82_FR_58369 82 FR 58133 - Tomatoes Grown in Florida; Decreased Assessment Rate

82 FR 58133 - Tomatoes Grown in Florida; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 82, Issue 236 (December 11, 2017)

Page Range58133-58135
FR Document2017-26373

This proposed rule would implement a recommendation from the Florida Tomato Committee (Committee) for a decrease in the assessment rate established for the 2017-18 and subsequent fiscal periods of tomatoes grown in Florida, handled under the marketing order (Order). The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated. This proposed rule also makes administrative revisions to the subpart headings to bring the language into conformance with the Office of Federal Register requirements.

Federal Register, Volume 82 Issue 236 (Monday, December 11, 2017)
[Federal Register Volume 82, Number 236 (Monday, December 11, 2017)]
[Proposed Rules]
[Pages 58133-58135]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26373]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 82, No. 236 / Monday, December 11, 2017 / 
Proposed Rules

[[Page 58133]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 966

[Doc. No. AMS-SC-17-0051; SC17-966-1 PR]


Tomatoes Grown in Florida; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Florida Tomato Committee (Committee) for a decrease in the assessment 
rate established for the 2017-18 and subsequent fiscal periods of 
tomatoes grown in Florida, handled under the marketing order (Order). 
The assessment rate would remain in effect indefinitely unless 
modified, suspended, or terminated. This proposed rule also makes 
administrative revisions to the subpart headings to bring the language 
into conformance with the Office of Federal Register requirements.

DATES: Comments must be received by January 10, 2018.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments must be sent to the Docket 
Clerk, Marketing Order and Agreement Division, Specialty Crops Program, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or internet: http://www.regulations.gov. Comments should reference the document number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the Internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Steven W. Kauffman, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, 
Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: 
(863) 291-8614, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Agreement No. 125 and Order No. 966, as amended (7 CFR part 
966), regulating the handling of tomatoes grown in Florida. Part 966, 
(hereinafter referred to as the ``Order''), is effective under the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.'' The Committee locally 
administers the Order and is comprised of producers of tomatoes 
operating within the area of production.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This proposed 
rule falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action, it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, Florida tomato 
handlers are subject to assessments. Funds to administer the Order are 
derived from such assessments. It is intended that the assessment rate 
will be applicable to all assessable tomatoes beginning on August 1, 
2017, and continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This proposed rule would decrease the assessment rate established 
for the Committee for the 2017-18 and subsequent fiscal periods from 
$0.035 to $0.025 per 25-pound container or equivalent of tomatoes 
handled.
    The Order provides authority for the Committee, with the approval 
of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members of the 
Committee are producers of Florida tomatoes. They are familiar with the 
Committee's needs and with the costs for goods and services in their 
local area and are thus in a position to formulate an appropriate 
budget and assessment rate. The assessment rate is formulated and 
discussed in a public meeting. Thus, all directly affected persons have 
an opportunity to participate and provide input.
    For the 2016-17 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA upon recommendation and information

[[Page 58134]]

