83_FR_14267 83 FR 14203 - Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Increased Assessment Rate

83 FR 14203 - Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 64 (April 3, 2018)

Page Range14203-14205
FR Document2018-06726

This proposed rule would implement a recommendation from the Citrus Administrative Committee (Committee) to increase the assessment rate established for the 2017-18 and subsequent fiscal periods. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 64 (Tuesday, April 3, 2018)
[Federal Register Volume 83, Number 64 (Tuesday, April 3, 2018)]
[Proposed Rules]
[Pages 14203-14205]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06726]


========================================================================
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. 83, No. 64 / Tuesday, April 3, 2018 / 
Proposed Rules

[[Page 14203]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-SC-17-0074; SC18-905-1 PR]


Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; 
Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Citrus Administrative Committee (Committee) to increase the assessment 
rate established for the 2017-18 and subsequent fiscal periods. The 
assessment rate would remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Comments must be received by May 3, 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: Abigail Campos, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue 
SW, STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, 
Fax: (202)720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Order No. 905, as amended (7 CFR part 905), regulating the 
handling of oranges, grapefruit, tangerines, and pummelos grown in 
Florida. Part 905, (referred to as ``the Order'') is effective under 
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 
601-674), hereinafter referred to as the ``Act.'' The Committee locally 
administers the Order and is comprised of growers and handlers 
operating within the area of production, and a public member.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This proposed 
rule falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review.
    Additionally, because this proposed rule does not meet the 
definition of a significant regulatory action, it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, Florida citrus 
handlers are subject to assessments. Funds to administer the Order are 
derived from such assessments. It is intended that the assessment rate 
would be applicable to all assessable citrus for the 2017-18 crop year, 
and continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    The Order provides authority for the Committee, with the approval 
of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members are 
familiar with the Committee's needs and with the costs of goods and 
services in their local area and are thus in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    This proposed rule would increase the assessment rate from $0.009, 
the rate that was established for the 2013-14 and subsequent fiscal 
periods, to $0.02 per 4/5-bushel carton of citrus handled for the 2017-
2018 and subsequent fiscal periods. The proposed higher rate is a 
result of a smaller crop forecast due to hurricane damage and the need 
to cover Committee expenses.
    The Committee met on June 29, 2017 and unanimously recommended both 
maintaining the 2013-14 assessment rate and new 2017-18 budgeted 
expenditures of $132,000. Following the significant damage experienced 
by the industry from Hurricane Irma, the Committee held a second 
meeting on November 9, 2017, to discuss a revised crop estimate for 
2017-18. Due to significant crop damage, the Committee

[[Page 14204]]

