83_FR_14422 83 FR 14357 - Tomatoes Grown in Florida; Decreased Assessment Rate

83 FR 14357 - Tomatoes Grown in Florida; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 65 (April 4, 2018)

Page Range14357-14359
FR Document2018-06883

This rule implements a recommendation from the Florida Tomato Committee (Committee) for a decrease of the assessment rate established for the 2017-18 and subsequent fiscal periods for tomatoes grown in Florida, handled under the Marketing Order. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated. This 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 83 Issue 65 (Wednesday, April 4, 2018)
[Federal Register Volume 83, Number 65 (Wednesday, April 4, 2018)]
[Rules and Regulations]
[Pages 14357-14359]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-06883]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 966

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


Tomatoes Grown in Florida; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

DATES: Effective May 4, 2018.

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, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This 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, (referred to as the ``Order''), 
is effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7

[[Page 14358]]

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 rule in 
conformance with Executive Orders 13563 and 13175. This 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 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 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 rule decreases 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 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 
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 
$0.010 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 the same.
    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, should be adequate to cover budgeted 
expenses. Funds in the reserve (currently $979,410) will be kept within 
the maximum permitted by the Order (approximately one fiscal period's 
expenses as stated in Sec.  966.44).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate will be effective for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public, and interested persons may 
express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
be undertaken as necessary. The Committee's 2017-18 budget and those 
for subsequent fiscal periods will be reviewed and, as appropriate, 
approved by USDA.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this rule on small entities. 
Accordingly, AMS has prepared this final regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 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. 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

[[Page 14359]]

producers may be classified as large entities.
    This rule decreases 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 $0.010 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, should 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. The Committee ultimately 
determined the assessment revenue, along with interest income and funds 
from authorized reserves should 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 should be around 0.4 percent.
    This action decreases 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, were able to express views on this issue.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by 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 rule imposes no 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. As mentioned in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    A proposed rule concerning this action was published in the Federal 
Register on December 11, 2017 (82 FR 58133). Copies of the proposed 
rule were also mailed or sent via facsimile to all Florida tomato 
handlers. Finally, the proposal was made available through the internet 
by USDA and the Office of the Federal Register. A 30-day comment period 
ending January 10, 2018, was provided for interested persons to respond 
to the proposal. No comments on the proposed assessment rate or the 
administrative revisions were received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to 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 rule, will 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 
amended as follows:

PART 966--TOMATOES GROWN IN FLORIDA

0
1. The authority citation for 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''.

0
5. 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.

[Subpart Redesignated as Subpart D and Amended]

0
6. Redesignate ``Subpart--Handling Regulations'' as Subpart D and 
revise the heading to read as follows:

Subpart D--Handling Requirements

    Dated: March 30, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-06883 Filed 4-3-18; 8:45 am]
BILLING CODE 3410-02-P



                                                                    Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Rules and Regulations                                                                        14357

                                           [Subpart Redesignated as Subpart A]                                        Subpart B—Administrative                                        whole-berry equivalent to the
                                                                                                                      Requirements                                                    Committee so that all excess or
                                           ■ 2. Redesignate ‘‘Subpart—Order                                                                                                           restricted cranberries are accounted for
                                           Regulating Handling’’ as ‘‘Subpart A—                                      ■   4. Add § 929.107 to read as follows:                        and reported per rules and regulations
                                           Order Regulating Handling’’.                                                                                                               in effect. Table 1-Conversion Table
                                                                                                                      § 929.107         Conversion.                                   provides a conversion rate for
                                           [Subpart Redesignated as Subpart B                                           During a year of volume regulation,                           concentrate to barrels of whole berries
                                           and Amended]                                                               cranberry concentrate and other                                 based on Brix average by production
                                                                                                                      processed products made from excess or                          region. Should requests be made to use
                                           ■ 3. Redesignate ‘‘Subpart—Rules and
                                                                                                                      restricted cranberries harvested in that                        other processed products for diversion,
                                           Regulations’’ as subpart B and revise the                                  year may be diverted according to the                           conversion rates for those products
                                           heading to read as follows:                                                provisions of this part. Any handler                            would be provided by the Committee
                                                                                                                      disposing of concentrate or other                               based on information provided by the
                                                                                                                      processed products must report the                              requesting handler.