submitted by the Committee or other information available to USDA.
    The Committee met on August 22, 2017, and unanimously recommended 
2017-18 expenditures of $1,494,600 and an assessment rate of $0.025 per 
25-pound container or equivalent of tomatoes. Last year's budgeted 
expenditures were also $1,494,600. The assessment rate of $0.025 is 
$0.01 lower than the rate currently in effect. The Committee 
recommended decreasing the assessment rate to reduce the assessment 
burden on handlers and utilize funds from the authorized reserve to 
help cover Committee expenses.
    The major expenditures recommended by the Committee for the 2017-18 
year include $450,000 for staff salaries, $400,000 for research, and 
$400,000 for education and promotion. Budgeted expenses for these items 
in 2016-17 were also $450,000, $400,000, and $400,000, respectively.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments of Florida 
tomatoes, and the level of funds in the authorized reserve. Tomato 
shipments for the year are estimated at 33 million 25-pound containers, 
which should provide $825,000 in assessment income. Income derived from 
handler assessments, along with interest income and funds from the 
Committee's authorized reserve, would be adequate to cover budgeted 
expenses. Funds in the reserve (currently $979,410) would be kept 
within the maximum permitted by the Order (approximately one fiscal 
period's expenses as stated in Sec.  966.44).
    The assessment rate proposed in this rule would 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 would be effective for an indefinite 
period, the Committee would continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public, and interested persons may 
express their views at these meetings. USDA would evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking would 
be undertaken as necessary. The Committee's 2017-18 budget and those 
for subsequent fiscal periods would be reviewed and, as appropriate, 
approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 80 producers of Florida tomatoes in the 
production area and 47 handlers subject to regulation under the 
Marketing Order. Small agricultural producers are defined by the Small 
Business Administration (SBA) as those having annual receipts less than 
$750,000, and small agricultural service firms are defined as those 
whose annual receipts are less than $7,500,000 (13 CFR 121.201).
    According to industry and Committee data, the average annual price 
for fresh Florida tomatoes during the 2016-17 season was approximately 
$8.00 per 25-pound container, and total fresh shipments were 32.8 
million containers. Using the average price and shipment information, 
the number of handlers, and assuming a normal distribution, the 
majority of handlers have average annual receipts of less than 
$7,500,000. In addition, based on production data, an estimated 
producer price of $3.00 per 25-pound container, and the number of 
Florida tomato producers, the average annual producer revenue is above 
$750,000. Thus, a majority of the handlers of Florida tomatoes may be 
classified as small entities, while a majority of the producers may be 
classified as large entities.
    This proposed rule would decrease the assessment rate established 
for the 2017-18 and subsequent fiscal periods from $0.035 to $0.025 per 
25-pound container or equivalent of Florida tomatoes. The Committee 
unanimously recommended 2017-18 expenditures of $1,494,600 and an 
assessment rate of $0.025 per 25-pound container or equivalent handled. 
The assessment rate of $0.025 is $0.01 lower than the 2016-17 rate. The 
quantity of assessable Florida tomatoes for the 2017-18 fiscal period 
is estimated at 33 million 25-pound containers or equivalent. Thus, the 
$0.025 rate should provide $825,000 in assessment income. Income 
derived from handler assessments, along with interest income and funds 
from the Committee's authorized reserve, would be adequate to cover 
budgeted expenses.
    The major expenditures recommended by the Committee for the 2017-18 
year include $450,000 for staff salaries, $400,000 for research, and 
$400,000 for education and promotion. Budgeted expenses for these items 
in 2016-17 were also $450,000, $400,000, and $400,000, respectively.
    The Committee recommended decreasing the assessment rate to reduce 
the assessment burden on handlers and utilize funds from the authorized 
reserve to help cover Committee expenses.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Budget and Finance Subcommittee, Education and Promotion Subcommittee, 
and the Research Subcommittee. Alternative expenditure levels were 
discussed by these groups, based upon the relative value of various 
activities to the Florida tomato industry. Based on estimated 
shipments, the recommended assessment rate of $0.025 should provide 
$825,000 in assessment income. The Committee determined assessment 
revenue, along with interest income and funds from authorized reserves 
would be adequate to cover budgeted expenses for the 2017-18 fiscal 
period.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the average 
producer price for the 2017-18 season could be about $6.50 per 25-pound 
container or equivalent of Florida tomatoes. Therefore, the estimated 
assessment revenue for the 2017-18 crop year as a percentage of total 
producer revenue would be around 0.4 percent.
    This proposed action would decrease the assessment obligation 
imposed on handlers. Assessments are applied uniformly on all handlers, 
and some of the costs may be passed on to producers. However, 
decreasing the assessment rate reduces the burden on handlers and may 
reduce the burden on producers. In addition, the Committee's meeting 
was widely publicized throughout the Florida tomato industry, and all 
interested persons were invited to attend the meeting and participate 
in Committee deliberations on all issues. Like all Committee meetings, 
the August 22, 2017, meeting was a public meeting, and all entities, 
both large and small,

[[Page 58135]]

were able to express views on this issue. Finally, interested persons 
are invited to submit comments on this proposed rule, including the 
regulatory and information collection impacts of this action on small 
businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0178 Vegetable and 
Specialty Crops. No changes in those requirements are necessary as a 
result of this action. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This proposal does not impose any additional reporting or 
recordkeeping requirements on either small or large Florida tomato 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this proposed rule, as 
hereinafter set forth, would tend to effectuate the declared policy of 
the Act.

