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Rules and Regulations Federal Register

24327 

Vol. 78, No. 80 

Thursday, April 25, 2013 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 905 

[Doc. No. AMS–FV–12–0045; FV12–905–1 

FR] 

Oranges, Grapefruit, Tangerines, and 

Tangelos Grown in Florida; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

Citrus Administrative Committee 

(Committee) for the 2012–13 and 

subsequent fiscal periods from $0.0072 

to $0.008 per 4⁄5 bushel carton of citrus 

handled. The Committee locally 

administers the marketing order that 

regulates the handling of oranges, 

grapefruit, tangerines, and tangelos 

grown in Florida. Assessments upon 

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. 

DATES: Effective Date: April 26, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Corey E. Elliott, Marketing Specialist, or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or Email: 

Corey.Elliott@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

905, 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 will be 

applicable to all assessable citrus 

beginning on August 1, 2012, 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 2012–13 and subsequent fiscal 

periods from $0.0072 to $0.008 per 4⁄5

bushel carton of citrus. 

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 Florida citrus. They are 

familiar with the Committee’s needs and 

with the costs for goods and services in 

their local area. Thus, they are 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 2007–08 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 

based upon a recommendation and 

information submitted by the 

Committee or other information 

available to USDA. 

The Committee met on July 17, 2012, 

and unanimously recommended 2012– 

13 expenditures of $223,500 and an 

assessment rate of $0.008 per 4⁄5 bushel 

carton of citrus. In comparison, last 

year’s budgeted expenditures were also 

$223,500. The assessment rate of $0.008 

is $0.0008 higher than the rate currently 

in effect. 

The Committee estimates 2012–2013 

production to be approximately 27.3 

million 4⁄5 bushel cartons, down from 

the 29.5 million 4⁄5 bushel cartons 

estimated for last year. At the current 

assessment rate, assessment income 

would equal only $196,560, an amount 

insufficient to cover the Committee’s 

anticipated expenditures. The 

assessment rate increase will generate 

additional revenue and will help offset 

the amount of reserves needed to fund 

the budget. Therefore, the Committee 

recommended increasing the assessment 

rate. 

The major expenditures 

recommended by the Committee for the 

2012–13 year include $116,200 for 

salaries, $25,000 for Florida Department 

of Agriculture and Consumer Services 

(FDACS) manifesting, and $18,250 for a 

retirement plan. Budgeted expenses for 

these items in 2011–12 were the same 

as recommended for 2012–13 budgeted 

expenditures, respectively. 

The assessment rate recommended by 

the Committee was derived by 

reviewing anticipated expenses, 


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24328 Federal Register / Vol. 78, No. 80 / Thursday, April 25, 2013 / Rules and Regulations 

expected shipments of Florida citrus, 

interest income, and available reserves. 

Citrus shipments for the year are 

estimated at 27.3 million 4⁄5 bushel 

cartons which should provide $218,400 

in assessment income. Income derived 

from handler assessments, along with 

interest income and funds from the 

Committee’s authorized reserve should 

be adequate to cover budgeted expenses. 

Funds in the reserve (approximately 

$34,000) will be kept within the 

maximum permitted by the order, not to 

exceed one half of one fiscal period’s 

expenses as stated in § 905.42. 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

based upon a 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 2012–13 budget and those 

for subsequent fiscal periods would 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 45 handlers 

subject to regulation under the 

marketing order and approximately 

8,000 producers of citrus in the 

production area. Small agricultural 

service firms are defined by the Small 

Business Administration (SBA) as those 

whose annual receipts are less than 

$7,000,000, and small agricultural 

producers are defined as those having 

annual receipts less than $750,000 (13 

CFR 121.201). 

Based on industry and Committee 

data, the average annual f.o.b. price for 

fresh Florida citrus during the 2010–11 

season was approximately $12.16 per 4⁄5

bushel carton, and total fresh shipments 

were approximately 30.4 million 

cartons. Using the average f.o.b. price 

and shipment data, about 55 percent of 

the Florida citrus handlers could be 

considered small businesses under 

SBA’s definition. In addition, based on 

production data, grower prices as 

reported by the National Agricultural 

Statistics Service, and the total number 

of Florida citrus growers, the average 

annual grower revenue is below 

$750,000. Thus, assuming a normal 

distribution, the majority of handlers 

and producers of Florida citrus may be 

classified as small entities. 

