Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Decreased Assessment Rate, 49499-49501 [2018-21424]
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Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Proposed Rules
AMS, USDA, 1400 Independence
Avenue SW, Room 2043–S, Washington,
DC 20250–3614.
• Hand Delivery or Courier: Kendra
Kline, AMS, USDA, 1400 Independence
Avenue SW, Room 2043–S, Washington,
DC 20250–3614.
• Internet: Go to https://
www.regulations.gov. Follow the on-line
instructions for submitting comments.
FOR FURTHER INFORMATION CONTACT:
Patrick McCluskey, USDA, AMS;
Telephone: (816) 659–8403; Email:
Patrick.J.McCluskey@ams.usda.gov.
SUPPLEMENTARY INFORMATION: On June
29, 2018, AMS published its request for
comments from the public in the
Federal Register (83 FR 30591)
regarding the United States (U.S.)
Standards for Corn under the United
States Grain Standards Act (USGSA) (7
U.S.C. 71–87k). The comment period for
the request for comments ended August
28, 2018. In response to requests from
interested stakeholders, AMS is
reopening the comment period an
additional 60-days.
The realignment of offices within the
U.S. Department of Agriculture
authorized by the Secretary’s
Memorandum dated November 14,
2017, eliminates the Grain Inspection,
Packers and Stockyards Administration
(GIPSA) as a standalone agency. The
grain inspection activities formerly part
of GIPSA are now organized under
AMS.
Authority: 7 U.S.C. 71–87k.
Dated: September 27, 2018.
Greg Ibach,
Under Secretary, Marketing and Regulatory
Programs.
[FR Doc. 2018–21427 Filed 10–1–18; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS–SC–18–0065; SC18–905–4
PR]
Oranges, Grapefruit, Tangerines, and
Pummelos Grown in Florida;
Decreased Assessment Rate
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
amozie on DSK3GDR082PROD with PROPOSALS1
AGENCY:
This proposed rule would
implement a recommendation from the
Citrus Administrative Committee
(Committee) to decrease the assessment
rate established for the 2018–19 and
subsequent fiscal periods. The
SUMMARY:
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assessment rate would remain in effect
indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by
November 1, 2018.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposed rule.
Comments must be sent to the Docket
Clerk, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW, STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938; or
internet: https://www.regulations.gov.
Comments should reference the
document number and the date and
page number of this issue of the Federal
Register and will be available for public
inspection in the Office of the Docket
Clerk during regular business hours, or
can be viewed at: https://
www.regulations.gov. All comments
submitted in response to this proposed
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Abigail Campos, 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:
Abigail.Campos@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,
proposes an amendment to regulations
issued to carry out a marketing order as
defined in 7 CFR 900.2(j). This proposed
rule is issued under Marketing
Agreement and Order No. 905, as
amended (7 CFR part 905), regulating
the handling of oranges, grapefruit,
tangerines, and pummelos grown in
Florida. Part 905 (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 growers and
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49499
handlers operating within the area of
production, and a public member.
The Department of Agriculture
(USDA) is issuing this proposed rule in
conformance with Executive Orders
13563 and 13175. This proposed 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 proposed
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 proposed rule has been reviewed
under Executive Order 12988, Civil
Justice Reform. Under the Order now in
effect, Florida citrus handlers are
subject to assessments. Funds to
administer the Order are derived from
such assessments. It is intended that the
assessment rate would be applicable to
all assessable citrus for the 2018–19
crop year, 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.
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.
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Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Proposed Rules
This proposed rule would decrease
the assessment rate from $0.02, the rate
that was established for the 2017–18
and subsequent fiscal periods, to $0.015
per 4/5-bushel cartons of citrus for the
2018–19 and subsequent fiscal periods.
Shipments from last season exceeded
initial projections after Hurricane Irma,
allowing the Committee to maintain
their financial reserve. As the industry
continues to recover from Hurricane
Irma, the Committee estimates that the
2018–19 Florida citrus crop will be
around 8,250,000 regulated cartons, an
increase of nearly one million cartons
from last season. The anticipated
increase in production prompted the
Committee to recommend the reduction
in the assessment rate.
The Committee met on July 17, 2018,
and unanimously recommended 2018–
19 expenditures of $130,260 and an
assessment rate of $0.015 per 4/5-bushel
cartons of citrus. The major
expenditures recommended by the
Committee for the 2018–19 year include
$113,260 for management, $9,000 for
auditing, and $4,000 for travel.
