Federal Register / Vol. 79, No. 11 / Thursday, January 16, 2014 / Rules and Regulations 2773 

48Federal Register, Vol. 77, No. 82 pp. 25024– 

25036. 

49The Excel formula for this is PMT (rate, # 

periods, PV, 0, 1) 

the additional transfers possibly 

attributable to the increase in flexibility 

to SFAs are likely within the cost 

estimate range published with the 

interim rule 48 and updated above. 

VIII. Accounting Statement 

As required by OMB Circular A–4 

(available at http://

www.whitehouse.gov/sites/default/files/

omb/assets/regulatory_matters_pdf/a4.pdf), we have prepared an accounting 

statement showing the annualized 

estimates of benefits, costs and transfers 

associated with the provisions of this 

final rule. 

The figures in the accounting 

statement are the estimated discounted, 

annualized costs and transfers of the 

rule. The figures are computed from the 

nominal 5-year estimates developed 

above and summarized in Table 3. The 

accounting statement contains figures 

computed with 7 percent and 3 percent 

discount rates for both our upper bound 

(primary) estimate and our alternate 

estimate. 

Note that we only provide an 

accounting statement for the final rule, 

not for the interim rule (as the interim 

rule was the baseline for our cost 

analysis for the final rule). As noted in 

the above analysis, any possible changes 

in costs or transfers attributed to the 

final rule are small and are likely within 

the cost estimate range published with 

the interim rule and updated above. 

Illustration of Computation 

The annualized value of this 

discounted cost stream over FY 2013– 

2017 is computed with the following 

formula, where PV is the discounted 

present value of the cost stream, i is the 

discount rate (e.g., 7 percent), and n is 

the number of years (5): 49

Estimate Year 

dollar 

Discount 

rate 

% 

Period covered 

Benefits 

Qualitative: Compared with the interim rule, the final rule makes permanent the increased flexibility for SFAs regarding weekly maximum grains 

and meat/meat alternates and the serving of frozen fruit with added sugar. If the greater flexibility leads to more SFA participation in the reimbursable school meals program, then students’ health may improve. 

Costs 

Annualized Monetized ($millions/year) ................... n.a. 2013 7 FY 2013–2017. 

n.a. 2013 3 

As discussed in Section V.A., the reduction in administrative costs to State agencies as a result of the reduced quarterly reporting requirement 

on SFA compliance is already in the range estimated for our baseline. The reduction in burden for State agencies who will no longer have to 

submit quarterly reports on SFA compliance once all SFAs have been certified is minimal. The final rule may also slightly reduce the costs of 

complying with the meal patterns for some SFAs, and reduce the costs of maintaining compliance by others. This reduction in SFA cost is not 

estimated, and likely lies within our range of alternate estimates for the interim rule. 

Transfers 

Annualized Monetized ($millions/year) ................... n.a. 2013 7 FY 2013–2017. 

n.a. 2013 3 

The changes in the final rule that are designed to facilitate compliance with the new meal patterns are expected to increase slightly the number 

of SFAs that are certified by their State agencies to receive the additional 6 cents per reimbursable lunch. This increased transfer from the 

Federal government to SFAs will be realized after the end of SY 2013–2014 (primarily in FY 2014 and beyond) when the grains, meat/meat 

alternate, and frozen fruit provisions contained in FNS policy memos would have expired in the absence of the rule. This possible, small increase in Federal transfers to SFAs also likely lies within our range of alternate estimates for the interim rule. 

Dated: January 9, 2014. 

Audrey Rowe, 

Administrator, Food and Nutrition Service. 

[FR Doc. 2014–00624 Filed 1–15–14; 8:45 am] 

BILLING CODE 3410–30–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 915 

[Doc. No. AMS–FV–13–0054; FV13–915–2 

FR] 

Avocados Grown in South Florida; 

Increased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

Avocado Administrative Committee 

(Committee) for the 2013–14 and 

subsequent fiscal periods from $0.25 to 

$0.30 per 55-pound bushel container of 

Florida avocados handled. The 

Committee locally administers the 

marketing order, which regulates the 

handling of avocados grown in South 

Florida. Assessments upon Florida 

avocado handlers are used by the 


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2774 Federal Register / Vol. 79, No. 11 / Thursday, January 16, 2014 / Rules and Regulations 

Committee to fund reasonable and 

necessary expenses of the program. The 

fiscal period begins April 1 and ends 

March 31. The assessment rate will 

remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Effective Date: January 17, 2014. 

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 Order No. 

915, as amended (7 CFR part 915), 

regulating the handling of avocados 

grown in South 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 Orders 

12866 and 13563. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, Florida avocado 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 Florida 

avocados beginning April 1, 2013, 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 2013–14 and subsequent fiscal 

periods from $0.25 to $0.30 per 55- 

pound bushel container of avocados. 

