Watermelon Research and Promotion Plan; Increased Assessment Rate, 104394-104398 [2024-30268]

Agencies

• Agricultural Marketing Service
• DEPARTMENT OF AGRICULTURE

[Federal Register Volume 89, Number 246 (Monday, December 23, 2024)]
[Rules and Regulations]
[Pages 104394-104398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30268]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 1210

[Doc. No. AMS-SC-24-0020]


Watermelon Research and Promotion Plan; Increased Assessment Rate

AGENCY: Agricultural Marketing Service (AMS), Department of Agriculture 
(USDA).

ACTION: Final rule.

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SUMMARY: This final rule implements a recommendation from the National 
Watermelon Promotion Board to increase the assessment rate from six 
cents per hundredweight to nine cents per hundredweight. Domestic 
watermelon producers of 10 acres or more and domestic first handlers of 
watermelons will each pay four and a half cents per hundredweight, and 
importers of 150,000 pounds or more annually of watermelons will pay 
nine cents per hundredweight. This final rule also amends current 
regulatory language to correct non-substantive and typographical 
errors.

DATES: This rule is effective January 22, 2025.

FOR FURTHER INFORMATION CONTACT: William Hodges, Marketing Specialist, 
Mid-Atlantic Region Branch, Market Development Division, Specialty 
Crops Program, AMS, USDA, 1400 Independence Avenue SW, Room 1406-S, 
STOP 0244, Washington, DC 20250-0244; Telephone: (443) 571-8456; or 
Email: [email protected].

SUPPLEMENTARY INFORMATION: This final rule affecting the Watermelon 
Research and Promotion Plan (7 CFR part 1210) (Plan) is authorized 
under the Watermelon Research and Promotion Act (7 U.S.C. 4901-4916) 
(Act).

Executive Orders 12866, 13563, and 14094

    USDA is issuing this rule in conformance with Executive Orders 
12866, 13563, and 14094. Executive Orders 12866 and 13563 direct 
agencies to assess all costs and benefits of available regulatory 
alternatives and, if regulation is necessary, to select regulatory 
approaches that maximize net benefits (including potential economic, 
environmental, public health and safety effects, distributive impacts, 
and equity). Executive Order 13563 emphasizes the importance of 
quantifying both costs and benefits, reducing costs, harmonizing rules, 
and promoting flexibility. Executive Order 14094 reaffirms, 
supplements, and updates Executive Order 12866 and further directs 
agencies to solicit and consider input from a wide range of affected 
and interested parties through a variety of means. This rule is not a 
significant regulatory action within the meaning of Executive Order 
12866. Accordingly, this action has not been reviewed by the Office of 
Management and Budget under sec. 6 of the Executive order.

Executive Order 13175

    This action was reviewed in accordance with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments, which requires agencies to consider whether their 
rulemaking actions will have Tribal implications. AMS has determined 
that this rule is unlikely to have substantial direct effects on one or 
more Indian Tribes, or the relationship between the Federal Government 
and Indian Tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian Tribes.

Executive Order 12988

    This rule was reviewed under Executive Order 12988, Civil Justice 
Reform. It is not intended to have retroactive effect. The Act provides 
that it shall not affect or preempt any other Federal or State law 
authorizing promotion or research relating to an agricultural 
commodity.
    Under sec. 1650 of the Act (7 U.S.C. 4909), a person may file a 
written petition with the Secretary of Agriculture (Secretary) if they 
believe that the Plan, any provision of the Plan, or any obligation 
imposed in connection with the Plan, is not in accordance with the law. 
In any petition, the person may request a modification of the Plan or 
an exemption from the Plan. The petitioner will have the opportunity 
for a hearing on the petition. Afterwards, an Administrative Law Judge 
(ALJ) will issue a decision. If the petitioner disagrees with the ALJ's 
ruling, the petitioner has 30 days to appeal to the Judicial Officer, 
who will issue a ruling on behalf of the Secretary. If the petitioner 
disagrees with the Secretary's ruling, the petitioner may file, within 
20 days, an appeal in the U.S. District

[[Page 104395]]

Court for the district where the petitioner resides or conducts 
business.

