This section of the FEDERAL REGISTER

contains regulatory documents having general

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are keyed to and codified in the Code of

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REGISTER issue of each week.

Rules and Regulations Federal Register

61249 

Vol. 76, No. 192 

Tuesday, October 4, 2011 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 906 

[Doc. No. AMS–FV–11–0057; FV11–906–1 

FR] 

Oranges and Grapefruit Grown in 

Lower Rio Grande Valley in Texas; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

Texas Valley Citrus Committee 

(Committee) for the 2011–12 and 

subsequent fiscal periods from $0.12 to 

$0.14 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. Assessments 

upon orange and grapefruit handlers are 

used by the Committee to fund 

reasonable and necessary expenses of 

the program. The fiscal period began on 

August 1 and ends July 31. The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective Date: October 5, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Belinda G. Garza, Regional Manager, 

Texas Marketing Field Office, Marketing 

Order and Agreement Division, Fruit 

and Vegetable Programs, AMS, USDA; 

Telephone: (956) 632–5330, Fax: (956) 

632–5358, or E-mail: 

Belinda.Garza@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

Marketing Order Administration 

Division, 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: 

Laurel.May@ams.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 on August 1, 2011, 

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. 

This rule increases the assessment 

rate established for the Committee for 

the 2011–12 and subsequent fiscal 

periods from $0.12 to $0.14 per 7/10- 

bushel carton or equivalent of oranges 

and grapefruit handled. 

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 2004–05 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 June 9, 2011, 

and unanimously recommended 2011– 

12 expenditures of $1,224,037 and an 

assessment rate of $0.14 per 7/10-bushel 

carton or equivalent of oranges and 

grapefruit handled. In comparison, last 

year’s budgeted expenditures were 

$1,109,037. The assessment rate of $0.14 

is $0.02 higher than the rate currently in 

effect. The Committee recommended a 

higher assessment rate due to an 

expected smaller crop and an increase 

in budgeted expenses. Budgeted 

expenses were increased to provide 

additional funding for the Committee’s 

Mexican fruit fly program, and also to 

fund a Federal Agriculture Improvement 

Reform (FAIR) review analysis to be 

conducted next fiscal period. In 1996, 

Congress mandated that every five years 

commodity boards established under 

the oversight of the Secretary of 

Agriculture pursuant to a commodity 

promotion law should fund an 

independent evaluation of the 

effectiveness of their generic promotion 

program, which is now commonly 

known as a FAIR review. 

The Committee projected a reduced 

crop of 8,750,000 7/10-bushel carton 

equivalents, which would be 289,137 

7/10-bushel carton equivalents less than 

the 9,039,137 7/10-bushel carton 

equivalents handled during the 2010–11 


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61250 Federal Register / Vol. 76, No. 192 / Tuesday, October 4, 2011 / Rules and Regulations 

fiscal period. Furthermore, due to severe 

cuts in the State of Texas’ budget, the 

Texas Department of Agriculture 

requested the citrus industry’s 

assistance in funding a Mexican fruit fly 

trapping program, which is essential to 

the industry’s well-being. Based on a 

decreased crop estimate and anticipated 

expenditure increases, the Committee 

unanimously recommended that the 

assessment rate of $0.12 currently in 

effect be increased by $0.02. Income 

derived from handler assessments and 

interest should be adequate to cover 

budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2011–12 fiscal period include $479,000 

for the Mexican fruit fly support, 

trapping, and bait spray programs; 

$425,000 for promotion; and $250,737 

for management, administration, and 

compliance oversight. In comparison, 

major expenditures for these items in 

2010–11 (last fiscal period) were 

$229,000, $600,000, and $246,737, 

respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenditures by estimated 

shipments of Texas oranges and 

grapefruit. As mentioned earlier, orange 

and grapefruit shipments for the 2011– 

12 fiscal period are estimated at 8.75 

million 7/10-bushel carton equivalents, 

which should provide $1,225,000 in 

assessment income. Income generated 

through the $0.14 assessment rate and 

interest would be more than sufficient 

to meet anticipated expenses 

($1,224,037). Reserve funds at the end of 

2011–12 are projected at $283,774, well 

below one fiscal period’s expenses, 

which would be within the maximum 

reserve amount permitted under the 

order (§ 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 will 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 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 2011–12 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) 

(5 U.S.C. 601–612), 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 177 

producers of oranges and grapefruit in 

the production area and approximately 

12 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 $7,000,000. 

