[Federal Register: September 29, 2003 (Volume 68, Number 188)]
[Rules and Regulations]
[Page 55807-55809]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29se03-1]
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Rules and Regulations
Federal Register
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[[Page 55807]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV03-905-4 FR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This rule increases the assessment rate established for the
Citrus Administrative Committee (Committee) for the 2003-04 and
subsequent fiscal periods from $0.005 to $0.006 per \4/5\ bushel carton
of oranges, grapefruit, tangerines, and tangelos handled. The Committee
locally administers the marketing order, which regulates the handling
of oranges, grapefruit, tangerines, and tangelos grown in Florida.
Authorization to assess Florida citrus handlers enables the Committee
to incur expenses that are reasonable and necessary to administer the
program. The fiscal period began August 1 and ends July 31. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
EFFECTIVE DATE: September 30, 2003.
FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast
Marketing Field Office, Marketing Order Administration Branch, Fruit
and Vegetable Programs, AMS, USDA, 799 Overlook Drive, Suite A, Winter
Haven, Florida 33884-1671; telephone: (863) 324-3375, Fax: (863) 325-
8793; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue SW., STOP 0237, Washington, DC 20250-0237;
telephone: (202) 720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; telephone: (202) 720-2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR
part 905), regulating the handling of oranges, grapefruit, tangerines,
and tangelos grown in Florida, hereinafter referred to as the
``order.'' 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 Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing 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
as issued herein is applicable to all assessable oranges, grapefruit,
tangerines, and tangelos grown in Florida, beginning August 1, 2003,
and continue until amended, suspended, or terminated. This rule will
not preempt any State or local laws, regulations, or policies, unless
they present an irreconcilable conflict with this rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule increases the assessment rate established for the
Committee for the 2003-04 and subsequent fiscal periods from $0.005 per
4/5 bushel carton to $0.006 per 4/5 bushel carton of oranges,
grapefruit, tangerines, and tangelos grown in Florida.
The Florida citrus marketing order provides authority for the
Committee, with the approval of USDA, to formulate an annual budget of
expenses and collect assessments from handlers to administer the
program. The members of the Committee are producers and handlers of
oranges, grapefruit, tangerines, and tangelos. They are familiar with
the Committee's needs and with the costs for goods and services in
their local area and are thus in a position to formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in a public meeting. Thus, all directly affected persons have
an opportunity to participate and provide input.
For the 2001-02 and subsequent fiscal periods, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by USDA upon recommendation and information
submitted by the Committee or other information available to USDA.
The Committee met on July 1, 2003, and unanimously recommended
2003-04 expenditures of $247,000 and an assessment rate of $0.006 per
4/5 bushel of oranges, grapefruit, tangerines, and tangelos grown in
Florida based on a crop estimate of 45 million 4/5 bushels. In
comparison, last year's budgeted expenditures were $250,700. The
assessment rate of $0.006 is $0.001 higher than the $0.005 rate
previously in effect. This increase reflects the Committee's
expectation of lower shipments in the coming year resulting in less
assessment income to cover expenses. In addition, the Committee wants
to increase the monies available in their reserve fund.
The major expenditures recommended by the Committee for the 2003-04
fiscal year include $126,000 for salaries, $25,000 for Manifests-USDA-
FDACS, $21,000 for insurance and
[[Page 55808]]
bonds, $19,500 for retirement plan, and $10,100 for payroll taxes.
Budgeted expenses for these items in 2002-03 were $126,000, $25,000,
$21,000, $19,500, and $10,100, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of oranges,
grapefruit, tangerines, and tangelos. As mentioned earlier, Florida
citrus shipments for the year are estimated at 45 million 4/5 bushels,
which should provide $270,000 in assessment income. Income derived from
handler assessments, along with interest income and funds from the
Committee's authorized reserve, will be adequate to cover budgeted
expenses. Funds in the reserve currently total approximately $23,091
and are within the maximum permitted by the order of not to exceed one
half of one fiscal period's expenses as stated in Sec. 905.42(a).
The assessment rate established in this rule continues 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 is 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 2003-04 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), 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
business 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 11,000 producers of oranges, grapefruit,
tangerines, and tangelos in the production area and approximately 75
handlers subject to regulation under the marketing order. Small
agricultural producers are defined by the Small Business Administration
(13 CFR 121.201) as those having annual receipts less than $750,000,
and small agricultural service firms are defined as those whose annual
receipts are less than $5,000,000.
Based on industry and Committee data, the average annual f.o.b.
price for fresh Florida oranges, grapefruit, tangerines, and tangelos
during the 2002-03 season was approximately $8.55 per 4/5 bushel
carton, and total fresh shipments for the 2003-04 season are estimated
at 45 million cartons of oranges, grapefruit, tangerines, and tangelos.