Background

    Under the Plan, the National Watermelon Promotion Board (Board) 
administers a nationally coordinated program of research, development, 
advertising, and promotion designed to strengthen the position of 
watermelons in the marketplace, and to establish, maintain, and expand 
markets for watermelons. To administer the program, Sec. Sec.  1210.328 
and 1210.341 of the Plan authorize the Board, with the approval of AMS, 
to formulate an annual budget of expenses and collect assessments on 
domestic producers growing 10 acres or more of watermelons, domestic 
first handlers of watermelons, and importers of 150,000 or more pounds 
of watermelons per year. The Board is familiar with both the program's 
needs and the rising costs of research and promotion initiatives and is 
able to formulate an appropriate budget and assessment rate.
    This final rule increases the assessment rate from six to nine 
cents per hundredweight of watermelons. Domestic watermelon producers 
of 10 acres or more and domestic first handlers of watermelons will 
each pay four and a half cents per hundredweight, and importers of 
150,000 pounds or more annually of watermelons will pay nine cents per 
hundredweight. The Plan specifies that handlers are responsible for 
collecting and submitting both the producer and handler assessments to 
the Board, reporting their handling of watermelons, and maintaining 
records necessary to verify their reporting(s). Importers are 
responsible for payment of assessments to the Board on watermelons 
imported into the United States through the U.S. Customs Service and 
Border Protection.

Adjustment to the Assessment Rate

    This final rule amends Sec.  1210.515 of the Plan by increasing the 
assessment rate from six cents per hundredweight to nine cents per 
hundredweight. The assessment on domestic watermelon producers of 10 
acres or more and domestic first handlers of watermelons increases from 
three cents per hundredweight to four and a half cents per 
hundredweight, and the assessment on importers of 150,000 pounds or 
more annually of watermelons increases from six cents per hundredweight 
to nine cents per hundredweight. The Board recommended increasing the 
assessment rate to address inflation's impact on buying power while 
maintaining competitiveness in the marketplace.
    The Board discussed this recommendation over several months at 
various State and regional watermelon association meetings in addition 
to presenting at a public town hall meeting on February 23, 2024, at 
the National Watermelon Association's (NWA) annual convention. The 
Board sent out postcards to all industry contacts in their database to 
invite them to the NWA town hall meeting and provide information on the 
potential assessment increase. The Board met on February 24, 2024, and 
voted unanimously to propose the assessment increase. Board members 
present for the vote represented domestic producers, first handlers, 
and importers.
    Since the Board's inception in 1989, the Board only raised the 
assessment rate one other time, in 2008. From 2008 to 2023, according 
to the Board, the United States experienced inflation of 43.7%, which 
equates to 2.3% when compounded annually. This dollar devaluation 
translates to a loss in buying power of roughly 30% since the previous 
assessment increase was instituted. The erosion of buying power and 
continued inflationary pressure on funds limits the Board's research 
and promotion activities. The raised assessment rate further supports 
the Board's goal of a balanced budget beginning in 2025, while still 
allowing for increased research and promotion of watermelon across the 
Board's communication, marketing, foodservice, and research committees.
    Section 1210.341 of the Plan states, in part, that in the case of 
an importer, the assessment shall be equal to the combined rate for 
domestic producers and handlers and shall be paid by the importer at 
the time of entry of the watermelons into the United States. 
Accordingly, with the increased assessment rate of nine cents per 
hundredweight, domestic watermelon producers of 10 acres or more and 
domestic first handlers of watermelons will each pay four and a half 
cents per hundredweight, and importers of 150,000 pounds or more 
annually of watermelons will pay nine cents per hundredweight. This 
assessment increase is consistent with sec. 1647(f) of the Act (7 
U.S.C. 4906(f)), that permits changes in the assessment rate through 
notice and comment procedures. Section 1210.341(b) of the Plan states 
that assessment rates shall be fixed by the Secretary in accordance 
with sec. 1647(f) of the Act (7 U.S.C. 4906(f)). Further, not more than 
one assessment on a producer, handler, or importer may be collected on 
any lot of watermelons. Accordingly, the final rule revises Sec.  
1210.515(a) of the Plan to reflect the recommendation of the Board as 
it relates to assessments.

