Federal Register / Vol. 79, No. 36 / Monday, February 24, 2014 / Rules and Regulations 9987 

to $0.0033 per hundredweight. The 

decrease in the per hundredweight 

assessment rate allows the Committee to 

reduce its financial reserve while still 

providing adequate funding to meet 

program expenses. 

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 80 handlers of Colorado 

Area No. 2 potatoes subject to regulation 

under the order and approximately 180 

producers in the regulated production 

area. Small agricultural service firms are 

defined by the Small Business 

Administration (13 CFR 121.201) as 

those having annual receipts of less than 

$7,000,000, and small agricultural 

producers are defined as those having 

annual receipts of less than $750,000. 

During the 2011–2012 fiscal period, 

the most recent for which statistics are 

available, 15,072,963 hundredweight of 

Colorado Area No. 2 potatoes were 

inspected under the order and sold into 

the fresh market. Based on an estimated 

average f.o.b. price of $12.60 per 

hundredweight, the Committee 

estimates that 66 Area No. 2 handlers, 

or about 83 percent, had annual receipts 

of less than $7,000,000. In view of the 

foregoing, the majority of Colorado Area 

No. 2 potato handlers may be classified 

as small entities. 

In addition, based on information 

provided by the National Agricultural 

Statistics Service, the average producer 

price for the 2011 Colorado fall potato 

crop was $10.70 per hundredweight. 

Multiplying $10.70 by the shipment 

quantity of 15,072,963 hundredweight 

yields an annual crop revenue estimate 

of $161,280,704. The average annual 

fresh potato revenue for each of the 180 

Colorado Area No. 2 potato producers is 

therefore calculated to be approximately 

$896,000 ($161,280,704 divided by 180), 

which is greater than the SBA threshold 

of $750,000. Consequently, on average, 

many of the Colorado Area No. 2 potato 

producers may not be classified as small 

entities. 

This rule continues in effect the 

action that decreased the assessment 

rate established for the Committee and 

collected from handlers for the 2013– 

2014 and subsequent fiscal periods from 

$0.0051 to $0.0033 per hundredweight 

of potatoes. The Committee 

unanimously recommended 2013–2014 

expenditures of $55,745 and an 

assessment rate of $0.0033. The 

assessment rate of $0.0033 is $0.0018 

lower than the 2012–2013 rate. The 

quantity of assessable potatoes for the 

2013–2014 fiscal period is estimated at 

14,360,000. Thus, the $0.0033 rate 

should provide $47,388 in assessment 

income. Income derived from handler 

assessments and funds from the 

Committee’s authorized reserve will be 

adequate to cover budgeted expenses. 

This rule continues in effect the 

action that decreased 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 reduce 

the burden on producers. 

In addition, the Committee’s meeting 

was widely publicized throughout the 

Colorado Area No. 2 potato industry and 

all interested persons were invited to 

attend the meeting and participate in 

Committee deliberations on all issues. 

Like all Committee meetings, the July 

18, 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. 0581–0178, Generic 

Vegetable and Specialty Crops. No 

changes in those requirements as a 

result of this action are anticipated. 

Should any changes become necessary, 

they would be submitted to OMB for 

approval. 

This action imposes no additional 

reporting or recordkeeping requirements 

on either small or large Colorado Area 

No. 2 potato 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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap or 

conflict with this rule. 

Comments on the interim rule were 

required to be received on or before 

January 21, 2014. No comments were 

received. Therefore, for reasons given in 

the interim rule, we are adopting the 

interim rule as a final rule, without 

change. 

To view the interim rule, go to: http://

www.regulations.gov/

#!documentDetail;D=AMS-FV-13-0072- 

0001. 

This action also affirms information 

contained in the interim rule concerning 

Executive Orders 12866, 12988, and 

13563; the Paperwork Reduction Act (44 

U.S.C. Chapter 35); and the E-Gov Act 

(44 U.S.C. 101). 

After consideration of all relevant 

material presented, it is found that 

finalizing the interim rule, without 

change, as published in the Federal 

Register (78 FR 69985, November 22, 

2013) will tend to effectuate the 

declared policy of the Act. 

List of Subjects in 7 CFR Part 948 

Marketing agreements, Potatoes, 

Reporting and recordkeeping 

requirements. 

PART 948—IRISH POTATOES GROWN 

IN COLORADO 

■ Accordingly, the interim rule 

amending 7 CFR part 948, which was 

published at 78 FR 69985 on November 

22, 2013, is adopted as a final rule, 

without change. 

Dated: February 18, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–03848 Filed 2–21–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 966 

[Doc. No. AMS–FV–13–0076; FV13–966–1 

FR] 

Tomatoes Grown in Florida; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

assessment rate established for the 

Florida Tomato Committee (Committee) 

for the 2013–14 and subsequent fiscal 

periods from $0.024 to $0.0375 per 25- 

pound carton of tomatoes handled. The 

Committee locally administers the 

Federal marketing order, which 

regulates the handling of tomatoes 

grown in Florida. Assessments upon 

Florida tomato handlers are used by the 


rmajette on DSK2TPTVN1PROD with RULES
9988 Federal Register / Vol. 79, No. 36 / Monday, February 24, 2014 / Rules and Regulations 

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 Date: February 25, 

2014. 

FOR FURTHER INFORMATION CONTACT: 

Corey E. Elliott, 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: 

Corey.Elliott@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 

No. 125 and Order No. 966, both as 

amended (7 CFR part 966), regulating 

the handling of tomatoes grown in 

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 tomato 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 

tomatoes beginning on August 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 $0.024 to $0.0375 per 25- 

pound carton of Florida tomatoes. 

