83_FR_31572 83 FR 31442 - Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Increased Assessment Rate

83 FR 31442 - Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Increased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 130 (July 6, 2018)

Page Range31442-31444
FR Document2018-14514

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

Federal Register, Volume 83 Issue 130 (Friday, July 6, 2018)
[Federal Register Volume 83, Number 130 (Friday, July 6, 2018)]
[Rules and Regulations]
[Pages 31442-31444]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-14514]



[[Page 31442]]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

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


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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

DATES: Effective August 6, 2018.

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, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This 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 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' '' (February 2, 2017).
    This 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 will 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 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.
    This rule increases 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 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 estimated that 
assessable cartons for 2017-18 should 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, should 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 established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA

[[Page 31443]]

upon recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate will be in effect for an indefinite 
period, the Committee will continue to meet prior to or during each 
fiscal period to recommend a budget of expenses and consider 
recommendations for modification of the assessment rate. The dates and 
times of Committee meetings are available from the Committee or USDA. 
Committee meetings are open to the public, and interested persons may 
express their views at these meetings. USDA will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed. Further rulemaking will 
be undertaken as necessary. The Committee's 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 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 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 2016-17 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 of Florida citrus may be classified as 
large entities, while the majority of growers may be classified as 
small entities.
    This rule increases 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 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, should 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 
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 will generate additional revenue and will 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 
will not generate sufficient revenue to meet the Committee's expenses 
for the 2017-18 budget of $132,000 and will 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 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 year indicates that 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 will be about 0.09 percent.
    This action increases the assessment obligation imposed on 
handlers. While assessments impose some additional costs on handlers, 
the costs are minimal and uniform on all handlers. Some of the 
additional costs may be passed on to producers. However, these costs 
are offset by the benefits derived by the operation of the marketing 
Order. In addition, the Committee's meeting was widely publicized 
throughout the Florida citrus industry. All interested persons were 
invited to attend the meeting 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.
    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 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. As noted in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    AMS is committed to complying with the E-Government Act, to promote 
the

[[Page 31444]]

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 April 2, 2018 (83 FR 14203). Copies of the proposed rule 
were also mailed or sent via facsimile to all Florida citrus handlers. 
The proposal was made available through the internet by USDA and the 
Office of the Federal Register. A 30-day comment period ending May 3, 
2018, was provided for interested persons to respond to the proposal. 
One comment was received during the comment period. The commenter was 
in favor of the regulation. Accordingly, no changes will be made to the 
rule as proposed, based on the comment received.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to 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 905

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

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

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

0
1. The authority citation for 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: July 2, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
 [FR Doc. 2018-14514 Filed 7-5-18; 8:45 a.m.]
 BILLING CODE 3410-02-P



                                              31442                 Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Rules and Regulations

                                              DEPARTMENT OF AGRICULTURE                                a category of regulatory actions that the             smaller crop forecast due to hurricane
                                                                                                       Office of Management and Budget                       damage and the need to cover
                                              Agricultural Marketing Service                           (OMB) exempted from Executive Order                   Committee expenses.
                                                                                                       12866 review. Additionally, because                      The Committee met on June 29, 2017,
                                              7 CFR Part 905                                           this rule does not meet the definition of             and unanimously recommended both
                                                                                                       a significant regulatory action, it does              maintaining the 2013–14 assessment
                                              [Doc. No. AMS–SC–17–0074; SC18–905–1
                                              FR]                                                      not trigger the requirements contained                rate and new 2017–18 budgeted
                                                                                                       in Executive Order 13771. See OMB’s                   expenditures of $132,000. Following the
                                              Oranges, Grapefruit, Tangerines, and                     Memorandum titled ‘‘Interim Guidance                  significant damage experienced by the
                                              Pummelos Grown in Florida; Increased                     Implementing Section 2 of the Executive               industry from Hurricane Irma, the
                                              Assessment Rate                                          Order of January 30, 2017, titled                     Committee held a second meeting on
                                                                                                       ‘Reducing Regulation and Controlling                  November 9, 2017, to discuss a revised
                                              AGENCY:  Agricultural Marketing Service,                 Regulatory Costs’ ’’ (February 2, 2017).              crop estimate for 2017–18. Due to
                                              USDA.                                                       This rule has been reviewed under                  significant crop damage, the Committee
                                              ACTION: Final rule.                                      Executive Order 12988, Civil Justice                  estimated that assessable cartons for
                                                                                                       Reform. Under the Order now in effect,                2017–18 should be six million cartons,
                                              SUMMARY:   This rule implements a                        Florida citrus handlers are subject to                down from 8.6 million originally
                                              recommendation from the Citrus                           assessments. Funds to administer the                  projected at a June 29, 2017, meeting.
                                              Administrative Committee (Committee)                     Order are derived from such                           Given the reduced estimate, the
                                              for an increase of the assessment rate                   assessments. It is intended that the                  Committee voted to increase the
                                              established for the 2017–18 and                          assessment rate will be applicable to all             assessment rate from $0.009 to $0.02 per
                                              subsequent fiscal periods. The                           assessable citrus for the 2017–18 crop                4⁄5-bushel cartons of citrus to provide

