[Federal Register: July 29, 2004 (Volume 69, Number 145)]
[Rules and Regulations]
[Page 45231-45233]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29jy04-2]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Docket No. FV04-906-2 IFR]
Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas;
Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This rule decreases the assessment rate established for the
Texas Valley Citrus Committee (Committee) for the 2004-05 and
subsequent fiscal periods from $0.14 to $0.12 per \7/10\-bushel carton
or equivalent of oranges and grapefruit handled. The Committee locally
administers the marketing order which regulates the handling of oranges
and grapefruit grown in the Lower Rio Grande Valley in Texas.
Authorization to assess orange and grapefruit handlers enables the
Committee to incur expenses that are reasonable and necessary to
administer the program. The fiscal period begins August 1 and ends July
31. The assessment rate will remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Effective July 30, 2004. Comments received by September 27,
2004, will be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938, or e-mail: moab.docketclerk@usda.gov;
or Internet: http://www.regulations.gov. Comments should reference the
docket 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.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Regional Manager,
McAllen Marketing Field Office, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA, 1313 E. Hackberry, McAllen, TX
78501; telephone: (956) 682-2833, Fax: (956) 682-5942; 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 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, 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, orange and
grapefruit handlers in the Lower Rio Grande Valley are subject to
assessments. Funds to administer the order are derived from such
assessments. It is intended that the assessment rate as issued herein
will be applicable to all assessable oranges and grapefruit beginning
August 1, 2004, 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.
[[Page 45232]]
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with USDA a petition
stating that the order, any provision of the order, or any obligation
imposed in connection with the order is not in accordance with law and
request a modification of the order or to be exempted therefrom. Such
handler is afforded the opportunity for a hearing on the petition.
After the hearing USDA would rule on the petition. The Act provides
that the district court of the United States in any district in which
the handler is an inhabitant, or has his or her principal place of
business, has jurisdiction to review USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule decreases the assessment rate established for the
Committee for the 2004-05 and subsequent fiscal periods from $0.14 per
to $0.12 per \7/10\-bushel carton or equivalent of oranges and
grapefruit.
The Texas orange and grapefruit 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
Texas oranges and grapefruit. 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 2003-04 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 May 21, 2004, and recommended 2004-05
expenditures of $1,005,956 and an assessment rate of $0.12 per \7/10\-
bushel carton or equivalent of oranges and grapefruit. Thirteen of the
14 Committee members and alternates acting as members voted in support
of the $0.02 decrease per \7/10\-bushel carton or equivalent. One
Committee member voted against the recommendation because he wanted the
decrease to be larger. In comparison, last year's budgeted expenditures
were $1,322,506. The assessment rate of $0.12 is $0.02 lower than the
rate currently in effect. The decrease in the assessment rate and
budget is primarily due to lower promotion and Mexican Fruit Fly
program budgets. The reduced assessment rate and budget will lower
handler costs by about $180,000 and will keep the Committee's operating
reserve at an acceptable level.
The major expenditures recommended by the Committee for the 2004-05
fiscal period include $550,000 for promotion, $204,000 for the Mexican
Fruit Fly Support Program, $123,679 for management and administration
of the program, and $72,777 for compliance. Budgeted expenses for these
items in 2003-04 were $800,000, $279,000, $119,929, and $72,777,
respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Texas oranges
and grapefruit. Texas orange and grapefruit shipments for the fiscal
period are estimated at 9 million \7/10\-bushel cartons or equivalents,
which should provide $1,080,000 in assessment income. Income derived
from handler assessments will be more than adequate to cover budgeted
expenses. Funds in the reserve (currently $175,000) will be kept within
the maximum of one fiscal period's expenses permitted by the order
(Sec. 906.35).
The assessment rate established in this rule will continue in
effect indefinitely unless modified, suspended, or terminated by USDA
upon recommendation and information submitted by the Committee or other
available information.
Although this assessment rate is effective for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal period to recommend a budget of expenses and consider
recommendations for modification of the assessment rate. The dates and
times of Committee meetings are available from the Committee or USDA.
Committee meetings are open to the public and interested persons may
express their views at these meetings. USDA will evaluate Committee
recommendations and other available information to determine whether
modification of the assessment rate is needed. Further rulemaking will
be undertaken as necessary. The Committee's 2004-05 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), the Agricultural Marketing Service (AMS) has considered the
economic impact of this 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
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 215 producers of oranges and grapefruit in
the production area and approximately 13 handlers subject to regulation
under the marketing order. Small agricultural producers are defined by
the Small Business Administration (SBA) (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.