estimates that assessable cartons for 2017-18 would be six million 
cartons, down from 8.6 million originally projected at a June 29, 2017, 
meeting. Given the reduced estimate, the Committee voted to increase 
the assessment rate from $0.009 to $0.02 per 4/5-bushel cartons of 
citrus to provide additional assessment income in order to meet the 
budgeted expenses of $132,000 and draw less funds from the reserves. 
The assessment rate increase, along with the funds from reserves and 
interest income, should provide sufficient funds to cover anticipated 
expenses.
    Of the total $132,000 budgeted for the 2017-18 fiscal period, major 
expenditures recommended by the Committee include $75,000 for salaries, 
$10,000 for data collection and fresh shipments reporting, and $9,000 
for auditing & accounting. Compared to the previous fiscal year's 
budget of $140,600, budgeted expenses for these items were $75,000, 
$25,000, and $9,200, respectively. The significant decrease in budgeted 
expenses for data collection and fresh shipment reporting stems from 
the development of a new computer program that better reports and 
extrapolates data, thus reducing reporting time and increasing 
efficiencies.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments, and the amount of 
funds available in the authorized reserve. Income derived from handler 
assessments of $120,000 (six million 4/5> bushel cartons assessed at 
$0.02 per carton), along with interest income and funds from the 
Committee's authorized reserve, would be adequate to cover budgeted 
expenses of $132,000. Funds in the reserve (currently $124,040) would 
be kept within the maximum permitted by Sec.  [thinsp]905.42 and would 
not exceed the expenses of two fiscal periods.
    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 in effect 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 budget 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 500 producers of Florida citrus in the 
production area and approximately 20 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 data from the National Agricultural Statistics Service 
(NASS), the industry, and the Committee, for the 2016-17 season the 
weighted average f.o.b. price for Florida citrus was approximately 
$15.20 per carton with total shipments of 12.6 million cartons. Using 
the number of handlers, and assuming a normal distribution, the 
majority of handlers would have average annual receipts of more than 
$7,500,000 ($15.20 times 12.6 million equals $191,520,000 divided by 20 
handlers equals $9,576,000 per handler).
    In addition, based on the NASS data, the weighted average grower 
price for the 2016-2017 season was around $8.30 per carton of citrus. 
Based on grower price, shipment data, and the total number of Florida 
citrus growers, and assuming a normal distribution, the average annual 
grower revenue is below $750,000 ($8.30 times 12.6 million cartons 
equals $104,580,000 divided by 500 growers equals $209,160 per grower). 
Thus, the majority of handlers Florida citrus may be classified as 
large entities, while the majority of growers may be classified as 
small entities.
    This proposal would increase the assessment rate collected from 
handlers for the 2017-18 and subsequent fiscal periods from $0.009 to 
$0.02 per 4/5-bushel carton of Florida citrus. The Committee 
unanimously recommended 2017-18 expenditures of $132,000 and an 
assessment rate of $0.02 per 4/5-bushel carton of citrus handled. The 
proposed assessment rate of $0.02 is $0.011 higher than the 2016-17 
rate. The quantity of assessable citrus for the 2017-18 fiscal period 
is estimated at six million 4/5 bushel cartons. Thus, the $0.02 rate 
should provide $120,000 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 $75,000 for salaries, $10,000 for data collection, and 
$9,000 for auditing and accounting. Budgeted expenses for these items 
in 2016-17 were $75,000, $25,000, and $9,200, respectively.
    As a result of damage from Hurricane Irma, the Committee estimates 
that the 2017-18 crop to be approximately six million 4/5-bushel 
cartons, down from the 8.6 million 4/5-bushel cartons estimated on June 
29, 2017. Due to the decline in production, the current assessment rate 
would be insufficient to cover the Committee's anticipated expenditures 
and would further deplete the Committee's reserve fund. The assessment 
rate increase would generate additional revenue and would help offset 
the amount of reserves needed to fund the budget. Therefore, the 
Committee recommended increasing the assessment rate.
    Prior to arriving at this budget and assessment rate, the Committee 
considered maintaining the current assessment rate of $0.009 per 4/5-
bushel cartons of citrus. However, leaving the assessment unchanged 
would not generate sufficient revenue to meet the Committee's expenses 
for the 2017-18 budget of $132,000 and would deplete the reserve. Based 
on estimated shipments, the recommended assessment rate of $0.02 should 
provide $120,000 in assessment income. The Committee determined 
assessment revenue, along with interest income and funds from the 
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 year indicates that

[[Page 14205]]

the average grower price for the 2017-18 season should be approximately 
$21.38 per 4/5-bushel cartons of citrus. Therefore, the estimated 
assessment revenue for the 2017-18 fiscal period as a percentage of 
total grower revenue would be about 0.09 percent.
    This proposed action would increase the assessment obligation 
imposed on handlers. While assessments impose some additional costs on 
handlers, the costs are minimal and uniform on all handlers. Some of 
the additional costs may be passed on to producers. However, these 
costs would be offset by the benefits derived by the operation of the 
Order. In addition, the Committee's meetings were widely publicized 
throughout the Florida citrus industry. All interested persons were 
invited to attend the meetings and participate in Committee 
deliberations on all issues. Like all Committee meetings, the June 29, 
2017, and November 9, 2017, meetings were public meetings and all 
entities, both large and small, 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 the OMB and assigned OMB No. 0581-0109 Generic 
Fruit Crops. No changes in those requirements would be necessary as a 
result of this action. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Florida citrus 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 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.

