31442 Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Rules and Regulations 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 905 

[Doc. No. AMS–SC–17–0074; SC18–905–1 

FR] 

Oranges, Grapefruit, Tangerines, and 

Pummelos Grown in Florida; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the Citrus 

Administrative Committee (Committee) 

for an increase of the assessment rate 

established for the 2017–18 and 

subsequent fiscal periods. The 

assessment rate will remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective August 6, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Abigail Campos, Marketing Specialist or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 291–8614, or Email: 

Abigail.Campos@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

amends regulations issued to carry out 

a marketing order as defined in 7 CFR 

900.2(j). This rule is issued under 

Marketing Order No. 905, as amended (7 

CFR part 905), regulating the handling 

of oranges, grapefruit, tangerines, and 

pummelos grown in Florida. Part 905, 

(referred to as 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 Committee locally 

administers the Order and is comprised 

of growers and handlers operating 

within the area of production, and a 

public member. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

13563 and 13175. This rule falls within 

a category of regulatory actions that the 

Office of Management and Budget 

(OMB) exempted from Executive Order 

12866 review. Additionally, because 

this rule does not meet the definition of 

a significant regulatory action, it does 

not trigger the requirements contained 

in Executive Order 13771. See OMB’s 

Memorandum titled ‘‘Interim Guidance 

Implementing Section 2 of the Executive 

Order of January 30, 2017, titled 

‘Reducing Regulation and Controlling 

Regulatory Costs’ ’’ (February 2, 2017). 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the 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 will be applicable to all 

assessable citrus for the 2017–18 crop 

year, 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. 

The 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 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. 

This rule increases the assessment 

rate from $0.009, the rate that was 

established for the 2013–14 and 

subsequent fiscal periods, to $0.02 per 

4⁄5-bushel carton of citrus handled for 

the 2017–2018 and subsequent fiscal 

periods. The higher rate is a result of a 

smaller crop forecast due to hurricane 

damage and the need to cover 

Committee expenses. 

The Committee met on June 29, 2017, 

and unanimously recommended both 

maintaining the 2013–14 assessment 

rate and new 2017–18 budgeted 

expenditures of $132,000. Following the 

significant damage experienced by the 

industry from Hurricane Irma, the 

Committee held a second meeting on 

November 9, 2017, to discuss a revised 

crop estimate for 2017–18. Due to 

significant crop damage, the Committee 

estimated that assessable cartons for 

2017–18 should be six million cartons, 

down from 8.6 million originally 

projected at a June 29, 2017, meeting. 

Given the reduced estimate, the 

Committee voted to increase the 

assessment rate from $0.009 to $0.02 per 

4⁄5-bushel cartons of citrus to provide 

additional assessment income in Order 

to meet the budgeted expenses of 

$132,000 and draw less funds from the 

reserves. The assessment rate increase, 

along with the funds from reserves and 

interest income, should provide 

sufficient funds to cover anticipated 

expenses. 

Of the total $132,000 budgeted for the 

2017–18 fiscal period, major 

expenditures recommended by the 

Committee include $75,000 for salaries, 

$10,000 for data collection and fresh 

shipments reporting, and $9,000 for 

auditing & accounting. Compared to the 

previous fiscal year’s budget of 

$140,600, budgeted expenses for these 

items were $75,000, $25,000, and 

$9,200, respectively. The significant 

decrease in budgeted expenses for data 

collection and fresh shipment reporting 

stems from the development of a new 

computer program that better reports 

and extrapolates data, thus reducing 

reporting time and increasing 

efficiencies. 

The assessment rate recommended by 

the Committee was derived by 

considering anticipated expenses, 

expected shipments, and the amount of 

funds available in the authorized 

reserve. Income derived from handler 

assessments of $120,000 (six million 4⁄5

bushel cartons assessed at $0.02 per 

carton), along with interest income and 

funds from the Committee’s authorized 

reserve, should be adequate to cover 

budgeted expenses of $132,000. Funds 

in the reserve (currently $124,040) 

would be kept within the maximum 

permitted by § 905.42 and would not 

exceed the expenses of two fiscal 

periods. 

The assessment rate established in 

this rule will continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 


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Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Rules and Regulations 31443 

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 2017–18 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 

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 500 

producers of Florida citrus in the 

production area and approximately 20 

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 $7,500,000 (13 

CFR 121.201). 

According to data from the National 

Agricultural Statistics Service (NASS), 

the industry, and the Committee, for the 

2016–17 season the weighted average 

f.o.b. price for Florida citrus was 

approximately $15.20 per carton with 

total shipments of 12.6 million cartons. 

Using the number of handlers, and 

assuming a normal distribution, the 

majority of handlers have average 

annual receipts of more than $7,500,000 

($15.20 times 12.6 million equals 

$191,520,000 divided by 20 handlers 

equals $9,576,000 per handler). 

In addition, based on the NASS data, 

the weighted average grower price for 

the 2016–17 season was around $8.30 

per carton of citrus. Based on grower 

price, shipment data, and the total 

number of Florida citrus growers, and 

assuming a normal distribution, the 

average annual grower revenue is below 

$750,000 ($8.30 times 12.6 million 

cartons equals $104,580,000 divided by 

500 growers equals $209,160 per 

grower). Thus, the majority of handlers 

of Florida citrus may be classified as 

large entities, while the majority of 

growers may be classified as small 

entities. 

This rule increases the assessment 

rate collected from handlers for the 

2017–18 and subsequent fiscal periods 

from $0.009 to $0.02 per 4⁄5-bushel 

carton of Florida citrus. The Committee 

unanimously recommended 2017–18 

expenditures of $132,000 and an 

assessment rate of $0.02 per 4⁄5-bushel 

carton of citrus handled. The 

assessment rate of $0.02 is $0.011 higher 

than the 2016–17 rate. The quantity of 

assessable citrus for the 2017–18 fiscal 

period is estimated at six million 4⁄5- 

bushel cartons. Thus, the $0.02 rate 

should provide $120,000 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 

2017–18 year include $75,000 for 

salaries, $10,000 for data collection, and 

$9,000 for auditing and accounting. 