                                              assessment rate will remain in effect                    year, and continue until amended,                     additional assessment income in Order
                                              indefinitely unless modified,                            suspended, or terminated.                             to meet the budgeted expenses of
                                              suspended, or terminated.                                   The Act provides that administrative               $132,000 and draw less funds from the
                                              DATES: Effective August 6, 2018.                         proceedings must be exhausted before                  reserves. The assessment rate increase,
                                              FOR FURTHER INFORMATION CONTACT:
                                                                                                       parties may file suit in court. Under                 along with the funds from reserves and
                                              Abigail Campos, Marketing Specialist or                  section 608c(15)(A) of the Act, any                   interest income, should provide
                                              Christian D. Nissen, Regional Director,                  handler subject to an order may file                  sufficient funds to cover anticipated
                                              Southeast Marketing Field Office,                        with USDA a petition stating that the                 expenses.
                                              Marketing Order and Agreement                            order, any provision of the order, or any                Of the total $132,000 budgeted for the
                                                                                                       obligation imposed in connection with                 2017–18 fiscal period, major
                                              Division, Specialty Crops Program,
                                                                                                       the order is not in accordance with law               expenditures recommended by the
                                              AMS, USDA; Telephone: (863) 324–
                                                                                                       and request a modification of the order               Committee include $75,000 for salaries,
                                              3375, Fax: (863) 291–8614, or Email:
                                                                                                       or to be exempted therefrom. Such                     $10,000 for data collection and fresh
                                              Abigail.Campos@ams.usda.gov or
                                                                                                       handler is afforded the opportunity for               shipments reporting, and $9,000 for
                                              Christian.Nissen@ams.usda.gov.
                                                                                                       a hearing on the petition. After the                  auditing & accounting. Compared to the
                                                 Small businesses may request
                                                                                                       hearing, USDA would rule on the                       previous fiscal year’s budget of
                                              information on complying with this
                                                                                                       petition. The Act provides that the                   $140,600, budgeted expenses for these
                                              regulation by contacting Richard Lower,
                                                                                                       district court of the United States in any            items were $75,000, $25,000, and
                                              Marketing Order and Agreement
                                                                                                       district in which the handler is an                   $9,200, respectively. The significant
                                              Division, Specialty Crops Program,                       inhabitant, or has his or her principal               decrease in budgeted expenses for data
                                              AMS, USDA, 1400 Independence                             place of business, has jurisdiction to                collection and fresh shipment reporting
                                              Avenue SW, STOP 0237, Washington,                        review USDA’s ruling on the petition,                 stems from the development of a new
                                              DC 20250–0237; Telephone: (202) 720–                     provided an action is filed not later than            computer program that better reports
                                              2491, Fax: (202) 720–8938, or Email:                     20 days after the date of the entry of the            and extrapolates data, thus reducing
                                              Richard.Lower@ams.usda.gov.                              ruling.                                               reporting time and increasing
                                              SUPPLEMENTARY INFORMATION: This                             The Order provides authority for the               efficiencies.
                                              action, pursuant to 5 U.S.C. 553,                        Committee, with the approval of USDA,                    The assessment rate recommended by
                                              amends regulations issued to carry out                   to formulate an annual budget of                      the Committee was derived by
                                              a marketing order as defined in 7 CFR                    expenses and collect assessments from                 considering anticipated expenses,
                                              900.2(j). This rule is issued under                      handlers to administer the program. The               expected shipments, and the amount of
                                              Marketing Order No. 905, as amended (7                   members are familiar with the                         funds available in the authorized
                                              CFR part 905), regulating the handling                   Committee’s needs and with the costs                  reserve. Income derived from handler
                                              of oranges, grapefruit, tangerines, and                  for goods and services in their local area            assessments of $120,000 (six million 4⁄5
                                              pummelos grown in Florida. Part 905,                     and are thus in a position to formulate               bushel cartons assessed at $0.02 per
                                              (referred to as the ‘‘Order’’) is effective              an appropriate budget and assessment                  carton), along with interest income and
                                              under the Agricultural Marketing                         rate. The assessment rate is formulated               funds from the Committee’s authorized
                                              Agreement Act of 1937, as amended (7                     and discussed in a public meeting.                    reserve, should be adequate to cover
                                              U.S.C. 601–674), hereinafter referred to                 Thus, all directly affected persons have              budgeted expenses of $132,000. Funds
                                              as the ‘‘Act.’’ The Committee locally                    an opportunity to participate and                     in the reserve (currently $124,040)
                                              administers the Order and is comprised                   provide input.                                        would be kept within the maximum
sradovich on DSK3GMQ082PROD with RULES




