83_FR_42970 83 FR 42805 - Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Decreased Assessment Rate

83 FR 42805 - Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Decreased Assessment Rate

DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

Federal Register Volume 83, Issue 165 (August 24, 2018)

Page Range42805-42807
FR Document2018-18363

This proposed rule would implement a recommendation from the Texas Valley Citrus Committee (Committee) to decrease the assessment rate established for the 2018-19 and subsequent fiscal periods. The assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.

Federal Register, Volume 83 Issue 165 (Friday, August 24, 2018)
[Federal Register Volume 83, Number 165 (Friday, August 24, 2018)]
[Proposed Rules]
[Pages 42805-42807]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-18363]


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

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

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


Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / 
Proposed Rules

[[Page 42805]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-SC-18-0044; SC18-906-1 PR]


Oranges and Grapefruit Grown in the Lower Rio Grande Valley in 
Texas; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would implement a recommendation from the 
Texas Valley Citrus Committee (Committee) to decrease the assessment 
rate established for the 2018-19 and subsequent fiscal periods. The 
assessment rate would remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Comments must be received by September 24, 2018.

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

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

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes an amendment to regulations issued to carry out a marketing 
order as defined in 7 CFR 900.2(j). This proposed rule is issued under 
Marketing Agreement and Order No. 906, as amended (7 CFR part 906), 
regulating the handling of oranges and grapefruit grown in the Lower 
Rio Grande Valley in Texas. Part 906 (referred to as ``the Order'') is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.'' The 
Committee locally administers the Order and is comprised of producers 
and handlers of oranges and grapefruit operating within the area of 
production.
    The Department of Agriculture (USDA) is issuing this proposed rule 
in conformance with Executive Orders 13563 and 13175. This proposed 
rule falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this proposed rule does not meet the definition 
of a significant regulatory action, it does not trigger the 
requirements contained in Executive Order 13771. See OMB's Memorandum 
titled ``Interim Guidance Implementing Section 2 of the Executive Order 
of January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs' '' (February 2, 2017).
    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. Under the Order now in effect, Texas citrus 
handlers are subject to assessments. Funds to administer the Order are 
derived from such assessments. It is intended that the assessment rate 
would be applicable to all assessable oranges and grapefruit for the 
2018-19 crop year and continue until amended, suspended, or terminated.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA a petition 
stating that the order, any provision of the order, or any obligation 
imposed in connection with the order is not in accordance with law and 
request a modification of the order or to be exempted therefrom. Such 
handler is afforded the opportunity for a hearing on the petition. 
After the hearing, USDA would rule on the petition. The Act provides 
that the district court of the United States in any district in which 
the handler is an inhabitant, or has his or her principal place of 
business, has jurisdiction to review USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    The Order provides authority for the Committee, with the approval 
of USDA, to formulate an annual budget of expenses and collect 
assessments from handlers to administer the program. The members are 
familiar with the Committee's needs and with the costs of goods and 
services in their local area and are thus in a position to formulate an 
appropriate budget and assessment rate. The assessment rate is 
formulated and discussed in a public meeting. Thus, all directly 
affected persons have an opportunity to participate and provide input.
    This proposed rule would decrease the assessment rate from $0.02, 
the rate that was established for the 2017-18 and subsequent fiscal 
periods, to $0.01 per 7/10-bushel carton or equivalent of oranges and 
grapefruit handled for the 2018-19 and subsequent fiscal periods. The 
Committee recommended decreasing the assessment rate and utilizing 
funds from its authorized reserve in order to reduce the reserve 
balance. The reserve balance has been greater than the sum allowable 
under the Order, which is approximately equivalent to one year's 
operating expenses, since 2017. In 2017-18, the Committee was able to 
reduce its budget by more than $595,000 when an alternative funding 
source was found for