List of Subjects in 7 CFR Part 966

    Marketing agreements, Reporting and recordkeeping requirements, 
Tomatoes.

    For the reasons set forth in the preamble, 7 CFR part 966 is 
proposed to be amended as follows:

PART 966--TOMATOES GROWN IN FLORIDA

0
1. The authority citation for 7 CFR part 966 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.
[Subpart Redesignated as Subpart A]
0
2. Redesignate ``Subpart--Order Regulating Handling'' as ``Subpart A--
Order Regulating Handling''.
[Subpart Redesignated as Subpart B and Amended]
0
3. Redesignate ``Subpart--Rules and Regulations'' as subpart B and 
revise the heading to read as follows:

Subpart B--Administrative Requirements

[Subpart Redesignated as Subpart C]
0
4. Redesignate ``Subpart--Assessment Rates'' as ``Subpart C--Assessment 
Rates''.
[Subpart Redesignated as Subpart D and Amended]
0
5. Redesignate ``Subpart--Handling Regulations'' as subpart D and 
revise the heading to read as follows:

Subpart D--Handling Requirements

0
6. Section 966.234 is revised to read as follows:


Sec.  966.234  Assessment rate.

    On and after August 1, 2017, an assessment rate of $0.025 per 25-
pound container is established for Florida tomatoes.

    Dated: December 4, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-26373 Filed 12-8-17; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                 58133

                                                 Proposed Rules                                                                                                Federal Register
                                                                                                                                                               Vol. 82, No. 236

