This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

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Rules and Regulations Federal Register

22103 

Vol. 87, No. 72 

Thursday, April 14, 2022 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 906 

[Doc. No. AMS–SC–21–0065; SC21–906–1 

FR] 

Increased Assessment Rate for Texas 

Oranges and Grapefruit 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the Texas Valley 

Citrus Committee to increase the 

assessment rate established for the 

2021–22 and subsequent fiscal periods. 

The assessment rate will remain in 

effect indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective May 16, 2022. 

FOR FURTHER INFORMATION CONTACT:

Abigail Campos, Marketing Specialist, 

or Christian D. Nissen, Regional 

Director, Southeast Region Branch, 

Market Development Division, Specialty 

Crops Program, AMS, USDA; 

Telephone: (863) 324–3375, Fax: (863) 

291–8614, or Email: Abigail.Campos@

usda.gov or Christian.Nissen@usda.gov. 

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: Richard.Lower@

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 Agreement No. 121 and 

Marketing Order No. 906, both 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 

Texas Valley Citrus Committee 

(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 rule in 

conformance with Executive Orders 

12866 and 13563. 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. This action falls 

within a category of regulatory actions 

that the Office of Management and 

Budget (OMB) exempted from Executive 

Order 12866 review. 

This 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. 

USDA has determined this 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 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 will be applicable to all 

assessable oranges and grapefruit for the 

2021–22 fiscal 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. 

This rule increases the assessment 

rate from $0.01 per 7/10-bushel carton 

or equivalent, the rate that was 

established for the 2018–19 and 

subsequent fiscal periods, to $0.05 per 

7/10-bushel carton or equivalent of 

oranges and grapefruit handled for the 

2021–22 and subsequent fiscal periods. 

The Order authorizes the Committee, 

with the approval of AMS, to formulate 

an annual budget of expenses and 

collect assessments from handlers to 

administer the program. Members are 

familiar with the Committee’s needs and 

with the costs for goods and services in 

their local area and are 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 2018–19 and subsequent fiscal 

periods, the Committee recommended, 

and AMS approved, an assessment rate 

$.01 per 7/10-bushel carton or 

equivalent of oranges and grapefruit 

handled. That assessment rate continues 

to be in effect unless modified, 

suspended, or terminated by AMS upon 

recommendation and information 

submitted by the Committee or other 

information available to AMS. 

The Committee met on July 14, 2021, 

and recommended 2021–22 

expenditures of $43,900 and an 

assessment rate of $0.05 per 7/10-bushel 

carton or equivalent. In comparison, the 

previous fiscal period’s budgeted 

expenditures were $155,720. The 

assessment rate of $0.05 is $0.04 higher 

than the rate currently in effect. The 

Committee unanimously voted to 

increase the assessment rate due to the 


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extensive tree damage from a freeze 

experienced in Texas occurring in 

February 2021. This February freeze 

decreased the 2020–21 production from 

an expected 7.5 million 7/10-bushel 

cartons to 3.1 million 7/10-bushel 

cartons. The Committee discussed how 

freeze damages caused a depletion of 

financial reserves for the 2020–21 fiscal 

period due to assessment income being 

lower than expected. Production will be 

further reduced during the upcoming 

fiscal period because of freeze damage 

to trees. Estimated production for 2021– 

22 fiscal period has been reduced from 

7.5 million 7/10-bushel cartons or 

equivalents to 1 million. At the current 

assessment rate, assessment income 

would equal only $10,000, an amount 

insufficient to cover the Committee’s 

anticipated expenditures of $43,900. By 

increasing the assessment rate by $0.04, 

assessment income would be $50,000. 

This amount should provide sufficient 

funds to meet 2021–22 anticipated 

expenses. 

Major expenditures recommended by 

the Committee for the 2021–22 fiscal 

period include $20,000 for management 

expenses, $13,900 for administrative 

expenses, and $10,000 for compliance. 

