81_FR_38998 81 FR 38883 - Avocados Grown in South Florida; Increased Assessment Rate

81 FR 38883 - Avocados Grown in South Florida; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 81, Issue 115 (June 15, 2016)

Page Range38883-38885
FR Document2016-14149

This rule implements a recommendation from the Avocado Administrative Committee (Committee) for an increase of the assessment rate established for the 2016-17 and subsequent fiscal periods from $0.30 to $0.35 per 55-pound bushel container of Florida avocados handled under the marketing order (order). The Committee locally administers the order and is comprised of growers and handlers of avocados operating within the area of production. Assessments upon Florida avocado handlers are used by the Committee to fund reasonable and necessary expenses of the program. The fiscal period began on April 1 and ends March 31. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 81 Issue 115 (Wednesday, June 15, 2016)
[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Rules and Regulations]
[Pages 38883-38885]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14149]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 915

[Doc. No. AMS-SC-15-0083; SC16-915-2 FR]


Avocados Grown in South Florida; Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule implements a recommendation from the Avocado 
Administrative Committee (Committee) for an increase of the assessment 
rate established for the 2016-17 and subsequent fiscal periods from 
$0.30 to $0.35 per 55-pound bushel container of Florida avocados 
handled under the marketing order (order). The Committee locally 
administers the order and is comprised of growers and handlers of 
avocados operating within the area of production. Assessments upon 
Florida avocado handlers are used by the Committee to fund reasonable 
and necessary expenses of the program. The fiscal period began on April 
1 and ends March 31. The assessment rate will remain in effect 
indefinitely unless modified, suspended, or terminated.

DATES: Effective June 16, 2016.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Antoinette Carter, 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 rule is issued under Marketing Order 
No. 915, as amended (7 CFR part 915), regulating the handling of 
avocados grown in South Florida, hereinafter referred to as the 
``order.'' The order is effective under the Agricultural Marketing 
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter 
referred to as the ``Act.''
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, Florida 
avocado handlers are subject to assessments. Funds to administer the 
order are derived from such assessments. It is intended that the 
assessment rate as issued herein will be applicable to all assessable 
Florida avocados beginning on April 1, 2016, and continue until 
amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This rule increases the assessment rate established for the 
Committee for the 2016-17 and subsequent fiscal periods from $0.30 to 
$0.35 per 55-pound bushel container of avocados.
    The Florida avocado marketing order provides authority for the 
Committee, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members of the Committee are producers and handlers of 
Florida avocados. 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 2013-14 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 December 9, 2015, and recommended 2016-17 
expenditures of $302,553 and an assessment rate of $0.35 per 55-pound 
bushel container of avocados. In comparison, last year's budgeted 
expenditures were $602,553. The assessment rate of $0.35 is $0.05 
higher than the rate currently in effect. During the 2015-16 season, 
the Committee used its authorized reserves to fund several large 
research projects to address the Laurel Wilt fungus, which can infect 
and kill avocado trees. This

[[Page 38884]]

