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[Federal Register Volume 78, Number 103 (Wednesday, May 29, 2013)]
[Rules and Regulations]
[Pages 32068-32070]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-12654]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-FV-12-0052; FV12-905-2 FR]

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Revising Reporting Requirements and New Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule revises the reporting requirements prescribed under 
the Federal marketing order for oranges, grapefruit, tangerines, and 
tangelos grown in Florida (order). The Citrus Administrative Committee 
(Committee) is responsible for local administration of the order. This 
rule requires all fresh citrus handlers to provide the Committee with a 
list of all growers whose fruit they handled each season. This 
information will enable the Committee to more efficiently administer 
the order and better communicate fresh market issues to fresh market 
citrus growers.

DATES: Effective Date: May 30, 2013.

FOR FURTHER INFORMATION CONTACT: Jennie M. Varela, 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: Jennie.Varela@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.

[[Page 32069]]

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect.
    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. A 
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 revises the reporting requirements prescribed under the 
order. This rule requires all fresh citrus handlers to provide the 
Committee with a list of all growers whose fruit they handled each 
season. This information will enable the Committee to more efficiently 
administer the order and better communicate fresh market issues to 
fresh market citrus growers. This rule was unanimously recommended by 
the Committee at a July 17, 2012, meeting.
    Section 905.71 of the order provides the Committee, with the 
approval of the Secretary, authority to collect information from 
handlers that is deemed necessary for administering the order. This 
rule utilizes this authority to establish a new Sec.  905.171 under the 
rules and regulations of the order. This new section requires handlers 
of fresh citrus to report to the Committee a list of names and contact 
information for all growers whose fruit they have shipped by June 15 of 
each season.
    Prior to this action, the Committee did not require handlers to 
report any information regarding the growers who supply them. In order 
to communicate with its grower base regarding the order or Committee 
actions, the Committee depended on mailing lists from other industry 
groups. However, third party lists are often incomplete, out-of-date, 
or do not distinguish between those growing for the fresh market or 
those growing for the processed market.
    Ninety percent of the volume of citrus produced in Florida is sold 
for processing into juice, which is not regulated under the order. 
Consequently, while there are an estimated 8,000 citrus growers, it is 
estimated only 750 growers produce for the fresh market. Because there 
is no readily available comprehensive list of fresh citrus growers, the 
Committee could allocate a great deal of resources into information 
distribution and still not be certain that the information is getting 
to those covered under the order.
    Recently, the Committee began discussing potential changes to the 
order to make it more efficient and responsive to industry needs. In 
these discussions, the Committee recognized that grower involvement 
could be improved through focused communication with fresh market 
citrus growers. However, in order to actively reach out to growers in 
the industry, the Committee must have accurate information. The 
Committee discussed developing a list of growers compiled annually from 
information provided by handlers to make effective outreach possible. 
Some members expressed concerns about the disclosure of proprietary 
information. The Committee addressed these concerns by stating the 
scope of the information collection could be limited to only grower 
contact information.
    In addition, while this action assists the Committee in its efforts 
to keep growers informed and to solicit their input on potential 
changes to the order, it also can be used to increase grower outreach 
and involvement in Committee elections and membership, facilitate 
grower participation in amendment and continuance referenda, and 
provide for a more efficient use of Committee resources.
    As a result, Committee members recommended collecting grower names 
and contact information each season from handlers of fresh citrus so 
that the Committee will have an accurate and updated list to use in 
communicating with fresh market citrus growers. June 15 was selected as 
the due date for this information as it is toward the end of the season 
and Committee members agreed handlers will have a complete list at that 
time.
    This change revises reporting requirements to require all fresh 
citrus handlers regulated under the order to provide the Committee with 
contact information for all growers whose fruit they have shipped. This 
information is due by June 15 of each season. The change enables the 
Committee to more efficiently administer the order and communicate 
fresh market issues to fresh market citrus growers.

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 action 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 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 growers of citrus in the production 
area and approximately 45 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 $7,000,000 (13 CFR 121.201).
    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. In 
addition, 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. Thus, 
assuming a normal distribution, the majority of producers and handlers 
of Florida citrus may be classified as small entities.
    This rule revises the reporting requirements prescribed under the 
order. This action requires all fresh citrus handlers to provide the 
Committee with a list of all growers whose fruit they handled by June 
15 of each season. This information will enable the Committee to more 
efficiently administer the order and better communicate fresh market 
issues to fresh market citrus growers. This rule creates a new Sec.  
905.171, which establishes the new reporting requirement. The authority 
for this action is provided for in Sec.  905.71. This change was 
unanimously recommended by the Committee at a July 17, 2012, meeting.
    Requiring grower contact information each season imposes a minor 
increase in the reporting burden on all citrus handlers. However, this 
data is already

[[Page 32070]]

recorded and maintained by handlers as a part of their daily business. 
Handlers, regardless of size, should be able to readily access this 
information. Consequently, any additional costs associated with this 
change will be minimal and apply equally to all handlers.
    This action will also help growers receive more information about 
the activities under the order, and make them more aware of their 
opportunities to participate in the efforts of the Committee. The 
benefits of this rule are expected to be equally available to all fresh 
citrus growers, regardless of their size.
    The Committee discussed making no change as an alternative to this 
action, but determined that in order to efficiently carry out the 
objectives of the marketing order, the information collection within 
this new report was necessary. Therefore, this alternative was 
rejected.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), this collection has been submitted to the Office of 
Management and Budget (OMB) with the reference number 0581-0284. Upon 
approval, the collection will be merged with OMB No. 0581-0189, Generic 
OMB Fruit Crops. This final rule establishes the use of a new Committee 
form, which imposes a minor burden increase of 15 hours. The form, 
Handler Supplier Report, requires minimum information necessary to 
effectively carry out the requirement of the order. The information 
would enable the Committee to more efficiently administer the order and 
improve communication with growers.
    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 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.
    Further, the Committee's meeting was widely publicized throughout 
the 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.
    A proposed rule concerning this action was published in the Federal 
Register on March 5, 2013 (78 FR 14236). Copies of the rule were mailed 
or sent via facsimile to all Committee members and citrus handlers. 
Finally, the rule was made available through the Internet by USDA and 
the Office of the Federal Register. A 60-day comment period ending May 
6, 2013, was provided to allow 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 matter 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.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because the Committee requires time to 
prepare and mail out a handler information packet that should include 
the Handler Supplier Report, prior to the beginning of shipments for 
the next crop year that begins August 1. In addition, handlers are 
aware of this rule that was recommended at a Committee meeting on July 
17, 2012. Also, a 60-day comment period was provided in the proposed 
rule.

List of Subjects in 7 CFR Part 905

    Citrus, Marketing agreements, Reporting and recordkeeping 
requirements.

    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

0
1. The authority citation for 7 CFR part 905 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Section 905.171 is added to read as follows:

Sec.  905.171  Handler supplier report.

    Each handler shall furnish a supplier report to the Committee on an 
annual basis. Such reports shall be made on forms provided by the 
Committee and shall include the name and business address of each 
grower whose fruit was shipped or acquired by the handler during the 
season. Handlers shall submit this report to the Committee not later 
than June 15 of each season.

    Dated: May 21, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-12654 Filed 5-28-13; 8:45 am]
BILLING CODE 3410-02-P
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