Budgeted expenses for these items in
2016–17 were the same.
The assessment rate recommended by
the Committee was derived by
considering anticipated expenses,
expected shipments of Florida tomatoes,
and the level of funds in the authorized
reserve. Tomato shipments for the year
are estimated at 33 million 25-pound
containers, which should provide
$825,000 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.
Funds in the reserve (currently
$979,410) will be kept within the
maximum permitted by the Order
(approximately one fiscal period’s
expenses as stated in § 966.44).
The assessment rate established in
this rule will continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate will be
effective for an indefinite period, the
Committee will continue to meet prior
to or during each fiscal period to
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
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 will 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 80 producers
of Florida tomatoes in the production
area and 47 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 industry and Committee
data, the average annual price for fresh
Florida tomatoes during the 2016–17
season was approximately $8.00 per 25pound container, and total fresh
shipments were 32.8 million containers.
Using the average price and shipment
information, the number of handlers,
and assuming a normal distribution, the
majority of handlers have average
annual receipts of less than $7,500,000.
Based on production data, an estimated
producer price of $3.00 per 25-pound
container, and the number of Florida
tomato producers, the average annual
producer 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
E:\FR\FM\04APR1.SGM
04APR1
amozie on DSK30RV082PROD with RULES
Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Rules and Regulations
producers may be classified as large
entities.
This rule decreases the assessment
rate established for the 2017–18 and
subsequent fiscal periods from $0.035 to
$0.025 per 25-pound container or
equivalent of Florida tomatoes. The
Committee unanimously recommended
2017–18 expenditures of $1,494,600 and
an assessment rate of $0.025 per 25pound container or equivalent handled.
The assessment rate of $0.025 is $0.010
lower than the 2016–17 rate. The
quantity of assessable Florida tomatoes
for the 2017–18 fiscal period is
estimated at 33 million 25-pound
containers or equivalent. Thus, the
$0.025 rate should provide $825,000 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 $450,000 for staff
salaries, $400,000 for research, and
$400,000 for education and promotion.
Budgeted expenses for these items in
2016–17 were also $450,000, $400,000,
and $400,000, respectively.
The Committee recommended
decreasing the assessment rate to reduce
the assessment burden on handlers and
utilize funds from the authorized
reserve to help cover Committee
expenses.
Prior to arriving at this budget and
assessment rate, the Committee
considered information from various
sources, such as the Committee’s Budget
and Finance Subcommittee, Education
and Promotion Subcommittee, and the
Research Subcommittee. Alternative
expenditure levels were discussed by
these groups, based upon the relative
value of various activities to the Florida
tomato industry. The Committee
ultimately determined the assessment
revenue, along with interest income and
funds from authorized reserves should
be adequate to cover budgeted expenses
for the 2017–18 fiscal period.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal period indicates
that the average producer price for the
2017–18 season could be about $6.50
per 25-pound container or equivalent of
Florida tomatoes. Therefore, the
estimated assessment revenue for the
2017–18 crop year as a percentage of
total producer revenue should be
around 0.4 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,
VerDate Sep<11>2014
16:41 Apr 03, 2018
Jkt 244001
decreasing the assessment rate reduces
the burden on handlers and may reduce
the burden on producers. In addition,
the Committee’s meeting was widely
publicized throughout the Florida
tomato industry, and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations on all issues. Like all
Committee meetings, the August 22,
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. 0581–0178 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 rule imposes no additional
reporting or recordkeeping requirements
on either small or large Florida tomato
handlers. As with all Federal marketing
order programs, reports and forms are
periodically reviewed to reduce
information requirements and
duplication by industry and public
sector agencies. As mentioned 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 11, 2017 (82 FR
58133). Copies of the proposed rule
were also mailed or sent via facsimile to
all Florida tomato handlers. Finally, the
proposal was made available through
the internet by USDA and the Office of
the Federal Register. A 30-day comment
period ending January 10, 2018, was
provided for interested persons to
respond to the proposal. No comments
on the proposed assessment rate or the
administrative revisions were received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
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.