The Florida tomato 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 of 

Florida tomatoes. They are familiar with 

the Committee’s needs and with the 

costs of goods and services in their local 

area, and are therefore 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 

of $0.024 per 25-pound carton of 

tomatoes 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 August 22, 

2013, and unanimously recommended 

2013–14 expenditures of $1,824,600 and 

an assessment rate of $0.0375 per 25- 

pound carton of Florida tomatoes. In 

comparison, last year’s budgeted 

expenditures were $1,672,952. The 

assessment rate of $0.0375 is $0.0135 

higher than the rate currently in effect. 

The Committee depleted its reserve by 

using the funds to help meet its annual 

expenditures over the past year. 

Therefore, the Committee recommended 

increasing the assessment rate to 

generate sufficient funds to cover 

expenditures and increase its reserve 

balance. 

The major expenditures 

recommended by the Committee for the 

2013–14 year include $800,000 for 

education and promotion, $458,500 for 

salaries, and $300,000 for research. 

Budgeted expenses for these items in 

2012–13 were $750,000, $436,372, and 

$250,000, respectively. 

The assessment rate recommended by 

the Committee was derived by 

reviewing anticipated expenses; 

expected shipments of Florida tomatoes; 

income from interest, Market Access 

Program funds, and specialty crop block 

grants; and the need to add additional 

funds to the reserve. Florida tomato 

shipments for the year are estimated at 

35 million 25-pound cartons, which 

should provide $1,312,500 in 

assessment income. Income derived 

from handler assessments, interest, and 

other sources should be adequate to 

cover budgeted expenses. Reserve funds 

projected to be $440,500 will be kept 

within the maximum permitted by the 

order of no more than approximately 

one fiscal period’s expenses as stated in 

§ 966.44. 

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 to modify 

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 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. 


rmajette on DSK2TPTVN1PROD with RULES
Federal Register / Vol. 79, No. 36 / Monday, February 24, 2014 / Rules and Regulations 9989 

There are approximately 80 handlers 

of tomatoes subject to regulation under 

the marketing order and approximately 

100 producers in the production area. 

Small agricultural service firms are 

defined by the Small Business 

Administration (SBA) as those whose 

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

and small agricultural producers are 

defined as those having annual receipts 

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

Based on industry and Committee 

data, the average annual price for fresh 

Florida tomatoes during the 2012–13 

season was approximately $10.64 per 

25-pound carton, and total fresh 

shipments were approximately 35.5 

million cartons. Based on the average 

price, about 80 percent of the handlers 

could be considered small businesses 

under SBA’s definition. In addition, 

based on production data, grower prices 

as reported by the National Agricultural 

Statistics Service, and the total number 

of Florida tomato growers, the average 

annual grower revenue is below 

$750,000. Thus, the majority of handlers 

and producers of Florida tomatoes 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 

$0.024 to $0.0375 per 25-pound carton 

of tomatoes. The Committee 

unanimously recommended the 

increased assessment rate and 2013–14 

expenditures of $1,824,600. The 

increase was recommended to generate 

sufficient funds to cover the 

Committee’s expenditures and add to its 

reserve. As previously stated, income 

derived from handler assessments, 

interest, and other income should be 

adequate to meet this year’s anticipated 

expenses. 

A review of historical information and 

preliminary information pertaining to 

the upcoming season indicates that the 

grower price for the 2013–14 season 

should average around $9.73 per 25- 

pound carton of tomatoes. Utilizing this 

estimate and the proposed assessment 

rate of $0.0375, estimated assessment 

revenue as a percentage of total grower 

revenue would be approximately 0.4 

percent for the season. 

Alternative expenditure and 

assessment levels were discussed prior 

to arriving at this budget. However, the 

Committee agreed on $1,824,600 in 

expenditures, reviewed the quantity of 

assessable tomatoes, the need to add 

additional funds to the reserve, and 

recommended an assessment rate of 

$0.0375 per 25-pound carton of 

tomatoes. 

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. These 

costs are offset by the benefits derived 

from the operation of the marketing 

order. In addition, the Committee’s 

meeting was widely publicized 

throughout the Florida tomato industry 

and all interested persons were invited 

to attend the meeting and participate in 

Committee deliberations on all issues. 

Like all Committee meetings, the August 

22, 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. 0581–0178 Vegetable 

and Specialty 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 tomato 

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 December 24, 2013 (78 FR 

77604). Copies of the proposed rule 

were also mailed or sent via facsimile to 

all Florida tomato 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 January 8, 2014, 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 the crop year began August 1, 

2013, and the marketing order requires 

that the rate of assessment for each 

fiscal period apply to all assessable 

Florida tomatoes handled during such 

fiscal period. Further, handlers are 

aware of this rule, which was 

unanimously recommended by the 

Committee 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 966 

Marketing agreements, Reporting and 

recordkeeping requirements, Tomatoes. 

For the reasons set forth in the 

preamble, 7 CFR part 966 is amended as 

follows: 

PART 966—TOMATOES GROWN IN 

FLORIDA 

■ 1. The authority citation for 7 CFR 

part 966 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 966.234 is revised to read 

as follows: 

§ 966.234 Assessment rate. 

On and after August 1, 2013, an 

assessment rate of $0.0375 per 25-pound 

carton is established for Florida 

tomatoes. 

Dated: February 18, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–03847 Filed 2–21–14; 8:45 am] 

BILLING CODE 3410–02–P 


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