List of Subjects in 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangerines, Pummelos.

    For the reasons set forth in the preamble, 7 CFR part 905 is 
proposed to be amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN 
FLORIDA

0
1. The authority citation for 7 CFR part 905 continues to read as 
follows:

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

0
2. Section 905.235 is revised to read as follows:


Sec.  905.235  Assessment rate.

    On and after August 1, 2017, an assessment rate of $0.02 per 4/5-
bushel carton or equivalent is established for Florida citrus covered 
under the Order.

    Dated: March 28, 2018.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2018-06726 Filed 4-2-18; 8:45 am]
BILLING CODE 3410-02-P



                                                                                                                                                                                                   14203

                                                  Proposed Rules                                                                                                 Federal Register
                                                                                                                                                                 Vol. 83, No. 64

                                                                                                                                                                 Tuesday, April 3, 2018



                                                  This section of the FEDERAL REGISTER                    or Christian D. Nissen, Regional                       all assessable citrus for the 2017–18
                                                  contains notices to the public of the proposed          Director, Southeast Marketing Field                    crop year, and continue until amended,
                                                  issuance of rules and regulations. The                  Office, Marketing Order and Agreement                  suspended, or terminated.
                                                  purpose of these notices is to give interested          Division, Specialty Crops Program,                        The Act provides that administrative
                                                  persons an opportunity to participate in the            AMS, USDA; Telephone: (863) 324–                       proceedings must be exhausted before
                                                  rule making prior to the adoption of the final
                                                  rules.
                                                                                                          3375, Fax: (863) 291–8614, or Email:                   parties may file suit in court. Under
                                                                                                          Abigail.Campos@ams.usda.gov or                         section 608c(15)(A) of the Act, any
                                                                                                          Christian.Nissen@ams.usda.gov.                         handler subject to an order may file
                                                  DEPARTMENT OF AGRICULTURE                                  Small businesses may request                        with USDA a petition stating that the
                                                                                                          information on complying with this                     order, any provision of the order, or any
                                                  Agricultural Marketing Service                          regulation by contacting Richard Lower,                obligation imposed in connection with
                                                                                                          Marketing Order and Agreement                          the order is not in accordance with law
                                                  7 CFR Part 905                                          Division, Specialty Crops Program,                     and request a modification of the order
                                                                                                          AMS, USDA, 1400 Independence                           or to be exempted therefrom. Such
                                                  [Doc. No. AMS–SC–17–0074; SC18–905–1
                                                  PR]                                                     Avenue SW, STOP 0237, Washington,                      handler is afforded the opportunity for
                                                                                                          DC 20250–0237; Telephone: (202) 720–                   a hearing on the petition. After the
                                                  Oranges, Grapefruit, Tangerines, and                    2491, Fax: (202)720–8938, or Email:                    hearing, USDA would rule on the
                                                  Pummelos Grown in Florida; Increased                    Richard.Lower@ams.usda.gov.                            petition. The Act provides that the
                                                  Assessment Rate                                         SUPPLEMENTARY INFORMATION: This                        district court of the United States in any
                                                                                                          action, pursuant to 5 U.S.C. 553,                      district in which the handler is an
                                                  AGENCY:  Agricultural Marketing Service,                proposes an amendment to regulations                   inhabitant, or has his or her principal
                                                  USDA.                                                   issued to carry out a marketing order as               place of business, has jurisdiction to
                                                  ACTION: Proposed rule.                                  defined in 7 CFR 900.2(j). This proposed               review USDA’s ruling on the petition,
                                                                                                          rule is issued under Marketing Order                   provided an action is filed not later than
                                                  SUMMARY:   This proposed rule would