substantially reduced the funds in the Committee's reserves to 
$214,733. Further, at the current assessment rate, assessment income 
would equal only $300,000, an amount insufficient to cover the 
Committee's anticipated expenditures of $302,553. By increasing the 
assessment rate by $0.05, assessment income will be approximately 
$350,000. This amount should provide sufficient funds to meet 2016-2017 
anticipated expenses and add money back into the Committee's authorized 
reserves.
    The major expenditures recommended by the Committee for the 2016-17 
year include $119,483 for salaries, $51,500 for employee benefits, and 
$25,500 for insurance and bonds. Budgeted expenses for these items in 
2015-16 were $119,483, $51,500, and $25,500, respectively.
    The assessment rate recommended by the Committee was derived by 
reviewing anticipated expenses, expected shipments of Florida avocados, 
and the level of funds in reserve. As mentioned earlier, avocado 
shipments for the year are estimated at one million 55-pound bushel 
containers which should provide $350,000 in assessment income. Income 
derived from handler assessments, along with interest income, should be 
adequate to cover budgeted expenses. Funds in the reserve (currently 
$214,733) will be kept within the maximum permitted by the order 
(approximately three fiscal periods' expenses as authorized in Sec.  
915.42).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
be undertaken as necessary. The Committee's 2016-17 budget and those 
for subsequent fiscal periods would be reviewed and, as appropriate, 
approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 400 producers of Florida avocados in the 
production area and approximately 25 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 the National Agricultural Statistical Service (NASS), 
the average grower price paid for Florida avocados during the 2014-15 
season was approximately $18.00 per 55-pound bushel container and total 
shipments were slightly higher than 1.2 million 55-pound bushels. Based 
on this information, the majority of avocado producers would have 
annual receipts less than $750,000. In addition, based on Committee 
information, the majority of Florida avocado handlers could be 
considered small business under SBA's definition. Thus, the majority of 
Florida avocado producers and handlers may be classified as small 
entities.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2016-17 and subsequent 
fiscal periods from $0.30 to $0.35 per 55-pound bushel container of 
avocados. The Committee recommended 2016-17 expenditures of $302,553 
and an assessment rate of $0.35 per 55-pound bushel container. The 
assessment rate of $0.35 is $0.05 higher than the previous rate. The 
quantity of assessable avocados for the 2016-17 season is estimated at 
one million 55-pound bushel containers. Thus, the $0.35 rate should 
provide $350,000 in assessment income and be adequate to meet this 
year's expenses.
    The major expenditures recommended by the Committee for the 2016-17 
fiscal period include $119,483 for salaries, $51,500 for employee 
benefits, and $25,500 for insurance and bonds. Budgeted expenses for 
these items in 2015-16 were $119,483, $51,500, and $25,500, 
respectively.
    During the 2015-16 season, the Committee used its authorized 
reserves to fund several large research projects to address the Laurel 
Wilt fungus. This substantially reduced the funds in the Committee's 
reserves. Further, at the current assessment rate and with the 2016-17 
crop estimated to be one million 55-pound bushel containers, assessment 
income would equal only $300,000, an amount insufficient to cover the 
Committee's anticipated expenditures of $302,553. By increasing the 
assessment rate by $0.05, assessment income will be approximately 
$350,000. This amount should provide sufficient funds to meet 2016-17 
anticipated expenses and add money back into the Committee's authorized 
reserves. Consequently, the Committee recommended increasing the 
assessment rate.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Budget and Personnel Committee. Alternative expenditure levels were 
discussed by this group, based upon the relative value of various 
activities to the South Florida avocado industry. The Committee 
ultimately determined that 2016-17 expenditures of $302,553 were 
appropriate, and the recommended assessment rate, along with interest 
income, would generate sufficient revenue to meet its expenses.
    A review of historical information and preliminary information 
pertaining to the upcoming season indicates that the grower price for 
the 2016-17 season should be around $18 per 55-pound bushel container 
of avocados. Therefore, the estimated assessment revenue for the 2016-
17 fiscal period as a percentage of total grower revenue would be 
approximately two percent.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Additionally, these 
costs are offset by the benefits derived by the operation of the 
marketing order. In addition, the Committee's meeting was widely 
publicized throughout the Florida avocado industry and all interested 
persons were invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the December 
9, 2015, meeting was a public meeting and

[[Page 38885]]

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 the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189 (Generic Fruit Crops). No changes in those 
requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large Florida avocado handlers. As with 
all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. As noted in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on March 16, 2016 (81 FR 14019). Copies of the proposed rule 
were also mailed or sent via facsimile to all Florida avocado 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 
April 15, 2016, was provided for interested persons to respond to the 
proposal. One comment was received in support of the proposal. 
Accordingly, no changes will be made to the rule as proposed, based on 
the comment received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Antoinette Carter 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, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because handlers are 
already receiving 2016-17 crop avocados from growers, and the fiscal 
period began on April 1, 2016, and the assessment rate applies to all 
Florida avocados received during the 2016-17 and subsequent seasons. 
Further, handlers are aware of this rule which was recommended at a 
public meeting. Also, a 30-day comment period was provided for in the 
proposed rule.