                                                                                                                 TABLE 1 TO § 929.107—CONVERSION TABLE
                                                                                                 Region                                                              Brix average    Concentrate yield for one barrel of cranberries

                                           Oregon ................................................................................................................             9.8   1.91   gallons   50   Brix   concentrate.
                                           Washington .........................................................................................................                9.3   1.81   gallons   50   Brix   concentrate.
                                           New Jersey .........................................................................................................                8.8   1.72   gallons   50   Brix   concentrate.
                                           Wisconsin ...........................................................................................................               8.7   1.70   gallons   50   Brix   concentrate.
                                           Massachusetts ....................................................................................................                  8.4   1.64   gallons   50   Brix   concentrate.
                                           All others ............................................................................................................             8.7   1.70   gallons   50   Brix   concentrate.



                                           ■   5. Add § 929.108 to read as follows:                                   processed products as provided in                               Marketing Order. The assessment rate
                                                                                                                      § 929.107 to account for up to 50                               will remain in effect indefinitely unless
                                           § 929.108 Outlets for restricted                                           percent of their restriction.                                   modified, suspended, or terminated.
                                           cranberries.
                                                                                                                         (c) Organically grown fruit shall be                         This rule also makes administrative
                                              In accordance with § 929.57,                                            exempt from the volume regulation                               revisions to the subpart headings to
                                           restricted cranberries may be diverted                                     requirements of this section. Small                             bring the language into conformance
                                           only to the following noncommercial or                                     handlers who process less than 125,000                          with the Office of Federal Register
                                           noncompetitive outlets:                                                    barrels during the 2017–18 fiscal year                          requirements.
                                              (a) Foreign countries, except Canada,                                   are exempt from the restriction. Any
                                           provided that restricted cranberries                                                                                                       DATES:    Effective May 4, 2018.
                                                                                                                      handlers who do not have carryover
                                           diverted under this provision may not                                      inventory at the end of the 2017–18                             FOR FURTHER INFORMATION CONTACT:
                                           be converted into canned, frozen, or                                       fiscal year are also exempt.                                    Steven W. Kauffman, Marketing
                                           dehydrated cranberries or other                                                                                                            Specialist or Christian D. Nissen,
                                           cranberry products by any commercial                                         Dated: March 30, 2018.                                        Regional Director, Southeast Marketing
                                           process, prior to diversion;                                               Erin Morris,                                                    Field Office, Marketing Order and
                                              (b) Charitable institutions;                                            Associate Administrator, Agricultural                           Agreement Division, Specialty Crops
                                              (c) Any nonhuman food use, or;                                          Marketing Service.                                              Program, AMS, USDA; Telephone: (863)
                                              (d) Research and development                                            [FR Doc. 2018–06875 Filed 4–3–18; 8:45 am]                      324–3375, Fax: (863) 291–8614, or
                                           projects approved by the Committee                                         BILLING CODE 3410–02–P                                          Email: Steven.Kauffman@ams.usda.gov
                                           dealing with the development of foreign                                                                                                    or Christian.Nissen@ams.usda.gov.
                                           and domestic markets, including, but                                                                                                          Small businesses may request
                                           not limited to dehydration radiation,                                      DEPARTMENT OF AGRICULTURE                                       information on complying with this
                                           freeze drying, or freezing of cranberries.                                                                                                 regulation by contacting Richard Lower,
                                                                                                                      Agricultural Marketing Service
                                           [Subpart Redesignated as Subpart C]                                                                                                        Marketing Order and Agreement
                                                                                                                                                                                      Division, Specialty Crops Program,
                                           ■ 6. Redesignate ‘‘Subpart—Assessment                                      7 CFR Part 966
                                                                                                                                                                                      AMS, USDA, 1400 Independence
                                           Rate’’ as ‘‘Subpart C—Assessment Rate’’.                                   [Doc. No. AMS–SC–17–0051; SC17–966–1                            Avenue SW, STOP 0237, Washington,
                                           ■ 7. Add § 929.252 to read as follows:                                     FR]                                                             DC 20250–0237; Telephone: (202) 720–
                                           § 929.252 Free and restricted percentages                                                                                                  2491, Fax: (202) 720–8938, or Email:
                                           for the 2017–18 crop year.
                                                                                                                      Tomatoes Grown in Florida; Decreased                            Richard.Lower@ams.usda.gov.
                                                                                                                      Assessment Rate
                                             (a) The percentages for cranberries                                                                                                      SUPPLEMENTARY INFORMATION: This
                                           handled by handlers during the crop                                        AGENCY:  Agricultural Marketing Service,                        action, pursuant to 5 U.S.C. 553,
                                           year beginning on September 1, 2017,                                       USDA.                                                           amends regulations issued to carry out
                                           which shall be free and restricted,                                        ACTION: Final rule.                                             a marketing order as defined in 7 CFR
                                           respectively are designated as follows:                                                                                                    900.2(j). This rule is issued under
                                           Free percentage, 85 percent and                                            SUMMARY:  This rule implements a                                Marketing Agreement No. 125 and
amozie on DSK30RV082PROD with RULES