Amending Regulatory Language

    The final rule also includes changes to Sec.  1210.515(b) of the 
Plan to amend language and make non-substantive corrections to the 
text. These edits are administrative changes and will have no impact on 
the assessment rate. This final rule amends the misspelling of 
``scheudle'' to ``schedule''; amends ``U.S. Customs Service (USCS)'' to 
``U.S. Customs Service and Border Protection (Customs)''; amends 
``USCS'' to ``Customs'', and amends ``of any other'' to ``or any 
other''. The final rule also adds clarifying language and amends ``may 
submit the Board'' to ``may submit to the Board''.

Final Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) [5 U.S.C. 601 et seq.], AMS has considered the economic 
impact of this action on the small producers, handlers, and importers 
that will be affected by this final rule. The purpose of the RFA is to 
fit regulatory action to scale on businesses subject to such action so 
that small businesses will not be disproportionately burdened.
    Domestic producers of less than 10 acres of watermelons are exempt 
from this program. Importers of less than 150,000 pounds of watermelons 
per year are also exempt. According to the Board, there are 
approximately 429 producers, 121 first handlers, and 183 importers who 
are subject to the provisions of the Plan.
    The Small Business Administration (SBA) defines, in 13 CFR part 
121, small agricultural producers of watermelons as those having annual 
receipts equal to or less than $3.75 million [NAICS code 111219--Other 
Vegetable (except Potato) and Melon Farming] and small agricultural 
service firms (handlers and importers) as those having annual receipts 
equal to or less than $34.0 million [NAICS code-111514--Postharvest 
Crop Activities (except Cotton Ginning)]. Under these definitions, the 
majority of the producers, handlers, and importers that will be 
affected by this final rule will be considered small entities. This 
conclusion is based on the following computations and data, using the 
Board's assessment rate of six cents per hundredweight.
    For 2023, National Agricultural Statistics Service (NASS) reported 
a season average producer price per pound of $0.214. The Board 
estimated the Freight on Board (FOB) price to be

[[Page 104396]]