[[Page 42806]]

the Mexican fruit fly control program. This dramatic reduction in the 
overall budget prompted the Committee's need to reduce the balance of 
the authorized reserve to reflect the lower operating budget.
    The Committee met on May 23, 2018, and unanimously recommended 
2018-19 expenditures of $152,920 and an assessment rate of $0.01 per 7/
10-bushel carton or equivalent of oranges and grapefruit. The itemized 
budgeted expenses, including $79,220 for management, $50,000 for 
compliance, and $23,700 for operating expenses, are the same as the 
previous fiscal period. However, the proposed assessment rate of $0.01 
is lower than the $0.02 rate currently in effect.
    The assessment rate recommended by the Committee was derived by 
considering anticipated expenses, expected shipments of 7.5 million 7/
10-bushel cartons, and the amount of funds available in the authorized 
reserve. Income derived from handler assessments, calculated at $75,000 
(7.5 million x $0.01), along with interest income and funds from the 
Committee's authorized reserve, would be adequate to cover budgeted 
expenses of $152,920. Funds in the reserve are estimated to be $287,295 
at the end of the 2017-18 fiscal period. No additional funds can be 
added to the reserve until the balance drops below approximately one 
fiscal period's expenses as stated in Sec.  906.35.
    The assessment rate proposed in this rule would continue in effect 
indefinitely unless modified, suspended, or terminated by USDA upon 
recommendation and information submitted by the Committee or other 
available information.
    Although this assessment rate would be in effect for an indefinite 
period, the Committee 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 would 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 2018-19 budget and those 
for subsequent fiscal periods will be reviewed and, as appropriate, 
approved by USDA.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), the Agricultural Marketing Service (AMS) 
has considered the economic impact of this proposed rule on small 
entities. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 170 producers of oranges and grapefruit in 
the production area and 13 handlers subject to regulation under the 
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 Committee data, the average price for Texas citrus 
during the 2016-17 season was approximately $16 per carton and total 
shipments were 7.6 million cartons. Using the average price and 
shipment information, the number of handlers, and assuming a normal 
distribution, the majority of handlers would have average annual 
receipts of greater than $7,500,000 ($16 per carton times 7.6 million 
cartons equals $121.6 million, divided by 13 equals $9.4 million per 
handler).
    In addition, based on National Agricultural Statistics Service 
information, the weighted grower price for Texas citrus during the 
2016-17 season was approximately $9.35 per carton. Using the weighted 
average price and shipment information, the number of producers and 
assuming a normal distribution, the majority of producers would have 
annual receipts of $418,000, which is less than $750,000 ($9.35 per 
carton times 7.6 million cartons equals $71.06 million, divided by 170 
equals $418,000 per producer). Thus, the majority of handlers of Texas 
citrus may be classified as large entities, while the majority of 
producers may be classified as small entities.
    This proposal would decrease the assessment rate collected from 
handlers for the 2018-19 and subsequent fiscal periods from $0.02 to 
$0.01 per 7/10-bushel carton or equivalent of Texas citrus. The 
Committee unanimously recommended 2018-19 expenditures of $152,920 and 
an assessment rate of $0.01 per 7/10-bushel carton or equivalent 
handled. The proposed assessment rate of $0.01 is $0.01 lower than the 
2017-18 rate. The quantity of assessable oranges and grapefruit for the 
2018-19 fiscal period is estimated at 7.5 million 7/10-bushel cartons. 
Thus, the $0.01 rate should provide $75,000 in assessment income (7.5 
million x $0.01). Income derived from handler assessments, along with 
interest income and funds from the Committee's authorized reserve, 
would be adequate to cover budgeted expenses.
    The major expenditures recommended by the Committee for the 2018-19 
year include $79,220 for management, $50,000 for compliance, and 
$23,700 for operating expenses. Budgeted expenses for these items in 
2017-18 were the same.
    The Committee recommended decreasing the assessment rate and 
utilizing funds from its authorized reserve in order to reduce the 
reserve balance to bring it in line with the limitation under the Order 
of approximately one year's expenses.
    Prior to arriving at this budget and assessment rate, the Committee 
considered information from various sources, such as the Committee's 
Budget and Personnel Committee, and the Research Committee. Alternative 
expenditure levels were discussed by these committees who reviewed the 
relative value of various activities to the Texas citrus industry. 
These committees determined that all program activities were adequately 
funded and essential to the functionality of the Order; thus, no 
alternate expenditure levels were deemed appropriate. Additionally, the 
Committee discussed alternatives of maintaining the current assessment 
rate of $0.02 and lowering the assessment rate to $0.015 per 7/10-
bushel carton or equivalent. However, these alternatives were not 
recommended because the Committee determined that these assessment 
rates would not draw a sufficient amount of funds from the authorized 
reserve to bring the reserve fund total in line with Order 
requirements.
    Based on these discussions and estimated shipments, the recommended 
assessment rate of $0.01 would provide $75,000 in assessment income. 
The Committee determined that assessment revenue, along with funds from 
the reserve and interest income, would be adequate to cover budgeted 
expenses for the 2018-19 fiscal period.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates

[[Page 42807]]

that the average grower price for the 2018-19 season should be 
approximately $9.50 per 7/10-bushel carton or equivalent of oranges and 
grapefruit. Therefore, the estimated assessment revenue for the 2018-19 
crop year as a percentage of total grower revenue would be about 0.1 
percent.
    This proposed rule would decrease the assessment obligation imposed 
on handlers. Assessments are applied uniformly on all handlers, and 
some of the costs may be passed on to producers. However, decreasing 
the assessment rate reduces the burden on handlers and may also reduce 
the burden on producers.
    The Committee's meeting was widely publicized throughout the Texas 
citrus industry. All interested persons were invited to attend the 
meeting and participate in Committee deliberations on all issues. Like 
all Committee meetings, the May 23, 2018, meeting was a public meeting, 
and all entities, both large and small, were able to express views on 
this issue. Finally, interested persons are invited to submit comments 
on this proposed rule, including the regulatory and information 
collection impacts of this action on small businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by the OMB and assigned OMB No. 0581-0189, Fruit 
Crops. No changes in those requirements would be necessary as a result 
of this proposed rule. Should any changes become necessary, they would 
be submitted to OMB for approval.
    This proposed rule would not impose any additional reporting or 
recordkeeping requirements on either small or large Texas orange and 
grapefruit handlers. As with all Federal marketing order programs, 
reports and forms are periodically reviewed to reduce information 
requirements and duplication by industry and public sector agencies. 
AMS is committed to complying with the E-Government Act, to promote the 
use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any questions 
about the compliance guide should be sent to Richard Lower at the 
previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.

List of Subjects in 7 CFR Part 906

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

    For the reasons set forth in the preamble, 7 CFR part 906 is 
proposed to be amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
IN TEXAS

0
1. The authority citation for 7 CFR part 906 continues to read as 
follows:

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

0
2. Section 906.235 is revised to read as follows:


Sec.  906.235  Assessment rate.

    On and after August 1, 2018, an assessment rate of $0.01 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit 
grown in the Lower Rio Grande Valley in Texas.

    Dated: August 21, 2018.
Bruce Summers,
Administrator, Agricultural Marketing Service.
[FR Doc. 2018-18363 Filed 8-23-18; 8:45 am]
 BILLING CODE 3410-02-P



                                                                                                                                                                                                  42805

                                                  Proposed Rules                                                                                                Federal Register
                                                                                                                                                                Vol. 83, No. 165