                                                                                                                                                               Monday, December 11, 2017



                                                 This section of the FEDERAL REGISTER                    individuals or entities submitting the                effect, Florida tomato handlers are
                                                 contains notices to the public of the proposed          comments will be made public on the                   subject to assessments. Funds to
                                                 issuance of rules and regulations. The                  Internet at the address provided above.               administer the Order are derived from
                                                 purpose of these notices is to give interested                                                                such assessments. It is intended that the
                                                                                                         FOR FURTHER INFORMATION CONTACT:
                                                 persons an opportunity to participate in the                                                                  assessment rate will be applicable to all
                                                 rule making prior to the adoption of the final          Steven W. Kauffman, Marketing
                                                 rules.                                                  Specialist, or Christian D. Nissen,                   assessable tomatoes beginning on
                                                                                                         Regional Director, Southeast Marketing                August 1, 2017, and continue until
                                                                                                         Field Office, Marketing Order and                     amended, suspended, or terminated.
                                                 DEPARTMENT OF AGRICULTURE                               Agreement Division, Specialty Crops                      The Act provides that administrative
                                                                                                         Program, AMS, USDA; Telephone: (863)                  proceedings must be exhausted before
                                                 Agricultural Marketing Service                          324–3375, Fax: (863) 291–8614, or                     parties may file suit in court. Under
                                                                                                         Email: Steven.Kauffman@ams.usda.gov                   section 608c(15)(A) of the Act, any
                                                 7 CFR Part 966                                          or Christian.Nissen@ams.usda.gov.                     handler subject to an order may file
                                                 [Doc. No. AMS–SC–17–0051; SC17–966–1
                                                                                                            Small businesses may request                       with USDA a petition stating that the
                                                 PR]                                                     information on complying with this                    order, any provision of the order, or any
                                                                                                         regulation by contacting Richard Lower,               obligation imposed in connection with
                                                 Tomatoes Grown in Florida; Decreased                    Marketing Order and Agreement                         the order is not in accordance with law
                                                 Assessment Rate                                         Division, Specialty Crops Program,                    and request a modification of the order
                                                                                                         AMS, USDA, 1400 Independence                          or to be exempted therefrom. Such
                                                 AGENCY:  Agricultural Marketing Service,                Avenue SW., STOP 0237, Washington,                    handler is afforded the opportunity for
                                                 USDA.                                                   DC 20250–0237; Telephone: (202) 720–                  a hearing on the petition. After the
                                                 ACTION: Proposed rule.                                  2491, Fax: (202) 720–8938, or Email:                  hearing, USDA would rule on the
                                                                                                         Richard.Lower@ams.usda.gov.                           petition. The Act provides that the
                                                 SUMMARY:   This proposed rule would
                                                                                                         SUPPLEMENTARY INFORMATION: This                       district court of the United States in any
                                                 implement a recommendation from the
                                                                                                         action, pursuant to 5 U.S.C. 553,                     district in which the handler is an
                                                 Florida Tomato Committee (Committee)
                                                                                                         proposes an amendment to regulations                  inhabitant, or has his or her principal
                                                 for a decrease in the assessment rate
                                                                                                         issued to carry out a marketing order as              place of business, has jurisdiction to
                                                 established for the 2017–18 and
                                                                                                         defined in 7 CFR 900.2(j). This proposed              review USDA’s ruling on the petition,
                                                 subsequent fiscal periods of tomatoes
                                                                                                         rule is issued under Marketing                        provided an action is filed not later than
                                                 grown in Florida, handled under the
                                                                                                         Agreement No. 125 and Order No. 966,                  20 days after the date of the entry of the
                                                 marketing order (Order). The assessment
                                                                                                         as amended (7 CFR part 966), regulating               ruling.
                                                 rate would remain in effect indefinitely
                                                                                                         the handling of tomatoes grown in                        This proposed rule would decrease
                                                 unless modified, suspended, or
                                                                                                         Florida. Part 966, (hereinafter referred to           the assessment rate established for the
                                                 terminated. This proposed rule also
                                                                                                         as the ‘‘Order’’), is effective under the             Committee for the 2017–18 and
                                                 makes administrative revisions to the
                                                                                                         Agricultural Marketing Agreement Act                  subsequent fiscal periods from $0.035 to
                                                 subpart headings to bring the language
                                                                                                         of 1937, as amended (7 U.S.C. 601–674),               $0.025 per 25-pound container or
                                                 into conformance with the Office of
                                                                                                         hereinafter referred to as the ‘‘Act.’’ The           equivalent of tomatoes handled.
                                                 Federal Register requirements.
                                                                                                         Committee locally administers the
                                                 DATES: Comments must be received by                     Order and is comprised of producers of                   The Order provides authority for the
                                                 January 10, 2018.                                       tomatoes operating within the area of                 Committee, with the approval of USDA,
                                                 ADDRESSES: Interested persons are                       production.                                           to formulate an annual budget of
                                                 invited to submit written comments                         The Department of Agriculture                      expenses and collect assessments from
                                                 concerning this proposed rule.                          (USDA) is issuing this proposed rule in               handlers to administer the program. The
                                                 Comments must be sent to the Docket                     conformance with Executive Orders                     members of the Committee are
                                                 Clerk, Marketing Order and Agreement                    13563 and 13175. This proposed rule                   producers of Florida tomatoes. They are
                                                 Division, Specialty Crops Program,                      falls within a category of regulatory                 familiar with the Committee’s needs and
                                                 AMS, USDA, 1400 Independence                            actions that the Office of Management                 with the costs for goods and services in
                                                 Avenue SW., STOP 0237, Washington,                      and Budget (OMB) exempted from                        their local area and are thus in a
                                                 DC 20250–0237; Fax: (202) 720–8938; or                  Executive Order 12866 review.                         position to formulate an appropriate
                                                 internet: http://www.regulations.gov.                   Additionally, because this proposed                   budget and assessment rate. The
                                                 Comments should reference the                           rule does not meet the definition of a                assessment rate is formulated and
                                                 document number and the date and                        significant regulatory action, it does not            discussed in a public meeting. Thus, all
                                                 page number of this issue of the Federal                trigger the requirements contained in                 directly affected persons have an
                                                 Register and will be available for public               Executive Order 13771. See OMB’s                      opportunity to participate and provide
daltland on DSKBBV9HB2PROD with PROPOSALS