$0.284 for both importers and handlers in 2023. The Board reported that 
2023 assessments received from domestic entities totaled $2.247 
million, with equal proportions of $1.1235 million coming from 
producers and handlers. Dividing $1.1235 million by half of the 
assessment rate of $0.06 per hundredweight, as producers and handlers 
evenly split the assessment, yields an estimate of total producer 
pounds assessed of 3,745.0 million ($1.1235 million divided by $0.0003 
per pound). Dividing the total pounds assessed quantity by 429 
producers yields an average assessed pounds per producer estimate of 
8.73 million. Multiplying the annual assessed pounds per producer 
estimate of 8.73 million pounds by the 2023 NASS season average 
producer price per pound of $0.214 yields an average annual watermelon 
sales receipts per producer estimate of $1.87 million. This is well 
below the SBA small producer size threshold of $3.75 million.
    With an equal proportion of annual domestic assessments coming from 
handlers, the total handler pounds assessed is also 3,745.0 million. 
Dividing total handler pounds assessed by 121 handlers yields an 
average assessed pounds per handler estimate of 30.95 million pounds. 
Multiplying this estimate of annual assessed pounds per handler of 
30.95 million pounds by the season average handler price per pound of 
$0.284, provided by the Board, yields an estimate of average annual 
watermelon sales receipts per handler of $8.79 million. This is well 
below the SBA small handler size threshold of $34.0 million.
    The Board reported that assessments received from importers totaled 
$1.196 million in 2023. Dividing $1.196 million by the assessment rate 
of $0.06 per hundredweight ($0.0006 per pound) yields an estimate of 
total importer pounds assessed of 1,993.3 million. Dividing the total 
pounds assessed by the number of importers, 183, yields an average 
assessed pounds per importer estimate of 10.89 million. Multiplying 
this estimate of annual assessed pounds per importer of 10.89 million 
pounds by the season average importer price per pound of $0.284 yields 
an estimate of average annual watermelon sales receipts per importer of 
$3.09 million. This is well below the SBA small importer size threshold 
of $34.0 million. Assuming normal distributions, the majority of 
producers, handlers, and importers will be classified as small 
businesses according to SBA size standards.
    This final rule amends Sec.  1210.341 of the Plan to mandate that 
domestic watermelon producers of 10 acres or more and domestic first 
handlers of watermelon each pay an assessment rate of four and a half 
cents per hundredweight, and importers of more than 150,000 pounds or 
more annually of watermelons pay an assessment of nine cents per 
hundredweight. Assessments under the program are used by the Board to 
finance promotion, research, and educational programs designed to 
increase consumer demand for watermelons in the United States and 
international markets. This action is the first time the Board has 
raised the assessment rate since 2008, and the second time the rate has 
been raised since the program's inception in 1989. The Plan is 
administered by the Board under the USDA supervision.
    According to the Board, the increased assessment rate allows the 
Board to sustain and expand the promotional, research, and 
communications programs. The Board approved proposing the assessment 
rate increase at its February 24, 2024, meeting. This assessment 
increase is consistent with sec. 1647(f) of the Act (7 U.S.C. 4906(f)) 
that permits changes in the assessment rate through notice and comment 
procedures, as the proposed rule was open for a 30-day comment period. 
Section 1210.341(b) of the Plan states that assessment rates shall be 
fixed by the Secretary in accordance with sec. 1647(f) of the Act (7 
U.S.C. 4906(f)). Currently, Sec.  1210.515(a) of the Plan states that 
an assessment of three cents per hundredweight shall be levied on all 
watermelons produced, and on all watermelons first handled for 
consumption as human food. It also states that an assessment of six 
cents per hundredweight shall be levied on watermelons imported into 
the United States for consumption as human food. Further, not more than 
one assessment on a producer, handler, or importer may be collected on 
any lot of watermelons. Under this final rule, Sec.  1210.515(a) of the 
Plan is revised to increase the assessment rate from six cents to nine 
cents per hundredweight. The final rule increases the assessment rate 
of three cents per hundredweight to four and a half cents per 
hundredweight to be levied on all watermelons produced and on all 
watermelons first handled for consumption as human food in the United 
States, and increases the assessment rate from six cents to nine cents 
per hundredweight to be levied on all watermelons imported into the 
United States for ultimate consumption as human food.
    The Board contracted with an independent industry analyst to 
conduct an inflation impact analysis using the Consumer Price Index 
(CPI) published by the U.S. Bureau of Labor Statistics. The base year 
for the analysis was 2008, the year of the previous assessment rate 
increase, and the analysis extended through April 2023. The CPI was 
211.080 in January 2008 and 303.363 in April 2023. Dividing 303.363 by 
211.080 yields a ratio of 1.437, or an increase of 43.7 percent. This 
inflation rate equates to 2.3% when compounded annually. Dividing the 
Board's average annual revenue throughout this period of $3,024,721 by 
the CPI change ratio of 1.437 yields a figure of $2,104,601. This 
decline of $920,120 shows the budget's reduced buying power of roughly 
30 percent since the previous assessment increase. This reduction in 
buying power due to inflation has a significant impact on the 
industry's ability to compete for market share. The cost of media 
services, research programs, promotional opportunities, as well as 
general administrative costs and fees paid to USDA have continually 
risen. USDA's AMS oversight costs were budgeted at $105,000 in 2008, 
compared to $147,000 for 2023. It is AMS policy that all research and 
promotion programs be charged in a fair and equitable manner. 
Assessments collected have not kept pace with these increasing costs 
across this time. Movement and sales of watermelon continue to grow, 
however, that growth has not outpaced the negative effects of 
inflation.
    Armada Corporate Intelligence conducted a five-year return on 
investment (ROI) study for the Board from 2017-2021, to determine the 
impact of Board activities on the demand for watermelons. The resultant 
ROI for the Board's promotional endeavors is approximately 19:1, which 
displays that the activities of the Board have a significant positive 
impact on the watermelon industry. For further details, the study is 
located at https://www.watermelon.org/press-releases/watermelon-board-announces-significant-positive-impact-for-watermelon-industry-with-191-roi/. Armada Corporate Intelligence's 2021 econometric analysis is 
aligned with prior economic studies developed for the Board, including 
Dr. Harry Kaiser of Cornell University's 2017 analysis.\1\
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    \1\ https://www.watermelon.org/wp-content/uploads/2020/01/Econometric-Evaluation.pdf.
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    With the increased assessment, the financial commitment of the US 
watermelon industry for research and promotion activity will increase 
approximately 50% in current dollars. For example, if we apply the 
assessment increase to 2023, in which collections