                                                                                                          No. 905, as amended (7 CFR part 905),                  20 days after the date of the entry of the
                                                  implement a recommendation from the
                                                                                                          regulating the handling of oranges,                    ruling.
                                                  Citrus Administrative Committee
                                                                                                          grapefruit, tangerines, and pummelos                      The Order provides authority for the
                                                  (Committee) to increase the assessment
                                                                                                          grown in Florida. Part 905, (referred to               Committee, with the approval of USDA,
                                                  rate established for the 2017–18 and
                                                                                                          as ‘‘the Order’’) is effective under the               to formulate an annual budget of
                                                  subsequent fiscal periods. The
                                                                                                          Agricultural Marketing Agreement Act                   expenses and collect assessments from
                                                  assessment rate would remain in effect
                                                                                                          of 1937, as amended (7 U.S.C. 601–674),                handlers to administer the program. The
                                                  indefinitely unless modified,
                                                                                                          hereinafter referred to as the ‘‘Act.’’ The            members are familiar with the
                                                  suspended, or terminated.
                                                                                                          Committee locally administers the                      Committee’s needs and with the costs of
                                                  DATES: Comments must be received by                                                                            goods and services in their local area
                                                                                                          Order and is comprised of growers and
                                                  May 3, 2018.                                            handlers operating within the area of                  and are thus in a position to formulate
                                                  ADDRESSES: Interested persons are                       production, and a public member.                       an appropriate budget and assessment
                                                  invited to submit written comments                         The Department of Agriculture                       rate. The assessment rate is formulated
                                                  concerning this proposed rule.                          (USDA) is issuing this proposed rule in                and discussed in a public meeting.
                                                  Comments must be sent to the Docket                     conformance with Executive Orders                      Thus, all directly affected persons have
                                                  Clerk, Marketing Order and Agreement                    13563 and 13175. This proposed rule                    an opportunity to participate and
                                                  Division, Specialty Crops Program,                      falls within a category of regulatory                  provide input.
                                                  AMS, USDA, 1400 Independence                            actions that the Office of Management                     This proposed rule would increase
                                                  Avenue SW, STOP 0237, Washington,                       and Budget (OMB) exempted from                         the assessment rate from $0.009, the rate
                                                  DC 20250–0237; Fax: (202) 720–8938; or                  Executive Order 12866 review.                          that was established for the 2013–14
                                                  internet: http://www.regulations.gov.                      Additionally, because this proposed                 and subsequent fiscal periods, to $0.02
                                                  Comments should reference the                           rule does not meet the definition of a                 per 4/5-bushel carton of citrus handled
                                                  document number and the date and                        significant regulatory action, it does not             for the 2017–2018 and subsequent fiscal
                                                  page number of this issue of the Federal                trigger the requirements contained in                  periods. The proposed higher rate is a
                                                  Register and will be available for public               Executive Order 13771. See OMB’s                       result of a smaller crop forecast due to
                                                  inspection in the Office of the Docket                  Memorandum titled ‘‘Interim Guidance                   hurricane damage and the need to cover
                                                  Clerk during regular business hours, or                 Implementing Section 2 of the Executive                Committee expenses.
                                                  can be viewed at: http://                               Order of January 30, 2017, titled                         The Committee met on June 29, 2017
                                                  www.regulations.gov. All comments                       ‘Reducing Regulation and Controlling                   and unanimously recommended both
                                                  submitted in response to this rule will                 Regulatory Costs’ ’’ (February 2, 2017).               maintaining the 2013–14 assessment
nshattuck on DSK9F9SC42PROD with PROPOSALS