Budgeted expenses for these items in
2017–18 were $75,000, $9,000, and
$4,200, respectively.
The assessment rate recommended by
the Committee was derived by
considering anticipated expenses,
expected shipments of 8.25 million 4/5bushel cartons, and the amount of funds
available in the authorized reserve.
Income derived from handler
assessments calculated at $123,750 (8.25
million × $0.015), along with interest
income and funds from the Committee’s
authorized reserve, would be adequate
to cover budgeted expenses of $130,260.
Funds in the reserve are estimated to be
at $147,500 and would be kept within
the maximum permitted by the Order.
As stated in § 905.42, the amount of the
reserve is not to exceed two fiscal
periods’ expenses.
The assessment rate proposed in this
rule would continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
based upon recommendation and
information submitted by the
Committee or other available
information.
Although the proposed assessment
rate would 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
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16:46 Oct 01, 2018
Jkt 247001
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 2018–19 budget and those
for subsequent fiscal periods will 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 are unique in that they are brought
about through group action of
essentially small entities acting on their
own behalf.
There are approximately 500
producers of Florida citrus in the
production area and approximately 20
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 data from the National
Agricultural Statistics Service (NASS),
the industry, and the Committee, the
weighted average f.o.b. price for Florida
citrus for the 2016–17 season was
approximately $15.20 per carton with
total shipments of around 12.6 million
cartons. Using the number of handlers,
and assuming a normal distribution, the
majority of handlers have average
annual receipts of more than $7,500,000
($15.20 times 12.6 million equals
$191,520,000 divided by 20 handlers
equals $9,576,000 per handler).
In addition, based on the NASS data,
the weighted average grower price for
the 2016–17 season was around $8.30
per carton of citrus. Based on grower
price, shipment data, and the total
number of Florida citrus growers, and
assuming a normal distribution, the
average annual grower revenue is below
$750,000 ($8.30 times 12.6 million
cartons equals $104,580,000 divided by
500 growers equals $209,160 per
grower). Thus, the majority of Florida
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citrus handlers may be classified as
large entities, while the majority of
growers may be classified as small
entities.
This proposal would decrease the
assessment rate collected from handlers
for the 2018–19 and subsequent fiscal
periods from $0.02 to $0.015 per 4/5bushel cartons of citrus. The Committee
unanimously recommended 2018–19
expenditures of $130,260 and an
assessment rate of $0.015 per 4/5-bushel
cartons. The proposed assessment rate
of $0.015 is $0.005 lower than the 2017–
18 rate. The quantity of assessable citrus
for the 2018–19 fiscal period is
estimated at 8.25 million 4/5-bushel
cartons. Thus, the $0.015 rate should
provide $123,750 in assessment income
(8.25 million × $0.015). Income derived
from handler assessments, along with
interest income and funds from the
Committee’s authorized reserve
(currently $147,500), would be adequate
to cover budgeted expenses.
The major expenditures
recommended by the Committee for the
2018–19 fiscal year include $113,260 for
management, $9,000 for auditing, and
$4,000 for travel. Budgeted expenses for
these items in 2017–18 were $75,000,
$9,000, and $4,200, respectively.
Shipments from last season exceeded
initial projections after Hurricane Irma,
allowing the Committee to maintain its
financial reserve. The Committee
estimates the 2018–19 Florida citrus
crop will be around 8,250,000 regulated
cartons, an increase of nearly one
million cartons from last season. The
Committee recommended the reduction
in the assessment rate based on the
anticipated increase in production.
Prior to arriving at this budget and
assessment rate, the Committee
considered information from the
Executive Committee. Alternative
expenditure levels and assessment rates
were discussed by the Executive
Committee, based upon the relative
value of various activities to the citrus
industry. The Committee determined
that all program activities were
adequately funded and essential to the
functionality of the Order, thus no
alternate expenditure levels were
deemed appropriate.
Based on these discussions and
estimated shipments, the recommended
assessment rate of $0.015 would provide
$123,750 in assessment income. The
Committee determined that assessment
revenue, along with funds from reserves
and interest income, would be adequate
to cover budgeted expenses for the
2018–19 fiscal period.