List of Subjects in 7 CFR Part 915

    Avocados, Marketing agreements, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 915 is 
amended as follows:

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

0
1. The authority citation for 7 CFR part 915 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.


0
2. Section 915.235 is revised to read as follows:


Sec.  915.235  Assessment rate.

    On and after April 1, 2016, an assessment rate of $0.35 per 55-
pound container or equivalent is established for avocados grown in 
South Florida.

    Dated: June 10, 2016.
Elanor Starmer,
Administrator, Agricultural Marketing Service.
[FR Doc. 2016-14149 Filed 6-14-16; 8:45 am]
BILLING CODE P



                                                            Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations                                          38883

                                           provide input; and (4) this rule provides               SUMMARY:    This rule implements a                        The Act provides that administrative
                                           a 60-day comment period and any                         recommendation from the Avocado                        proceedings must be exhausted before
                                           comments received will be considered                    Administrative Committee (Committee)                   parties may file suit in court. Under
                                           prior to finalization of this rule.                     for an increase of the assessment rate                 section 608c(15)(A) of the Act, any
                                                                                                   established for the 2016–17 and                        handler subject to an order may file
                                           List of Subjects in 7 CFR Part 906                                                                             with USDA a petition stating that the
                                                                                                   subsequent fiscal periods from $0.30 to
                                             Grapefruit, Marketing agreements,                     $0.35 per 55-pound bushel container of                 order, any provision of the order, or any
                                           Oranges, Reporting and recordkeeping                    Florida avocados handled under the                     obligation imposed in connection with
                                           requirements.                                           marketing order (order). The Committee                 the order is not in accordance with law
                                             For the reasons set forth in the                      locally administers the order and is                   and request a modification of the order
                                           preamble, 7 CFR part 906 is amended as                  comprised of growers and handlers of                   or to be exempted therefrom. Such
                                           follows:                                                avocados operating within the area of                  handler is afforded the opportunity for
                                                                                                   production. Assessments upon Florida                   a hearing on the petition. After the
                                           PART 906—ORANGES AND                                    avocado handlers are used by the                       hearing, USDA would rule on the
                                           GRAPEFRUIT GROWN IN LOWER RIO                           Committee to fund reasonable and                       petition. The Act provides that the
                                           GRANDE VALLEY IN TEXAS                                  necessary expenses of the program. The                 district court of the United States in any
                                                                                                   fiscal period began on April 1 and ends                district in which the handler is an
                                           ■ 1. The authority citation for 7 CFR                   March 31. The assessment rate will                     inhabitant, or has his or her principal
                                           part 906 continues to read as follows:                  remain in effect indefinitely unless                   place of business, has jurisdiction to
                                               Authority: 7 U.S.C. 601–674.                        modified, suspended, or terminated.                    review USDA’s ruling on the petition,
                                                                                                                                                          provided an action is filed not later than
                                           ■ 2. In § 906.340, paragraphs (a)(1)(i)                 DATES: Effective June 16, 2016.
                                                                                                                                                          20 days after the date of the entry of the
                                           through (iii) are revised to read as                    FOR FURTHER INFORMATION CONTACT:                       ruling.
                                           follows:                                                Doris Jamieson, Marketing Specialist, or                  This rule increases the assessment
                                           § 906.340 Container, pack, and container
                                                                                                   Christian D. Nissen, Regional Director,                rate established for the Committee for
                                           marking regulations.                                    Southeast Marketing Field Office,                      the 2016–17 and subsequent fiscal
                                                                                                   Marketing Order and Agreement                          periods from $0.30 to $0.35 per 55-
                                              (a) * * *
                                                                                                   Division, Specialty Crops Program,                     pound bushel container of avocados.
                                              (1) * * *
                                                                                                   AMS, USDA; Telephone: (863) 324–                          The Florida avocado marketing order
                                              (i) Closed fiberboard carton with
                                                                                                   3375, Fax: (863) 291–8614, or Email:                   provides authority for the Committee,
                                           approximate inside dimensions of 131⁄4
                                                                                                   Doris.Jamieson@ams.usda.gov or                         with the approval of USDA, to formulate