                                                  be included in the record and will be                      This proposed rule has been reviewed                rate and new 2017–18 budgeted
                                                  made available to the public. Please be                 under Executive Order 12988, Civil                     expenditures of $132,000. Following the
                                                  advised that the identity of the                        Justice Reform. Under the Order now in                 significant damage experienced by the
                                                  individuals or entities submitting the                  effect, Florida citrus handlers are                    industry from Hurricane Irma, the
                                                  comments will be made public on the                     subject to assessments. Funds to                       Committee held a second meeting on
                                                  internet at the address provided above.                 administer the Order are derived from                  November 9, 2017, to discuss a revised
                                                  FOR FURTHER INFORMATION CONTACT:                        such assessments. It is intended that the              crop estimate for 2017–18. Due to
                                                  Abigail Campos, Marketing Specialist,                   assessment rate would be applicable to                 significant crop damage, the Committee


                                             VerDate Sep<11>2014   14:20 Apr 02, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\03APP1.SGM   03APP1


                                                  14204                     Federal Register / Vol. 83, No. 64 / Tuesday, April 3, 2018 / Proposed Rules

                                                  estimates that assessable cartons for                   express their views at these meetings.                 Florida citrus may be classified as large
                                                  2017–18 would be six million cartons,                   USDA would evaluate Committee                          entities, while the majority of growers
                                                  down from 8.6 million originally                        recommendations and other available                    may be classified as small entities.
                                                  projected at a June 29, 2017, meeting.                  information to determine whether                          This proposal would increase the
                                                  Given the reduced estimate, the                         modification of the assessment rate is                 assessment rate collected from handlers
                                                  Committee voted to increase the                         needed. Further rulemaking would be                    for the 2017–18 and subsequent fiscal
                                                  assessment rate from $0.009 to $0.02 per                undertaken as necessary. The                           periods from $0.009 to $0.02 per 4/5-
                                                  4/5-bushel cartons of citrus to provide                 Committee’s budget for subsequent                      bushel carton of Florida citrus. The
                                                  additional assessment income in order                   fiscal periods would be reviewed and,                  Committee unanimously recommended
                                                  to meet the budgeted expenses of                        as appropriate, approved by USDA.                      2017–18 expenditures of $132,000 and
                                                  $132,000 and draw less funds from the                                                                          an assessment rate of $0.02 per 4/5-
                                                                                                          Initial Regulatory Flexibility Analysis                bushel carton of citrus handled. The
                                                  reserves. The assessment rate increase,
                                                  along with the funds from reserves and                     Pursuant to requirements set forth in               proposed assessment rate of $0.02 is
                                                  interest income, should provide                         the Regulatory Flexibility Act (RFA) (5                $0.011 higher than the 2016–17 rate.
                                                  sufficient funds to cover anticipated                   U.S.C. 601–612), the Agricultural                      The quantity of assessable citrus for the
                                                  expenses.                                               Marketing Service (AMS) has                            2017–18 fiscal period is estimated at six
                                                     Of the total $132,000 budgeted for the               considered the economic impact of this                 million 4/5 bushel cartons. Thus, the
                                                  2017–18 fiscal period, major                            proposed rule on small entities.                       $0.02 rate should provide $120,000 in
                                                  expenditures recommended by the                         Accordingly, AMS has prepared this                     assessment income. Income derived
                                                  Committee include $75,000 for salaries,                 initial regulatory flexibility analysis.               from handler assessments, along with
                                                  $10,000 for data collection and fresh                      The purpose of the RFA is to fit                    interest income and funds from the
                                                  shipments reporting, and $9,000 for                     regulatory actions to the scale of                     Committee’s authorized reserve, would
                                                  auditing & accounting. Compared to the                  businesses subject to such actions in                  be adequate to cover budgeted expenses.
                                                  previous fiscal year’s budget of                        order that small businesses will not be                   The major expenditures
                                                  $140,600, budgeted expenses for these                   unduly or disproportionately burdened.                 recommended by the Committee for the
                                                  items were $75,000, $25,000, and                        Marketing orders issued pursuant to the                2017–18 year include $75,000 for
                                                  $9,200, respectively. The significant                   Act, and the rules issued thereunder, are              salaries, $10,000 for data collection, and
                                                  decrease in budgeted expenses for data                  unique in that they are brought about                  $9,000 for auditing and accounting.
                                                  collection and fresh shipment reporting                 through group action of essentially                    Budgeted expenses for these items in
                                                  stems from the development of a new                     small entities acting on their own                     2016–17 were $75,000, $25,000, and