Budgeted expenses for these items in 

2016–17 were $75,000, $25,000, and 

$9,200, respectively. 

As a result of damage from Hurricane 

Irma, the Committee estimates the 

2017–18 crop to be approximately six 

million 4⁄5-bushel cartons, down from 

the 8.6 million 4⁄5-bushel cartons 

estimated on June 29, 2017. Due to the 

decline in production, the current 

assessment rate would be insufficient to 

cover the Committee’s anticipated 

expenditures and would further deplete 

the Committee’s reserve fund. 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. 

Prior to arriving at this budget and 

assessment rate, the Committee 

considered maintaining the current 

assessment rate of $0.009 per 4⁄5-bushel 

cartons of citrus. However, leaving the 

assessment unchanged will not generate 

sufficient revenue to meet the 

Committee’s expenses for the 2017–18 

budget of $132,000 and will deplete the 

reserve. Based on estimated shipments, 

the recommended assessment rate of 

$0.02 should provide $120,000 in 

assessment income. The Committee 

determined assessment revenue, along 

with interest income and funds from the 

authorized reserves should be adequate 

to cover budgeted expenses for the 

2017–18 fiscal period. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal year indicates that 

the average grower price for the 2017– 

18 season should be approximately 

$21.38 per 4⁄5-bushel cartons of citrus. 

Therefore, the estimated assessment 

revenue for the 2017–18 fiscal period as 

a percentage of total grower revenue 

will be about 0.09 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. All interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, the June 29, 2017, 

and November 9, 2017, meetings were 

public meetings, 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 OMB and 

assigned OMB No. 0581–0178 Vegetable 

and Specialty Crops. No changes in 

those requirements are necessary as a 

result of this action. 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 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 


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31444 Federal Register / Vol. 83, No. 130 / Friday, July 6, 2018 / Rules and Regulations 

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 April 2, 2018 (83 FR 14203). 

Copies of the proposed rule were also 

mailed or sent via facsimile to all 

Florida citrus handlers. The proposal 

was made available through the internet 

by USDA and the Office of the Federal 

Register. A 30-day comment period 

ending May 3, 2018, was provided for 

interested persons to respond to the 

proposal. One comment was received 

during the comment period. The 

commenter was in favor of the 

regulation. Accordingly, no changes will 

be made to the rule as proposed, based 

on the comment 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/ 

rules-regulations/moa/small-businesses. 

Any questions about the compliance 

guide should be sent to Richard Lower 

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, will tend to effectuate the 

declared policy of the Act. 

List of Subjects in 7 CFR Part 905 

Grapefruit, Marketing agreements, 

Oranges, Reporting and recordkeeping 

requirements, Tangerines, Pummelos. 

For the reasons set forth in the 

preamble, 7 CFR part 905 is amended as 

follows: 

PART 905—ORANGES, GRAPEFRUIT, 

TANGERINES, AND PUMMELOS 

GROWN IN FLORIDA 

■ 1. The authority citation for 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, 2017, an 

assessment rate of $0.02 per 4⁄5-bushel 

carton or equivalent is established for 

Florida citrus covered under the Order. 

Dated: July 2, 2018. 

Bruce Summers, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2018–14514 Filed 7–5–18; 8:45 a.m.] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Doc. No. AMS–SC–17–0047; SC17–930–1 

FR] 

Tart Cherries Grown in the States of 

Michigan, et al.; Revision of Exemption 

Requirements 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the Cherry 

Industry Administrative Board (Board) 

to revise the exemption provisions for 

tart cherries grown in Michigan, New 

York, Pennsylvania, Oregon, Utah, 

Washington, and Wisconsin. This rule 

changes the number of years that new 

product, new market development, and 

market expansion projects are eligible 

for handler diversion credit. This action 

also permits handlers to apply for 

previously awarded projects if the 

original handler has not begun the 

project within a year of approval and 

provides an expedited approval option 

for some market expansion activities. 

This final rule also contains a formatting 

change to subpart references to bring the 

language into conformance with the 

Office of Federal Register requirements. 

DATES: Effective August 6, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Jennie M. Varela, Marketing Specialist, 

or Christian D. Nissen, Regional 

Director, Southeast Marketing Field 

Office, Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (863) 324– 

3775, Fax: (863) 291–8614, 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 Richard Lower, 

Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Richard.Lower@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This final 

rule, pursuant to 5 U.S.C. 553, amends 

regulations issued to carry out a 

marketing order as defined in 7 CFR 

900.2(j). This final rule is issued under 

Marketing Order No. 930, as amended (7 

CFR part 930), regulating the handling 

of tart cherries grown in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington, and 

Wisconsin. Part 930 (referred to as 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 

Board locally administers the Order and 

is comprised of growers and handlers 

operating in the production area, and 

one public member. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

13563 and 13175. This action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. Additionally, 

because this rule does not meet the 

definition of a significant regulatory 

action, it does not trigger the 

requirements contained in Executive 

Order 13771. See OMB’s Memorandum 

titled ‘‘Interim Guidance Implementing 

Section 2 of the Executive Order of 

January 30, 2017, titled ‘Reducing 

Regulation and Controlling Regulatory 

Costs’ ’’ (February 2, 2017). 

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 final rule changes the number of 

years that new product, new market 

development, and market expansion 

projects are eligible for handler 

diversion credit from three years to five 

years. This action also permits handlers 

to apply for previously awarded projects 

if the original handler has not made a 


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