[[Page 104397]]

totaled $3,442,105, the increase in assessments collected would have 
been approximately $1,721,053. The Board will use the additional funds 
to expand promotion and research activities, maintain operating 
reserves, and address inflation's impact on buying power.
    The Board estimates the adjusted assessment rate of nine cents per 
hundredweight will increase the cost to watermelon producers and 
handlers from $12 per truckload of watermelons to $18 per truckload of 
watermelons. Similarly, the adjusted assessment rate will increase the 
cost to watermelon importers from $24 a truckload to $36 a truckload. 
This is based on a 40,000-pound net weight of watermelons per 
truckload.
    Regarding alternatives, first, the Board considered maintaining the 
current assessment rate of six cents per hundredweight. However, with 
no increase to the assessment rate, the Board determined many research 
and promotion programs would be reduced or eliminated to balance the 
budget. Consequently, the alternative of maintaining the current 
assessment rate was rejected.
    The second alternative considered by the Board was a two-cent 
increase to the assessment rate, raising the assessment rate from six 
cents per hundredweight to eight cents per hundredweight. This would 
allow the Board to operate with a balanced budget beginning in 2025, in 
addition to increasing investment in Board promotions. However, the 
Board decided against supporting a two-cent increase as inflationary 
pressure may further limit operations of the Board in coming years.
    The third alternative considered by the Board was a tiered increase 
of the assessment rate with a two-cent increase effective on January 1, 
2025, for a rate of eight cents per hundredweight, and an additional 
one-cent increase effective on January 1, 2026, for a rate of nine 
cents per hundredweight. This option to spread the assessment increase 
over a prolonged period was considered, but the Board ultimately 
decided against this alternative to avoid confusion with concurrent 
annual assessment adjustments.
    This final rule also includes administrative changes to Sec.  
1210.515(b) of the Plan to correct non-substantive and typographical 
errors. These administrative changes have no impact on the assessment 
rate.
    This rule will not impose additional recordkeeping requirements on 
first handlers, producers, or importers of watermelons. Producers of 
fewer than 10 acres of watermelon and importers of less than 150,000 
pounds of watermelon annually are exempt. There are no Federal rules 
that duplicate, overlap, or conflict with this rule. In accordance with 
the Office of Management and Budget (OMB) regulation [5 CFR part 1320] 
which implements the Paperwork Reduction Act of 1995 [44 U.S.C. chapter 
35], the information collection and recordkeeping requirements that are 
imposed by the Plan have been approved previously under OMB control 
number 0581-0093. This rule will not result in a change to the 
information collection and recordkeeping requirements previously 
approved.
    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 or citizen access to Government information and 
services, and for other purposes.
    USDA determined this rule is consistent with the Act and would 
effectuate its purposes.
    A proposed rule concerning this action was published in the Federal 
Register on July 9, 2024 (89 FR 56234). The proposed rule was featured 
on the Board's website, in addition to being distributed to all 
industry stakeholders via the Board's Watermelon Update monthly 
newsletter. A copy of the proposed rule was also made available through 
the internet by AMS via https://www.regulations.gov. A 30-day comment 
period ending on August 8, 2024, was provided for interested parties to 
respond to the proposal.