                                           × 101⁄2 × 71⁄4 inches: Provided, That the                                                                      an annual budget of expenses and
                                                                                                   Christian.Nissen@ams.usda.gov.
                                           container has a Mullen or Cady test of                                                                         collect assessments from handlers to
                                           at least 200 pounds;                                       Small businesses may request
                                                                                                   information on complying with this                     administer the program. The members
                                              (ii) Closed fully telescopic fiberboard                                                                     of the Committee are producers and
                                           carton with approximate inside                          regulation by contacting Antoinette
                                                                                                   Carter, Marketing Order and Agreement                  handlers of Florida avocados. They are
                                           dimensions of 161⁄2 × 103⁄4 × 91⁄2 inches:                                                                     familiar with the Committee’s needs and
                                              (iii) Closed fiberboard carton with                  Division, Specialty Crops Program,
                                                                                                   AMS, USDA, 1400 Independence                           with the costs for goods and services in
                                           approximate inside dimensions of 20 ×                                                                          their local area, and are thus in a
                                           131⁄4 inches and a depth from 93⁄4 to 13                Avenue SW., STOP 0237, Washington,
                                                                                                   DC 20250–0237; Telephone: (202) 720–                   position to formulate an appropriate
                                           inches: Provided, That the container has                                                                       budget and assessment rate. The
                                           a Mullen or Cady test of at least 250                   2491, Fax: (202)720–8938, or Email:
                                                                                                   Antoinette.Carter@ams.usda.gov.                        assessment rate is formulated and
                                           pounds: And Provided further, That the                                                                         discussed in a public meeting. Thus, all
                                           container may be used to pack any poly                  SUPPLEMENTARY INFORMATION: This rule
                                                                                                                                                          directly affected persons have an
                                           or mesh bags authorized in this section;                is issued under Marketing Order No.                    opportunity to participate and provide
                                           *       *    *     *     *                              915, as amended (7 CFR part 915),                      input.
                                                                                                   regulating the handling of avocados                       For the 2013–14 and subsequent fiscal
                                             Dated: June 10, 2016.                                 grown in South Florida, hereinafter
                                           Elanor Starmer,                                                                                                periods, the Committee recommended,
                                                                                                   referred to as the ‘‘order.’’ The order is             and USDA approved, an assessment rate
                                           Administrator, Agricultural Marketing                   effective under the Agricultural
                                           Service.
                                                                                                                                                          that would continue in effect from fiscal
                                                                                                   Marketing Agreement Act of 1937, as                    period to fiscal period unless modified,
                                           [FR Doc. 2016–14151 Filed 6–14–16; 8:45 am]             amended (7 U.S.C. 601–674), hereinafter                suspended, or terminated by USDA
                                           BILLING CODE P                                          referred to as the ‘‘Act.’’                            upon recommendation and information
                                                                                                      The Department of Agriculture                       submitted by the Committee or other
                                                                                                   (USDA) is issuing this rule in                         information available to USDA.
                                           DEPARTMENT OF AGRICULTURE                               conformance with Executive Orders                         The Committee met on December 9,
                                           Agricultural Marketing Service                          12866, 13563, and 13175.                               2015, and recommended 2016–17
                                                                                                      This rule has been reviewed under                   expenditures of $302,553 and an
                                           7 CFR Part 915                                          Executive Order 12988, Civil Justice                   assessment rate of $0.35 per 55-pound
                                                                                                   Reform. Under the marketing order now                  bushel container of avocados. In
                                           [Doc. No. AMS–SC–15–0083; SC16–915–2                    in effect, Florida avocado handlers are                comparison, last year’s budgeted
                                           FR]                                                     subject to assessments. Funds to                       expenditures were $602,553. The
                                                                                                   administer the order are derived from                  assessment rate of $0.35 is $0.05 higher
ehiers on DSK5VPTVN1PROD with RULES