                                              of growers and handlers operating                           This rule increases the assessment                 permitted by § 905.42 and would not
                                              within the area of production, and a                     rate from $0.009, the rate that was                   exceed the expenses of two fiscal
                                              public member.                                           established for the 2013–14 and                       periods.
                                                 The Department of Agriculture                         subsequent fiscal periods, to $0.02 per                  The assessment rate established in
                                              (USDA) is issuing this rule in                           4⁄5-bushel carton of citrus handled for               this rule will continue in effect
                                              conformance with Executive Orders                        the 2017–2018 and subsequent fiscal                   indefinitely unless modified,
                                              13563 and 13175. This rule falls within                  periods. The higher rate is a result of a             suspended, or terminated by USDA


                                         VerDate Sep<11>2014   16:23 Jul 05, 2018   Jkt 244001   PO 00000   Frm 00002   Fmt 4700   Sfmt 4700   E:\FR\FM\06JYR1.SGM   06JYR1


                                                                    Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Rules and Regulations                                         31443

                                              upon recommendation and information                      ($15.20 times 12.6 million equals                     assessment unchanged will not generate
                                              submitted by the Committee or other                      $191,520,000 divided by 20 handlers                   sufficient revenue to meet the
                                              available information.                                   equals $9,576,000 per handler).                       Committee’s expenses for the 2017–18
                                                Although this assessment rate will be                    In addition, based on the NASS data,                budget of $132,000 and will deplete the
                                              in effect for an indefinite period, the                  the weighted average grower price for                 reserve. Based on estimated shipments,
                                              Committee will continue to meet prior                    the 2016–17 season was around $8.30                   the recommended assessment rate of
                                              to or during each fiscal period to                       per carton of citrus. Based on grower                 $0.02 should provide $120,000 in
                                              recommend a budget of expenses and                       price, shipment data, and the total                   assessment income. The Committee
                                              consider recommendations for                             number of Florida citrus growers, and                 determined assessment revenue, along
                                              modification of the assessment rate. The                 assuming a normal distribution, the                   with interest income and funds from the
                                              dates and times of Committee meetings                    average annual grower revenue is below                authorized reserves should be adequate
                                              are available from the Committee or                      $750,000 ($8.30 times 12.6 million                    to cover budgeted expenses for the
                                              USDA. Committee meetings are open to                     cartons equals $104,580,000 divided by                2017–18 fiscal period.
                                              the public, and interested persons may                   500 growers equals $209,160 per                         A review of historical information and
                                              express their views at these meetings.                   grower). Thus, the majority of handlers               preliminary information pertaining to
                                              USDA will evaluate Committee                             of Florida citrus may be classified as                the upcoming fiscal year indicates that
                                              recommendations and other available                      large entities, while the majority of                 the average grower price for the 2017–
                                              information to determine whether                         growers may be classified as small                    18 season should be approximately
                                              modification of the assessment rate is                   entities.                                             $21.38 per 4⁄5-bushel cartons of citrus.
                                              needed. Further rulemaking will be                         This rule increases the assessment                  Therefore, the estimated assessment
                                              undertaken as necessary. The                             rate collected from handlers for the                  revenue for the 2017–18 fiscal period as
                                              Committee’s 2017–18 budget and those                     2017–18 and subsequent fiscal periods                 a percentage of total grower revenue
                                              for subsequent fiscal periods will be                    from $0.009 to $0.02 per 4⁄5-bushel                   will be about 0.09 percent.
                                              reviewed and, as appropriate, approved                   carton of Florida citrus. The Committee                 This action increases the assessment
                                              by USDA.                                                 unanimously recommended 2017–18                       obligation imposed on handlers. While
                                                                                                       expenditures of $132,000 and an                       assessments impose some additional
                                              Final Regulatory Flexibility Analysis                    assessment rate of $0.02 per 4⁄5-bushel               costs on handlers, the costs are minimal
                                                 Pursuant to requirements set forth in                 carton of citrus handled. The                         and uniform on all handlers. Some of
                                              the Regulatory Flexibility Act (RFA) (5                  assessment rate of $0.02 is $0.011 higher             the additional costs may be passed on
                                              U.S.C. 601–612), the Agricultural                        than the 2016–17 rate. The quantity of                to producers. However, these costs are