Budgeted expenses for these items in 

the 2020–21 fiscal period were $79,220, 

$26,500, and $50,000, respectively. 

The Committee derived the 

recommended assessment rate by 

considering anticipated expenses and 

expected shipments of Texas oranges 

and grapefruit. Orange and grapefruit 

shipments for the 2021–22 year are 

estimated at 1,000,000 7/10-bushel 

cartons or equivalents, which should 

provide $50,000 in assessment income 

(1,000,000 cartons × $0.05). Income 

derived from handler assessments at the 

new rate, along with interest income, 

should be adequate to cover estimated 

program expenses of $43,900. Funds in 

the reserve (currently about $43,000) 

would be kept within the maximum 

permitted by § 906.35 of the Order 

(approximately one fiscal period’s 

expenses). 

The assessment rate will 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 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. 

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 would evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The 

Committee’s 2021–22 budget and those 

for subsequent fiscal periods would be 

reviewed and, as appropriate, approved 

by AMS. 

Final 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 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 are unique in that they are brought 

about through group action of 

essentially small entities acting on their 

own behalf. 

There are approximately 119 

producers of oranges and grapefruit in 

the production area and 14 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 $1,000,000, and small 

agricultural service firms are defined as 

those whose annual receipts are less 

than $30,000,000 (13 CFR 121.201). 

According to data from the National 

Agricultural Statistics Service (NASS), 

the industry, and the Committee, the 

weighted average free-on board price for 

Texas citrus for the 2019–20 season was 

approximately $16.20 per carton, with 

total shipments of around 8.2 million 

cartons. Based on this information, total 

annual receipts of Texas citrus handlers 

in the 2019–20 fiscal period were 

approximately $132,840,000 ($16.20 

multiplied by 8.2 million cartons equals 

$132,840,000). Dividing by the number 

of citrus handlers infers average annual 

receipts of less than $30 million 

($132,840,000 divided by 14 handlers 

equals $9.5 million). 

In addition, based on NASS data, the 

weighted average producer price for the 

2019–20 fiscal period was around $5.65 

per carton of Texas citrus. Based on 

producer price, shipment data, and the 

total number of Texas citrus producers, 

the average annual producer revenue is 

below $1,000,0000 ($5.65 multiplied by 

8.2 million cartons equals $46,330,000 

divided by 119 producers equals 

approximately $389,328). Thus, the 

majority of Texas citrus handlers and 

producers are classified as small 

entities. 

This rule increases the assessment 

rate established and collected from 

handlers for the 2021–22 and 

subsequent fiscal periods from $0.01 per 

7/10-bushel carton or equivalent to 

$0.05 per 7/10-bushel carton or 

equivalent of oranges and grapefruit 

grown in the Lower Rio Grande Valley 

in Texas. The Committee recommended 

2021–22 expenditures of $43,900 and an 

assessment rate of $0.05 per 7/10-bushel 

carton. The assessment rate of $0.05 is 

$0.04 higher than the previous rate. The 

quantity of assessable Texas Citrus for 

the 2021–22 season is estimated at 

1,000,000 7/10-bushel cartons. Thus, the 

$0.05 rate should provide $50,000 in 

assessment income ($0.05 multiplied by 

1,000,000 cartons), which should be 

adequate to cover budgeted expenses for 

the 2021–22 season. 

Major expenditures recommended by 

the Committee for the 2021–22 fiscal 

period include $20,000 for management 

expenses, $13,900 for administrative 

expenses, and $10,000 for compliance. 

Budgeted expenses for these items in 

2020–21 were $79,220, $26,500, and 

$50,000, respectively. 

