[Federal Register Volume 89, Number 22 (Thursday, February 1, 2024)]
[Proposed Rules]
[Pages 6440-6443]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-02024]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-SC-23-0041]


Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; 
Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement a recommendation from the 
Citrus Administrative Committee (Committee) to increase the assessment 
rate established for the 2023-2024 fiscal year and subsequent fiscal 
periods from $0.015 to $0.02 per 4/5-bushel carton or equivalent for 
Florida citrus handled under the marketing order. The proposed 
assessment rate would remain in effect indefinitely unless modified, 
suspended, or terminated.

DATES: Comments must be received by March 4, 2024.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposed rule. Comments can be sent to the Docket 
Clerk, Market Development Division, Specialty Crops Program, AMS, USDA, 
1400 Independence Avenue SW, STOP 0237, Washington, DC 20250-0237. 
Comments can also be sent to the Docket Clerk electronically by Email: 
<a href="/cdn-cgi/l/email-protection#96dbf7e4fdf3e2fff8f1d9e4f2f3e4d5f9fbfbf3f8e2d6e3e5f2f7b8f1f9e0"><span class="__cf_email__" data-cfemail="ffb29e8d949a8b969198b08d9b9a8dbc9092929a918bbf8a8c9b9ed1989089">[email protected]</span></a> or via the internet: https://www.regulations.gov. Comments should reference the document number, the 
date and page number of this issue of the Federal Register. Comments 
submitted in response to this proposed rule will be included in the 
record and will be made available to the public and can be viewed at: 
https://www.regulations.gov. 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: Jennie M. Varela, Marketing 
Specialist, or Christian D. Nissen, Branch Chief, Southeast Region 
Branch, Market Development Division, Specialty Crops Program, AMS, 
USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email: 
<a href="/cdn-cgi/l/email-protection#3c765952525559126a5d4e59505d7c494f585d125b534a"><span class="__cf_email__" data-cfemail="29634c4747404c077f485b4c4548695c5a4d48074e465f">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#286b405a415b5c4149460666415b5b4d46685d5b4c49064f475e"><span class="__cf_email__" data-cfemail="86c5eef4eff5f2efe7e8a8c8eff5f5e3e8c6f3f5e2e7a8e1e9f0">[email protected]</span></a>.
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Market Development 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: <a href="/cdn-cgi/l/email-protection#df8db6bcb7beadbbf193b0a8baad9faaacbbbef1b8b0a9"><span class="__cf_email__" data-cfemail="a1f3c8c2c9c0d3c58fedced6c4d3e1d4d2c5c08fc6ced7">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
proposes to amend regulations issued to carry out a marketing order as 
defined in 7 CFR 900.2(j). This proposed 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 of fresh 
citrus operating within the area of production, and one public member.
    The Agricultural Marketing Service (AMS) is issuing this proposed 
rule in conformance with Executive Orders 12866, 13563, and 14094. 
Executive Orders 12866 and 13563 direct agencies to assess all costs 
and benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). Executive Order 13563 
emphasizes the importance of quantifying both costs and benefits, 
reducing costs, harmonizing rules, and promoting flexibility. Executive 
Order 14094 reaffirms and supplements Executive Order 12866 and 13563 
and directs agencies to conduct proactive outreach to engage interested 
and affected parties through a variety of means, such as through field 
offices, and alternative platforms and media. This action falls within 
a category of regulatory actions that the Office of Management and 
Budget (OMB) exempted from Executive Order 12866, 13563, and 14094 
review.
    This proposed rule has been reviewed under Executive Order 13175, 
Consultation and Coordination with Indian Tribal Governments, which 
requires agencies to consider whether their rulemaking actions would 
have Tribal implications. AMS has

[[Page 6441]]