                                                  computer program that better reports                    behalf.                                                $9,200, respectively.
                                                  and extrapolates data, thus reducing                       There are approximately 500                            As a result of damage from Hurricane
                                                  reporting time and increasing                           producers of Florida citrus in the                     Irma, the Committee estimates that the
                                                  efficiencies.                                           production area and approximately 20                   2017–18 crop to be approximately six
                                                     The assessment rate recommended by                   handlers subject to regulation under the               million 4/5-bushel cartons, down from
                                                  the Committee was derived by                            marketing order. Small agricultural                    the 8.6 million 4/5-bushel cartons
                                                  considering anticipated expenses,                       producers are defined by the Small                     estimated on June 29, 2017. Due to the
                                                  expected shipments, and the amount of                   Business Administration (SBA) as those                 decline in production, the current
                                                  funds available in the authorized                       having annual receipts less than                       assessment rate would be insufficient to
                                                  reserve. Income derived from handler                    $750,000, and small agricultural service               cover the Committee’s anticipated
                                                  assessments of $120,000 (six million 4/                 firms are defined as those whose annual                expenditures and would further deplete
                                                  5≤ bushel cartons assessed at $0.02 per                 receipts are less than $7,500,000 (13                  the Committee’s reserve fund. The
                                                  carton), along with interest income and                 CFR 121.201).                                          assessment rate increase would generate
                                                  funds from the Committee’s authorized                      According to data from the National                 additional revenue and would help
                                                  reserve, would be adequate to cover                     Agricultural Statistics Service (NASS),                offset the amount of reserves needed to
                                                  budgeted expenses of $132,000. Funds                    the industry, and the Committee, for the               fund the budget. Therefore, the
                                                  in the reserve (currently $124,040)                     2016–17 season the weighted average                    Committee recommended increasing the
                                                  would be kept within the maximum                        f.o.b. price for Florida citrus was                    assessment rate.
                                                  permitted by § 905.42 and would not                     approximately $15.20 per carton with                      Prior to arriving at this budget and
                                                  exceed the expenses of two fiscal                       total shipments of 12.6 million cartons.               assessment rate, the Committee
                                                  periods.                                                Using the number of handlers, and                      considered maintaining the current
                                                     The assessment rate proposed in this                 assuming a normal distribution, the                    assessment rate of $0.009 per 4/5-bushel
                                                  rule would continue in effect                           majority of handlers would have average                cartons of citrus. However, leaving the
                                                  indefinitely unless modified,                           annual receipts of more than $7,500,000                assessment unchanged would not
                                                  suspended, or terminated by USDA                        ($15.20 times 12.6 million equals                      generate sufficient revenue to meet the
                                                  upon recommendation and information                     $191,520,000 divided by 20 handlers                    Committee’s expenses for the 2017–18
                                                  submitted by the Committee or other                     equals $9,576,000 per handler).                        budget of $132,000 and would deplete
                                                  available information.                                     In addition, based on the NASS data,                the reserve. Based on estimated
                                                     Although this assessment rate would                  the weighted average grower price for                  shipments, the recommended
                                                  be in effect for an indefinite period, the              the 2016–2017 season was around $8.30                  assessment rate of $0.02 should provide
                                                  Committee would continue to meet                        per carton of citrus. Based on grower                  $120,000 in assessment income. The
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                                                  prior to or during each fiscal period to                price, shipment data, and the total                    Committee determined assessment
                                                  recommend a budget of expenses and                      number of Florida citrus growers, and                  revenue, along with interest income and
                                                  consider recommendations for                            assuming a normal distribution, the                    funds from the authorized reserves
                                                  modification of the assessment rate. The                average annual grower revenue is below                 would be adequate to cover budgeted
                                                  dates and times of Committee meetings                   $750,000 ($8.30 times 12.6 million                     expenses for the 2017–18 fiscal period.
                                                  are available from the Committee or                     cartons equals $104,580,000 divided by                    A review of historical information and
                                                  USDA. Committee meetings are open to                    500 growers equals $209,160 per                        preliminary information pertaining to
                                                  the public and interested persons may                   grower). Thus, the majority of handlers                the upcoming fiscal year indicates that


