[Federal Register: May 12, 2006 (Volume 71, Number 92)]
[Rules and Regulations]
[Page 27583-27585]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12my06-1]
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Rules and Regulations
Federal Register
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[[Page 27583]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV06-905-1 FIR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule which increased the
assessment rate established for the Citrus Administrative Committee
(Committee) for the 2005-06 and subsequent fiscal periods from $0.006
to $0.008 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. Assessments upon Florida citrus handlers
are used by the Committee to fund reasonable and necessary expenses of
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.
DATES: Effective Date: June 12, 2006.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Southeast Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA; telephone: (863) 324-3375, Fax: (863)
325-8793.
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.''
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 will be applicable to all assessable oranges,
grapefruit, tangerines, and tangelos grown in Florida, beginning August
1, 2005, 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 continues in effect the action that increased the
assessment rate established for the Committee for the 2005-06 and
subsequent fiscal periods from $0.006 per \4/5\ bushel carton to $0.008
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 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 December 16, 2005, and unanimously recommended
2005-06 expenditures of $209,000 and an assessment rate of $0.008 per
\4/5\ bushel of oranges, grapefruit, tangerines, and tangelos grown in
Florida based on a crop estimate of 24 million \4/5\ bushels. In
comparison, last year's budgeted expenditures were $300,000. The
recommended assessment rate is $0.002 higher than the $0.006 rate
currently in effect.
The Committee originally met May 10, 2005, and recommended a budget
of $220,000 and that the assessment rate be maintained at $0.006. The
Committee had anticipated reduced shipments due to the lingering
effects from the hurricanes the industry experienced during the 2004-05
season. However, in October 2005, the industry experienced additional
crop loss due to the effects of Hurricane Wilma. Assessable cartons for
2005-06 are now estimated to be 24 million, down from the 36 million
originally estimated for the season. Further, the new estimate is close
to 28 million cartons under shipments for the 2003-04 season, the most
recent season
[[Page 27584]]
not impacted by hurricanes. Consequently, an increase of the assessment
rate was recommended by the Committee, and implemented by USDA.
The major expenditures recommended by the Committee for the 2005-06
fiscal year include $106,150 for salaries, $25,000 for Manifests--USDA-
FDACS, $16,700 for retirement plan, $14,550 for insurance and bonds,
and $8,250 for payroll taxes. Budgeted expenses for these items in
2004-05 were $131,000, $25,000, $20,500, $21,000, and $10,600,
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 24 million \4/5\
bushels, which should provide $192,000 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
$30,000 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 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 2005-06 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 8,500 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
(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 $6,500,000 (13 CFR 121.201).
Based on industry and Committee data, the average annual f.o.b.
price for fresh Florida citrus during the 2004-05 season was
approximately $11.54 per \4/5\ bushel carton, and total fresh shipments
for the 2004-05 season were approximately 30.2 million cartons of
citrus. Using the average f.o.b. price, at least 70 percent of the
Florida citrus handlers could be considered small businesses under
SBA's definition. In addition, based on production and grower prices
reported by the National Agricultural Statistics Service, and the total
number of Florida citrus growers, the average annual grower revenue is
approximately $87,600. In view of the foregoing, it can be concluded
that the majority of handlers and producers of Florida citrus may be
classified as small entities.
This rule continues in effect the action that increased the
assessment rate established for the Committee and collected from
handlers for the 2005-06 and subsequent fiscal periods from $0.006 to
$0.008 per \4/5\ bushel carton of oranges, grapefruit, tangerines, and
tangelos. The Committee unanimously recommended 2005-06 expenditures of
$209,000 and an assessment rate of $0.008 per \4/5\ bushel carton. The
recommended assessment rate is $0.002 higher than the rate now in
effect. The quantity of assessable oranges, grapefruit, tangerines, and
tangelos for the 2005-06 season is estimated at 24 million \4/5\ bushel
cartons. Thus, the $0.008 rate should provide $192,000 in assessment
income. Income derived from handler assessments, along with interest
income, and funds from the Committee's reserve will be adequate to
cover budgeted expenses.
The major expenditures recommended by the Committee for the 2005-06
fiscal year include $106,150 for salaries, $25,000 for Manifests--USDA-
FDACS, $16,700 for retirement plan, $14,550 for insurance and bonds,
and $8,250 for payroll taxes. Budgeted expenses for these items in
2004-05 were $131,000, $25,000, $20,500, $21,000, and $10,600,
respectively.
The Committee originally met May 10, 2005, and recommended a budget
of $220,000 and that the assessment rate be maintained at $0.006. The
Committee had anticipated reduced shipments due to the lingering
effects from the hurricanes the industry experienced during the 2004-05
season. However, in October 2005, the industry experienced additional
crop loss due to the effects of Hurricane Wilma. Assessable cartons for
2005-06 are now estimated to be 24 million, down from the 36 million
originally estimated for the season. Further, the new estimate is close
to the 28 million cartons under shipments for the 2003-04 season, the
most recent season not impacted by hurricanes. Consequently, an
increase in the assessment rate to meet 2005-06 budget requirements was
recommended by the Committee and implemented by USDA.
The Committee reviewed and unanimously recommended 2005-06
expenditures of $209,000. 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 $0.008 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 Florida citrus, estimated at 24 million \4/5\ bushel cartons
for the 2005-06 season taking into consideration the availability of
reserve funds and interest income. This assessment rate will yield
approximately $17,000 under anticipated budgeted expenses with the
deficit funds to be drawn from reserves and interest income.
A review of historical information and preliminary information
pertaining to the upcoming 2005-06 fiscal period indicates that the
grower price for the 2005-06 season could range between $1.23 and $7.18
per \4/5\ bushel of oranges, grapefruit, tangerines, and tangelos.
Therefore, the estimated assessment revenue for the 2005-06 fiscal
period as a percentage of total
[[Page 27585]]
grower revenue could range between .11 and .65 percent.
This action continues in effect the action that increased 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 December
16, 2005, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
This action imposes no additional reporting or recordkeeping
requirements on either small or large Florida citrus handlers. As with
all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
AMS is committed to compliance with the Government Paperwork
Elimination Act (GPEA), which requires Government agencies in general
to provide the public the option of submitting information or
transacting business electronically to the maximum extent possible.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
An interim final rule concerning this action was published in the
Federal Register on February 1, 2006 (71 FR 5157). Copies of that rule
were also mailed or sent via facsimile to all Florida citrus handlers.
Finally, the interim final rule was made available through the Internet
by USDA and the Office of the Federal Register. A 60-day comment period
was provided for interested persons to respond to the interim final
rule. The comment period ended on April 3, 2006, and 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.
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
0
Accordingly, the interim final rule amending 7 CFR part 905 which was
published at 71 FR 5157 on February 1, 2006, is adopted as a final rule
without change.
Dated: May 9, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-4440 Filed 5-11-06; 8:45 am]
BILLING CODE 3410-02-P