                                           Avocados Grown in South Florida;                        such assessments. It is intended that the              than the rate currently in effect. During
                                           Increased Assessment Rate                               assessment rate as issued herein will be               the 2015–16 season, the Committee used
                                           AGENCY:  Agricultural Marketing Service,                applicable to all assessable Florida                   its authorized reserves to fund several
                                           USDA.                                                   avocados beginning on April 1, 2016,                   large research projects to address the
                                                                                                   and continue until amended,                            Laurel Wilt fungus, which can infect
                                           ACTION: Final rule.
                                                                                                   suspended, or terminated.                              and kill avocado trees. This


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                                           38884            Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations

                                           substantially reduced the funds in the                  Final Regulatory Flexibility Analysis                  2016–17 fiscal period include $119,483
                                           Committee’s reserves to $214,733.                          Pursuant to requirements set forth in               for salaries, $51,500 for employee
                                           Further, at the current assessment rate,                the Regulatory Flexibility Act (RFA) (5                benefits, and $25,500 for insurance and
                                           assessment income would equal only                      U.S.C. 601–612), the Agricultural                      bonds. Budgeted expenses for these
                                           $300,000, an amount insufficient to                     Marketing Service (AMS) has                            items in 2015–16 were $119,483,
                                           cover the Committee’s anticipated                       considered the economic impact of this                 $51,500, and $25,500, respectively.
                                           expenditures of $302,553. By increasing                                                                           During the 2015–16 season, the
                                                                                                   rule on small entities. Accordingly,
                                           the assessment rate by $0.05, assessment                                                                       Committee used its authorized reserves
                                                                                                   AMS has prepared this final regulatory
                                           income will be approximately $350,000.                                                                         to fund several large research projects to
                                                                                                   flexibility analysis.
                                           This amount should provide sufficient                                                                          address the Laurel Wilt fungus. This
                                                                                                      The purpose of the RFA is to fit
                                           funds to meet 2016–2017 anticipated                                                                            substantially reduced the funds in the
                                                                                                   regulatory actions to the scale of
                                           expenses and add money back into the                                                                           Committee’s reserves. Further, at the
                                                                                                   businesses subject to such actions in
                                           Committee’s authorized reserves.                                                                               current assessment rate and with the
                                                                                                   order that small businesses will not be
                                              The major expenditures                                                                                      2016–17 crop estimated to be one
                                                                                                   unduly or disproportionately burdened.
                                           recommended by the Committee for the                                                                           million 55-pound bushel containers,
                                                                                                   Marketing orders issued pursuant to the
                                           2016–17 year include $119,483 for                                                                              assessment income would equal only
                                                                                                   Act, and the rules issued thereunder, are              $300,000, an amount insufficient to
                                           salaries, $51,500 for employee benefits,                unique in that they are brought about
                                           and $25,500 for insurance and bonds.                                                                           cover the Committee’s anticipated
                                                                                                   through group action of essentially                    expenditures of $302,553. By increasing
                                           Budgeted expenses for these items in                    small entities acting on their own
                                           2015–16 were $119,483, $51,500, and                                                                            the assessment rate by $0.05, assessment
                                                                                                   behalf.                                                income will be approximately $350,000.
                                           $25,500, respectively.                                     There are approximately 400
                                              The assessment rate recommended by                                                                          This amount should provide sufficient
                                                                                                   producers of Florida avocados in the                   funds to meet 2016–17 anticipated
                                           the Committee was derived by                            production area and approximately 25
                                           reviewing anticipated expenses,                                                                                expenses and add money back into the
                                                                                                   handlers subject to regulation under the               Committee’s authorized reserves.
                                           expected shipments of Florida                           marketing order. Small agricultural
                                           avocados, and the level of funds in                                                                            Consequently, the Committee