This rule increases the assessment 

rate established for the Committee and 

collected from handlers for the 2012–13 

and subsequent fiscal periods from 

$0.0072 to $0.008 per 4⁄5 bushel carton 

of citrus. The Committee unanimously 

recommended 2012–13 expenditures of 

$223,500 and an assessment rate of 

$0.008 per 4⁄5 bushel carton of citrus. 

The assessment rate of $0.008 is $0.0008 

higher than the 2011–12 rate. The 

quantity of assessable citrus for the 

2012–13 season is estimated at 27.3 

million cartons. Thus, the $0.008 rate 

should provide $218,400 in assessment 

income. Income derived from handler 

assessments, along with interest income 

and funds from the Committee’s 

authorized reserve fund should be 

adequate to meet this year’s anticipated 

expenses. 

The major expenditures 

recommended by the Committee for the 

2012–13 year include $116,200 for 

salaries, $25,000 for Florida Department 

of Agriculture and Consumer Services 

(FDACS) manifesting, and $18,250 for a 

retirement plan. Budgeted expenses for 

these items in 2011–12 were the same 

as recommended for 2012–13 budgeted 

expenditures, respectively. 

As previously stated, the Committee 

estimates the 2012–2013 production to 

be approximately 27.3 million 4⁄5 bushel 

cartons, down from the 29.5 million 4⁄5

bushel cartons estimated for last year. 

At the current assessment rate, 

assessment income would equal only 

$196,560, an amount insufficient to 

cover the Committee’s anticipated 

expenditures. The assessment rate 

increase will generate additional 

revenue and will help offset the amount 

of reserves needed to fund the budget. 

Therefore, the Committee recommended 

increasing the assessment rate. 

The Committee reviewed and 

unanimously recommended 2012–13 

expenditures of $223,500. Prior to 

arriving at this budget, the Committee 

considered information from the 

Committee’s Executive Subcommittee. 

Alternative expenditure levels were 

discussed by this group. The assessment 

rate of $0.008 per 4⁄5 bushel carton of 

citrus was then determined by 

reviewing anticipated expenses, total 

expected shipments of citrus, interest 

income, and the available reserves. 

Based on estimated shipments of 27.3 

million cartons, the increased 

assessment rate should provide 

$218,400 in assessment income. This is 

approximately $5,100 less than 

anticipated expenses, which the 

Committee determined to be acceptable. 

A review of historical information and 

preliminary information pertaining to 

the upcoming crop year indicates that 

the grower price for the 2012–13 season 

could range between $3.83 and $10.13 

per 4⁄5 bushel carton of citrus. Therefore, 

the estimated assessment revenue for 

the 2012–13 crop year as a percentage 

of total grower revenue could range 

between .08 and .2 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 17, 2012, 

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. 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 


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Federal Register / Vol. 78, No. 80 / Thursday, April 25, 2013 / Rules and Regulations 24329 

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. 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 January 15, 2013 (78 FR 

2908). 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 USDA and the Office of 

the Federal Register. A 10-day comment 

period ending January 25, 2013, 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: www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

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 the crop year began August 1, 

handlers are already receiving 2012–13 

citrus from growers, and the order 

requires that the rate of assessment 

apply to all assessable citrus handled 

during such period. In addition, the 

Committee needs to have sufficient 

funds to pay its expenses, which are 

incurred on a continuous basis. Further, 

handlers are aware of this rule, which 

was recommended at a public meeting. 

Also, a 10-day comment period was 

provided for in the proposed rule, and 

no comments were received. 

List of Subjects in 7 CFR Part 905 

Grapefruit, Oranges, Reporting and 

recordkeeping requirements, Tangelos, 

Tangerines. 

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 

■ 1. The authority citation for 7 CFR 

part 905 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 905.235 is revised to read 

as follows: 

§ 905.235 Assessment rate. 

On and after August 1, 2012, an 

assessment rate of $0.008 per 4⁄5 bushel 

carton or equivalent is established for 

Florida citrus covered under the order. 

Dated: April 22, 2013. 

David R. Shipman, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2013–09814 Filed 4–24–13; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 906 

[Doc. No. AMS–FV–12–0038; FV12–906–1 

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 2012–13 and 

subsequent fiscal periods from $0.14 to 

$0.16 per 7/10-bushel carton or 

equivalent of oranges and grapefruit 

handled. The Committee locally 

administers the marketing order that 

regulates the handling of oranges and 

grapefruit grown in the Lower Rio 

Grande Valley in Texas (order). 

Assessments upon orange and grapefruit 

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. 

DATES: Effective April 26, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Doris Jamieson, Marketing Specialist or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or Email: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@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 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 

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, 2012, 

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 


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