                                                                                                                                                                Friday, August 24, 2018



                                                  This section of the FEDERAL REGISTER                    Christian D. Nissen, Regional Director,               assessment rate would be applicable to
                                                  contains notices to the public of the proposed          Southeast Marketing Field Office,                     all assessable oranges and grapefruit for
                                                  issuance of rules and regulations. The                  Marketing Order and Agreement                         the 2018–19 crop year and continue
                                                  purpose of these notices is to give interested          Division, Specialty Crops Program,                    until amended, suspended, or
                                                  persons an opportunity to participate in the            AMS, USDA; Telephone: (863) 324–                      terminated.
                                                  rule making prior to the adoption of the final
                                                  rules.
                                                                                                          3375, Fax: (863) 291–8614, or Email:                     The Act provides that administrative
                                                                                                          Doris.Jamieson@ams.usda.gov or                        proceedings must be exhausted before
                                                                                                          Christian.Nissen@ams.usda.gov.                        parties may file suit in court. Under
                                                  DEPARTMENT OF AGRICULTURE                                  Small businesses may request                       section 608c(15)(A) of the Act, any
                                                                                                          information on complying with this                    handler subject to an order may file
                                                  Agricultural Marketing Service                          regulation by contacting Richard Lower,               with USDA a petition stating that the
                                                                                                          Marketing Order and Agreement                         order, any provision of the order, or any
                                                  7 CFR Part 906                                          Division, Specialty Crops Program,                    obligation imposed in connection with
                                                                                                          AMS, USDA, 1400 Independence                          the order is not in accordance with law
                                                  [Doc. No. AMS–SC–18–0044; SC18–906–1
                                                  PR]                                                     Avenue SW, STOP 0237, Washington,                     and request a modification of the order
                                                                                                          DC 20250–0237; Telephone: (202) 720–                  or to be exempted therefrom. Such
                                                  Oranges and Grapefruit Grown in the                     2491, Fax: (202) 720–8938, or Email:                  handler is afforded the opportunity for
                                                  Lower Rio Grande Valley in Texas;                       Richard.Lower@ams.usda.gov.                           a hearing on the petition. After the
                                                  Decreased Assessment Rate                               SUPPLEMENTARY INFORMATION: This                       hearing, USDA would rule on the
                                                                                                          action, pursuant to 5 U.S.C. 553,                     petition. The Act provides that the
                                                  AGENCY:  Agricultural Marketing Service,                proposes an amendment to regulations                  district court of the United States in any
                                                  USDA.                                                   issued to carry out a marketing order as              district in which the handler is an
                                                  ACTION: Proposed rule.                                  defined in 7 CFR 900.2(j). This proposed              inhabitant, or has his or her principal
                                                                                                          rule is issued under Marketing                        place of business, has jurisdiction to
                                                  SUMMARY:   This proposed rule would
                                                                                                          Agreement and Order No. 906, as                       review USDA’s ruling on the petition,
                                                  implement a recommendation from the
                                                                                                          amended (7 CFR part 906), regulating                  provided an action is filed not later than
                                                  Texas Valley Citrus Committee
                                                                                                          the handling of oranges and grapefruit                20 days after the date of the entry of the
                                                  (Committee) to decrease the assessment
                                                                                                          grown in the Lower Rio Grande Valley                  ruling.
                                                  rate established for the 2018–19 and
                                                                                                          in Texas. Part 906 (referred to as ‘‘the                 The Order provides authority for the
                                                  subsequent fiscal periods. The
                                                                                                          Order’’) is effective under the                       Committee, with the approval of USDA,
                                                  assessment rate would remain in effect
                                                                                                          Agricultural Marketing Agreement Act                  to formulate an annual budget of
                                                  indefinitely unless modified,
                                                                                                          of 1937, as amended (7 U.S.C. 601–674),               expenses and collect assessments from
                                                  suspended, or terminated.
                                                                                                          hereinafter referred to as the ‘‘Act.’’ The           handlers to administer the program. The
                                                  DATES: Comments must be received by                                                                           members are familiar with the
                                                                                                          Committee locally administers the
                                                  September 24, 2018.                                     Order and is comprised of producers                   Committee’s needs and with the costs of
                                                  ADDRESSES: Interested persons are                       and handlers of oranges and grapefruit                goods and services in their local area
                                                  invited to submit written comments                      operating within the area of production.              and are thus in a position to formulate
                                                  concerning this proposed rule.                             The Department of Agriculture                      an appropriate budget and assessment
                                                  Comments must be sent to the Docket                     (USDA) is issuing this proposed rule in               rate. The assessment rate is formulated
                                                  Clerk, Marketing Order and Agreement                    conformance with Executive Orders                     and discussed in a public meeting.
                                                  Division, Specialty Crops Program,                      13563 and 13175. This proposed rule                   Thus, all directly affected persons have
                                                  AMS, USDA, 1400 Independence                            falls within a category of regulatory                 an opportunity to participate and
                                                  Avenue SW, STOP 0237, Washington,                       actions that the Office of Management                 provide input.
                                                  DC 20250–0237; Fax: (202) 720–8938; or                  and Budget (OMB) exempted from                           This proposed rule would decrease
                                                  internet: http://www.regulations.gov.                   Executive Order 12866 review.                         the assessment rate from $0.02, the rate
                                                  Comments should reference the                           Additionally, because this proposed                   that was established for the 2017–18
                                                  document number and the date and                        rule does not meet the definition of a                and subsequent fiscal periods, to $0.01
                                                  page number of this issue of the Federal                significant regulatory action, it does not            per 7/10-bushel carton or equivalent of
                                                  Register and will be available for public               trigger the requirements contained in                 oranges and grapefruit handled for the
                                                  inspection in the Office of the Docket                  Executive Order 13771. See OMB’s                      2018–19 and subsequent fiscal periods.
                                                  Clerk during regular business hours, or                 Memorandum titled ‘‘Interim Guidance                  The Committee recommended
                                                  can be viewed at: http://                               Implementing Section 2 of the Executive               decreasing the assessment rate and
                                                  www.regulations.gov. All comments                       Order of January 30, 2017, titled                     utilizing funds from its authorized
                                                  submitted in response to this rule will                 ‘Reducing Regulation and Controlling                  reserve in order to reduce the reserve
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                  be included in the record and will be                   Regulatory Costs’ ’’ (February 2, 2017).              balance. The reserve balance has been
                                                  made available to the public. Please be                    This proposed rule has been reviewed               greater than the sum allowable under
                                                  advised that the identity of the                        under Executive Order 12988, Civil                    the Order, which is approximately
                                                  individuals or entities submitting the                  Justice Reform. Under the Order now in                equivalent to one year’s operating
                                                  comments will be made public on the                     effect, Texas citrus handlers are subject             expenses, since 2017. In 2017–18, the
                                                  internet at the address provided above.                 to assessments. Funds to administer the               Committee was able to reduce its budget
                                                  FOR FURTHER INFORMATION CONTACT:                        Order are derived from such                           by more than $595,000 when an
                                                  Doris Jamieson, Marketing Specialist, or                assessments. It is intended that the                  alternative funding source was found for