                                                 inspection in the Office of the Docket                  Memorandum titled ‘‘Interim Guidance                  input.
                                                 Clerk during regular business hours, or                 Implementing Section 2 of the Executive                  For the 2016–17 and subsequent fiscal
                                                 can be viewed at: http://                               Order of January 30, 2017, titled                     periods, the Committee recommended,
                                                 www.regulations.gov. All comments                       ‘Reducing Regulation and Controlling                  and USDA approved, an assessment rate
                                                 submitted in response to this rule will                 Regulatory Costs’ ’’ (February 2, 2017).              that would continue in effect from fiscal
                                                 be included in the record and will be                      This proposed rule has been reviewed               period to fiscal period unless modified,
                                                 made available to the public. Please be                 under Executive Order 12988, Civil                    suspended, or terminated by USDA
                                                 advised that the identity of the                        Justice Reform. Under the Order now in                upon recommendation and information


                                            VerDate Sep<11>2014   17:10 Dec 08, 2017   Jkt 244001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\11DEP1.SGM   11DEP1


                                                 58134                Federal Register / Vol. 82, No. 236 / Monday, December 11, 2017 / Proposed Rules

                                                 submitted by the Committee or other                     for subsequent fiscal periods would be                period is estimated at 33 million 25-
                                                 information available to USDA.                          reviewed and, as appropriate, approved                pound containers or equivalent. Thus,
                                                   The Committee met on August 22,                       by USDA.                                              the $0.025 rate should provide $825,000
                                                 2017, and unanimously recommended                                                                             in assessment income. Income derived
                                                 2017–18 expenditures of $1,494,600 and                  Initial Regulatory Flexibility Analysis
                                                                                                                                                               from handler assessments, along with
                                                 an assessment rate of $0.025 per 25-                      Pursuant to requirements set forth in               interest income and funds from the
                                                 pound container or equivalent of                        the Regulatory Flexibility Act (RFA) (5               Committee’s authorized reserve, would
                                                 tomatoes. Last year’s budgeted                          U.S.C. 601–612), the Agricultural                     be adequate to cover budgeted expenses.
                                                 expenditures were also $1,494,600. The                  Marketing Service (AMS) has                              The major expenditures
                                                 assessment rate of $0.025 is $0.01 lower                considered the economic impact of this                recommended by the Committee for the
                                                 than the rate currently in effect. The                  proposed rule on small entities.                      2017–18 year include $450,000 for staff
                                                 Committee recommended decreasing                        Accordingly, AMS has prepared this                    salaries, $400,000 for research, and
                                                 the assessment rate to reduce the                       initial regulatory flexibility analysis.              $400,000 for education and promotion.
                                                 assessment burden on handlers and                         The purpose of the RFA is to fit                    Budgeted expenses for these items in
                                                 utilize funds from the authorized                       regulatory actions to the scale of                    2016–17 were also $450,000, $400,000,
                                                 reserve to help cover Committee                         businesses subject to such actions in                 and $400,000, respectively.
                                                 expenses.                                               order that small businesses will not be                  The Committee recommended
                                                   The major expenditures                                unduly or disproportionately burdened.                decreasing the assessment rate to reduce
                                                 recommended by the Committee for the                    Marketing orders issued pursuant to the               the assessment burden on handlers and
                                                 2017–18 year include $450,000 for staff                 Act, and the rules issued thereunder, are             utilize funds from the authorized
                                                 salaries, $400,000 for research, and                    unique in that they are brought about                 reserve to help cover Committee
                                                 $400,000 for education and promotion.                   through group action of essentially                   expenses.
                                                 Budgeted expenses for these items in                    small entities acting on their own                       Prior to arriving at this budget and
                                                 2016–17 were also $450,000, $400,000,                   behalf.                                               assessment rate, the Committee
                                                 and $400,000, respectively.                               There are approximately 80 producers                considered information from various
                                                   The assessment rate recommended by                    of Florida tomatoes in the production                 sources, such as the Committee’s Budget
                                                 the Committee was derived by                            area and 47 handlers subject to                       and Finance Subcommittee, Education
                                                 considering anticipated expenses,                       regulation under the Marketing Order.                 and Promotion Subcommittee, and the
                                                 expected shipments of Florida tomatoes,                 Small agricultural producers are defined              Research Subcommittee. Alternative
                                                 and the level of funds in the authorized                by the Small Business Administration                  expenditure levels were discussed by