PO 00000
Frm 00013
Fmt 4700
Sfmt 4700
14359
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 966
Marketing agreements, Reporting and
recordkeeping requirements, Tomatoes.
For the reasons set forth in the
preamble, 7 CFR part 966 is amended as
follows:
PART 966—TOMATOES GROWN IN
FLORIDA
1. The authority citation for part 966
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’’.
■
[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
[Subpart Redesignated as Subpart C]
4. Redesignate ‘‘Subpart—Assessment
Rates’’ as ‘‘Subpart C—Assessment
Rates’’.
■
5. Section 966.234 is revised to read
as follows:
■
§ 966.234
Assessment rate.
On and after August 1, 2017, an
assessment rate of $0.025 per 25-pound
container is established for Florida
tomatoes.
[Subpart Redesignated as Subpart D
and Amended]
6. Redesignate ‘‘Subpart—Handling
Regulations’’ as Subpart D and revise
the heading to read as follows:
■
Subpart D—Handling Requirements
Dated: March 30, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–06883 Filed 4–3–18; 8:45 am]
BILLING CODE 3410–02–P
E:\FR\FM\04APR1.SGM
04APR1
Agencies
[Federal Register Volume 83, Number 65 (Wednesday, April 4, 2018)]
[Rules and Regulations]
[Pages 14357-14359]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06883]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No. AMS-SC-17-0051; SC17-966-1 FR]
Tomatoes Grown in Florida; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the Florida Tomato
Committee (Committee) for a decrease of the assessment rate established
for the 2017-18 and subsequent fiscal periods for tomatoes grown in
Florida, handled under the Marketing Order. The assessment rate will
remain in effect indefinitely unless modified, suspended, or
terminated. This rule also makes administrative revisions to the
subpart headings to bring the language into conformance with the Office
of Federal Register requirements.
DATES: Effective May 4, 2018.
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: [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 No. 125
and Order No. 966, as amended (7 CFR part 966), regulating the handling
of tomatoes grown in Florida. Part 966, (referred to as the ``Order''),
is effective under the Agricultural Marketing Agreement Act of 1937, as
amended (7
[[Page 14358]]
U.S.C. 601-674), hereinafter referred to as the ``Act.'' The Committee
locally administers the Order and is comprised of producers of tomatoes
operating within the area of production.
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Orders 13563 and 13175. This rule 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'[thinsp]'' (February 2, 2017).
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the 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 will be
applicable to all assessable tomatoes 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 review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule decreases the assessment rate established for the 2017-18
and subsequent fiscal periods from $0.035 to $0.025 per 25-pound
container or equivalent of tomatoes handled.
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 of the
Committee are producers of Florida tomatoes. 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 2016-17 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 August 22, 2017, and unanimously recommended
2017-18 expenditures of $1,494,600 and an assessment rate of $0.025 per
25-pound container or equivalent of tomatoes. Last year's budgeted
expenditures were also $1,494,600. The assessment rate of $0.025 is
$0.010 lower than the rate currently in effect. The Committee
recommended decreasing the assessment rate to reduce the assessment
burden on handlers and utilize funds from the authorized reserve to
help cover Committee expenses.
The major expenditures recommended by the Committee for the 2017-18
year include $450,000 for staff salaries, $400,000 for research, and
$400,000 for education and promotion. Budgeted expenses for these items
in 2016-17 were the same.
The assessment rate recommended by the Committee was derived by
considering anticipated expenses, expected shipments of Florida
tomatoes, and the level of funds in the authorized reserve. Tomato
shipments for the year are estimated at 33 million 25-pound containers,
which should provide $825,000 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. Funds in the reserve (currently $979,410) will be kept within
the maximum permitted by the Order (approximately one fiscal period's
expenses as stated in Sec. 966.44).