                                             VerDate Sep<11>2014   22:05 Aug 23, 2018   Jkt 244001   PO 00000   Frm 00001   Fmt 4702   Sfmt 4702   E:\FR\FM\24AUP1.SGM   24AUP1


                                                  42806                   Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules

                                                  the Mexican fruit fly control program.                  Initial Regulatory Flexibility Analysis               recommended 2018–19 expenditures of
                                                  This dramatic reduction in the overall                     Pursuant to requirements set forth in              $152,920 and an assessment rate of
                                                  budget prompted the Committee’s need                    the Regulatory Flexibility Act (RFA) (5               $0.01 per 7/10-bushel carton or
                                                  to reduce the balance of the authorized                 U.S.C. 601–612), the Agricultural                     equivalent handled. The proposed
                                                  reserve to reflect the lower operating                  Marketing Service (AMS) has                           assessment rate of $0.01 is $0.01 lower
                                                  budget.                                                 considered the economic impact of this                than the 2017–18 rate. The quantity of
                                                                                                          proposed rule on small entities.                      assessable oranges and grapefruit for the
                                                     The Committee met on May 23, 2018,
                                                                                                          Accordingly, AMS has prepared this                    2018–19 fiscal period is estimated at 7.5
                                                  and unanimously recommended 2018–
                                                                                                          initial regulatory flexibility analysis.              million 7/10-bushel cartons. Thus, the
                                                  19 expenditures of $152,920 and an                                                                            $0.01 rate should provide $75,000 in
                                                  assessment rate of $0.01 per 7/10-bushel                   The purpose of the RFA is to fit
                                                                                                          regulatory actions to the scale of                    assessment income (7.5 million × $0.01).
                                                  carton or equivalent of oranges and                                                                           Income derived from handler
                                                  grapefruit. The itemized budgeted                       businesses subject to such actions in
                                                                                                          order that small businesses will not be               assessments, along with interest income
                                                  expenses, including $79,220 for                                                                               and funds from the Committee’s
                                                  management, $50,000 for compliance,                     unduly or disproportionately burdened.
                                                                                                                                                                authorized reserve, would be adequate
                                                  and $23,700 for operating expenses, are                 Marketing orders issued pursuant to the
                                                                                                                                                                to cover budgeted expenses.
                                                  the same as the previous fiscal period.                 Act, and the rules issued thereunder, are                The major expenditures
                                                  However, the proposed assessment rate                   unique in that they are brought about                 recommended by the Committee for the
                                                  of $0.01 is lower than the $0.02 rate                   through group action of essentially                   2018–19 year include $79,220 for
                                                  currently in effect.                                    small entities acting on their own                    management, $50,000 for compliance,
                                                                                                          behalf.                                               and $23,700 for operating expenses.
                                                     The assessment rate recommended by                      There are approximately 170
                                                  the Committee was derived by                                                                                  Budgeted expenses for these items in
                                                                                                          producers of oranges and grapefruit in                2017–18 were the same.
                                                  considering anticipated expenses,                       the production area and 13 handlers
                                                  expected shipments of 7.5 million 7/10-                                                                          The Committee recommended
                                                                                                          subject to regulation under the Order.                decreasing the assessment rate and
                                                  bushel cartons, and the amount of funds                 Small agricultural producers are defined              utilizing funds from its authorized
                                                  available in the authorized reserve.                    by the Small Business Administration                  reserve in order to reduce the reserve
                                                  Income derived from handler                             (SBA) as those having annual receipts                 balance to bring it in line with the
                                                  assessments, calculated at $75,000 (7.5                 less than $750,000, and small                         limitation under the Order of
                                                  million × $0.01), along with interest                   agricultural service firms are defined as             approximately one year’s expenses.
                                                  income and funds from the Committee’s                   those whose annual receipts are less                     Prior to arriving at this budget and