                                              Marketing Service (AMS) has                              assessable citrus for the 2017–18 fiscal              offset by the benefits derived by the
                                              considered the economic impact of this                   period is estimated at six million 4⁄5-               operation of the marketing Order. In
                                              rule on small entities. Accordingly,                     bushel cartons. Thus, the $0.02 rate                  addition, the Committee’s meeting was
                                              AMS has prepared this final regulatory                   should provide $120,000 in assessment                 widely publicized throughout the
                                              flexibility analysis.                                    income. Income derived from handler                   Florida citrus industry. All interested
                                                 The purpose of the RFA is to fit                      assessments, along with interest income               persons were invited to attend the
                                              regulatory actions to the scale of                       and funds from the Committee’s                        meeting and participate in Committee
                                              businesses subject to such actions in                    authorized reserve, should be adequate                deliberations on all issues. Like all
                                              Order that small businesses will not be                  to cover budgeted expenses.                           Committee meetings, the June 29, 2017,
                                              unduly or disproportionately burdened.                     The major expenditures                              and November 9, 2017, meetings were
                                              Marketing orders issued pursuant to the                  recommended by the Committee for the                  public meetings, and all entities, both
                                              Act, and the rules issued thereunder, are                2017–18 year include $75,000 for                      large and small, were able to express
                                              unique in that they are brought about                    salaries, $10,000 for data collection, and            views on this issue.
                                              through group action of essentially                      $9,000 for auditing and accounting.                     In accordance with the Paperwork
                                              small entities acting on their own                       Budgeted expenses for these items in                  Reduction Act of 1995 (44 U.S.C.
                                              behalf.                                                  2016–17 were $75,000, $25,000, and                    Chapter 35), the Order’s information
                                                 There are approximately 500                           $9,200, respectively.                                 collection requirements have been
                                              producers of Florida citrus in the                         As a result of damage from Hurricane                previously approved by OMB and
                                              production area and approximately 20                     Irma, the Committee estimates the                     assigned OMB No. 0581–0178 Vegetable
                                              handlers subject to regulation under the                 2017–18 crop to be approximately six                  and Specialty Crops. No changes in
                                              Marketing Order. Small agricultural                      million 4⁄5-bushel cartons, down from                 those requirements are necessary as a
                                              producers are defined by the Small                       the 8.6 million 4⁄5-bushel cartons                    result of this action. Should any changes
                                              Business Administration (SBA) as those                   estimated on June 29, 2017. Due to the                become necessary, they would be
                                              having annual receipts less than                         decline in production, the current                    submitted to OMB for approval.
                                              $750,000, and small agricultural service                 assessment rate would be insufficient to                This rule imposes no additional
                                              firms are defined as those whose annual                  cover the Committee’s anticipated                     reporting or recordkeeping requirements
                                              receipts are less than $7,500,000 (13                    expenditures and would further deplete                on either small or large Florida citrus
                                              CFR 121.201).                                            the Committee’s reserve fund. The                     handlers. As with all Federal marketing
                                                 According to data from the National                   assessment rate increase will generate                order programs, reports and forms are
                                              Agricultural Statistics Service (NASS),                  additional revenue and will help offset               periodically reviewed to reduce
                                              the industry, and the Committee, for the                 the amount of reserves needed to fund                 information requirements and
                                              2016–17 season the weighted average                      the budget. Therefore, the Committee                  duplication by industry and public
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                                              f.o.b. price for Florida citrus was                      recommended increasing the assessment                 sector agencies. As noted in the initial
                                              approximately $15.20 per carton with                     rate.                                                 regulatory flexibility analysis, USDA
                                              total shipments of 12.6 million cartons.                   Prior to arriving at this budget and                has not identified any relevant Federal
                                              Using the number of handlers, and                        assessment rate, the Committee                        rules that duplicate, overlap, or conflict
                                              assuming a normal distribution, the                      considered maintaining the current                    with this final rule.
                                              majority of handlers have average                        assessment rate of $0.009 per 4⁄5-bushel                AMS is committed to complying with
                                              annual receipts of more than $7,500,000                  cartons of citrus. However, leaving the               the E-Government Act, to promote the