Comment Analysis

    During the proposed rule's 30-day comment period, AMS received 33 
comments, which may be viewed on https://www.regulations.gov. Twenty-
four comments received were in support of the changes, seven were 
opposed, and two were unrelated to the assessment increase or the 
amendment to regulatory language.
    Of the comments supporting the changes, 17 commenters stated the 
assessment increase would help strengthen research and promotion 
activities, with 12 of the supportive commenters additionally stating 
that the increased assessment rate would in turn benefit growers, 
handlers, and importers across the industry by raising the demand for 
watermelons through expanded marketing initiatives. Four of these 
commenters further acknowledged that the Board has a track record of 
delivering a positive ROI for the industry that allows the Board to 
maintain competitiveness in the marketplace. Four commenters provided 
generic support for the assessment increase.
    Of the seven comments that opposed the increase, four commenters 
voiced concern that the industry already faces enough cost increases 
across operations due to inflation with two commenters additionally 
requesting for the Board lower costs rather than raise them. The Board 
feels they have exhausted all cost-saving measures including scaling 
back programs and liquidating reserve funds. Before proposing this 
assessment increase, the Board identified a loss in buying power of 
roughly 30 percent since the last assessment increase in 2008, which 
impacts the amount and quality of the research and promotion 
initiatives the Board can implement. Therefore, a lower assessment rate 
would further reduce the activities the Board can afford, possibly 
reducing their ROI.
    One comment did not support the assessment increase and expressed 
concern of being unsure how the additional funds would be utilized. The 
Plan strictly dictates how the funds can be expended. The Board will 
fund additional promotional and research initiatives across the 
communication, marketing, foodservice, and research committees the 
Board aims to support with an increased budget. These specifically 
include activities like campus pop-up events to promote watermelon to 
Gen Z, expanding in-store advertising experiences, conducting recipe 
contests to reach foodservice operators, and investing further into 
consumer research. These activities are outlined in the potential 
budget examples distributed by the Board on their website, which was 
also provided to the industry through an email in February 2024: 
https://www.watermelon.org/wp-content/uploads/2023/12/The-Case-for-the-2025-NWPB-Assessment-Increase-12-11.pdf.
    One opposing comment from an international grower indicates that 
costs are too high, and that their Federal and State governments do not 
support them in mitigating against rising farming costs. The same 
commenter also indicates demand for watermelons has been low for years 
and that importers will be unfairly affected by the increase since a 
majority of the crop is imported for United States consumption. AMS 
acknowledges this comment. However, it is not in the Board's purview to 
attempt to influence inflation's effect on farming costs, as the Board 
is prohibited from utilizing funds to influence governmental policy or 
action as stated in sec. 1647(g)(3) of the Act (7 U.S.C. 4906(g)(3)). 
As mentioned in the

[[Page 104398]]