                                                  authorized reserve, would be adequate                   than $7,500,000 (13 CFR 121.201).                     assessment rate, the Committee
                                                  to cover budgeted expenses of $152,920.                    According to Committee data, the                   considered information from various
                                                  Funds in the reserve are estimated to be                average price for Texas citrus during the             sources, such as the Committee’s Budget
                                                  $287,295 at the end of the 2017–18                      2016–17 season was approximately $16                  and Personnel Committee, and the
                                                  fiscal period. No additional funds can                  per carton and total shipments were 7.6               Research Committee. Alternative
                                                  be added to the reserve until the balance               million cartons. Using the average price              expenditure levels were discussed by
                                                  drops below approximately one fiscal                    and shipment information, the number                  these committees who reviewed the
                                                  period’s expenses as stated in § 906.35.                of handlers, and assuming a normal                    relative value of various activities to the
                                                     The assessment rate proposed in this                 distribution, the majority of handlers                Texas citrus industry. These committees
                                                  rule would continue in effect                           would have average annual receipts of                 determined that all program activities
                                                  indefinitely unless modified,                           greater than $7,500,000 ($16 per carton               were adequately funded and essential to
                                                  suspended, or terminated by USDA                        times 7.6 million cartons equals $121.6               the functionality of the Order; thus, no
                                                  upon recommendation and information                     million, divided by 13 equals $9.4                    alternate expenditure levels were
                                                  submitted by the Committee or other                     million per handler).                                 deemed appropriate. Additionally, the
                                                  available information.                                     In addition, based on National                     Committee discussed alternatives of
                                                                                                          Agricultural Statistics Service                       maintaining the current assessment rate
                                                     Although this assessment rate would                  information, the weighted grower price                of $0.02 and lowering the assessment
                                                  be in effect for an indefinite period, the              for Texas citrus during the 2016–17                   rate to $0.015 per 7/10-bushel carton or
                                                  Committee will continue to meet prior                   season was approximately $9.35 per                    equivalent. However, these alternatives
                                                  to or during each fiscal period to                      carton. Using the weighted average price              were not recommended because the
                                                  recommend a budget of expenses and                      and shipment information, the number                  Committee determined that these
                                                  consider recommendations for                            of producers and assuming a normal                    assessment rates would not draw a
                                                  modification of the assessment rate. The                distribution, the majority of producers               sufficient amount of funds from the
                                                  dates and times of Committee meetings                   would have annual receipts of $418,000,               authorized reserve to bring the reserve
                                                  are available from the Committee or                     which is less than $750,000 ($9.35 per                fund total in line with Order
                                                  USDA. Committee meetings are open to                    carton times 7.6 million cartons equals               requirements.
                                                  the public and interested persons may                   $71.06 million, divided by 170 equals                    Based on these discussions and
                                                  express their views at these meetings.                  $418,000 per producer). Thus, the                     estimated shipments, the recommended
                                                  USDA would evaluate Committee                           majority of handlers of Texas citrus may              assessment rate of $0.01 would provide
                                                  recommendations and other available                     be classified as large entities, while the            $75,000 in assessment income. The
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                                                  information to determine whether                        majority of producers may be classified               Committee determined that assessment
                                                  modification of the assessment rate is                  as small entities.                                    revenue, along with funds from the
                                                  needed. Further rulemaking will be                         This proposal would decrease the                   reserve and interest income, would be
                                                  undertaken as necessary. The                            assessment rate collected from handlers               adequate to cover budgeted expenses for
                                                  Committee’s 2018–19 budget and those                    for the 2018–19 and subsequent fiscal                 the 2018–19 fiscal period.
                                                  for subsequent fiscal periods will be                   periods from $0.02 to $0.01 per 7/10-                    A review of historical information and
                                                  reviewed and, as appropriate, approved                  bushel carton or equivalent of Texas                  preliminary information pertaining to
                                                  by USDA.                                                citrus. The Committee unanimously                     the upcoming fiscal period indicates