                                                                                                   producers are defined by the Small                     recommended increasing the assessment
                                           reserve. As mentioned earlier, avocado                  Business Administration (SBA) as those
                                           shipments for the year are estimated at                                                                        rate.
                                                                                                   having annual receipts less than                          Prior to arriving at this budget and
                                           one million 55-pound bushel containers                  $750,000, and small agricultural service               assessment rate, the Committee
                                           which should provide $350,000 in                        firms are defined as those whose annual                considered information from various
                                           assessment income. Income derived                       receipts are less than $7,500,000 (13                  sources, such as the Committee’s Budget
                                           from handler assessments, along with                    CFR 121.201).                                          and Personnel Committee. Alternative
                                           interest income, should be adequate to                     According to the National                           expenditure levels were discussed by
                                           cover budgeted expenses. Funds in the                   Agricultural Statistical Service (NASS),               this group, based upon the relative
                                           reserve (currently $214,733) will be kept               the average grower price paid for                      value of various activities to the South
                                           within the maximum permitted by the                     Florida avocados during the 2014–15                    Florida avocado industry. The
                                           order (approximately three fiscal                       season was approximately $18.00 per                    Committee ultimately determined that
                                           periods’ expenses as authorized in                      55-pound bushel container and total                    2016–17 expenditures of $302,553 were
                                           § 915.42).                                              shipments were slightly higher than 1.2                appropriate, and the recommended
                                              The assessment rate established in                   million 55-pound bushels. Based on this                assessment rate, along with interest
                                           this rule will continue in effect                       information, the majority of avocado                   income, would generate sufficient
                                           indefinitely unless modified,                           producers would have annual receipts                   revenue to meet its expenses.
                                           suspended, or terminated by USDA                        less than $750,000. In addition, based                    A review of historical information and
                                           upon recommendation and information                     on Committee information, the majority                 preliminary information pertaining to
                                           submitted by the Committee or other                     of Florida avocado handlers could be                   the upcoming season indicates that the
                                           available information.                                  considered small business under SBA’s                  grower price for the 2016–17 season
                                              Although this assessment rate will be                definition. Thus, the majority of Florida              should be around $18 per 55-pound
                                           in effect for an indefinite period, the                 avocado producers and handlers may be                  bushel container of avocados. Therefore,
                                           Committee will continue to meet prior                   classified as small entities.                          the estimated assessment revenue for
                                           to or during each fiscal period to                         This rule increases the assessment                  the 2016–17 fiscal period as a
                                           recommend a budget of expenses and                      rate established for the Committee and                 percentage of total grower revenue
                                           consider recommendations for                            collected from handlers for the 2016–17                would be approximately two percent.
                                           modification of the assessment rate. The                and subsequent fiscal periods from                        This action increases the assessment
                                           dates and times of Committee meetings                   $0.30 to $0.35 per 55-pound bushel                     obligation imposed on handlers. While
                                           are available from the Committee or                     container of avocados. The Committee                   assessments impose some additional
                                           USDA. Committee meetings are open to                    recommended 2016–17 expenditures of                    costs on handlers, the costs are minimal
                                           the public and interested persons may                   $302,553 and an assessment rate of                     and uniform on all handlers.
                                           express their views at these meetings.                  $0.35 per 55-pound bushel container.                   Additionally, these costs are offset by
                                           USDA will evaluate Committee                            The assessment rate of $0.35 is $0.05                  the benefits derived by the operation of
                                           recommendations and other available                     higher than the previous rate. The                     the marketing order. In addition, the
                                           information to determine whether                        quantity of assessable avocados for the                Committee’s meeting was widely
                                           modification of the assessment rate is                  2016–17 season is estimated at one                     publicized throughout the Florida
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                                           needed. Further rulemaking will be                      million 55-pound bushel containers.                    avocado industry and all interested
                                           undertaken as necessary. The                            Thus, the $0.35 rate should provide                    persons were invited to attend the
                                           Committee’s 2016–17 budget and those                    $350,000 in assessment income and be                   meeting and participate in Committee
                                           for subsequent fiscal periods would be                  adequate to meet this year’s expenses.                 deliberations on all issues. Like all
                                           reviewed and, as appropriate, approved                     The major expenditures                              Committee meetings, the December 9,
                                           by USDA.                                                recommended by the Committee for the                   2015, meeting was a public meeting and