Approximately 20 handlers handled 65 percent of Florida's citrus
shipments in 2002-03. Considering the average f.o.b. price, at least 55
percent of the orange, grapefruit, tangerine, and tangelo handlers
could be considered small businesses under SBA's definition. Therefore,
the majority of Florida citrus handlers may be classified as small
entities. The majority of Florida citrus producers may also be
classified as small entities.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2003-04 and subsequent
fiscal periods from $0.005 to $0.006 per 4/5 bushel carton of oranges,
grapefruit, tangerines, and tangelos. The Committee unanimously
recommended 2003-04 expenditures of $247,000 and an assessment rate of
$0.006 per 4/5 bushel carton. The assessment rate of $0.006 is $0.001
higher than the current rate. The quantity of assessable oranges,
grapefruit, tangerines, and tangelos for the 2003-04 season is
estimated at 45 million 4/5 bushel cartons. Thus, the $0.006 rate
should provide $270,000 in assessment income and be adequate to meet
this year's expenses.
The major expenditures recommended by the Committee for the 2003-04
fiscal period include $126,000 for salaries, $25,000 for Manifests-
USDA-FDACS, $21,000 for insurance and bonds, $19,500 for retirement
plan, and $10,100 for payroll taxes. Budgeted expenses for these items
in 2002-03 were $126,000, $25,000, $21,000, $19,500, and $10,100,
respectively.
The increase in the assessment rate is due to the Committee's
expectation that shipments in the coming year will be lower affecting
assessment income. The Committee also wants to replenish its reserve
fund.
The Committee reviewed and unanimously recommended 2003-04
expenditures of $247,000. Prior to arriving at this budget, the
Committee considered information from various sources including the
Committee's Budget Subcommittee. Alternative assessment rates were
discussed based on different estimates of assessable cartons and budget
expenses. The assessment rate of $0.006 per 4/5 bushel carton of
assessable oranges, grapefruit, tangerines, and tangelos was then
determined by dividing the total recommended budget by the quantity of
assessable commodity, estimated at 45 million 4/5 bushel cartons for
the 2003-04 season taking into consideration the need for additional
funds to increase reserves. This assessment rate will yield
approximately $23,000 over anticipated budgeted expenses with the
excess funds to be earmarked for the reserve fund.
A review of historical information and preliminary information
pertaining to the upcoming 2003-04 fiscal period indicates that the
grower price for the 2003-04 season could range between $1.80 and
$20.40 per 4/5 bushel of oranges, grapefruit, tangerines, and tangelos.
Therefore, the estimated assessment revenue for the 2003-04 fiscal
period as a percentage of total grower revenue could range between .03
and .33 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 and all interested persons were
invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the July 1,
2003, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
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
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duplication by industry and public sector agencies.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
A proposed rule concerning this action was published in the Federal
Register on July 28, 2003 (68 FR 44237). Copies of the proposed rule
were also mailed or sent via facsimile to all Florida citrus handlers.
Finally, the proposal was made available through the Internet by the
Office of the Federal Register and USDA. A 30-day comment period ending
August 27, 2003, was provided for interested persons to respond to the
proposal. No comments were received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html.
Any questions about the compliance
guide should be sent to Jay Guerber 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, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
Pursuant to 5 U.S.C. 553, it also found and determined that good
cause exists for not postponing the effective date of this rule until
30 days after publication in the Federal Register because: (1) The
2003-04 fiscal period began August 1, 2003, and the marketing order
requires that the rate of assessment for each fiscal period apply to
all assessable citrus fruit handled during such fiscal period; (2) the
Committee needs to have sufficient funds to pay its expenses which are
incurred on a continuous basis; and (3) handlers are aware of this
action which was unanimously recommended by the Committee at a public
meeting and is similar to other assessment actions issued in past
years.
List of Subjects in 7 CFR Part 905
Grapefruit, Oranges, Tangelos, Tangerines, Marketing agreements,
Reporting and recordkeeping requirements.
0
For the reasons set forth in the preamble, 7 CFR part 905 is amended as
follows:
PART 905--Oranges, Grapefruit, Tangerines, and Tangelos Grown in
Florida
0
1. The authority citation for 7 CFR part 905 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 905.235 is revised to read as follows:
Sec. 905.235 Assessment rate.
On and after August 1, 2003, an assessment rate of $0.006 per 4/5
bushel carton or equivalent is established for assessable Florida
citrus covered under the order.
Dated: September 23, 2003.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 03-24538 Filed 9-26-03; 8:45 am]
BILLING CODE 3410-02-P