[Federal Register: December 5, 2007 (Volume 72, Number 233)]
[Rules and Regulations]
[Page 68471-68473]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05de07-1]
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Rules and Regulations
Federal Register
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[[Page 68471]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. AMS-FV-07-0088; FV07-905-1 FIR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Decreased 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 decreased the
assessment rate established for the Citrus Administrative Committee
(Committee) for the 2007-08 and subsequent fiscal periods from $0.008
to $0.0072 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 begins August 1 and ends July 31. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
EFFECTIVE DATE: January 4, 2008.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist,
or Christian D. Nissen, Regional Manager, Southeast Marketing Field
Office, Marketing Order Administration Branch, Fruit and Vegetable
Programs, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 325-8793, or
E-mail: Doris.Jamieson@usda.gov or Christian.Nissen@usda.gov.
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, 2007, 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 decreased the
assessment rate established for the Committee for the 2007-08 and
subsequent fiscal periods from $0.008 per \4/5\ bushel carton to
$0.0072 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 2005-06 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 29, 2007, and unanimously recommended
2007-08 expenditures of $275,000 and an assessment rate of $0.0072 per
\4/5\ bushel of oranges, grapefruit, tangerines, and tangelos grown in
Florida. In comparison, last year's budgeted expenditures were
$241,000. The assessment rate of $0.0072 is $0.0008 lower than the rate
previously in effect. This reduction was recommended because the
Committee experienced an unanticipated increase in shipments for the
2006-07 fiscal period and had revenues greater than expenses. In
addition, the industry has continued to recover from the hurricane
damage sustained during the 2004-05 and 2005-06 seasons, which is
expected to have a positive affect on total production.
The major expenditures recommended by the Committee for the 2007-08
fiscal year include $112,000 for salaries, $25,000 for Manifest
[[Page 68472]]
Department--Florida Department of Agriculture and Customer Services
(FDACS), $17,800 for retirement plan, and $14,550 for insurance and
bonds. Budgeted expenses for these items in 2006-07 were $110,000,
$25,000, $17,250, and $14,550, respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of oranges,
grapefruit, tangerines, and tangelos. Florida citrus shipments for the
year are estimated at 30 million \4/5\ bushels which should provide
$216,000 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 approximately $60,000) will be kept 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 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 2007-08 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.
There are approximately 8,000 producers of oranges, grapefruit,
tangerines, and tangelos in the production area and approximately 55
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 2005-06 season was
approximately $11.50 per \4/5\-bushel carton, and total fresh shipments
were approximately 29.1 million cartons. 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 producer prices reported by the National Agricultural
Statistics Service, and the total number of Florida citrus producers,
the average annual producer revenue is approximately $55,540.
Therefore, the majority of handlers and producers of Florida citrus may
be classified as small entities.
This rule continues in effect the action that decreased the
assessment rate established for the Committee and collected from
handlers for the 2007-08 and subsequent fiscal periods from $0.008 to
$0.0072 per \4/5\ bushel carton of oranges, grapefruit, tangerines, and
tangelos. The Committee unanimously recommended 2007-08 expenditures of
$275,000 and an assessment rate of $0.0072 per \4/5\ bushel carton. The
assessment rate of $0.0072 is $0.0008 lower than the 2006-07 rate. The
quantity of assessable oranges, grapefruit, tangerines, and tangelos
for the 2007-08 season is estimated at 30 million \4/5\ bushel cartons.
Thus, the $0.0072 rate should provide $216,000 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.
The major expenditures recommended by the Committee for the 2007-08
fiscal year include $112,000 for salaries, $25,000 for Manifest
Department--FDACS, $17,800 for retirement plan, and $14,550 for
insurance and bonds. Budgeted expenses for these items in 2006-07 were
$110,000, $25,000, $17,250, and $14,550, respectively.
The reduction in the assessment rate was recommended by the
Committee as a result of an unanticipated increase in shipments for the
2006-07 fiscal period, which produced revenues that were greater than
expenses. In addition, the industry has continued to recover from the
hurricane damage sustained during the 2004-05 and 2005-06 seasons,
which is expected to have a positive impact on production.
The Committee reviewed and unanimously recommended 2007-08
expenditures of $275,000. Prior to arriving at this budget, the
Committee considered information from various sources including the
Committee's Budget Subcommittee. Alternative expenditure levels were
discussed by this group, based on different estimates of assessable
cartons and budget expenses. The assessment rate of $0.0072 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 30 million
\4/5\ bushel cartons for the 2007-08 season, taking into consideration
the availability of reserve funds and interest income. This is
approximately $59,000 under anticipated expenses, which the Committee
determined to be acceptable.
A review of historical information and preliminary information
pertaining to the upcoming fiscal period indicates that the producer
price for the 2007-08 season could range between $1.83 and $9.76 per
\4/5\ bushels of oranges, grapefruit, tangerines, and tangelos.
Therefore, the estimated assessment revenue for the 2007-08 fiscal
period as a percentage of total producer revenue could range between
.07 and .39 percent.
This action continues in effect the action that decreased 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 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 May 29, 2007, 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
[[Page 68473]]
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 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 rule.
An interim final rule concerning this action was published in the
Federal Register on July 30, 2007 (72 FR 41423). Copies of that rule
were also mailed or sent via facsimile to all 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 September 28, 2007, 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 72 FR 41423 on July 30, 2007, is adopted as a final rule
without change.
Dated: November 29, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-23529 Filed 12-4-07; 8:45 am]
BILLING CODE 3410-02-P