                                           restricted percentage, 15 percent.                                         recommendation from the Florida                                 Order No. 966, as amended (7 CFR part
                                             (b) Handlers have the option to                                          Tomato Committee (Committee) for a                              966), regulating the handling of
                                           process restricted cranberries into                                        decrease of the assessment rate                                 tomatoes grown in Florida. Part 966,
                                           dehydrated cranberries or other                                            established for the 2017–18 and                                 (referred to as the ‘‘Order’’), is effective
                                           processed products. Handlers also have                                     subsequent fiscal periods for tomatoes                          under the Agricultural Marketing
                                           the option to divert concentrate or other                                  grown in Florida, handled under the                             Agreement Act of 1937, as amended (7


                                      VerDate Sep<11>2014         16:41 Apr 03, 2018         Jkt 244001      PO 00000        Frm 00011       Fmt 4700       Sfmt 4700   E:\FR\FM\04APR1.SGM    04APR1


                                           14358             Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Rules and Regulations

                                           U.S.C. 601–674), hereinafter referred to                with the costs for goods and services in              recommend a budget of expenses and
                                           as the ‘‘Act.’’ The Committee locally                   their local area and are thus in a                    consider recommendations for
                                           administers the Order and is comprised                  position to formulate an appropriate                  modification of the assessment rate. The
                                           of producers of tomatoes operating                      budget and assessment rate. The                       dates and times of Committee meetings
                                           within the area of production.                          assessment rate is formulated and                     are available from the Committee or
                                              The Department of Agriculture                        discussed in a public meeting. Thus, all              USDA. Committee meetings are open to
                                           (USDA) is issuing this rule in                          directly affected persons have an                     the public, and interested persons may
                                           conformance with Executive Orders                       opportunity to participate and provide                express their views at these meetings.
                                           13563 and 13175. This rule falls within                 input.                                                USDA will evaluate Committee
                                           a category of regulatory actions that the                  For the 2016–17 and subsequent fiscal              recommendations and other available
                                           Office of Management and Budget                         periods, the Committee recommended,                   information to determine whether
                                           (OMB) exempted from Executive Order                     and USDA approved, an assessment rate                 modification of the assessment rate is
                                           12866 review. Additionally, because                     that would continue in effect from fiscal             needed. Further rulemaking will be
                                           this rule does not meet the definition of               period to fiscal period unless modified,              undertaken as necessary. The
                                           a significant regulatory action, it does                suspended, or terminated by USDA                      Committee’s 2017–18 budget and those
                                           not trigger the requirements contained                  upon recommendation and information                   for subsequent fiscal periods will be
                                           in Executive Order 13771. See OMB’s                     submitted by the Committee or other                   reviewed and, as appropriate, approved
                                           Memorandum titled ‘‘Interim Guidance                    information available to USDA.                        by USDA.
                                           Implementing Section 2 of the Executive                    The Committee met on August 22,
                                           Order of January 30, 2017, titled                       2017, and unanimously recommended                     Final Regulatory Flexibility Analysis
                                           ‘Reducing Regulation and Controlling                    2017–18 expenditures of $1,494,600 and                   Pursuant to requirements set forth in
                                           Regulatory Costs’ ’’ (February 2, 2017).                an assessment rate of $0.025 per 25-                  the Regulatory Flexibility Act (RFA) (5
                                              This rule has been reviewed under                    pound container or equivalent of                      U.S.C. 601–612), the Agricultural
                                           Executive Order 12988, Civil Justice                    tomatoes. Last year’s budgeted                        Marketing Service (AMS) has
                                           Reform. Under the Order now in effect,                  expenditures were also $1,494,600. The                considered the economic impact of this
                                           Florida tomato handlers are subject to                  assessment rate of $0.025 is $0.010                   rule on small entities. Accordingly,
                                           assessments. Funds to administer the                    lower than the rate currently in effect.              AMS has prepared this final regulatory
                                           Order are derived from such                             The Committee recommended                             flexibility analysis.
                                           assessments. It is intended that the                    decreasing the assessment rate to reduce                 The purpose of the RFA is to fit
                                           assessment rate will be applicable to all               the assessment burden on handlers and                 regulatory actions to the scale of
                                           assessable tomatoes beginning on                        utilize funds from the authorized                     businesses subject to such actions in