An updated Texas citrus industry 

profile shows that 6 of the 12 handlers 

(50 percent) would be considered large 

businesses under SBA’s definition, and 

the remaining 6 handlers (50 percent) 

would be considered small businesses. 

Of the approximately 177 producers 

within the production area, few have 

sufficient acreage to generate sales in 

excess of $750,000. Thus, half of the 

handlers and the majority of producers 

of Texas oranges and grapefruit may be 

classified as small entities. 

This rule increases the assessment 

rate established for the Committee and 

collected from handlers for the 2011–12 

and subsequent fiscal periods from 

$0.12 to $0.14 per 7/10-bushel carton or 

equivalent of oranges and grapefruit. 

The Committee unanimously 

recommended 2011–12 expenditures of 

$1,224,037 and an assessment rate of 

$0.14 per 7/10-bushel carton or 

equivalent handled. The quantity of 

assessable oranges and grapefruit for the 

2011–12 fiscal period is estimated at 

8.75 million 7/10-bushel carton 

equivalents. Thus, the $0.14 assessment 

rate should provide $1,225,000 in 

assessment income which should be 

sufficient to meet anticipated expenses. 

The major expenditures 

recommended by the Committee for the 

2011–12 fiscal period include $479,000 

for the Mexican Fruit Fly support, 

trapping, and bait spray programs; 

$425,000 for promotion; and $250,737 

for management, administration, and 

compliance oversight. Major 

expenditures for these items in 2010–11 

were $229,000, $600,000, and $246,737, 

respectively. 

The increased assessment rate 

recommended by the Committee was 

due to a reduced crop estimate (8.75 

million 7/10-bushel carton equivalents 

of oranges and grapefruit), and an 

increase in budgeted expenditures to 

provide additional funding for the 

Mexican fruit fly program and a FAIR 

analysis. With anticipated assessment 

income of $1,225,000, and anticipated 

expenditures of $1,224,037, funds in the 

reserve would be kept within the 

maximum of one fiscal period’s 

expenses permitted by the order 

(§ 906.35). 

In arriving at its recommended 

budget, the Committee considered 

alternative expenditure levels based 

upon the relative need of the Mexican 

fruit fly trapping and promotion 

programs to the Texas citrus industry. 

The assessment rate of $0.14 per 7/10- 

bushel carton equivalent was then 

determined by dividing the total 

recommended budget by the quantity of 

assessable oranges and grapefruit, 

estimated at 8.75 million 7/10 bushel 

carton equivalents for the 2011–12 fiscal 

period. Considering assessment revenue 

and interest, total revenue would be 

approximately $2,463 above the 

anticipated expenses, which the 

Committee determined to be acceptable. 

A review of historical information 

from recent seasons (2008–2010) and 

preliminary information pertaining to 

the current fiscal period indicates that 

the season average packinghouse door 

price for the 2011–12 fiscal period could 

likely range from $6.24 to $8.23 per 

7/10-bushel carton equivalent of Texas 

oranges, and from $10.90 to $15.55 for 

Texas grapefruit. Therefore, the 

estimated assessment revenue for the 

2011–12 fiscal period as a percentage of 

total grower (packinghouse door) 

revenue could range between 1.7 and 

2.2 percent for oranges and between 0.9 

and 1.3 percent for grapefruit. 

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 


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Federal Register / Vol. 76, No. 192 / Tuesday, October 4, 2011 / Rules and Regulations 61251 

offset by the benefits derived by the 

operation of the order. 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 June 9, 

2011, meeting was a public meeting and 

all entities, both large and small, were 

able to express views on this issue. 

