This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

42805 

Vol. 83, No. 165 

Friday, August 24, 2018 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 906 

[Doc. No. AMS–SC–18–0044; SC18–906–1 

PR] 

Oranges and Grapefruit Grown in the 

Lower Rio Grande Valley in Texas; 

Decreased Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement a recommendation from the 

Texas Valley Citrus Committee 

(Committee) to decrease the assessment 

rate established for the 2018–19 and 

subsequent fiscal periods. The 

assessment rate would remain in effect 

indefinitely unless modified, 

suspended, or terminated. 

DATES: Comments must be received by 

September 24, 2018. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposed rule. 

Comments must be sent to the Docket 

Clerk, Marketing Order and Agreement 

Division, Specialty Crops Program, 

AMS, USDA, 1400 Independence 

Avenue SW, STOP 0237, Washington, 

DC 20250–0237; Fax: (202) 720–8938; or 

internet: http://www.regulations.gov. 

Comments should reference the 

document number and the date and 

page number of this issue of the Federal 

Register and will be available for public 

inspection in the Office of the Docket 

Clerk during regular business hours, or 

can be viewed at: http://

www.regulations.gov. All comments 

submitted in response to this rule will 

be included in the record and will be 

made available to the public. Please be 

advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Doris Jamieson, 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: 

Doris.Jamieson@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, 

proposes an amendment to regulations 

issued to carry out a marketing order as 

defined in 7 CFR 900.2(j). This proposed 

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 the Lower Rio Grande Valley 

in Texas. Part 906 (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 producers 

and handlers of oranges and grapefruit 

operating within the area of production. 

The Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with Executive Orders 

13563 and 13175. This proposed 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 proposed 

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 proposed rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. Under the Order now in 

effect, Texas citrus handlers are subject 

to assessments. Funds to administer the 

Order are derived from such 

assessments. It is intended that the 

assessment rate would be applicable to 

all assessable oranges and grapefruit for 

the 2018–19 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 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. 

This proposed rule would decrease 

the assessment rate from $0.02, the rate 

that was established for the 2017–18 

and subsequent fiscal periods, to $0.01 

per 7/10-bushel carton or equivalent of 

oranges and grapefruit handled for the 

2018–19 and subsequent fiscal periods. 

The Committee recommended 

decreasing the assessment rate and 

utilizing funds from its authorized 

reserve in order to reduce the reserve 

balance. The reserve balance has been 

greater than the sum allowable under 

the Order, which is approximately 

equivalent to one year’s operating 

expenses, since 2017. In 2017–18, the 

Committee was able to reduce its budget 

by more than $595,000 when an 

alternative funding source was found for 


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42806 Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules 

the Mexican fruit fly control program. 

This dramatic reduction in the overall 

budget prompted the Committee’s need 

to reduce the balance of the authorized 

reserve to reflect the lower operating 

budget. 

The Committee met on May 23, 2018, 

and unanimously recommended 2018– 

19 expenditures of $152,920 and an 

assessment rate of $0.01 per 7/10-bushel 

carton or equivalent of oranges and 

grapefruit. The itemized budgeted 

expenses, including $79,220 for 

management, $50,000 for compliance, 

and $23,700 for operating expenses, are 

the same as the previous fiscal period. 

However, the proposed assessment rate 

of $0.01 is lower than the $0.02 rate 

currently in effect. 

The assessment rate recommended by 

the Committee was derived by 

considering anticipated expenses, 

expected shipments of 7.5 million 7/10- 

bushel cartons, and the amount of funds 

available in the authorized reserve. 

Income derived from handler 

assessments, calculated at $75,000 (7.5 

million × $0.01), along with interest 

income and funds from the Committee’s 

authorized reserve, would be adequate 

to cover budgeted expenses of $152,920. 

Funds in the reserve are estimated to be 

$287,295 at the end of the 2017–18 

fiscal period. No additional funds can 

be added to the reserve until the balance 

drops below approximately one fiscal 

period’s expenses as stated in § 906.35. 

The assessment rate proposed in this 

rule would 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 would 

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 would 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 2018–19 budget and those 

for subsequent fiscal periods will be 

reviewed and, as appropriate, approved 

by USDA. 

Initial 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 

proposed rule on small entities. 