The Florida avocado 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 avocados. They are 

familiar with the Committee’s needs and 

with the costs of 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 2012–13 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 12, 2013, 

and unanimously recommended 2013– 

14 expenditures of $472,553 and an 

assessment rate of $0.30 per 55-pound 

container of avocados. In comparison, 

last year’s budgeted expenditures were 

$324,575. The assessment rate of $0.30 

is $0.05 higher than the rate currently in 

effect. The Committee recommended 

increasing the assessment rate to 

provide additional funds for research to 

address the Laurel Wilt fungus, which 

can infect and kill avocado trees. 

The major expenditures 

recommended by the Committee for the 

2013–14 year include $175,000 for 

research, $119,483 for salaries, and 

$51,500 for employee benefits. Budgeted 

expenses for these items in 2012–13 

were $75,000, $101,705, and $48,000, 

respectively. 

The assessment rate recommended by 

the Committee was derived by 

reviewing anticipated expenses, 

expected shipments of Florida 

avocados, and available reserves. 

Florida avocado shipments for the year 

are estimated at 1,000,000 55-pound 

bushel containers, which should 

provide $300,000 in assessment income. 

Income derived from handler 

assessments and interest, and funds 

from the Committee’s authorized 

reserve, should be adequate to cover 

budgeted expenses. Funds in the reserve 

(currently $465,000) will be kept within 

the maximum permitted by the order 

(approximately three fiscal periods’ 

expenses, § 915.42). 

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, and further rulemaking will be 

undertaken as necessary. The 

Committee’s 2013–14 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 

businesses 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 30 handlers 

of Florida avocados subject to regulation 

under the order and approximately 300 

producers of avocados in the production 

area. Small agricultural service firms, 

which include avocado handlers, are 

defined by the Small Business 

Administration (SBA) as those having 

annual receipts of less than $7,000,000, 


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Federal Register / Vol. 79, No. 11 / Thursday, January 16, 2014 / Rules and Regulations 2775 

and small agricultural producers are 

defined as those having annual receipts 

of less than $750,000 (13 CFR 121.201). 

According to Committee data and 

information from the National 

Agricultural Statistical Service, the 

average price for Florida avocados 

during the 2011–12 season was 

approximately $20.79 per 55-pound 

bushel container and total shipments 

were slightly higher than 1.2 million 55- 

pound bushels. Using the average price 

and shipment information, the majority 

of avocado handlers could be 

considered small businesses under 

SBA’s definition. In addition, based on 

avocado production, producer prices, 

and the total number of Florida avocado 

producers, the average annual producer 

revenue is less than $750,000. 

Consequently, the majority of avocado 

handlers and producers may be 

classified as small entities. 

This rule increases the assessment 

rate for the 2013–14 and subsequent 

fiscal periods from the current rate of 

$0.25 to $0.30 per 55-pound bushel 

container of avocados. The Committee 

unanimously recommended the 

increased assessment rate, and 2013–14 

expenditures of $472,553. The increase 

was recommended to provide an 

additional $100,000 for research to 

address the Laurel Wilt fungus, which 

can infect and kill avocado trees. As 

previously stated, income from handler 

assessments and interest, and funds 

from reserves, should be adequate to 

meet this year’s expenses. 

Alternative expenditure and 

assessments levels were discussed prior 

to arriving at this budget. However, the 

Committee agreed on $472,553 in 

expenditures, reviewed the quantity of 

assessable avocados and available 

reserves, and recommended an 

assessment rate of $0.30 per 55-pound 

bushel container. 

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 avocado 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 

12, 2013, 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 

OMB 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 

on either small or large Florida avocado 

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 September 17, 2013 (78 FR 

57099). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all Florida avocado 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 October 2, 

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: http://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 handlers are already receiving 

avocadoes from the 2013–14 crop from 

growers, the fiscal period began on 

April 1, 2013, and the assessment rate 

applies to all Florida avocados received 

during the 2013–14 and subsequent 

seasons. Further, handlers are aware of 

this rule which was recommended at a 

public meeting. Also, a 15-day comment 

period was provided for in the proposed 

rule and no comments were received. 

List of Subjects in 7 CFR Part 915 

Avocados, Reporting and 

recordkeeping requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 915 is amended as 

follows: 

PART 915—AVOCADOS GROWN IN 

SOUTH FLORIDA 

■ 1. The authority citation for 7 CFR 

part 915 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 915.235 is revised to read 

as follows: 

§ 915.235 Assessment rate. 

On and after April 1, 2013, an 

assessment rate of $0.30 per 55-pound 

container or equivalent is established 

for avocados grown in South Florida. 

Dated: January 10, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–00753 Filed 1–15–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Doc. No. AMS–FV–13–0030; FV13–930–2 

FIR] 

Tart Cherries Grown in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington, and 

Wisconsin; Revising Handler 

Reporting and Grower Diversion 

Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Affirmation of interim rule as 

final rule. 

SUMMARY: The Department of 

Agriculture (USDA) is adopting, as a 

final rule, without change, an interim 

rule that changed handler reporting and 

grower diversion requirements 

prescribed under the marketing order 

for tart cherries grown in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington, and 

Wisconsin (order). The Cherry Industry 


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