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                                              31444                 Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Rules and Regulations

                                              use of the internet and other                              Dated: July 2, 2018.                                regulations issued to carry out a
                                              information technologies to provide                      Bruce Summers,                                        marketing order as defined in 7 CFR
                                              increased opportunities for citizen                      Administrator, Agricultural Marketing                 900.2(j). This final rule is issued under
                                              access to Government information and                     Service.                                              Marketing Order No. 930, as amended (7
                                              services, and for other purposes.                        [FR Doc. 2018–14514 Filed 7–5–18; 8:45 a.m.]          CFR part 930), regulating the handling
                                                                                                       BILLING CODE 3410–02–P                                of tart cherries grown in the States of
                                                 A proposed rule concerning this
                                                                                                                                                             Michigan, New York, Pennsylvania,
                                              action was published in the Federal                                                                            Oregon, Utah, Washington, and
                                              Register on April 2, 2018 (83 FR 14203).                                                                       Wisconsin. Part 930 (referred to as the
                                                                                                       DEPARTMENT OF AGRICULTURE
                                              Copies of the proposed rule were also                                                                          ‘‘Order’’) is effective under the
                                              mailed or sent via facsimile to all                      Agricultural Marketing Service                        Agricultural Marketing Agreement Act
                                              Florida citrus handlers. The proposal                                                                          of 1937, as amended (7 U.S.C. 601–674),
                                              was made available through the internet                  7 CFR Part 930                                        hereinafter referred to as the ‘‘Act.’’ The
                                              by USDA and the Office of the Federal                                                                          Board locally administers the Order and
                                                                                                       [Doc. No. AMS–SC–17–0047; SC17–930–1
                                              Register. A 30-day comment period                                                                              is comprised of growers and handlers
                                                                                                       FR]
                                              ending May 3, 2018, was provided for                                                                           operating in the production area, and
                                              interested persons to respond to the                     Tart Cherries Grown in the States of                  one public member.
                                              proposal. One comment was received                       Michigan, et al.; Revision of Exemption                  The Department of Agriculture
                                              during the comment period. The                           Requirements                                          (USDA) is issuing this rule in
                                              commenter was in favor of the                                                                                  conformance with Executive Orders
                                              regulation. Accordingly, no changes will                 AGENCY:  Agricultural Marketing Service,              13563 and 13175. This action falls
                                              be made to the rule as proposed, based                   USDA.                                                 within a category of regulatory actions
                                              on the comment received.                                 ACTION: Final rule.                                   that the Office of Management and
                                                                                                                                                             Budget (OMB) exempted from Executive
                                                 A small business guide on complying                   SUMMARY:   This rule implements a                     Order 12866 review. Additionally,
                                              with fruit, vegetable, and specialty crop                recommendation from the Cherry                        because this rule does not meet the
                                              marketing agreements and orders may                      Industry Administrative Board (Board)                 definition of a significant regulatory
                                              be viewed at: http://www.ams.usda.gov/                   to revise the exemption provisions for                action, it does not trigger the
                                              rules-regulations/moa/small-businesses.                  tart cherries grown in Michigan, New                  requirements contained in Executive
                                              Any questions about the compliance                       York, Pennsylvania, Oregon, Utah,                     Order 13771. See OMB’s Memorandum
                                              guide should be sent to Richard Lower                    Washington, and Wisconsin. This rule                  titled ‘‘Interim Guidance Implementing
                                              at the previously mentioned address in                   changes the number of years that new                  Section 2 of the Executive Order of
                                              the FOR FURTHER INFORMATION CONTACT                      product, new market development, and                  January 30, 2017, titled ‘Reducing
                                              section.                                                 market expansion projects are eligible                Regulation and Controlling Regulatory
                                                                                                       for handler diversion credit. This action             Costs’ ’’ (February 2, 2017).
                                                 After consideration of all relevant                                                                            This rule has been reviewed under