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
upon recommendation and information submitted by the Committee or other
available information.
Although this assessment rate will be effective 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 will 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 80 producers of Florida tomatoes in the
production area and 47 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 industry and Committee data, the average annual price
for fresh Florida tomatoes during the 2016-17 season was approximately
$8.00 per 25-pound container, and total fresh shipments were 32.8
million containers. Using the average price and shipment information,
the number of handlers, and assuming a normal distribution, the
majority of handlers have average annual receipts of less than
$7,500,000. Based on production data, an estimated producer price of
$3.00 per 25-pound container, and the number of Florida tomato
producers, the average annual producer 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
[[Page 14359]]
producers may be classified as large entities.
This rule decreases the assessment rate established for the 2017-18
and subsequent fiscal periods from $0.035 to $0.025 per 25-pound
container or equivalent of Florida tomatoes. The Committee unanimously
recommended 2017-18 expenditures of $1,494,600 and an assessment rate
of $0.025 per 25-pound container or equivalent handled. The assessment
rate of $0.025 is $0.010 lower than the 2016-17 rate. The quantity of
assessable Florida tomatoes for the 2017-18 fiscal period is estimated
at 33 million 25-pound containers or equivalent. Thus, the $0.025 rate
should provide $825,000 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 $450,000 for staff salaries, $400,000 for research, and
$400,000 for education and promotion. Budgeted expenses for these items
in 2016-17 were also $450,000, $400,000, and $400,000, respectively.
The Committee recommended decreasing the assessment rate to reduce
the assessment burden on handlers and utilize funds from the authorized
reserve to help cover Committee expenses.
Prior to arriving at this budget and assessment rate, the Committee
considered information from various sources, such as the Committee's
Budget and Finance Subcommittee, Education and Promotion Subcommittee,
and the Research Subcommittee. Alternative expenditure levels were
discussed by these groups, based upon the relative value of various
activities to the Florida tomato industry. The Committee ultimately
determined the assessment revenue, along with interest income and funds
from authorized reserves should be adequate to cover budgeted expenses
for the 2017-18 fiscal period.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the average
producer price for the 2017-18 season could be about $6.50 per 25-pound
container or equivalent of Florida tomatoes. Therefore, the estimated
assessment revenue for the 2017-18 crop year as a percentage of total
producer revenue should be around 0.4 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. In addition, the Committee's meeting was widely
publicized throughout the Florida tomato industry, and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the August
22, 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. 0581-0178 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 rule imposes no additional reporting or recordkeeping
requirements on either small or large Florida tomato handlers. As with
all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. As mentioned 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 11, 2017 (82 FR 58133). Copies of the proposed
rule were also mailed or sent via facsimile to all Florida tomato
handlers. Finally, the proposal was made available through the internet
by USDA and the Office of the Federal Register. A 30-day comment period
ending January 10, 2018, was provided for interested persons to respond
to the proposal. No comments on the proposed assessment rate or the
administrative revisions were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: https://www.ams.usda.gov/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 966
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
For the reasons set forth in the preamble, 7 CFR part 966 is
amended as follows:
PART 966--TOMATOES GROWN IN FLORIDA
0
1. The authority citation for part 966 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
[Subpart Redesignated as Subpart C]
0
4. Redesignate ``Subpart--Assessment Rates'' as ``Subpart C--Assessment
Rates''.
0
5. Section 966.234 is revised to read as follows:
Sec. 966.234 Assessment rate.
On and after August 1, 2017, an assessment rate of $0.025 per 25-
pound container is established for Florida tomatoes.
[Subpart Redesignated as Subpart D and Amended]
0
6. Redesignate ``Subpart--Handling Regulations'' as Subpart D and
revise the heading to read as follows:
Subpart D--Handling Requirements
Dated: March 30, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-06883 Filed 4-3-18; 8:45 am]
BILLING CODE 3410-02-P