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                                                                          Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules                                         42807

                                                  that the average grower price for the                   guide should be sent to Richard Lower                 the FCA’s website. As facsimiles (fax)
                                                  2018–19 season should be                                at the previously mentioned address in                are difficult for us to process and
                                                  approximately $9.50 per 7/10-bushel                     the FOR FURTHER INFORMATION CONTACT                   achieve compliance with section 508 of
                                                  carton or equivalent of oranges and                     section.                                              the Rehabilitation Act of 1973, as
                                                  grapefruit. Therefore, the estimated                                                                          amended, we do not accept comments
                                                  assessment revenue for the 2018–19                      List of Subjects in 7 CFR Part 906
                                                                                                                                                                submitted by fax. Regardless of the
                                                  crop year as a percentage of total grower                 Grapefruit, Marketing agreements,                   method you use, please do not submit
                                                  revenue would be about 0.1 percent.                     Oranges, Reporting and recordkeeping                  your comment multiple times via
                                                     This proposed rule would decrease                    requirements.                                         different methods. You may submit
                                                  the assessment obligation imposed on                      For the reasons set forth in the                    comments by any of the following
                                                  handlers. Assessments are applied                       preamble, 7 CFR part 906 is proposed to               methods:
                                                  uniformly on all handlers, and some of                  be amended as follows:                                   • Email: Send us an email at reg-
                                                  the costs may be passed on to                                                                                 comm@fca.gov.
                                                  producers. However, decreasing the                      PART 906—ORANGES AND
                                                  assessment rate reduces the burden on                   GRAPEFRUIT GROWN IN LOWER RIO                            • FCA website: http://www.fca.gov.
                                                  handlers and may also reduce the                        GRANDE VALLEY IN TEXAS                                Select ‘‘Public Commenters,’’ then
                                                  burden on producers.                                                                                          ‘‘Public Comments,’’ and follow the
                                                     The Committee’s meeting was widely                   ■ 1. The authority citation for 7 CFR                 directions for ‘‘Submitting a Comment.’’
                                                  publicized throughout the Texas citrus                  part 906 continues to read as follows:                   • Federal eRulemaking Portal: http://
                                                  industry. All interested persons were                       Authority: 7 U.S.C. 601–674.                      www.regulations.gov. Follow the
                                                  invited to attend the meeting and                                                                             instructions for submitting comments.
                                                  participate in Committee deliberations                  ■ 2. Section 906.235 is revised to read
                                                                                                          as follows:                                              • Mail: Barry F. Mardock, Deputy
                                                  on all issues. Like all Committee                                                                             Director, Office of Regulatory Policy,
                                                  meetings, the May 23, 2018, meeting                     § 906.235    Assessment rate.                         Farm Credit Administration, 1501 Farm
                                                  was a public meeting, and all entities,                                                                       Credit Drive, McLean, VA 22102–5090.
                                                  both large and small, were able to                        On and after August 1, 2018, an
                                                  express views on this issue. Finally,                   assessment rate of $0.01 per 7/10-bushel              You may review copies of all comments
                                                  interested persons are invited to submit                carton or equivalent is established for               we receive at our office in McLean,
                                                  comments on this proposed rule,                         oranges and grapefruit grown in the                   Virginia, or from our website at http://
                                                  including the regulatory and                            Lower Rio Grande Valley in Texas.                     www.fca.gov. Once you are in the
                                                  information collection impacts of this                    Dated: August 21, 2018.                             website, select ‘‘Public Commenters,’’
                                                  action on small businesses.                             Bruce Summers,                                        then ‘‘Public Comments,’’ and follow
                                                     In accordance with the Paperwork                     Administrator, Agricultural Marketing                 the directions for ‘‘Reading Submitted
                                                  Reduction Act of 1995 (44 U.S.C.                        Service.                                              Public Comments.’’ We will show your
                                                  Chapter 35), the Order’s information                    [FR Doc. 2018–18363 Filed 8–23–18; 8:45 am]           comments as submitted, but for
                                                  collection requirements have been                       BILLING CODE 3410–02–P
                                                                                                                                                                technical reasons we may omit items