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                                                                            Federal Register / Vol. 83, No. 64 / Tuesday, April 3, 2018 / Proposed Rules                                          14205

                                                  the average grower price for the 2017–                  guide should be sent to Richard Lower                  continue to conduct the MIRS in the
                                                  18 season should be approximately                       at the previously mentioned address in                 same manner as it is doing presently,
                                                  $21.38 per 4/5-bushel cartons of citrus.                the FOR FURTHER INFORMATION CONTACT                    there is no need to carry over this
                                                  Therefore, the estimated assessment                     section.                                               provision into its own regulations.
                                                  revenue for the 2017–18 fiscal period as                                                                       FHFA also is proposing to repeal a
                                                  a percentage of total grower revenue                    List of Subjects in 7 CFR Part 905
                                                                                                                                                                 number of subchapters of the Finance
                                                  would be about 0.09 percent.                              Grapefruit, Marketing agreements,                    Board regulations that it had previously
                                                     This proposed action would increase                  Oranges, Reporting and recordkeeping                   reserved, but which no longer serve any
                                                  the assessment obligation imposed on                    requirements, Tangerines, Pummelos.                    purpose because they include no
                                                  handlers. While assessments impose                        For the reasons set forth in the                     regulatory text.
                                                  some additional costs on handlers, the                  preamble, 7 CFR part 905 is proposed to                DATES: Written comments must be
                                                  costs are minimal and uniform on all                    be amended as follows:                                 received on or before May 18, 2018.
                                                  handlers. Some of the additional costs                                                                         ADDRESSES: You may submit your
                                                  may be passed on to producers.                          PART 905—ORANGES, GRAPEFRUIT,                          comments, identified by Regulatory
                                                  However, these costs would be offset by                 TANGERINES, AND PUMMELOS                               Information Number (RIN) 2590–AA91,
                                                  the benefits derived by the operation of                GROWN IN FLORIDA                                       by any of the following methods:
                                                  the Order. In addition, the Committee’s                                                                           • Agency Website: www.fhfa.gov/
                                                  meetings were widely publicized                         ■ 1. The authority citation for 7 CFR
                                                                                                          part 905 continues to read as follows:                 open-for-comment-or-input.
                                                  throughout the Florida citrus industry.                                                                           • Federal eRulemaking Portal: http://
                                                  All interested persons were invited to                      Authority: 7 U.S.C. 601–674.                       www.regulations.gov. Follow the
                                                  attend the meetings and participate in                                                                         instructions for submitting comments. If
                                                                                                          ■ 2. Section 905.235 is revised to read
                                                  Committee deliberations on all issues.                                                                         you submit your comment to the
                                                  Like all Committee meetings, the June                   as follows:
                                                                                                                                                                 Federal eRulemaking Portal, please also
                                                  29, 2017, and November 9, 2017,                         § 905.235    Assessment rate.                          send it by email to FHFA at
                                                  meetings were public meetings and all                     On and after August 1, 2017, an                      RegComments@fhfa.gov to ensure
                                                  entities, both large and small, were able               assessment rate of $0.02 per 4/5-bushel                timely receipt by FHFA. Please include
                                                  to express views on this issue. Finally,                carton or equivalent is established for                Comments/RIN 2590–AA91 in the
                                                  interested persons are invited to submit                Florida citrus covered under the Order.                subject line of the submission.
                                                  comments on this proposed rule,                                                                                   • Courier/Hand Delivery: The hand
                                                  including the regulatory and                              Dated: March 28, 2018.
                                                                                                          Erin Morris,
                                                                                                                                                                 delivery address is: Alfred M. Pollard,
                                                  information collection impacts of this                                                                         General Counsel, Attention: Comments/
                                                  action on small businesses.                             Associate Administrator, Agricultural
                                                                                                          Marketing Service.
                                                                                                                                                                 RIN 2590–AA91, Federal Housing
                                                     In accordance with the Paperwork
                                                                                                                                                                 Finance Agency, 400 Seventh Street
                                                  Reduction Act of 1995 (44 U.S.C.                        [FR Doc. 2018–06726 Filed 4–2–18; 8:45 am]