                                                 reserve. Tomato shipments for the year                  (SBA) as those having annual receipts                 these groups, based upon the relative
                                                 are estimated at 33 million 25-pound                    less than $750,000, and small                         value of various activities to the Florida
                                                 containers, which should provide                        agricultural service firms are defined as             tomato industry. Based on estimated
                                                 $825,000 in assessment income. Income                   those whose annual receipts are less                  shipments, the recommended
                                                 derived from handler assessments, along                 than $7,500,000 (13 CFR 121.201).                     assessment rate of $0.025 should
                                                 with interest income and funds from the                   According to industry and Committee                 provide $825,000 in assessment income.
                                                 Committee’s authorized reserve, would                   data, the average annual price for fresh              The Committee determined assessment
                                                 be adequate to cover budgeted expenses.                 Florida tomatoes during the 2016–17                   revenue, along with interest income and
                                                 Funds in the reserve (currently                         season was approximately $8.00 per 25-                funds from authorized reserves would
                                                 $979,410) would be kept within the                      pound container, and total fresh                      be adequate to cover budgeted expenses
                                                 maximum permitted by the Order                          shipments were 32.8 million containers.               for the 2017–18 fiscal period.
                                                 (approximately one fiscal period’s                      Using the average price and shipment                     A review of historical information and
                                                 expenses as stated in § 966.44).                        information, the number of handlers,                  preliminary information pertaining to
                                                   The assessment rate proposed in this                  and assuming a normal distribution, the               the upcoming fiscal period indicates
                                                 rule would continue in effect                           majority of handlers have average                     that the average producer price for the
                                                 indefinitely unless modified,                           annual receipts of less than $7,500,000.              2017–18 season could be about $6.50
                                                 suspended, or terminated by USDA                        In addition, based on production data,                per 25-pound container or equivalent of
                                                 upon recommendation and information                     an estimated producer price of $3.00 per              Florida tomatoes. Therefore, the
                                                 submitted by the Committee or other                     25-pound container, and the number of                 estimated assessment revenue for the
                                                 available information.                                  Florida tomato producers, the average                 2017–18 crop year as a percentage of
                                                   Although this assessment rate would                   annual producer revenue is above                      total producer revenue would be around
                                                 be effective for an indefinite period, the              $750,000. Thus, a majority of the                     0.4 percent.
                                                 Committee would continue to meet                        handlers of Florida tomatoes may be                      This proposed action would decrease
                                                 prior to or during each fiscal period to                classified as small entities, while a                 the assessment obligation imposed on
                                                 recommend a budget of expenses and                      majority of the producers may be                      handlers. Assessments are applied
                                                 consider recommendations for                            classified as large entities.                         uniformly on all handlers, and some of
                                                 modification of the assessment rate. The                  This proposed rule would decrease                   the costs may be passed on to
                                                 dates and times of Committee meetings                   the assessment rate established for the               producers. However, decreasing the
                                                 are available from the Committee or                     2017–18 and subsequent fiscal periods                 assessment rate reduces the burden on
                                                 USDA. Committee meetings are open to                    from $0.035 to $0.025 per 25-pound                    handlers and may reduce the burden on
                                                 the public, and interested persons may                  container or equivalent of Florida                    producers. In addition, the Committee’s
daltland on DSKBBV9HB2PROD with PROPOSALS




                                                 express their views at these meetings.                  tomatoes. The Committee unanimously                   meeting was widely publicized
                                                 USDA would evaluate Committee                           recommended 2017–18 expenditures of                   throughout the Florida tomato industry,
                                                 recommendations and other available                     $1,494,600 and an assessment rate of                  and all interested persons were invited
                                                 information to determine whether                        $0.025 per 25-pound container or                      to attend the meeting and participate in
                                                 modification of the assessment rate is                  equivalent handled. The assessment rate               Committee deliberations on all issues.
                                                 needed. Further rulemaking would be                     of $0.025 is $0.01 lower than the 2016–               Like all Committee meetings, the August
                                                 undertaken as necessary. The                            17 rate. The quantity of assessable                   22, 2017, meeting was a public meeting,
                                                 Committee’s 2017–18 budget and those                    Florida tomatoes for the 2017–18 fiscal               and all entities, both large and small,