                                           August 1, 2017, and continue until                      reserve to help cover Committee                       order that small businesses will not be
                                           amended, suspended, or terminated.                      expenses.                                             unduly or disproportionately burdened.
                                              The Act provides that administrative                    The major expenditures                             Marketing orders issued pursuant to the
                                           proceedings must be exhausted before                    recommended by the Committee for the                  Act, and the rules issued thereunder, are
                                           parties may file suit in court. Under                   2017–18 year include $450,000 for staff               unique in that they are brought about
                                           section 608c(15)(A) of the Act, any                     salaries, $400,000 for research, and                  through group action of essentially
                                           handler subject to an order may file                    $400,000 for education and promotion.                 small entities acting on their own
                                           with USDA a petition stating that the                   Budgeted expenses for these items in                  behalf.
                                           order, any provision of the order, or any               2016–17 were the same.                                   There are approximately 80 producers
                                           obligation imposed in connection with                      The assessment rate recommended by                 of Florida tomatoes in the production
                                           the order is not in accordance with law                 the Committee was derived by                          area and 47 handlers subject to
                                           and request a modification of the order                 considering anticipated expenses,                     regulation under the Marketing Order.
                                           or to be exempted therefrom. Such                       expected shipments of Florida tomatoes,               Small agricultural producers are defined
                                           handler is afforded the opportunity for                 and the level of funds in the authorized              by the Small Business Administration
                                           a hearing on the petition. After the                    reserve. Tomato shipments for the year                (SBA) as those having annual receipts
                                           hearing, USDA would rule on the                         are estimated at 33 million 25-pound                  less than $750,000, and small
                                           petition. The Act provides that the                     containers, which should provide                      agricultural service firms are defined as
                                           district court of the United States in any              $825,000 in assessment income. Income                 those whose annual receipts are less
                                           district in which the handler is an                     derived from handler assessments, along               than $7,500,000 (13 CFR 121.201).
                                           inhabitant, or has his or her principal                 with interest income and funds from the                  According to industry and Committee
                                           place of business, has jurisdiction to                  Committee’s authorized reserve, should                data, the average annual price for fresh
                                           review USDA’s ruling on the petition,                   be adequate to cover budgeted expenses.               Florida tomatoes during the 2016–17
                                           provided an action is filed not later than              Funds in the reserve (currently                       season was approximately $8.00 per 25-
                                           20 days after the date of the entry of the              $979,410) will be kept within the                     pound container, and total fresh
                                           ruling.                                                 maximum permitted by the Order                        shipments were 32.8 million containers.
                                              This rule decreases the assessment                   (approximately one fiscal period’s                    Using the average price and shipment
                                           rate established for the 2017–18 and                    expenses as stated in § 966.44).                      information, the number of handlers,
                                           subsequent fiscal periods from $0.035 to                   The assessment rate established in                 and assuming a normal distribution, the
                                           $0.025 per 25-pound container or                        this rule will continue in effect                     majority of handlers have average
                                           equivalent of tomatoes handled.                         indefinitely unless modified,                         annual receipts of less than $7,500,000.
                                              The Order provides authority for the                 suspended, or terminated by USDA                      Based on production data, an estimated
                                           Committee, with the approval of USDA,                   upon recommendation and information                   producer price of $3.00 per 25-pound
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                                           to formulate an annual budget of                        submitted by the Committee or other                   container, and the number of Florida
                                           expenses and collect assessments from                   available information.                                tomato producers, the average annual
                                           handlers to administer the program. The                    Although this assessment rate will be              producer revenue is above $750,000.
                                           members of the Committee are                            effective for an indefinite period, the               Thus, a majority of the handlers of
                                           producers of Florida tomatoes. They are                 Committee will continue to meet prior                 Florida tomatoes may be classified as
                                           familiar with the Committee’s needs and                 to or during each fiscal period to                    small entities, while a majority of the