determined that this proposed rule is unlikely to have substantial 
direct effects on one or more Indian Tribes, on the relationship 
between the Federal Government and Indian Tribes, or on the 
distribution of power and responsibilities between the Federal 
Government and Indian Tribes.
    This proposed 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 
would be applicable to all assessable fruit for the 2023-2024 fiscal 
period, 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 the United States 
Department of Agriculture (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 requesting 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 no later than 20 days after the date of the entry of 
the ruling.
    This proposed rule would increase the assessment rate for Florida 
citrus handled under the Order from $0.015 per 4/5-bushel carton or 
equivalent, the rate that was initially established for the 2018-2019 
fiscal year and subsequent fiscal years, to $0.02 per 4/5-bushel carton 
or equivalent.
    Section 905.41 authorizes the Committee, with the approval of AMS, 
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.
    For the 2018-2019 fiscal year and subsequent fiscal periods, the 
Committee recommended, and AMS approved, an assessment rate of $0.015 
per 4/5-bushel carton of citrus or equivalent. That rate continues in 
effect from fiscal period to fiscal period until modified, suspended, 
or terminated by AMS upon recommendation and information submitted by 
the Committee or other information available to AMS. This proposed rule 
would increase the assessment rate from $0.015 to $0.02 per 4/5-bushel 
carton of citrus or equivalent for the 2023-2024 fiscal year and 
subsequent fiscal periods.
    The Committee met on August 8, 2023, and recommended 2023-2024 
fiscal period expenditures of $124,624 and an assessment rate of $0.02 
per 4/5-bushel carton of citrus or equivalent handled for the 2023-2024 
fiscal year and subsequent fiscal periods. In comparison, last year's 
budgeted expenditures were $122,680. The proposed assessment rate of 
$0.02 is $0.005 higher than the rate currently in effect. The Committee 
recommended increasing the assessment rate to better align assessment 
revenue with budgeted expenses. The Committee projects handler receipts 
of approximately 6,700,000 4/5-bushel cartons of citrus or equivalent 
for the 2023-2024 fiscal year, which is about 4,764,544 cartons more 
than was handled for the 2022-2023 fiscal year.
    The total expenditures recommended by the Committee for the 2023-
2024 fiscal period are approximately $124,624. The major budgeted 
expenditures include $99,624 for management; $10,000 for auditing; and 
$5,000 for data from the Division of Fruits and Vegetables. By 
comparison, budgeted expenditures for these activities in the 2022-2023 
fiscal period were $97,680; $10,000; and $5,000, respectively. At the 
current assessment rate of $0.015, the expected 6,700,000 4/5-bushel 
cartons or equivalent of assessable Florida citrus would generate 
$100,500 in assessment revenue (6,700,000 cartons multiplied by $0.015 
assessment rate), short of the Committee's anticipated expenditures of 
$124,624 for the 2023-2024 fiscal period. By increasing the assessment 
rate by $0.005 to $0.02, assessment income would generate $134,000 
(6,700,000 cartons multiplied by $0.02 assessment rate) for the 2023-
2024 fiscal year. This amount would be appropriate to ensure that the 
Committee has sufficient revenue to fully fund its recommended 2023-
2024 fiscal period budgeted expenditures.
    The Committee derived the recommended assessment rate by 
considering anticipated expenses, an estimated 6,700,000 4/5-bushel 
cartons or equivalent of assessable Florida citrus, and the amount of 
funds available in reserve. Income derived from handler assessments 
($134,000) would be adequate to cover budgeted expenses ($124,624). 
Funds available in the reserve (currently about $165,000) are expected 
to be kept within the maximum permitted by the Order (approximately two 
fiscal periods' expenses as authorized in Sec.  905.42).
    The proposed assessment rate would continue in effect indefinitely 
unless modified, suspended, or terminated by AMS 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 would 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 AMS. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. AMS will evaluate Committee 
recommendations and other available information to determine whether 
modification of the assessment rate is needed, and further rulemaking 
would be undertaken as necessary. The Committee's 2023-2024 budget, and 
those for subsequent fiscal periods, will be reviewed and, as 
appropriate, approved by AMS.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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 14 handlers of Florida citrus who are subject to 
regulation under the Order and approximately 500 citrus producers in 
the regulated area. At the time this analysis was prepared, the Small 
Business Administration (SBA) defined small agricultural growers as 
those having annual receipts of no more than $4,000,000 for orange 
producers or

[[Page 6442]]

