Proposed Rule2022-25123
Decrease of Assessment Rate for Texas Oranges and Grapefruit
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 18, 2022
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Texas Valley Citrus Committee to decrease the assessment rate established for the 2022-23 and subsequent fiscal periods. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 87 Issue 222 (Friday, November 18, 2022)</title>
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[Federal Register Volume 87, Number 222 (Friday, November 18, 2022)]
[Proposed Rules]
[Pages 69208-69210]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-25123]
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Proposed Rules
Federal Register
________________________________________________________________________
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.
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Federal Register / Vol. 87, No. 222 / Friday, November 18, 2022 /
Proposed Rules
[[Page 69208]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Doc. No. AMS-SC-22-0048]
Decrease of Assessment Rate for Texas Oranges and Grapefruit
AGENCY: Agricultural Marketing Service, Department of Agriculture
(USDA).
ACTION: Proposed rule.
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SUMMARY: This proposed rule would implement a recommendation from the
Texas Valley Citrus Committee to decrease the assessment rate
established for the 2022-23 and subsequent fiscal periods. The proposed
assessment rate would remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by December 19, 2022.
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#81cce0f3eae4f5e8efe6cef3e5e4f3c2eeecece4eff5c1f4f2e5e0afe6eef7"><span class="__cf_email__" data-cfemail="420f23302927362b2c250d30262730012d2f2f272c3602373126236c252d34">[email protected]</span></a> or internet: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number and
the date and page number of this issue of the Federal Register and can
be viewed at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. All comments submitted in
response to this proposed 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: Delaney Fuhrmeister, 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:
<a href="/cdn-cgi/l/email-protection#bdf9d8d1dcd3d8c493fbc8d5cfd0d8d4cec9d8cffdc8ced9dc93dad2cb"><span class="__cf_email__" data-cfemail="45012029242b203c6b03302d3728202c3631203705303621246b222a33">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#47042f352e34332e262969092e34342229073234232669202831"><span class="__cf_email__" data-cfemail="35765d475c46415c545b1b7b5c4646505b75404651541b525a43">[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#b4e6ddd7dcd5c6d09af8dbc3d1c6f4c1c7d0d59ad3dbc2"><span class="__cf_email__" data-cfemail="693b000a01081b0d4725061e0c1b291c1a0d08470e061f">[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. 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 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 Agricultural Marketing Service (AMS) is issuing this proposed
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 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 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, Texas citrus
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the assessment rate
as proposed herein would be applicable to all assessable oranges and
grapefruit for the 2022-23 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 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 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 no later than 20
days after the date of the entry of the ruling.
This proposed rule would decrease the assessment rate for the 2022-
23 and subsequent fiscal periods from $0.05 to $0.03 per 7/10-bushel
carton or equivalent of oranges and grapefruit.
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. The members of the Committee are
familiar with the Committee's needs and with the costs for goods and
services in their local area and are able to formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in a public meeting, and all directly affected persons have
an
[[Page 69209]]
opportunity to participate and provide input.
For the 2021-22 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate that would continue
in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by AMS upon recommendation and information
submitted by the Committee or other information available to AMS. That
regulatory amendment raised the assessment rate from $0.01 per 7/10-
bushel carton to its current level of $0.05 per 7/10-bushel carton.
The Committee met on May 24, 2022, and recommended 2022-23
expenditures of $134,970 and an assessment rate of $0.03 per 7/10-
bushel carton or equivalent. In comparison, last year's budgeted
expenditures were $43,900. The assessment rate of $0.03 is $0.02 lower
than the rate currently in effect. The Committee voted to decrease the
assessment rate due to an increase in production. The Committee
estimates production for 2022-23 fiscal period to be approximately 4
million 7/10-bushel cartons or equivalent, an increase from the 1
million cartons estimated to be produced the previous year. At the
current assessment rate, assessment income would equal $200,000,
exceeding the Committee's anticipated expenditures of $134,970. By
decreasing the assessment rate by $0.02, assessment income would be
$120,000. This amount, along with reserve funds and interest income,
should provide sufficient funds to meet 2022-23 anticipated expenses.
Major expenditures recommended by the Committee for the 2022-23
year include $66,220 for management expenses, $50,000 for compliance,
and $18,750 for administrative expenses. Budgeted expenses for these
items in 2021-22 were $20,000, $10,000, and $13,900, respectively.
The assessment rate recommended by the Committee was derived by
reviewing anticipated expenses, expected shipments of Texas oranges and
grapefruit, and the level of funds in reserve. Orange and grapefruit
shipments for the 2022-23 year are estimated at 4,000,000 7/10-bushel
cartons or equivalent, which should provide $120,000 in assessment
income (4,000,000 cartons multiplied by $0.03). Income derived from
handler assessments at the proposed rate, along with reserve funds and
interest income, would be adequate to cover budgeted expenses. Funds in
the reserve (currently about $89,126) are expected to be kept within
the maximum permitted by the Order (approximately one fiscal period's
expenses as authorized in Sec. 906.35).