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                                                             Federal Register / Vol. 83, No. 65 / Wednesday, April 4, 2018 / Rules and Regulations                                               14359

                                           producers may be classified as large                    decreasing the assessment rate reduces                  After consideration of all relevant
                                           entities.                                               the burden on handlers and may reduce                 material presented, including the
                                              This rule decreases the assessment                   the burden on producers. In addition,                 information and recommendation
                                           rate established for the 2017–18 and                    the Committee’s meeting was widely                    submitted by the Committee and other
                                           subsequent fiscal periods from $0.035 to                publicized throughout the Florida                     available information, it is hereby found
                                           $0.025 per 25-pound container or                        tomato industry, and all interested                   that this rule, will tend to effectuate the
                                           equivalent of Florida tomatoes. The                     persons were invited to attend the                    declared policy of the Act.
                                           Committee unanimously recommended                       meeting and participate in Committee
                                           2017–18 expenditures of $1,494,600 and                                                                        List of Subjects in 7 CFR Part 966
                                                                                                   deliberations on all issues. Like all
                                           an assessment rate of $0.025 per 25-                    Committee meetings, the August 22,                      Marketing agreements, Reporting and
                                           pound container or equivalent handled.                  2017, meeting was a public meeting,                   recordkeeping requirements, Tomatoes.
                                           The assessment rate of $0.025 is $0.010                 and all entities, both large and small,
                                           lower than the 2016–17 rate. The                        were able to express views on this issue.               For the reasons set forth in the
                                           quantity of assessable Florida tomatoes                    In accordance with the Paperwork                   preamble, 7 CFR part 966 is amended as
                                           for the 2017–18 fiscal period is                        Reduction Act of 1995 (44 U.S.C.                      follows:
                                           estimated at 33 million 25-pound                        Chapter 35), the Order’s information
                                           containers or equivalent. Thus, the                                                                           PART 966—TOMATOES GROWN IN
                                                                                                   collection requirements have been
                                           $0.025 rate should provide $825,000 in                                                                        FLORIDA
                                                                                                   previously approved by OMB and
                                           assessment income. Income derived                       assigned OMB No. 0581–0178 Vegetable
                                           from handler assessments, along with                    and Specialty Crops. No changes in                    ■ 1. The authority citation for part 966
                                           interest income and funds from the                      those requirements are necessary as a                 continues to read as follows:
                                           Committee’s authorized reserve, should                  result of this action. Should any changes                 Authority: 7 U.S.C. 601–674.
                                           be adequate to cover budgeted expenses.                 become necessary, they would be
                                              The major expenditures                               submitted to OMB for approval.                        [Subpart Redesignated as Subpart A]
                                           recommended by the Committee for the
                                                                                                      This rule imposes no additional
                                           2017–18 year include $450,000 for staff                                                                       ■ 2. Redesignate ‘‘Subpart—Order
                                                                                                   reporting or recordkeeping requirements
                                           salaries, $400,000 for research, and                                                                          Regulating Handling’’ as ‘‘Subpart A—
                                                                                                   on either small or large Florida tomato
                                           $400,000 for education and promotion.                                                                         Order Regulating Handling’’.
                                                                                                   handlers. As with all Federal marketing
                                           Budgeted expenses for these items in
                                                                                                   order programs, reports and forms are
                                           2016–17 were also $450,000, $400,000,                                                                         [Subpart Redesignated as Subpart B
                                                                                                   periodically reviewed to reduce
                                           and $400,000, respectively.                                                                                   and Amended]
                                              The Committee recommended                            information requirements and
                                           decreasing the assessment rate to reduce                duplication by industry and public
                                                                                                   sector agencies. As mentioned in the                  ■ 3. Redesignate ‘‘Subpart—Rules and