                                                                                                                                                                 SW, Eighth Floor, Washington, DC
                                                  Chapter 35), the Order’s information                    BILLING CODE 3410–02–P
                                                                                                                                                                 20219. Deliver the package to the
                                                  collection requirements have been
                                                                                                                                                                 Seventh Street entrance Guard Desk,
                                                  previously approved by the OMB and
                                                                                                                                                                 First Floor, on business days between 9
                                                  assigned OMB No. 0581–0109 Generic                      FEDERAL HOUSING FINANCE                                a.m. and 5 p.m.
                                                  Fruit Crops. No changes in those                        AGENCY                                                    • U.S. Mail, United Parcel Service,
                                                  requirements would be necessary as a                                                                           Federal Express, or Other Mail Service:
                                                  result of this action. Should any changes               12 CFR Parts 900, 906, and 956–999                     The mailing address for comments is:
                                                  become necessary, they would be                         RIN 2590–AA91                                          Alfred M. Pollard, General Counsel,
                                                  submitted to OMB for approval.                                                                                 Attention: Comments/RIN 2590–AA91,
                                                     This proposed rule would not impose                  Federal Housing Finance Board;                         Federal Housing Finance Agency, 400
                                                  any additional reporting or                             Repeal of Federal Housing Finance                      Seventh Street SW, Eighth Floor,
                                                  recordkeeping requirements on either                    Board Regulations                                      Washington, DC 20219. Please note that
                                                  small or large Florida citrus handlers.
                                                                                                          AGENCY:  Federal Housing Finance                       all mail sent to FHFA via the U.S. Mail
                                                  As with all Federal marketing order
                                                                                                          Board; Federal Housing Finance                         service is routed through a national
                                                  programs, reports and forms are
                                                                                                          Agency.                                                irradiation facility, a process that may
                                                  periodically reviewed to reduce
                                                                                                                                                                 delay delivery by approximately two
                                                  information requirements and                            ACTION: Proposed rule.
                                                                                                                                                                 weeks. For any time-sensitive
                                                  duplication by industry and public
                                                                                                          SUMMARY:  The Federal Housing Finance                  correspondence, please plan
                                                  sector agencies.
                                                     AMS is committed to complying with                   Agency (FHFA) is proposing to repeal                   accordingly.
                                                  the E-Government Act, to promote the                    two parts of the Federal Housing                       FOR FURTHER INFORMATION CONTACT:
                                                  use of the internet and other                           Finance Board (Finance Board)                          Vickie R. Olafson, Assistant General
                                                  information technologies to provide                     regulations, one of which defines terms                Counsel, Vickie.Olafson@FHFA.gov,
                                                  increased opportunities for citizen                     used in Finance Board regulations and                  (202) 649–3025 (this is not a toll-free
                                                  access to Government information and                    one of which describes the process by                  number), Federal Housing Finance
                                                  services, and for other purposes.                       which the Finance Board conducted its                  Agency, 400 Seventh Street SW,
                                                     USDA has not identified any relevant                 monthly interest rate survey (MIRS).                   Washington, DC 20219. The telephone
nshattuck on DSK9F9SC42PROD with PROPOSALS




                                                  Federal rules that duplicate, overlap, or               The definitions to be repealed are either              number for the Telecommunications
                                                  conflict with this proposed rule.                       obsolete or duplicate definitions that                 Device for the Deaf is (800) 877–8339.
                                                     A small business guide on complying                  FHFA has previously adopted. The                       SUPPLEMENTARY INFORMATION:
                                                  with fruit, vegetable, and specialty crop               regulation relating to the MIRS has
                                                  marketing agreements and orders may                     become outdated because it does not                    I. Comments
                                                  be viewed at: http://www.ams.usda.gov/                  accurately describe the manner in                         FHFA invites comments on all aspects
                                                  rules-regulations/moa/small-businesses.                 which FHFA currently conducts the                      of this proposed rule. FHFA will make
                                                  Any questions about the compliance                      survey. Although FHFA intends to                       all comments timely received available


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Document Created: 2018-04-03 00:49:48
Document Modified: 2018-04-03 00:49:48
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 May 3, 2018.
ContactAbigail Campos, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation83 FR 14203 
CFR AssociatedGrapefruit; Marketing Agreements; Oranges; Reporting and Recordkeeping Requirements; Tangerines and Pummelos

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