Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations 1917 

TABLE 2.—UNIT RATES SERVICE 1—Continued 

(c) Milled rice ........................................................................................................................................................................................ 29.30 

Factor analysis for any single factor (per factor): 

(a) Milling yield (per sample) (Rough or Brown rice) .......................................................................................................................... 36.60 

(b) All other factors (per factor) (all rice) ............................................................................................................................................. 17.60 

Total oil and free fatty acid ...................................................................................................................................................................... 57.20 

Interpretive line samples: 2

(a) Milling degree (per set) .................................................................................................................................................................. 124.90 

(b) Parboiled light (per sample) ........................................................................................................................................................... 30.60 

Faxed and extra copies of certificates (per copy) ................................................................................................................................... 3.00 

Stowage Examination (service-on-request) 3

(a) Ship (per stowage space) (minimum $252.50 per ship) ................................................................................................................ 50.50 

(b) Subsequent ship examination (same as original) (minimum $151.50 per ship) ........................................................................... 50.50 

(c) Barge (per examination) ................................................................................................................................................................. 40.50 

(d) All other carriers (per examination) ................................................................................................................................................ 15.50 

1Fees apply to determinations (original or appeals) for kind, class, grade, factor analysis, equal to type, milling yield, or any other quality designation as defined in the U.S. Standards for Rice or applicable instructions, whether performed singly or in combination at other than at the applicant’s facility. 2 Interpretive line samples may be purchased from the U.S. Department of Agriculture, GIPSA, FGIS, Technical Services Division, 10383 North 

Ambassador Drive, Kansas City, Missouri 64153–1394. Interpretive line samples also are available for examination at selected FGIS field offices. 

A list of field offices may be obtained from the Director, Field Management Division, USDA, GIPSA, FGIS, 1400 Independence Avenue, SW., 

STOP 3630, Washington, DC 20250–3630 or from the GIPSA Web site (http://www.gipsa.usda.gov). The interpretive line samples illustrate the 

lower limit for milling degrees only and the color limit for the factor ‘‘Parboiled Light’’ rice. 3 If performed outside of normal business hours, 11⁄2 times the applicable unit fee will be charged. 

James E. Link, 

Administrator, Grain Inspection, Packers and 

Stockyards Administration. 

[FR Doc. 07–153 Filed 1–16–07; 8:45 am] 

BILLING CODE 3410–KD–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 966 

[Docket No. AMS–FV–06–0190; FV06–966–

2 FR] 

Tomatoes Grown in Florida; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

Florida Tomato Committee (Committee) 

for the 2006–07 and subsequent fiscal 

periods from $0.025 to $0.035 per 25- 

pound container or equivalent of 

tomatoes handled. The Committee 

locally administers the marketing order 

which regulates the handling of 

tomatoes grown in Florida. Assessments 

upon Florida tomato 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: January 18, 2007. 

FOR FURTHER INFORMATION CONTACT: 

William G. Pimental, 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: 

William.Pimental@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. 125 and Order No. 966, both as 

amended (7 CFR part 966), regulating 

the handling of tomatoes 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 tomato 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 tomatoes 

beginning August 1, 2006, 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 increases the assessment 

rate established for the Committee for 

the 2006–07 and subsequent fiscal 

periods from $0.025 to $0.035 per 25- 

pound container or equivalent of 

tomatoes handled. 

The Florida tomato 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 tomatoes. 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 

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1918 Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations 

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 August 22, 

2006, and unanimously recommended 

2006–07 expenditures of $2,193,700 and 

an assessment rate of $0.035 per 25- 

pound container or equivalent of 

tomatoes. In comparison, last year’s 

budgeted expenditures were $2,161,800. 

The assessment rate of $0.035 is $0.01 

higher than the rate currently in effect. 

The increase in the assessment rate is 

needed to continue to support the 

increased budget for advertising and 

promotion started last season, while 

reducing the amount of funds drawn 

from the Committee’s authorized 

reserve. Without the increase in the 

assessment rate, the Committee would 

need to utilize an additional $500,000 

from the authorized reserve. 

The major expenditures 

recommended by the Committee for the 

2006–07 fiscal period include 

$1,000,000 for education and 

promotions, $445,900 for salaries, 

$320,000 for research, $67,000 for 

employee retirement, and $63,800 for 

employee health insurance. Budgeted 

expenses for these items in 2005–06 

were $1,000,000, $428,000, $320,000, 

$65,000 and $63,800, respectively. 

The assessment rate recommended by 

the Committee was derived by dividing 

anticipated expenses by expected 

shipments of Florida tomatoes. Tomato 

shipments for the year are estimated at 

50 million which should provide 

$1,750,000 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 (currently around $700,000) 

will be kept within the maximum 

permitted by the order of not to exceed 

one fiscal period’s expenses as stated in 

§ 966.44. 

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 2006–07 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), 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 100 

producers of tomatoes in the production 

area and approximately 70 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 price for fresh 

Florida tomatoes during the 2005–06 

season was approximately $10.27 per 

25-pound container or equivalent, and 

total fresh shipments for the 2005–06 

season were 47,880,303 25-pound 

equivalent cartons of tomatoes. 

Committee data indicates that 

approximately 25 percent of the 

handlers handle 94 percent of the total 

volume shipped outside the regulated 

area. Based on the average annual price 

of $10.27 per 25-pound container, about 

75 percent of handlers could be 

considered small businesses under 

SBA’s definition. In addition, based on 

production, grower prices as reported by 

the National Agricultural Statistics 

Service, and the total number of Florida 

tomato growers, the average annual 

grower revenue is below $750,000. 

Thus, the majority of handlers and 

producers of Florida tomatoes may be 

classified as small entities. 