                                                                                                       also permits handlers to apply for
                                              material presented, including the                        previously awarded projects if the                    Executive Order 12988, Civil Justice
                                              information and recommendation                           original handler has not begun the                    Reform. This rule is not intended to
                                              submitted by the Committee and other                     project within a year of approval and                 have retroactive effect.
                                              available information, it is hereby found                provides an expedited approval option                    The Act provides that administrative
                                              that this rule, will tend to effectuate the              for some market expansion activities.                 proceedings must be exhausted before
                                              declared policy of the Act.                              This final rule also contains a formatting            parties may file suit in court. Under
                                                                                                       change to subpart references to bring the             section 608c(15)(A) of the Act, any
                                              List of Subjects in 7 CFR Part 905                                                                             handler subject to an order may file
                                                                                                       language into conformance with the
                                                Grapefruit, Marketing agreements,                      Office of Federal Register requirements.              with USDA a petition stating that the
                                              Oranges, Reporting and recordkeeping                                                                           order, any provision of the order, or any
                                                                                                       DATES: Effective August 6, 2018.
                                              requirements, Tangerines, Pummelos.                                                                            obligation imposed in connection with
                                                                                                       FOR FURTHER INFORMATION CONTACT:                      the order is not in accordance with law
                                                For the reasons set forth in the                       Jennie M. Varela, Marketing Specialist,               and request a modification of the order
                                              preamble, 7 CFR part 905 is amended as                   or Christian D. Nissen, Regional                      or to be exempted therefrom. A handler
                                              follows:                                                 Director, Southeast Marketing Field                   is afforded the opportunity for a hearing
                                                                                                       Office, Marketing Order and Agreement                 on the petition. After the hearing, USDA
                                              PART 905—ORANGES, GRAPEFRUIT,                            Division, Specialty Crops Program,                    would rule on the petition. The Act
                                              TANGERINES, AND PUMMELOS                                 AMS, USDA; Telephone: (863) 324–                      provides that the district court of the
                                              GROWN IN FLORIDA                                         3775, Fax: (863) 291–8614, or Email:                  United States in any district in which
                                                                                                       Jennie.Varela@ams.usda.gov or                         the handler is an inhabitant, or has his
                                              ■ 1. The authority citation for part 905                 Christian.Nissen@ams.usda.gov.                        or her principal place of business, has
                                                                                                         Small businesses may request                        jurisdiction to review USDA’s ruling on
                                              continues to read as follows:
                                                                                                       information on complying with this                    the petition, provided an action is filed
                                                  Authority: 7 U.S.C. 601–674.                         regulation by contacting Richard Lower,               not later than 20 days after the date of
                                                                                                       Marketing Order and Agreement                         the entry of the ruling.
                                              ■ 2. Section 905.235 is revised to read                  Division, Specialty Crops Program,
                                              as follows:                                                                                                       This final rule changes the number of
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                                                                                                       AMS, USDA, 1400 Independence                          years that new product, new market
                                              § 905.235    Assessment rate.                            Avenue SW, STOP 0237, Washington,                     development, and market expansion
                                                                                                       DC 20250–0237; Telephone: (202) 720–                  projects are eligible for handler
                                                On and after August 1, 2017, an                        2491, Fax: (202) 720–8938, or Email:                  diversion credit from three years to five
                                              assessment rate of $0.02 per 4⁄5-bushel                  Richard.Lower@ams.usda.gov.                           years. This action also permits handlers
                                              carton or equivalent is established for                  SUPPLEMENTARY INFORMATION: This final                 to apply for previously awarded projects
                                              Florida citrus covered under the Order.                  rule, pursuant to 5 U.S.C. 553, amends                if the original handler has not made a


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Document Created: 2018-07-06 00:46:01
Document Modified: 2018-07-06 00:46:01
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 August 6, 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 31442 
CFR AssociatedGrapefruit; Marketing Agreements; Oranges; Reporting and Recordkeeping Requirements; Tangerines and Pummelos

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