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                                                            Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Rules and Regulations                                           38885

                                           all entities, both large and small, were                   Pursuant to 5 U.S.C. 553, it is also                quantity of spearmint oil produced in
                                           able to express views on this issue.                    found and determined that good cause                   the Far West, by class, that handlers
                                              In accordance with the Paperwork                     exists for not postponing the effective                may purchase from, or handle on behalf
                                           Reduction Act of 1995 (44 U.S.C.                        date of this rule until 30 days after                  of, producers during the 2016–2017
                                           Chapter 35), the order’s information                    publication in the Federal Register                    marketing year, which begins on June 1,
                                           collection requirements have been                       because handlers are already receiving                 2016. The Far West production area
                                           previously approved by the Office of                    2016–17 crop avocados from growers,                    includes the states of Washington,
                                           Management and Budget (OMB) and                         and the fiscal period began on April 1,                Idaho, and Oregon, and designated parts
                                           assigned OMB No. 0581–0189 (Generic                     2016, and the assessment rate applies to               of Nevada and Utah. This rule
                                           Fruit Crops). No changes in those                       all Florida avocados received during the               establishes salable quantities and
                                           requirements as a result of this action                 2016–17 and subsequent seasons.                        allotment percentages for Class 1
                                           are necessary. Should any changes                       Further, handlers are aware of this rule               (Scotch) spearmint oil of 958,711
                                           become necessary, they would be                         which was recommended at a public                      pounds and 45 percent, respectively,
                                           submitted to OMB for approval.                          meeting. Also, a 30-day comment period                 and for Class 3 (Native) spearmint oil of
                                              This rule imposes no additional                      was provided for in the proposed rule.                 1,209,546 pounds and 50 percent,
                                           reporting or recordkeeping requirements                                                                        respectively. The Committee locally
                                                                                                   List of Subjects in 7 CFR Part 915
                                           on either small or large Florida avocado                                                                       administers the marketing order for
                                           handlers. As with all Federal marketing                   Avocados, Marketing agreements,                      spearmint oil produced in the Far West
                                           order programs, reports and forms are                   Reporting and recordkeeping                            and recommended these salable
                                           periodically reviewed to reduce                         requirements.                                          quantities and allotment percentages to
                                           information requirements and                              For the reasons set forth in the                     help maintain stability in the spearmint
                                           duplication by industry and public                      preamble, 7 CFR part 915 is amended as                 oil market.
                                           sector agencies. As noted in the initial                follows:                                               DATES: June 16, 2016.
                                           regulatory flexibility analysis, USDA                                                                          FOR FURTHER INFORMATION CONTACT: Dale
                                           has not identified any relevant Federal                 PART 915—AVOCADOS GROWN IN                             Novotny, Marketing Specialist, or Gary
                                           rules that duplicate, overlap, or conflict              SOUTH FLORIDA                                          Olson, Regional Director, Northwest
                                           with this final rule.                                                                                          Marketing Field Office, Marketing Order
                                              AMS is committed to complying with                   ■ 1. The authority citation for 7 CFR
                                                                                                   part 915 continues to read as follows:                 and Agreement Division, Specialty
                                           the E-Government Act, to promote the                                                                           Crops Program, AMS, USDA;
                                           use of the Internet and other                               Authority: 7 U.S.C. 601–674.                       Telephone: (503) 326–2724, Fax: (503)
                                           information technologies to provide                     ■ 2. Section 915.235 is revised to read                326–7440, or Email: DaleJ.Novotny@
                                           increased opportunities for citizen                     as follows:                                            ams.usda.gov or GaryD.Olson@
                                           access to Government information and                                                                           ams.usda.gov.
                                           services, and for other purposes.                       § 915.235    Assessment rate.                             Small businesses may request
                                              A proposed rule concerning this                        On and after April 1, 2016, an                       information on complying with this
                                           action was published in the Federal                     assessment rate of $0.35 per 55-pound                  regulation by contacting Antoinette
                                           Register on March 16, 2016 (81 FR                       container or equivalent is established                 Carter, Marketing Order and Agreement
                                           14019). Copies of the proposed rule                     for avocados grown in South Florida.                   Division, Specialty Crops Program,