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 Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0189 (Generic 

Fruit Crops—Mandatory). No changes in 

those requirements as a result of this 

action are necessary. Should any 

changes become necessary, they would 

be submitted to OMB for approval. 

This rule 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. As 

noted in the initial regulatory flexibility 

analysis, USDA has not identified any 

relevant Federal rules that duplicate, 

overlap, or conflict with this final rule. 

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. 

A proposed rule concerning this 

action was published in the Federal 

Register on August 10, 2011 (76 FR 

49381). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all orange and grapefruit handlers. 

Finally, the proposal was made 

available through the Internet by USDA 

and the Office of the Federal Register. A 

10-day comment period ending August 

22, 2011, 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/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Laurel May 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 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 2011–12 fiscal period 

began on August 1, 2011, 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) 

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 rule which 

was unanimously recommended by the 

Committee at a public meeting and is 

similar to other assessment rate actions 

issued in past years. Also, a 10-day 

comment period was provided for in the 

proposed rule. 

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 amended as 

follows: 

PART 906—ORANGES AND 

GRAPEFRUIT GROWN IN LOWER RIO 

GRANDE VALLEY IN TEXAS 

■ 1. The authority citation for 7 CFR 

part 906 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 906.235 is revised to read 

as follows: 

§ 906.235 Assessment rate. 

On and after August 1, 2011, an 

assessment rate of $0.14 per 7/10-bushel 

carton or equivalent is established for 

oranges and grapefruit grown in the 

Lower Rio Grande Valley in Texas. 

Dated: September 29, 2011. 

David R. Shipman, 

Acting Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–25493 Filed 10–3–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Animal and Plant Health Inspection 

Service 

9 CFR Part 77 

[Docket No. APHIS–2011–0093] 

Tuberculosis in Cattle and Bison; State 

and Zone Designations; New Mexico 

AGENCY: Animal and Plant Health 

Inspection Service, USDA. 

ACTION: Interim rule and request for 

comments. 

SUMMARY: We are amending the bovine 

tuberculosis regulations regarding State 

and zone classifications by reclassifying 

a zone in New Mexico consisting of 

Curry and Roosevelt Counties. We have 

determined that the zone meets the 

criteria for accredited-free status. Since 

the remainder of the State is already 

classified as accredited free, the entire 

State of New Mexico is now classified 

as accredited free. This action relieves 

certain restrictions on the interstate 

movement of cattle and bison from 

Curry and Roosevelt Counties in New 

Mexico. 

DATES: This interim rule is effective 

October 4, 2011. We will consider all 

comments that we receive on or before 

December 5, 2011. 

ADDRESSES: You may submit comments 

by either of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov/ 

#!documentDetail;D=APHIS-2011-0093- 

0001. 

• Postal Mail/Commercial Delivery: 

Send your comment to Docket No. 

APHIS–2011–0093, Regulatory Analysis 

and Development, PPD, APHIS, Station 

3A–03.8, 4700 River Road Unit 118, 

Riverdale, MD 20737–1238. 

Supporting documents and any 

comments we receive on this docket 

may be viewed at http:// 

www.regulations.gov/ 

#!docketDetail;D=APHIS-2011-0093 or 

in our reading room, which is located in 

room 1141 of the USDA South Building, 

14th Street and Independence Avenue, 

SW., Washington, DC. Normal reading 

room hours are 8 a.m. to 4:30 p.m., 

Monday through Friday, except 

holidays. To be sure someone is there to 

help you, please call (202) 690–2817 

before coming. 

FOR FURTHER INFORMATION CONTACT: Dr. 

Kathleen Orloski, Senior Staff 

Veterinarian, Ruminant Health 

Programs, Veterinary Services, APHIS, 

2150 Centre Avenue, Building B3E20, 

Fort Collins, CO 80526; (970) 494–7221. 

SUPPLEMENTARY INFORMATION: 


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