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                                                                      Federal Register / Vol. 82, No. 236 / Monday, December 11, 2017 / Proposed Rules                                                 58135

                                                 were able to express views on this issue.               [Subpart Redesignated as Subpart A]                   DATES:  The hearing will convene at 9:00
                                                 Finally, interested persons are invited to              ■ 2. Redesignate ‘‘Subpart—Order                      a.m. on December 12, 2017, December
                                                 submit comments on this proposed rule,                  Regulating Handling’’ as ‘‘Subpart A—                 13, 2017 and December 14, 2017.
                                                 including the regulatory and                            Order Regulating Handling’’.                          ADDRESSES: The hearing will be held at
                                                 information collection impacts of this                                                                        the Embassy Suites by Hilton Tampa
                                                 action on small businesses.                             [Subpart Redesignated as Subpart B and                Downtown Convention Center, 513
                                                    In accordance with the Paperwork                     Amended]                                              South Florida Avenue, Tampa, Florida
                                                 Reduction Act of 1995 (44 U.S.C.                        ■ 3. Redesignate ‘‘Subpart—Rules and                  33602; telephone (813) 769–8326.
                                                 Chapter 35), the Order’s information                    Regulations’’ as subpart B and revise the             FOR FURTHER INFORMATION CONTACT: Erin
                                                 collection requirements have been                       heading to read as follows:                           Taylor, Acting Director, Order
                                                 previously approved by OMB and                                                                                Formulation and Enforcement Division,
                                                 assigned OMB No. 0581–0178 Vegetable                    Subpart B—Administrative                              USDA/AMS/Dairy Program, Stop
                                                 and Specialty Crops. No changes in                      Requirements                                          0231—Room 2963, 1400 Independence
                                                 those requirements are necessary as a                                                                         Avenue SW., Washington, DC 20250–
                                                                                                         [Subpart Redesignated as Subpart C]
                                                 result of this action. Should any changes                                                                     0231; (202) 720–7311; email address:
                                                 become necessary, they would be                         ■ 4. Redesignate ‘‘Subpart—Assessment                 erin.taylor@ams.usda.gov.
                                                 submitted to OMB for approval.                          Rates’’ as ‘‘Subpart C—Assessment
                                                                                                                                                               SUPPLEMENTARY INFORMATION: On
                                                    This proposal does not impose any                    Rates’’.
                                                                                                                                                               December 7, 2017, a Notice of Hearing
                                                 additional reporting or recordkeeping                   [Subpart Redesignated as Subpart D and                was placed on public inspection at the
                                                 requirements on either small or large                   Amended]                                              Federal Register (Document Number
                                                 Florida tomato handlers. As with all                                                                          2017–26632) announcing a hearing to
                                                                                                         ■ 5. Redesignate ‘‘Subpart—Handling
                                                 Federal marketing order programs,                                                                             begin on December 12, 2017. That
                                                                                                         Regulations’’ as subpart D and revise the
                                                 reports and forms are periodically                                                                            notice is scheduled to be published
                                                                                                         heading to read as follows:
                                                 reviewed to reduce information                                                                                December 11, 2017. The Rules of
                                                 requirements and duplication by                         Subpart D—Handling Requirements                       Practice and Procedure Governing
                                                 industry and public sector agencies.                                                                          Proceedings to Formulate Marketing
                                                    AMS is committed to complying with                   ■ 6. Section 966.234 is revised to read
                                                                                                                                                               Agreements and Marketing Orders
                                                 the E-Government Act, to promote the                    as follows:
                                                                                                                                                               require that the time of a hearing cannot
                                                 use of the Internet and other                           § 966.234    Assessment rate.                         be less than 3 days after the date of
                                                 information technologies to provide                                                                           publication of the notice in the Federal
                                                                                                           On and after August 1, 2017, an
                                                 increased opportunities for citizen                                                                           Register (7 CFR 900.4).
                                                                                                         assessment rate of $0.025 per 25-pound
                                                 access to Government information and                                                                            Therefore, notice is hereby given that