proposed rule, inflation has affected farming and marketing costs 
across the industry which requires the Board to raise the assessment 
rate to fund promotional activities that maintain and expand the market 
for watermelons. According to the Board's FOB and movement data, (which 
is available on their website: https://www.watermelon.org/audiences/industry/assessment/), the demand for watermelons has increased 
significantly since the last assessment increase from 4.3 billion 
pounds in 2008 to 5.5 billion pounds in 2023. The assessment increase 
is structured so importers pay nine cents per hundredweight, and 
handlers and producers split the cost each remitting four and a half 
cents per hundredweight. This is modeled by the current assessment 
structure of the Plan where importers pay six cents per hundredweight 
and handlers and procedures each remit three cents per hundredweight. 
The assessment rate structure borne on the industry is reflective of 
the production of the commodity. Additionally, four importers of 
watermelons left supportive comments for the assessment increase during 
the comment period, with one stating that the Board's efforts increase 
demand for watermelons in the United States which is evident as the 
number of watermelons imported from Mexico continue to grow.
    Another commenter who stated opposition to the changes presented in 
the proposed rule voiced concern that importers of watermelons may not 
have equitable opportunities to address questions or concerns regarding 
the increase or other Board funded activities. The commenter asked if 
government officials of exporter countries were notified of the 
proposed assessment increase. AMS acknowledges this comment and notes 
that the proposed rule was published in the Federal Register to provide 
notice to all interested parties, including government officials of 
exporting countries, of the proposed modifications. The comment period 
provided an opportunity for industry members and the public alike to 
voice any concerns they may have with the proposed changes to the Plan. 
As with other interested parties, government officials had notice and 
opportunity to comment on the proposed assessment increase. No 
government officials commented on the proposed rule. Additionally, 
prior to the publication of the proposed rule, the Board conducted 
outreach to industry stakeholders, including those representing 
imported watermelons. For example, the Board presented potential 
budgetary examples with the assessment increase to inform stakeholders, 
including importers, of the proposed assessment increase and activities 
that could be funded by the Board prior to the publication of the 
proposed rule. The Board presented at various state and regional 
association meetings, including the National Watermelon Association, 
which was attended by importers of watermelons, providing all growers 
equal opportunity to raise questions. In addition, the Board currently 
has nine importers members who represent the industry and help oversee 
the Board's policies and budget. AMS and the Board agree that 
transparency and communication to all stakeholders is critical, and 
accordingly, the Board notified the industry of the potential 
assessment increase through a variety of channels including industry-
wide newsletters, regional and national conventions, and email 
correspondence.
    AMS received two non-substantive comments. One of the unrelated 
comments was focused on pest control, and another voiced support for an 
athlete sponsored by the Board.
    Accordingly, no changes were made to the rule as proposed, based on 
the comments received.
    After consideration of all relevant material presented, including 
the information and recommendations submitted by the Board, the 
comments received, and other available information, it is hereby found 
that this rule, as hereinafter set forth, is consistent with and will 
effectuate the purposes of the Act.

List of Subjects in 7 CFR Part 1210

    Administrative practice and procedure, Advertising, Agricultural 
research, Consumer information, Marketing agreements, Reporting and 
recordkeeping requirements, Watermelons.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service amends part 1210, chapter XI of title 7 of the Code 
of Federal Regulations as follows:

PART 1210--WATERMELON RESEARCH AND PROMOTION PLAN

0
1. The authority citation for part 1210 continues to read as follows:

    Authority:  7 U.S.C. 4901-4916 and 7 U.S.C. 7401.


0
2. Amend Sec.  1210.515 by revising paragraphs (a) and (b) to read as 
follows:


Sec.  1210.515  Levy of assessments.

    (a) An assessment of four and a half cents per hundredweight shall 
be levied on all watermelons produced for ultimate consumption as human 
food, and an assessment of four and a half cents per hundredweight 
shall be levied on all watermelons first handled for ultimate 
consumption as human food. An assessment of nine cents per 
hundredweight shall be levied on all watermelons imported into the 
United States for ultimate consumption as human food at the time of 
entry in the United States.
    (b) The import assessment shall be uniformly applied to imported 
watermelons that are identified by the numbers 0807.11.30 and 
0807.11.40 in the Harmonized Tariff Schedule of the United States or 
any other number used to identify fresh watermelons for consumption as 
human food. The U.S. Customs Service and Border Protection (Customs) 
will collect assessments on such watermelons at the time of entry and 
will forward such assessment as per the agreement between Customs and 
USDA. Any importer or agent who is exempt from payment of assessments 
may submit to the Board adequate proof of the volume handled by such 
importer for the exemption to be granted.
* * * * *

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-30268 Filed 12-20-24; 8:45 am]
BILLING CODE P