Accordingly, AMS has prepared this 

initial 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 170 

producers of oranges and grapefruit in 

the production area and 13 handlers 

subject to regulation under the 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 Committee data, the 

average price for Texas citrus during the 

2016–17 season was approximately $16 

per carton and total shipments were 7.6 

million cartons. Using the average price 

and shipment information, the number 

of handlers, and assuming a normal 

distribution, the majority of handlers 

would have average annual receipts of 

greater than $7,500,000 ($16 per carton 

times 7.6 million cartons equals $121.6 

million, divided by 13 equals $9.4 

million per handler). 

In addition, based on National 

Agricultural Statistics Service 

information, the weighted grower price 

for Texas citrus during the 2016–17 

season was approximately $9.35 per 

carton. Using the weighted average price 

and shipment information, the number 

of producers and assuming a normal 

distribution, the majority of producers 

would have annual receipts of $418,000, 

which is less than $750,000 ($9.35 per 

carton times 7.6 million cartons equals 

$71.06 million, divided by 170 equals 

$418,000 per producer). Thus, the 

majority of handlers of Texas citrus may 

be classified as large entities, while the 

majority of producers may be classified 

as small entities. 

This proposal would decrease the 

assessment rate collected from handlers 

for the 2018–19 and subsequent fiscal 

periods from $0.02 to $0.01 per 7/10- 

bushel carton or equivalent of Texas 

citrus. The Committee unanimously 

recommended 2018–19 expenditures of 

$152,920 and an assessment rate of 

$0.01 per 7/10-bushel carton or 

equivalent handled. The proposed 

assessment rate of $0.01 is $0.01 lower 

than the 2017–18 rate. The quantity of 

assessable oranges and grapefruit for the 

2018–19 fiscal period is estimated at 7.5 

million 7/10-bushel cartons. Thus, the 

$0.01 rate should provide $75,000 in 

assessment income (7.5 million × $0.01). 

Income derived from handler 

assessments, along with interest income 

and funds from the Committee’s 

authorized reserve, would be adequate 

to cover budgeted expenses. 

The major expenditures 

recommended by the Committee for the 

2018–19 year include $79,220 for 

management, $50,000 for compliance, 

and $23,700 for operating expenses. 

Budgeted expenses for these items in 

2017–18 were the same. 

The Committee recommended 

decreasing the assessment rate and 

utilizing funds from its authorized 

reserve in order to reduce the reserve 

balance to bring it in line with the 

limitation under the Order of 

approximately one year’s expenses. 

Prior to arriving at this budget and 

assessment rate, the Committee 

considered information from various 

sources, such as the Committee’s Budget 

and Personnel Committee, and the 

Research Committee. Alternative 

expenditure levels were discussed by 

these committees who reviewed the 

relative value of various activities to the 

Texas citrus industry. These committees 

determined that all program activities 

were adequately funded and essential to 

the functionality of the Order; thus, no 

alternate expenditure levels were 

deemed appropriate. Additionally, the 

Committee discussed alternatives of 

maintaining the current assessment rate 

of $0.02 and lowering the assessment 

rate to $0.015 per 7/10-bushel carton or 

equivalent. However, these alternatives 

were not recommended because the 

Committee determined that these 

assessment rates would not draw a 

sufficient amount of funds from the 

authorized reserve to bring the reserve 

fund total in line with Order 

requirements. 

Based on these discussions and 

estimated shipments, the recommended 

assessment rate of $0.01 would provide 

$75,000 in assessment income. The 

Committee determined that assessment 

revenue, along with funds from the 

reserve and interest income, would be 

adequate to cover budgeted expenses for 

the 2018–19 fiscal period. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 


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Federal Register / Vol. 83, No. 165 / Friday, August 24, 2018 / Proposed Rules 42807 

that the average grower price for the 

2018–19 season should be 

approximately $9.50 per 7/10-bushel 

carton or equivalent of oranges and 

grapefruit. Therefore, the estimated 

assessment revenue for the 2018–19 

crop year as a percentage of total grower 

revenue would be about 0.1 percent. 

This proposed rule would decrease 

the assessment obligation imposed on 

handlers. Assessments are applied 

uniformly on all handlers, and some of 

the costs may be passed on to 

producers. However, decreasing the 

assessment rate reduces the burden on 

handlers and may also reduce the 

burden on producers. 

The Committee’s meeting was widely 

publicized throughout the Texas citrus 

industry. All interested persons were 

invited to attend the meeting and 

participate in Committee deliberations 

on all issues. Like all Committee 

meetings, the May 23, 2018, meeting 

was a public meeting, and all entities, 

both large and small, were able to 

express views on this issue. Finally, 

interested persons are invited to submit 

comments on this proposed rule, 

including the regulatory and 

information collection impacts of this 

action on small businesses. 