A review of historical information and
preliminary information pertaining to
the upcoming fiscal period indicates
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Federal Register / Vol. 83, No. 191 / Tuesday, October 2, 2018 / Proposed Rules
that the average grower price for the
2018–19 season should be
approximately $8.30 per 4/5-bushel
cartons of citrus. Therefore, the
estimated assessment revenue for the
2018–19 crop year as a percentage of
total grower revenue would be about 0.2
percent.
This proposed rule would decrease
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 also reduce the
burden on producers.
The Committee’s meeting was widely
publicized throughout the Florida citrus
industry. All interested persons were
invited to attend the meeting and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the July 17, 2018, meeting was
a public meeting and all entities, both
large and small, were able to express
views on this issue. Interested persons
are invited to submit comments on this
proposed rule, including the regulatory
and information collection impacts of
this action on small businesses.
Based on its evaluation of the
Committee recommendation and other
available information, USDA has
determined that a modification of the
assessment rate for the 2018–19 Florida
citrus fiscal period would be
appropriate. Therefore, USDA issues
this proposed rule.
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 OMB and
assigned OMB No. 0581–0189, Fruit
Crops. No changes in those
requirements would be necessary as a
result of this proposed rule. Should any
changes become necessary, they would
be submitted to OMB for approval.
This proposed rule would not impose
any additional reporting or
recordkeeping requirements on either
small or large Florida citrus 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.
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16:46 Oct 01, 2018
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USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this proposed rule.
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.
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements,
Oranges, Pummelos, Reporting and
recordkeeping requirements,
Tangerines.
For the reasons set forth in the
preamble, 7 CFR part 905 is proposed to
be amended as follows:
PART 905—ORANGES, GRAPEFRUIT,
TANGERINES, AND PUMMELOS
GROWN IN FLORIDA
1. The authority citation for 7 CFR
part 905 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. Section 905.235 is revised to read
as follows:
■
§ 905.235
Assessment rate.
On and after August 1, 2018, an
assessment rate of $0.015 per 4/5-bushel
carton or equivalent is established for
Florida citrus covered under the Order.
Dated: September 27, 2018.
Bruce Summers,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2018–21424 Filed 10–1–18; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF ENERGY
10 CFR Part 431
[EERE–2017–BT–TP–0031]
Energy Conservation Program: Test
Procedure for Three-Phase
Commercial Air-Cooled Air
Conditioners and Heat Pumps With a
Certified Cooling Capacity of Less
Than 65,000 Btu/h
Office of Energy Efficiency and
Renewable Energy, Department of
Energy.
ACTION: Request for information.
AGENCY:
The U.S. Department of
Energy (‘‘DOE’’) is initiating a data
collection process through this request
for information (‘‘RFI’’) to consider
whether to amend its test procedure for
SUMMARY:
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49501
three-phase commercial air-cooled air
conditioners and heat pumps with a
cooling capacity of less than 65,000
British thermal units per hour
(‘‘Btu/h’’). To inform interested parties
and to facilitate this process, DOE has
gathered data, identifying several issues
associated with the currently applicable
test procedures on which DOE is
interested in receiving comment. The
issues outlined in this document mainly
concern three-phase commercial aircooled air conditioners and heat pumps
with a cooling capacity of less than
65,000 Btu/h and whether the test
procedure and certification and
compliance provisions for this
equipment should align with those
provisions that apply to single-phase
central air conditioners and heat pumps
with rated cooling capacities of less
than 65,000 Btu/h; and any additional
topics that may inform DOE’s decisions
in a future test procedure rulemaking,
including methods to reduce regulatory
burden while ensuring the procedure’s
accuracy. DOE welcomes written
comments from the public on any
subject within the scope of this
document (including topics not raised
in this RFI).
DATES: Written comments and
information are requested and will be
accepted on or before December 3, 2018.
ADDRESSES: Interested persons are
encouraged to submit comments using
the Federal eRulemaking Portal at
https://www.regulations.gov. Follow the
instructions for submitting comments.
Alternatively, interested persons may
submit comments, identified by docket
number EERE–201X–BT–TP–0031, by
any of the following methods:
1. Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
2. Email:
AirCooledACHP2017TP0031@
ee.doe.gov. Include EERE–2017–BT–
TP–0031 in the subject line of the
message. Submit electronic comments
in WordPerfect, Microsoft Word,
portable document format (PDF), or
American Standard Code for
Information Interchange (ASCII) file
format, and avoid the use of special
characters or any form of encryption.
3. Postal Mail: Appliance and
Equipment Standards Program, U.S.
