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[Federal Register Volume 78, Number 80 (Thursday, April 25, 2013)]
[Rules and Regulations]
[Pages 24329-24331]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-09734]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-FV-12-0038; FV12-906-1 FR]

Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 
Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule increases the assessment rate established for the 
Texas Valley Citrus Committee (Committee) for the 2012-13 and 
subsequent fiscal periods from $0.14 to $0.16 per 7/10-bushel carton or 
equivalent of oranges and grapefruit handled. The Committee locally 
administers the marketing order that regulates the handling of oranges 
and grapefruit grown in the Lower Rio Grande Valley in Texas (order). 
Assessments upon orange and grapefruit 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 April 26, 2013.

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 
Agreement and Order No. 906, as amended (7 CFR part 906), regulating 
the handling of oranges and grapefruit grown in Lower Rio Grande Valley 
in Texas, 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, orange and 
grapefruit 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 
oranges and grapefruit beginning August 1, 2012, 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

[[Page 24330]]

20 days after the date of the entry of the ruling.
    This rule increases the assessment rate established for the 
Committee for the 2012-13 and subsequent fiscal periods from $0.14 to 
$0.16 per 7/10-bushel carton or equivalent of oranges and grapefruit 
handled.
    The Texas orange and grapefruit 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 
Texas oranges and grapefruit. 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 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 2011-12 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 based upon a recommendation and 
information submitted by the Committee or other information available 
to USDA.
    The Committee met on June 5, 2012, and unanimously recommended 
2012-13 expenditures of $1,340,800 and an assessment rate of $0.16 per 
7/10-bushel carton or equivalent of oranges and grapefruit handled. In 
comparison, last year's budgeted expenditures were $1,273,537. The 
assessment rate of $0.16 is $0.02 higher than the rate currently in 
effect. The increased assessment rate should generate sufficient income 
to cover anticipated expenses, including an increase in advertising and 
promotion, as well as allow the Committee to replenish funds in its 
reserves.
    The major expenditures recommended by the Committee for the 2012-13 
fiscal period include $575,000 for promotion; $489,500 for the Mexican 
fruit fly control program; and $243,000 for management, administration, 
and compliance. Budgeted expenses for these items in 2011-12 were 
$425,000, $564,500, and $250,737, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Texas oranges 
and grapefruit. Orange and grapefruit shipments for the 2012-13 fiscal 
period are estimated at 8.5 million 7/10-bushel cartons or equivalent, 
which should provide $1,360,000 in assessment income. Income derived 
from handler assessments should be adequate to cover budgeted expenses. 
Funds in the reserve (currently $78,090) will be kept within the 
maximum permitted by the order (approximately one fiscal period's 
expenses as stated in Sec.  906.35).
    The assessment rate established in this rule will continue in 
effect indefinitely unless modified, suspended, or terminated by USDA 
based upon a 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 2012-13 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 
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.
    There are approximately 170 producers of oranges and grapefruit in 
the production area and 15 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).
    According to Committee data and information from the National 
Agricultural Statistics Service, the weighted average grower price for 
Texas citrus during the 2010-11 season was around $11.30 per box and 
total shipments were near 7.3 million boxes. Using the weighted average 
price and shipment information, and assuming a normal distribution, the 
majority of growers would have annual receipts of less than $750,000. 
In addition, based on available information, approximately 60 percent 
of Texas citrus handlers could be considered small businesses under 
SBA's definition. Thus, the majority of producers and handlers of Texas 
citrus may be classified as small entities.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2012-13 and subsequent 
fiscal periods from $0.14 to $0.16 per 7/10-bushel carton or equivalent 
of Texas oranges and grapefruit. The Committee unanimously recommended 
2012-13 expenditures of $1,340,800 and an assessment rate of $0.16 per 
7/10-bushel carton or equivalent handled. The assessment rate of $0.16 
is $0.02 higher than the 2011-12 rate. The quantity of assessable 
oranges and grapefruit for the 2012-13 fiscal period is estimated at 
8.5 million 7/10-bushel cartons or equivalent. Thus, the $0.16 rate 
should provide $1,360,000 in assessment income and be adequate to meet 
this year's expenses.
    The major expenditures recommended by the Committee for the 2012-13 
fiscal period include $575,000 for promotion; $489,500 for the Mexican 
fruit fly control program; and $243,000 for management, administration 
and compliance. Budgeted expenses for these items in 2011-12 were 
$425,000, $564,500, and $250,737, respectively.
    The Committee reviewed and unanimously recommended 2012-13 
expenditures of $1,340,800, which included increases in promotional 
activities. The Committee considered proposed expenses and recommended 
increasing the assessment rate to cover the increase in the advertising 
and promotion program, as well as to allow the Committee to replenish 
funds in its reserve.
    Prior to arriving at this budget, the Committee considered 
information from various sources, such as the Committee's Budget and 
Personnel Committee and the Market Development Committee. Alternative 
expenditure levels were discussed by these groups, based upon the 
relative value of various

[[Page 24331]]

research and promotion projects to the Texas citrus industry. The 
assessment rate of $0.16 per 7/10-bushel carton or equivalent of 
assessable oranges and grapefruit was then determined by dividing the 
total recommended budget by the quantity of assessable oranges and 
grapefruit, estimated at 8.5 million 7/10-bushel cartons or equivalent 
for the 2012-13 fiscal period. Based on estimated shipments, the 
recommended assessment rate of $0.16 should provide $1,360,000 in 
assessment income. This is approximately $19,200 above the anticipated 
expenses of $1,340,800, which the Committee determined to be acceptable 
as any assessments collected above expenditures are to be added to 
reserves.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the grower 
price for the 2012-13 season could range between $8.98 and $16.35 per 
7/10-bushel carton or equivalent of oranges and grapefruit. Therefore, 
the estimated assessment revenue for the 2012-13 fiscal period, as a 
percentage of total grower revenue, could range between 1 and 2 
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 Texas 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 June 5, 
2012, 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 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 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. 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 January 9, 2013 (78 FR 1763). Copies of the proposed rule 
were also mailed or sent via facsimile to all orange and grapefruit 
handlers. Finally, the proposal was made available through the Internet 
by USDA and the Office of the Federal Register. A 10-day comment period 
ending January 22, 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: 
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 2012-13 oranges and grapefruit from growers, and the 
crop year began on August 1 and the assessment rate applies to all 
oranges and grapefruit received during the 2012-13 and subsequent 
fiscal periods. In addition, the Committee needs to have sufficient 
funds to pay its expenses, which are incurred on a continuous basis. 
Further, handlers are aware of this rule which was recommended at a 
public meeting. Also, a 10-day comment period was provided for in the 
proposed rule, and no comments were received.

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 
amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
IN TEXAS

0
1. The authority citation for 7 CFR part 906 continues to read as 
follows:

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

0
2. Section 906.235 is revised to read as follows:

Sec.  906.235  Assessment rate.

    On and after August 1, 2012, an assessment rate of $0.16 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit 
grown in the Lower Rio Grande Valley in Texas.

    Dated: April 19, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-09734 Filed 4-24-13; 8:45 am]
BILLING CODE 3410-02-P
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