This rule increases the assessment 

rate established for the Committee and 

collected from handlers for the 2006–07 

and subsequent fiscal periods from 

$0.025 to $0.035 per 25-pound container 

or equivalent of tomatoes. The 

Committee unanimously recommended 

2006–07 expenditures of $2,193,700 and 

an assessment rate of $0.035 per 25- 

pound container. The assessment rate of 

$0.035 is $0.01 higher than the 2005–06 

rate. The quantity of assessable tomatoes 

for the 2006–07 season is estimated at 

50 million cartons. Thus, the $0.035 rate 

should provide $1,750,000 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. 

The major expenditures 

recommended by the Committee for the 

2006–07 fiscal period include 

$1,000,000 for education and 

promotions, $445,900 for salaries, 

$320,000 for research, $67,000 for 

employee retirement, and $63,800 for 

employee health insurance. Budgeted 

expenses for these items in 2005–06 

were $1,000,000, $428,000, $320,000, 

$65,000, and $63,800, respectively. 

As previously mentioned, the number 

of assessable containers during 2006–07 

is estimated to be 50 million and the 

recommended assessment rate should 

generate $1,750,000 in income. The 

Committee’s financial reserve is now 

estimated to be $700,000 and is 

available to cover the deficit in 

assessment income. The increase in the 

assessment rate is needed to continue to 

support the increased budget for 

advertising and promotion started last 

season, while reducing the amount of 

funds drawn from the Committee’s 

authorized reserve. Without the increase 

in the assessment rate, the Committee 

would need to utilize an additional 

$500,000 from the authorized reserve. 

The Committee reviewed and 

unanimously recommended 2006–07 

expenditures of $2,193,700 which 

included increases in administrative 

and office salaries. Prior to arriving at 

this budget, the Committee considered 

information from various sources, such 

as the Committee’s Executive 

Subcommittee, Finance Subcommittee, 

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Federal Register / Vol. 72, No. 10 / Wednesday, January 17, 2007 / Rules and Regulations 1919 

Research Subcommittee, and Education 

and Promotion Subcommittee. 

Alternative expenditure levels were 

discussed by these groups, based upon 

the relative value of various research 

projects to the tomato industry. The 

assessment rate of $0.035 per 25-pound 

container of assessable tomatoes was 

determined by examining the 

anticipated expenses and expected 

shipments and considering available 

reserves. The assessment rate should 

generate $1,750,000 in income. 

Considering income from interest and 

other sources of $190,000, with 

assessments, total income should be 

approximately $253,700 below the 

anticipated expenses, which the 

Committee determined to be acceptable. 

A review of historical information and 

preliminary information pertaining to 

the upcoming season indicates that the 

grower price for the 2006–07 season 

could range between $8.27 and $12.95 

per 25-pound container or equivalent of 

tomatoes. Therefore, the estimated 

assessment revenue for the 2006–07 

fiscal period as a percentage of total 

grower revenue could range between 0.3 

and 0.4 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 tomato industry and all 

interested persons were invited to 

attend the meeting and participate in 

Committee deliberations on all issues. 

Like all Committee meetings, the August 

22, 2006, meeting was a public meeting 

and all entities, both large and small, 

were able to express views on this issue. 

This rule imposes no additional 

reporting or recordkeeping requirements 

on either small or large Florida tomato 

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. 

The 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. 

A proposed rule concerning this 

action was published in the Federal 

Register on November 16, 2006 (71 FR 

66702). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all Florida tomato handlers. Finally, the 

proposal was made available through 

the Internet by USDA and the Office of 

the Federal Register. A 15-day comment 

period ending December 1, 2006, 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/ 

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. 

Pursuant to 5 U.S.C. 553, it 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 

2006–07 fiscal period began on August 

1, 2006, and the marketing order 

requires that the rate of assessment for 

each fiscal period apply to all assessable 

Florida tomatoes 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 

action which was unanimously 

recommended by the Committee at a 

public meeting and is similar to other 

assessment rate actions issued in past 

fiscal periods. Also, a 15-day comment 

period was provided for in the proposed 

rule. 

List of Subjects in 7 CFR Part 966 

Marketing agreements, Reporting and 

recordkeeping requirements, Tomatoes. 

■ For the reasons set forth in the 

preamble, 7 CFR part 966 is amended as 

follows: 

PART 966—TOMATOES GROWN IN 

FLORIDA 

■ 1. The authority citation for 7 CFR 

part 966 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 966.234 is revised to read 

as follows: 

§ 966.234 Assessment rate. 

On and after August 1, 2006, an 

assessment rate of $0.035 per 25-pound 

container or equivalent is established 

for Florida tomatoes. 

Dated: January 11, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 07–149 Filed 1–11–07; 4:45 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 966 

[Docket No. FVO6–966–1 FR] 

Tomatoes Grown in Florida; Partial 

Exemption to the Minimum Grade 

Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule provides a partial 

exemption to the minimum grade 

requirements under the marketing order 

for tomatoes grown in Florida (order). 

The Florida Tomato Committee 

(Committee) locally administers the 

order. Under the order, Florida tomatoes 

must meet at least a U.S. No. 2 grade 

before they can be shipped and sold 

outside the regulated area. This rule 

exempts UglyRipeTM (UglyRipe) 

tomatoes from the shape requirements 

associated with the U.S. No. 2 grade. 

This change increases the volume of 

UglyRipe tomatoes that will meet the 

order requirements, and will help 

increase shipments and availability of 

these tomatoes for consumers. 

EFFECTIVE DATE: This final rule becomes 

effective January 18, 2007. 

FOR FURTHER INFORMATION CONTACT: 

William Pimental, Marketing Specialist, 

or Christian 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: 

William.Pimental@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. 

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