Department of Energy, Building
Technologies Office, Mailstop EE–5B,
1000 Independence Avenue SW,
Washington, DC 20585–0121. If
possible, please submit all items on a
compact disc (CD), in which case it is
not necessary to include printed copies.
4. Hand Delivery/Courier: Appliance
and Equipment Standards Program, U.S.
E:\FR\FM\02OCP1.SGM
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]]>Agencies
[Federal Register Volume 83, Number 191 (Tuesday, October 2, 2018)]
[Proposed Rules]
[Pages 49499-49501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21424]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS-SC-18-0065; SC18-905-4 PR]
Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida;
Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Citrus Administrative Committee (Committee) to decrease the assessment
rate established for the 2018-19 and subsequent fiscal periods. The
assessment rate would remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by November 1, 2018.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order and Agreement Division, Specialty Crops Program,
AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or internet: https://www.regulations.gov. Comments should reference the document number and
the date and page number of this issue of the Federal Register and will
be available for public inspection in the Office of the Docket Clerk
during regular business hours, or can be viewed at: https://www.regulations.gov. All comments submitted in response to this
proposed rule will be included in the record and will be made available
to the public. Please be advised that the identity of the individuals
or entities submitting the comments will be made public on the internet
at the address provided above.
FOR FURTHER INFORMATION CONTACT: Abigail Campos, 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,
proposes an amendment to regulations issued to carry out a marketing
order as defined in 7 CFR 900.2(j). This proposed rule is issued under
Marketing Agreement and Order No. 905, as amended (7 CFR part 905),
regulating the handling of oranges, grapefruit, tangerines, and
pummelos grown in Florida. Part 905 (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 growers and
handlers operating within the area of production, and a public member.
The Department of Agriculture (USDA) is issuing this proposed rule
in conformance with Executive Orders 13563 and 13175. This proposed
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 proposed 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 proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. Under the Order now in effect, Florida citrus
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the assessment rate
would be applicable to all assessable citrus for the 2018-19 crop year,
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.
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.
[[Page 49500]]
This proposed rule would decrease the assessment rate from $0.02,
the rate that was established for the 2017-18 and subsequent fiscal
periods, to $0.015 per 4/5-bushel cartons of citrus for the 2018-19 and
subsequent fiscal periods. Shipments from last season exceeded initial
projections after Hurricane Irma, allowing the Committee to maintain
their financial reserve. As the industry continues to recover from
Hurricane Irma, the Committee estimates that the 2018-19 Florida citrus
crop will be around 8,250,000 regulated cartons, an increase of nearly
one million cartons from last season. The anticipated increase in
production prompted the Committee to recommend the reduction in the
assessment rate.
The Committee met on July 17, 2018, and unanimously recommended
2018-19 expenditures of $130,260 and an assessment rate of $0.015 per
4/5-bushel cartons of citrus. The major expenditures recommended by the
Committee for the 2018-19 year include $113,260 for management, $9,000
for auditing, and $4,000 for travel. Budgeted expenses for these items
in 2017-18 were $75,000, $9,000, and $4,200, respectively.
The assessment rate recommended by the Committee was derived by
considering anticipated expenses, expected shipments of 8.25 million 4/
5-bushel cartons, and the amount of funds available in the authorized
reserve. Income derived from handler assessments calculated at $123,750
(8.25 million x $0.015), along with interest income and funds from the
Committee's authorized reserve, would be adequate to cover budgeted
expenses of $130,260. Funds in the reserve are estimated to be at
$147,500 and would be kept within the maximum permitted by the Order.
As stated in Sec. [thinsp]905.42, the amount of the reserve is not to
exceed two fiscal periods' expenses.
The assessment rate proposed in this rule would continue in effect
indefinitely unless modified, suspended, or terminated by USDA based
upon recommendation and information submitted by the Committee or other
available information.
Although the proposed assessment rate would 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 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 2018-19
budget and those for subsequent fiscal periods will 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 are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 500 producers of Florida citrus in the
production area and approximately 20 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 data from the National Agricultural Statistics Service
(NASS), the industry, and the Committee, the weighted average f.o.b.
price for Florida citrus for the 2016-17 season was approximately
$15.20 per carton with total shipments of around 12.6 million cartons.
Using the number of handlers, and assuming a normal distribution, the
majority of handlers have average annual receipts of more than
$7,500,000 ($15.20 times 12.6 million equals $191,520,000 divided by 20
handlers equals $9,576,000 per handler).