                                           the assessment burden on handlers and                                                                         Regulations’’ as Subpart B and revise
                                           utilize funds from the authorized                       initial regulatory flexibility analysis,
                                                                                                   USDA has not identified any relevant                  the heading to read as follows:
                                           reserve to help cover Committee
                                           expenses.                                               Federal rules that duplicate, overlap, or             Subpart B—Administrative
                                              Prior to arriving at this budget and                 conflict with this final rule.                        Requirements
                                           assessment rate, the Committee                             AMS is committed to complying with
                                           considered information from various                     the E-Government Act, to promote the                  [Subpart Redesignated as Subpart C]
                                           sources, such as the Committee’s Budget                 use of the internet and other
                                           and Finance Subcommittee, Education                     information technologies to provide
                                                                                                                                                         ■ 4. Redesignate ‘‘Subpart—Assessment
                                           and Promotion Subcommittee, and the                     increased opportunities for citizen
                                                                                                                                                         Rates’’ as ‘‘Subpart C—Assessment
                                           Research Subcommittee. Alternative                      access to Government information and
                                                                                                                                                         Rates’’.
                                           expenditure levels were discussed by                    services, and for other purposes.
                                           these groups, based upon the relative                      A proposed rule concerning this                    ■ 5. Section 966.234 is revised to read
                                           value of various activities to the Florida              action was published in the Federal                   as follows:
                                           tomato industry. The Committee                          Register on December 11, 2017 (82 FR
                                                                                                                                                         § 966.234    Assessment rate.
                                           ultimately determined the assessment                    58133). Copies of the proposed rule
                                           revenue, along with interest income and                 were also mailed or sent via facsimile to               On and after August 1, 2017, an
                                           funds from authorized reserves should                   all Florida tomato handlers. Finally, the             assessment rate of $0.025 per 25-pound
                                           be adequate to cover budgeted expenses                  proposal was made available through                   container is established for Florida
                                           for the 2017–18 fiscal period.                          the internet by USDA and the Office of                tomatoes.
                                              A review of historical information and               the Federal Register. A 30-day comment
                                           preliminary information pertaining to                   period ending January 10, 2018, was                   [Subpart Redesignated as Subpart D
                                           the upcoming fiscal period indicates                    provided for interested persons to                    and Amended]
                                           that the average producer price for the                 respond to the proposal. No comments
                                           2017–18 season could be about $6.50                     on the proposed assessment rate or the                ■ 6. Redesignate ‘‘Subpart—Handling
                                           per 25-pound container or equivalent of                 administrative revisions were received.               Regulations’’ as Subpart D and revise
                                           Florida tomatoes. Therefore, the                           A small business guide on complying                the heading to read as follows:
                                           estimated assessment revenue for the                    with fruit, vegetable, and specialty crop
                                           2017–18 crop year as a percentage of                    marketing agreements and orders may                   Subpart D—Handling Requirements
                                           total producer revenue should be                        be viewed at: http://www.ams.usda.gov/
amozie on DSK30RV082PROD with RULES




                                           around 0.4 percent.                                     rules-regulations/moa/small-businesses.                 Dated: March 30, 2018.
                                              This action decreases the assessment                 Any questions about the compliance                    Bruce Summers,
                                           obligation imposed on handlers.                         guide should be sent to Richard Lower                 Acting Administrator, Agricultural Marketing
                                           Assessments are applied uniformly on                    at the previously mentioned address in                Service.
                                           all handlers, and some of the costs may                 the FOR FURTHER INFORMATION CONTACT                   [FR Doc. 2018–06883 Filed 4–3–18; 8:45 am]
                                           be passed on to producers. However,                     section.                                              BILLING CODE 3410–02–P




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Document Created: 2018-11-01 09:11:29
Document Modified: 2018-11-01 09:11:29
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective May 4, 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 Citation83 FR 14357 
CFR AssociatedMarketing Agreements; Reporting and Recordkeeping Requirements and Tomatoes

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