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. 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 evaluates 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 2022-23 budget and
those for subsequent fiscal periods would be reviewed and, as
appropriate, approved by AMS.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, AMS has determined that this proposed rule
is consistent with and will effectuate the purposes of the Act.
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 approximately 120 producers of oranges and grapefruit in
the production area and 14 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (SBA) as those having annual receipts of
$3,500,000 or less, and small agricultural service firms are defined as
those whose annual receipts are $30,000,000 or less (13 CFR 121.201).
According to data from the National Agricultural Statistics Service
(NASS), the weighted average free-on-board price for Texas citrus for
the 2019-20 season was approximately $16.20 per 7/10-bushel carton or
equivalent with total shipments of around 8.2 million cartons. Based on
the number of handlers and the NASS data, handlers have average annual
receipts of well below $30 million ($16.20 multiplied by 8.2 million
cartons equals $132,840,000, divided by 14 equals $9.5 million).
In addition, based on NASS and Committee data the reported weighted
average producer price for the 2020-21 season was around $9.82 per 7/
10-bushel carton of Texas citrus with total shipments of around 4.45
million cartons. Based on producer price, shipment data, and the total
number of Texas citrus producers, the average annual producer revenue
is significantly below $3,500,0000 ($9.82 multiplied by 4.45 million
cartons equals $43,699,000 divided by 119 producers equals $367,218).
Thus, the majority of Texas citrus handlers and growers may be
classified as small entities.
This proposal would decrease the assessment rate established for
the Committee and collected from handlers for the 2022-23 and
subsequent fiscal periods from $0.05 to $0.03 per 7/10-bushel carton or
equivalent of oranges and grapefruit grown in the Lower Rio Grande
Valley in Texas. The Committee recommended 2022-23 expenditures of
$134,970 and an assessment rate of $0.03 per 7/10-bushel carton. The
proposed assessment rate of $0.03 is $0.02 less than the previous rate.
The quantity of assessable Texas Citrus for the 2022-23 season is
estimated at 4 million 7/10-bushel cartons. Thus, the $0.03 rate should
provide $120,000 in assessment income. Income derived from handler
assessments along with interest income and funds from the Committee's
authorized reserve would be adequate to cover budgeted expenses.
Major expenditures recommended by the Committee for the 2022-23
fiscal period include $66,220 for management expenses, $50,000 for
compliance, and $18,750 for administrative expenses. Budgeted expenses
for these items in 2021-22 were $20,000, $10,000, and $13,900,
respectively.
The Committee recommended decreasing the assessment rate based on
the 2022-23 estimate of 4 million 7/10-bushel carton or equivalent, 3
million more than estimated for the previous year. At the current
assessment rate of $0.05 and with the 2022-23 crop estimated to be 4
million 7/10-bushel
[[Page 69210]]
cartons, assessment income would equal $200,000 ($0.05 multiplied by 4
million cartons), an amount exceeding the Committee's anticipated
expenditures of $134,970. By decreasing the assessment rate by $0.02,
assessment income would be approximately $120,000 ($0.03 multiplied by
4 million cartons). This amount, along with interest income, and funds
from the authorized reserve, should provide sufficient funds to meet
2022-23 anticipated expenses.
Prior to arriving at this budget and assessment rate, the Committee
considered maintaining the current assessment rate of $0.05. However,
leaving the assessment unchanged would generate excess revenue over the
Committee's budgeted expenses for the 2022-23 and potentially cause
reserve amounts to surpass the limits specified by the Order.
Consequently, the Committee determined the assessment rate should be
decreased to $0.03 per 7/10-bushel carton and the alternative rejected.
A review of historical information and preliminary information
pertaining to the upcoming season indicates that the producer price for
the 2022-23 season should be approximately $12.85 per 7/10-bushel
carton or equivalent of oranges and grapefruit. The proposed assessment
rate of $0.03 per 7/10-bushel carton or equivalent of oranges and
grapefruit represents 0.23 percent of the $12.85 revenue for the 2022-
23 fiscal period as a percentage of total producer revenue ($0.03
divided by $12.85 multiplied by 100).
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 and all interested persons were invited to attend the
meeting and participate in Committee deliberations on all issues. Like
all Committee meetings, the May 24, 2022, 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 informational
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 Texas oranges 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.
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:
<a href="https://www.ams.usda.gov/rules-regulations/moa/small-businesses">https://www.ams.usda.gov/rules-regulations/moa/small-businesses</a>. Any
questions about the compliance guide should be sent to Richard Lower at
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
A 30-day comment period is provided to allow interested persons to
comment on this proposed rule. All written comments timely received
will be considered before a final determination is made on this matter.
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 is proposing to amend 7 CFR part 906 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, 2022, an assessment rate of $0.03 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit
grown in the Lower Rio Grande Valley in Texas.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2022-25123 Filed 11-17-22; 8:45 am]
BILLING CODE P
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