$4,250,000 for other citrus producers, and small agricultural service 
firms, including handlers, are defined as those whose annual receipts 
are less than $34,000,000 (13 CFR 121.201).
    According to data from the National Agricultural Statistics Service 
(NASS), the weighted average packing house door equivalent price for 
fresh Florida oranges for the 2022-2023 season was approximately $10.54 
per carton with total shipments of around 3,224,000 cartons. Based on 
this information, the majority of orange handlers have average annual 
receipts of significantly less than $34,000,000 ($10.54 multiplied by 
3,224,000 cartons equals $33,980,960, divided by 14 handlers equals 
$2,427,211 per handler). The weighted average packing house door price 
for other Florida citrus for the 2022-2023 season was $19.12 per carton 
with total shipments of 2,804,000 cartons. Based on this information, 
the majority of other citrus handlers have average annual receipts of 
significantly less than $34,000,000 ($19.12 multiplied by 2,804,000 
cartons equals $53,612,480, divided by 14 handlers equals $3,829,463 
per handler).
    In addition, based on the NASS data, the weighted average orange 
grower price for the 2022-2023 season was estimated at $9.45 per carton 
of fresh oranges. Based on grower price, shipment data, and the total 
number of Florida orange growers, the average annual grower revenue is 
well below $4,000,000 ($9.45 multiplied by 3,224,000 cartons equals 
$30,466,800, divided by 500 growers equals $60,934 per grower). The 
weighted average other citrus grower price for the 2022-2023 season was 
estimated at $16.28 per carton of fresh citrus. Based on grower price, 
shipment data, and the total number of Florida citrus growers, the 
average annual grower revenue is well below $4,250,000 ($16.28 
multiplied by 2,804,000 cartons equals $45,649,120, divided by 500 
growers equals $91,298 per grower). Thus, the majority of Florida 
citrus handlers and growers may be classified as small entities.
    This proposed rule would increase the assessment rate for the 2023-
2024 fiscal year and subsequent fiscal years from $0.015 to $0.02 per 
4/5-bushel carton of citrus or equivalent. The Committee recommended 
2023-2024 expenditures of $124,624 and an assessment rate of $0.02 per 
4/5-bushel carton. The proposed assessment rate of $0.02 is $0.005 more 
than the previous rate. The quantity of assessable Florida citrus for 
the 2023-2024 season is estimated at 6,700,000 4/5-bushel cartons or 
equivalent. Thus, the $0.02 rate should provide $134,000 in assessment 
income (6,700,000 cartons multiplied by $0.02 assessment rate). Income 
derived from handler assessments would be adequate to cover budgeted 
expenses.
    The major expenditures recommended by the Committee for the 2023-
2024 fiscal year include $99,624 for management; $10,000 for auditing; 
and $5,000 for data from the Division of Fruits and Vegetables. 
Budgeted expenses for these same items in the 2022-2023 fiscal period 
were $97,680; $10,000; and $5,000, respectively.
    The Committee recommended increasing the assessment rate to cover 
anticipated expenses for the 2023-2024 fiscal period. Shipments for the 
2023-2024 season are projected to be 6,700,000 4/5-bushel cartons or 
equivalent, about 2 million more than estimated for the previous year. 
At the current assessment rate of $0.015, assessment income would equal 
$100,500 (6,700,000 cartons multiplied by $0.015 assessment rate), an 
amount below the Committee's anticipated expenditures of $124,624 for 
the 2023-2024 fiscal period. By increasing the assessment rate by 
$0.005, assessment income would be approximately $134,000 (6,700,000 
cartons multiplied by $0.02 assessment rate). This amount should 
provide sufficient funds to meet anticipated expenses for the 2023-2024 
fiscal period.
    Prior to arriving at this budget and assessment rate, the Committee 
considered maintaining the current assessment rate of $0.015. However, 
the Committee would need to further draw down reserves to meet its 
expenses. The Committee had to use some of its reserves in the 2022-
2023 fiscal period after a hurricane damaged the crop, and Committee 
members did not want to utilize additional funds from reserves to meet 
2023-2024 expenses. Consequently, the alternative of maintaining the 
current assessment rate was rejected.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates the average grower 
price for the 2023-2024 season should be approximately $11.00 per 4/5-
bushel carton of citrus or equivalent. Therefore, the estimated 
assessment revenue for the 2023-2024 crop year as a percentage of total 
grower revenue would be about 0.18 percent ($0.02 divided by $11.00 
multiplied by 100).
    This proposed rule would increase 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, these costs 
are expected to be offset by the benefits derived by the operations of 
the Order.
    The Committee's meetings are widely publicized throughout the 
Florida citrus industry and all interested persons are invited to 
attend the meeting and participate in Committee deliberations on all 
issues. Like all Committee meetings, the August 8, 2023, 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 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 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 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.
    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.
    AMS 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: 
https://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 recommendations submitted by the Board and other 
available information, AMS has determined that this proposed rule is 
consistent with and would effectuate the purposes of the Act.
    A 30-day comment period is provided to allow interested persons to 
comment on this proposed rule. All written comments timely received 
will be

[[Page 6443]]

considered before a final determination is made on this rulemaking.

List of Subjects in 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Pummelos, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service proposes to amend 7 CFR part 905 as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN 
FLORIDA

0
1. The authority citation for 7 CFR part 905 continues to read as 
follows:

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

0
2. Section 905.235 is revised to read as follows:


Sec.  905.235  Assessment rate.

    On and after August 1, 2023, an assessment rate of $0.02 per 4/5-
bushel carton or equivalent is established for Florida citrus covered 
under the Order.

Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-02024 Filed 1-31-24; 8:45 am]
BILLING CODE P


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