In addition, based on the NASS data, the weighted average grower
price for the 2016-17 season was around $8.30 per carton of citrus.
Based on grower price, shipment data, and the total number of Florida
citrus growers, and assuming a normal distribution, the average annual
grower revenue is below $750,000 ($8.30 times 12.6 million cartons
equals $104,580,000 divided by 500 growers equals $209,160 per grower).
Thus, the majority of Florida citrus handlers may be classified as
large entities, while the majority of growers may be classified as
small entities.
This proposal would decrease the assessment rate collected from
handlers for the 2018-19 and subsequent fiscal periods from $0.02 to
$0.015 per 4/5-bushel cartons of citrus. The Committee unanimously
recommended 2018-19 expenditures of $130,260 and an assessment rate of
$0.015 per 4/5-bushel cartons. The proposed assessment rate of $0.015
is $0.005 lower than the 2017-18 rate. The quantity of assessable
citrus for the 2018-19 fiscal period is estimated at 8.25 million 4/5-
bushel cartons. Thus, the $0.015 rate should provide $123,750 in
assessment income (8.25 million x $0.015). Income derived from handler
assessments, along with interest income and funds from the Committee's
authorized reserve (currently $147,500), would be adequate to cover
budgeted expenses.
The major expenditures recommended by the Committee for the 2018-19
fiscal year include $113,260 for management, $9,000 for auditing, and
$4,000 for travel. Budgeted expenses for these items in 2017-18 were
$75,000, $9,000, and $4,200, respectively.
Shipments from last season exceeded initial projections after
Hurricane Irma, allowing the Committee to maintain its financial
reserve. The Committee estimates the 2018-19 Florida citrus crop will
be around 8,250,000 regulated cartons, an increase of nearly one
million cartons from last season. The Committee recommended the
reduction in the assessment rate based on the anticipated increase in
production.
Prior to arriving at this budget and assessment rate, the Committee
considered information from the Executive Committee. Alternative
expenditure levels and assessment rates were discussed by the Executive
Committee, based upon the relative value of various activities to the
citrus industry. The Committee determined that all program activities
were adequately funded and essential to the functionality of the Order,
thus no alternate expenditure levels were deemed appropriate.
Based on these discussions and estimated shipments, the recommended
assessment rate of $0.015 would provide $123,750 in assessment income.
The Committee determined that assessment revenue, along with funds from
reserves and interest income, would be adequate to cover budgeted
expenses for the 2018-19 fiscal period.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates
[[Page 49501]]
that the average grower price for the 2018-19 season should be
approximately $8.30 per 4/5-bushel cartons of citrus. Therefore, the
estimated assessment revenue for the 2018-19 crop year as a percentage
of total grower revenue would be about 0.2 percent.
This proposed rule would decrease 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 also reduce
the burden on producers.
The Committee's meeting was widely publicized throughout the
Florida citrus industry. All interested persons were invited to attend
the meeting and participate in Committee deliberations on all issues.
Like all Committee meetings, the July 17, 2018, meeting was a public
meeting and all entities, both large and small, were able to express
views on this issue. Interested persons are invited to submit comments
on this proposed rule, including the regulatory and information
collection impacts of this action on small businesses.
Based on its evaluation of the Committee recommendation and other
available information, USDA has determined that a modification of the
assessment rate for the 2018-19 Florida citrus fiscal period would be
appropriate. Therefore, USDA issues this proposed rule.
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 OMB and assigned OMB No. 0581-0189, Fruit
Crops. No changes in those requirements would be necessary as a result
of this proposed rule. Should any changes become necessary, they would
be submitted to OMB for approval.
This proposed rule would not impose any additional reporting or
recordkeeping requirements on either small or large Florida citrus
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 proposed rule.
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.
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Pummelos, Reporting and
recordkeeping requirements, Tangerines.
For the reasons set forth in the preamble, 7 CFR part 905 is
proposed to be amended as follows:
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN
FLORIDA
0
1. The authority citation for 7 CFR part 905 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 905.235 is revised to read as follows:
Sec. 905.235 Assessment rate.
On and after August 1, 2018, an assessment rate of $0.015 per 4/5-
bushel carton or equivalent is established for Florida citrus covered
under the Order.
Dated: September 27, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-21424 Filed 10-1-18; 8:45 am]
BILLING CODE 3410-02-P