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 OMB and 

assigned OMB No. 0581–0189, Fruit 

Crops. No changes in those 

requirements would be necessary as a 

result of this proposed rule. Should any 

changes become necessary, they would 

be submitted to OMB for approval. 

This proposed rule would not impose 

any additional reporting or 

recordkeeping requirements on either 

small or large Texas orange and 

grapefruit 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. 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 proposed rule. 

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. 

List of Subjects in 7 CFR Part 906 

Grapefruit, Marketing agreements, 

Oranges, Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 906 is proposed to 

be amended as follows: 

PART 906—ORANGES AND 

GRAPEFRUIT GROWN IN LOWER RIO 

GRANDE VALLEY IN TEXAS 

■ 1. The authority citation for 7 CFR 

part 906 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 906.235 is revised to read 

as follows: 

§ 906.235 Assessment rate. 

On and after August 1, 2018, an 

assessment rate of $0.01 per 7/10-bushel 

carton or equivalent is established for 

oranges and grapefruit grown in the 

Lower Rio Grande Valley in Texas. 

Dated: August 21, 2018. 

Bruce Summers, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2018–18363 Filed 8–23–18; 8:45 am] 

BILLING CODE 3410–02–P 

FARM CREDIT ADMINISTRATION 

12 CFR Parts 611 and 619 

RIN 3052–AC97 

Organization; Definitions; Eligibility 

Criteria for Outside Directors 

AGENCY: Farm Credit Administration. 

ACTION: Proposed rule. 

SUMMARY: The Farm Credit 

Administration (FCA, we, or our) is 

proposing to amend its regulations 

affecting the governance of Farm Credit 

System (System) institutions. The 

proposed rule would modify the 

existing outside director eligibility 

criteria by expanding the list of persons 

who would be excluded from 

nomination for an outside director’s seat 

to ensure the independence of outside 

directors. 

DATES: You may send comments on or 

before October 23, 2018. 

ADDRESSES: We offer a variety of 

methods for you to submit your 

comments. For accuracy and efficiency 

reasons, commenters are encouraged to 

submit comments by email or through 

the FCA’s website. As facsimiles (fax) 

are difficult for us to process and 

achieve compliance with section 508 of 

the Rehabilitation Act of 1973, as 

amended, we do not accept comments 

submitted by fax. Regardless of the 

method you use, please do not submit 

your comment multiple times via 

different methods. You may submit 

comments by any of the following 

methods: 

• Email: Send us an email at regcomm@fca.gov. 

• FCA website: http://www.fca.gov. 

Select ‘‘Public Commenters,’’ then 

‘‘Public Comments,’’ and follow the 

directions for ‘‘Submitting a Comment.’’ 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• Mail: Barry F. Mardock, Deputy 

Director, Office of Regulatory Policy, 

Farm Credit Administration, 1501 Farm 

Credit Drive, McLean, VA 22102–5090. 

You may review copies of all comments 

we receive at our office in McLean, 

Virginia, or from our website at http:// 

www.fca.gov. Once you are in the 

website, select ‘‘Public Commenters,’’ 

then ‘‘Public Comments,’’ and follow 

the directions for ‘‘Reading Submitted 

Public Comments.’’ We will show your 

comments as submitted, but for 

technical reasons we may omit items 

such as logos and special characters. 

Identifying information you provide, 

such as phone numbers and addresses, 

will be publicly available. However, we 

will attempt to remove email addresses 

to help reduce internet spam. 

FOR FURTHER INFORMATION CONTACT: 

Darius Hale, Senior Policy Analyst, 

Office of Regulatory Policy, (703) 883– 

4165, TTY (703) 883–4056, Haled@

fca.gov, or 

Nancy Tunis, Senior Counsel, Office 

of General Counsel, (703) 883–4061, 

TTY (703) 883–4056, Tunisn@fca.gov. 

SUPPLEMENTARY INFORMATION: 

I. Objectives 

The objectives of this proposed rule 

are to: 

• Amend the eligibility criteria for 

outside director in § 611.220(a); 

• Remove the definition of outside 

director in § 619.9235; 

• Strengthen the safety and 

soundness of System institutions; 

• Strengthen the independence of 

System institution boards; and 

• Incorporate many of the best 

corporate governance practices for 

System institutions. 


sradovich on DSK3GMQ082PROD with PROPOSALS