                                           were also mailed or sent via facsimile to                 Dated: June 10, 2016.                                AMS, USDA, 1400 Independence
                                           all Florida avocado handlers. Finally,                                                                         Avenue SW., STOP 0237, Washington,
                                                                                                   Elanor Starmer,
                                           the proposal was made available                                                                                DC 20250–0237; Telephone: (202) 720–
                                                                                                   Administrator, Agricultural Marketing
                                           through the Internet by USDA and the                                                                           2491, Fax: (202) 720–8938, or Email:
                                                                                                   Service.
                                           Office of the Federal Register. A 30-day                                                                       Antoinette.Carter@ams.usda.gov.
                                                                                                   [FR Doc. 2016–14149 Filed 6–14–16; 8:45 am]
                                           comment period ending April 15, 2016,                                                                          SUPPLEMENTARY INFORMATION: This final
                                                                                                   BILLING CODE P
                                           was provided for interested persons to                                                                         rule is issued under Marketing Order
                                           respond to the proposal. One comment                                                                           No. 985 (7 CFR part 985), as amended,
                                           was received in support of the proposal.                                                                       regulating the handling of spearmint oil
                                                                                                   DEPARTMENT OF AGRICULTURE
                                           Accordingly, no changes will be made                                                                           produced in the Far West (Washington,
                                           to the rule as proposed, based on the                   Agricultural Marketing Service                         Idaho, Oregon, and designated parts of
                                           comment received.                                                                                              Nevada and Utah), hereinafter referred
                                              A small business guide on complying                  7 CFR Part 985                                         to as the ‘‘order.’’ The order is effective
                                           with fruit, vegetable, and specialty crop                                                                      under the Agricultural Marketing
                                           marketing agreements and orders may                     [Doc. No. AMS–FV–15–0074; FV16–985–1                   Agreement Act of 1937, as amended (7
                                           be viewed at: http://www.ams.usda.gov/                  FR]
                                                                                                                                                          U.S.C. 601–674), hereinafter referred to
                                           rules-regulations/moa/small-businesses.                                                                        as the ‘‘Act.’’
                                                                                                   Marketing Order Regulating the
                                           Any questions about the compliance                                                                               The Department of Agriculture
                                                                                                   Handling of Spearmint Oil Produced in
                                           guide should be sent to Antoinette                                                                             (USDA) is issuing this final rule in
                                                                                                   the Far West; Salable Quantities and
                                           Carter at the previously-mentioned                                                                             conformance with Executive Orders
                                                                                                   Allotment Percentages for the 2016–
                                           address in the FOR FURTHER INFORMATION                                                                         12866, 13563, and 13175.
                                                                                                   2017 Marketing Year
                                           CONTACT section.                                                                                                 This final rule has been reviewed
                                              After consideration of all relevant                  AGENCY:  Agricultural Marketing Service,               under Executive Order 12988, Civil
                                           material presented, including the                       USDA.                                                  Justice Reform. This final rule is not
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                                           information and recommendation                          ACTION: Final rule.                                    intended to have retroactive effect.
                                           submitted by the Committee and other                                                                           Under the order now in effect, salable
                                           available information, it is hereby found               SUMMARY: This rule implements a                        quantities and allotment percentages
                                           that this rule, as hereinafter set forth,               recommendation from the Far West                       may be established for classes of
                                           will tend to effectuate the declared                    Spearmint Oil Administrative                           spearmint oil produced in the Far West.
                                           policy of the Act.                                      Committee (Committee) to establish the                 This final rule will establish the


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Document Created: 2016-06-15 02:21:18
Document Modified: 2016-06-15 02:21:18
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective June 16, 2016.
ContactDoris Jamieson, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation81 FR 38883 
CFR AssociatedAvocados; Marketing Agreements and Reporting and Recordkeeping Requirements

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