                                                                                                         container is established for Florida
                                                 services, and for other purposes.                                                                             the public hearing to be held at the
                                                                                                         tomatoes.
                                                    USDA has not identified any relevant                                                                       Embassy Suites by Hilton Tampa
                                                 Federal rules that duplicate, overlap, or                 Dated: December 4, 2017.                            Downtown Convention Center, 513
                                                 conflict with this proposed rule.                       Bruce Summers,                                        South Florida Avenue, Tampa, Florida
                                                    A small business guide on complying                  Acting Administrator, Agricultural Marketing          33602, will be held December 12, 2017,
                                                 with fruit, vegetable, and specialty crop               Service.                                              through December 14, 2017. The hearing
                                                 marketing agreements and orders may                     [FR Doc. 2017–26373 Filed 12–8–17; 8:45 am]           will begin at 9:00 a.m. on each hearing
                                                 be viewed at: http://www.ams.usda.gov/                  BILLING CODE 3410–02–P                                day. If no interested persons appear to
                                                 rules-regulations/moa/small-businesses.                                                                       present testimony or evidence by noon
                                                 Any questions about the compliance                                                                            on December 13, 2017 or December 14,
                                                 guide should be sent to Richard Lower                   DEPARTMENT OF AGRICULTURE                             2017, the hearing will conclude at noon
                                                 at the previously mentioned address in                                                                        on that day.
                                                 the FOR FURTHER INFORMATION CONTACT                     Agricultural Marketing Service
                                                 section.                                                                                                      List of Subjects in 7 CFR Part 1006
                                                    After consideration of all relevant                  7 CFR Part 1006                                         Milk marketing orders.
                                                 material presented, including the                       [AMS–DA–17–0068; AO–18–0008]                            Authority: 7 U.S.C. 601–674, and 7253.
                                                 information and recommendation
                                                                                                         Milk in the Florida Marketing Area;                     Dated: December 7, 2017.
                                                 submitted by the Committee and other
                                                                                                         Supplemental Notification of Hearing                  Bruce Summers,
                                                 available information, it is hereby found
                                                 that this proposed rule, as hereinafter                                                                       Acting Administrator, Agricultural Marketing
                                                                                                         AGENCY:   Agricultural Marketing Service,             Service.
                                                 set forth, would tend to effectuate the                 USDA.
                                                 declared policy of the Act.                                                                                   [FR Doc. 2017–26717 Filed 12–8–17; 8:45 am]
                                                                                                         ACTION: Proposed rule; supplemental                   BILLING CODE 3410–02–P
                                                 List of Subjects in 7 CFR Part 966                      notification of public hearing.
                                                   Marketing agreements, Reporting and                   SUMMARY:   A public hearing is being
                                                 recordkeeping requirements, Tomatoes.                                                                         DEPARTMENT OF AGRICULTURE
                                                                                                         held, on an emergency basis, to consider
                                                   For the reasons set forth in the                      a proposal submitted by Southeast Milk,               Agricultural Marketing Service
                                                 preamble, 7 CFR part 966 is proposed to                 Inc., Dairy Farmers of America, Inc.,
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                                                 be amended as follows:                                  Premier Milk, Inc., Maryland and                      7 CFR Part 1006
                                                                                                         Virginia Milk Producers Cooperative
                                                 PART 966—TOMATOES GROWN IN                              Association, Inc., and Lone Star Milk                 [AMS–DA–17–0068; AO–18–0008]
                                                 FLORIDA                                                 Producers, L.C. This supplemental
                                                                                                                                                               Milk in the Florida Marketing Area;
                                                                                                         notice extends the hearing from
                                                 ■ 1. The authority citation for 7 CFR                                                                         Notification of Hearing
                                                                                                         December 12, 2017, through December
                                                 part 966 continues to read as follows:                  14, 2017, in order to provide adequate                AGENCY:    Agricultural Marketing Service,
                                                     Authority: 7 U.S.C. 601–674.                        public notification.                                  USDA.


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Document Created: 2017-12-09 01:49:24
Document Modified: 2017-12-09 01:49:24
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by January 10, 2018.
ContactSteven W. Kauffman, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation82 FR 58133 
CFR AssociatedMarketing Agreements; Reporting and Recordkeeping Requirements and Tomatoes

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