The Committee recommended 

increasing the assessment rate because 

of the extensive tree damage from the 

freeze in February 2021. At the current 

assessment rate of $0.01 and with the 

2021–22 crop estimated to be 1,000,000 

7/10-bushel cartons, assessment income 

would equal $10,000 ($0.01 multiplied 

by 1,000,000 cartons), an amount 

insufficient to cover the Committee’s 

anticipated expenditures of $43,900. By 

increasing the assessment rate by $0.04, 

assessment income would be 

approximately $50,000 ($0.05 

multiplied by 1,000,000 cartons). This 

amount should provide sufficient funds 

to meet 2021–22 anticipated expenses. 

Prior to arriving at this budget and 

assessment rate, the Committee 

considered maintaining the current 

assessment rate of $0.01. However, 

leaving the assessment unchanged 

would not generate sufficient revenue to 

meet the Committee’s expenses for the 

2021–22 budget of $43,900 and would 

diminish reserves. Therefore, the 

alternative was rejected. 

A review of historical information and 

preliminary information pertaining to 

the upcoming fiscal period indicates 

that the producer price for the 2021–22 

season should be approximately $5.42 

per 7/10-bushel carton or equivalent of 

oranges and grapefruit. Therefore, the 

estimated assessment revenue for the 

2021–22 fiscal period as a percentage of 


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Federal Register / Vol. 87, No. 72 / Thursday, April 14, 2022 / Rules and Regulations 22105 

total producer revenue would be 

approximately 0.9 percent ($50,000 

divided by ($5.42 × 1,000,000 cartons) × 

100%). 

This action increases the assessment 

obligation imposed on handlers. While 

assessments impose some additional 

costs on handlers, costs are minimal and 

uniform on all handlers, and some 

portion of the additional costs may be 

passed on to producers. However, these 

costs are expected to be offset by 

benefits derived by the operation of the 

Order. 

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 July 14, 2021, 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 OMB and 

assigned OMB No. 0581–0189 Fruit 

Crops. No changes in those 

requirements are necessary as a result of 

this rule. 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, AMS has not identified any 

relevant Federal rules that duplicate, 

overlap, or conflict with this rule. 

AMS is committed to complying with 

the E-Government Act, promoting 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 November 18, 2021 (86 FR 

64408). Copies of the proposed rule 

were also mailed or sent via email to all 

Texas citrus handlers. The proposal was 

made available through the internet by 

AMS and the Office of the Federal 

Register. A 30-day comment period 

ending December 20, 2021, was 

provided for interested persons to 

respond to the proposal. 

No comments were received. 

Accordingly, no changes will be made 

to the rule as proposed. 

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 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 906 

Grapefruit, Marketing agreements, 

Oranges, Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service amends 7 CFR part 906 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, 2021, an 

assessment rate of $0.05 per 7/10-bushel 

carton or equivalent is established for 

oranges and grapefruit grown in the 

Lower Rio Grande Valley in Texas. 

Melissa Bailey, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–07975 Filed 4–13–22; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 983 

[Doc. No. AMS–SC–21–0068; SC21–983–1 

FR] 

Increased Assessment Rate for 

Pistachios 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule implements a 

recommendation from the 

Administrative Committee for 

Pistachios (Committee) to increase the 

assessment rate established for the 

2021–22 and subsequent production 

years. The assessment rate will remain 

in effect indefinitely unless modified, 

suspended, or terminated. 

DATES: Effective May 16, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Peter Sommers, Marketing Specialist, 

or Gary Olson, Regional Director, West 

Region Branch, Market Development 

Division, Specialty Crops Program, 

AMS, USDA; Telephone: (503) 326– 

2724 or Email: PeterR.Sommers@

usda.gov or GaryD.Olson@usda.gov. 

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, or Email: 

Richard.Lower@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 Agreement and Order No. 

983, as amended (7 CFR part 983), 

regulating the handling of pistachios 

grown in California, Arizona, and New 

Mexico. Part 983 (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 pistachios operating 

within the production area, and a public 

member. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

12866 and 13563. 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. This action falls within a 

category of regulatory actions that the 

Office of Management and Budget 

(OMB) exempted from Executive Order 

12866 review. 


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