An updated Texas citrus industry profile shows that 2 of the 13
handlers (15 percent) could be considered large businesses under SBA's
definition, and the remaining 11 handlers (85 percent) could be
considered small businesses. Of the approximately 215 producers within
the production area, few have sufficient acreage to generate sales in
excess of $750,000. Thus, the majority of handlers and producers of
Texas oranges and grapefruit may be classified as small entities.
This rule decreases the assessment rate established for the
Committee and collected from handlers for the 2004-05 and subsequent
fiscal periods from $0.14 to $0.12 per \7/10\-bushel carton or
equivalent of oranges and grapefruit.
The Committee met on May 21, 2004, and recommended 2004-05
expenditures of $1,005,956 and an assessment rate of $0.12 per \7/10\-
bushel carton or equivalent of oranges and grapefruit. The assessment
rate of $0.12 is $0.02 lower than the current rate. As mentioned
earlier, the quantity of assessable oranges and grapefruit for the
2004-05 fiscal period is estimated at 9 million \7/10\-bushel cartons
or equivalents. Thus, the $0.12 assessment rate should provide
$1,080,000 in assessment income and be more than adequate to cover
budgeted expenses.
The major expenditures recommended by the Committee for the
[[Page 45233]]
2004-05 fiscal period include $550,000 for promotion, $204,000 for the
Mexican Fruit Fly Support Program, $123,679 for management and
administration of the program, and $72,777 for compliance. Budgeted
expenses for these items in 2003-04 were $800,000, $279,000, $119,929,
and $72,777, respectively.
The Committee recommended the $0.12 assessment rate primarily
because it reduced its promotion and Mexican Fruit Fly programs. At a
$0.14 assessment rate, the Committee projected its reserve on July 31,
2005, to be $401,160, which it believed was more than needed to
administer the program. It also recommended the reduced assessment rate
to lower handler costs by about $180,000 during 2004-05.
The Committee reviewed and recommended 2004-05 expenditures of
$1,005,956, which included decreases in the promotion and Mexican Fruit
Fly programs and an increase in the management and administration of
the marketing order program. In arriving at the budget, the Committee
considered information from various sources, including the Executive
Committee. Alternative expenditure levels were discussed, based upon
the relative need of the Mexican Fruit Fly program to the Texas citrus
industry.
The assessment rate recommended by the Committee was derived by
dividing the total recommended budget by the 9 million \7/10\-bushel
cartons of oranges and grapefruit estimated for the 2004-05 fiscal
period. The $0.12 rate will provide $1,080,000 in assessment income.
This is approximately $74,044 above the anticipated expenses, which the
Committee determined to be acceptable.
A review of historical information from recent seasons (2000-2002)
and preliminary information pertaining to the upcoming fiscal period
indicates that the season average packinghouse door price for the 2004-
05 fiscal period could likely range from $1.40 to $2.60 per \7/10\-
bushel carton of Texas oranges, and from $2.15 to $2.70 for Texas
grapefruit. Therefore, the estimated assessment revenue for the 2004-05
fiscal period as a percentage of total grower (packinghouse door)
revenue could range between 8.6 and 4.6 percent for oranges and between
5.6 and 4.4 percent for grapefruit.
This action decreases the assessment obligation imposed on
handlers. Assessments are applied uniformly on all handlers, and some
of the costs may be passed on to producers. However, decreasing the
assessment rate reduces the burden on handlers, and may reduce the
burden on producers. In addition, the Committee's meeting was widely
publicized throughout the Texas orange and grapefruit industry and all
interested persons were invited to attend the meeting and participate
in Committee deliberations on all issues. Like all Committee meetings,
the May 21, 2004, 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 information on the regulatory
and informational impacts of this action on small businesses.
This action imposes no 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this 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/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 is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect, and 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 2004-05 fiscal period begins on August 1,
2004, and the marketing order requires that the rate of assessment for
each fiscal period apply to all assessable oranges and grapefruit
handled during such fiscal period; (2) this action decreases the
assessment rate for assessable oranges and grapefruit beginning with
the 2004-05 fiscal period; (3) handlers are aware of this action which
was recommended by the Committee at a public meeting and is similar to
other assessment rate actions issued in past years; and (4) this
interim final rule provides a 60-day comment period, and all comments
timely received will be considered prior to finalization of this rule.
List of Subjects in 7 CFR Part 906
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements.
0
For the reasons set forth in the preamble, 7 CFR part 906 is 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, 2004, an assessment rate of $0.12 per \7/
10\-bushel carton or equivalent is established for oranges and
grapefruit grown in the Lower Rio Grande Valley in Texas.
Dated: July 23, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-17273 Filed 7-28-04; 8:45 am]
BILLING CODE 3410-02-P