                                                  previously approved by the OMB and                                                                            such as logos and special characters.
                                                  assigned OMB No. 0581–0189, Fruit                                                                             Identifying information you provide,
                                                  Crops. No changes in those                                                                                    such as phone numbers and addresses,
                                                                                                          FARM CREDIT ADMINISTRATION                            will be publicly available. However, we
                                                  requirements would be necessary as a
                                                  result of this proposed rule. Should any                12 CFR Parts 611 and 619                              will attempt to remove email addresses
                                                  changes become necessary, they would                                                                          to help reduce internet spam.
                                                  be submitted to OMB for approval.                       RIN 3052–AC97
                                                                                                                                                                FOR FURTHER INFORMATION CONTACT:
                                                     This proposed rule would not impose
                                                  any additional reporting or                             Organization; Definitions; Eligibility                  Darius Hale, Senior Policy Analyst,
                                                  recordkeeping requirements on either                    Criteria for Outside Directors                        Office of Regulatory Policy, (703) 883–
                                                  small or large Texas orange and                                                                               4165, TTY (703) 883–4056, Haled@
                                                                                                          AGENCY:    Farm Credit Administration.                fca.gov, or
                                                  grapefruit handlers. As with all Federal
                                                                                                          ACTION:   Proposed rule.                                Nancy Tunis, Senior Counsel, Office
                                                  marketing order programs, reports and
                                                  forms are periodically reviewed to                      SUMMARY:   The Farm Credit                            of General Counsel, (703) 883–4061,
                                                  reduce information requirements and                     Administration (FCA, we, or our) is                   TTY (703) 883–4056, Tunisn@fca.gov.
                                                  duplication by industry and public                      proposing to amend its regulations                    SUPPLEMENTARY INFORMATION:
                                                  sector agencies. AMS is committed to                    affecting the governance of Farm Credit
                                                  complying with the E-Government Act,                    System (System) institutions. The                     I. Objectives
                                                  to promote the use of the internet and                  proposed rule would modify the                          The objectives of this proposed rule
                                                  other information technologies to                       existing outside director eligibility                 are to:
                                                  provide increased opportunities for                     criteria by expanding the list of persons
                                                  citizen access to Government                                                                                    • Amend the eligibility criteria for
                                                                                                          who would be excluded from
                                                  information and services, and for other                                                                       outside director in § 611.220(a);
                                                                                                          nomination for an outside director’s seat
                                                  purposes.                                               to ensure the independence of outside                   • Remove the definition of outside
                                                     USDA has not identified any relevant                                                                       director in § 619.9235;
sradovich on DSK3GMQ082PROD with PROPOSALS




                                                                                                          directors.
                                                  Federal rules that duplicate, overlap, or                                                                       • Strengthen the safety and
                                                  conflict with this proposed rule.                       DATES: You may send comments on or
                                                                                                                                                                soundness of System institutions;
                                                     A small business guide on complying                  before October 23, 2018.
                                                  with fruit, vegetable, and specialty crop               ADDRESSES: We offer a variety of
                                                                                                                                                                  • Strengthen the independence of
                                                  marketing agreements and orders may                     methods for you to submit your                        System institution boards; and
                                                  be viewed at: http://www.ams.usda.gov/                  comments. For accuracy and efficiency                   • Incorporate many of the best
                                                  rules-regulations/moa/small-businesses.                 reasons, commenters are encouraged to                 corporate governance practices for
                                                  Any questions about the compliance                      submit comments by email or through                   System institutions.


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Document Created: 2018-08-24 04:13:52
Document Modified: 2018-08-24 04:13:52
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received by September 24, 2018.
ContactDoris Jamieson, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: [email protected] or [email protected]
FR Citation83 FR 42805 
CFR AssociatedGrapefruit; Marketing Agreements; Oranges and Reporting and Recordkeeping Requirements

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