Rule2024-14551
Tomatoes Grown in Florida; Increased Assessment Rate
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
July 3, 2024
Effective
August 2, 2024
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This rulemaking implements a recommendation from the Florida Tomato Committee (Committee) to increase the assessment rate established for the 2023-2024 and subsequent fiscal periods from $0.025 to $0.035 per 25-pound container of tomatoes or equivalent. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
<html>
<head>
<title>Federal Register, Volume 89 Issue 128 (Wednesday, July 3, 2024)</title>
</head>
<body><pre>
[Federal Register Volume 89, Number 128 (Wednesday, July 3, 2024)]
[Rules and Regulations]
[Pages 55021-55023]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-14551]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
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 the Superintendent of Documents.
========================================================================
Federal Register / Vol. 89, No. 128 / Wednesday, July 3, 2024 / Rules
and Regulations
[[Page 55021]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Doc. No. AMS-SC-23-0063]
Tomatoes Grown in Florida; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This rulemaking implements a recommendation from the Florida
Tomato Committee (Committee) to increase the assessment rate
established for the 2023-2024 and subsequent fiscal periods from $0.025
to $0.035 per 25-pound container of tomatoes or equivalent. The
assessment rate will remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Effective August 2, 2024.
FOR FURTHER INFORMATION CONTACT: Steven W. Kauffman, Marketing
Specialist, or Christian D. Nissen, 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#5506213023303b7b1e3420333338343b15202631347b323a23"><span class="__cf_email__" data-cfemail="94c7e0f1e2f1fabadff5e1f2f2f9f5fad4e1e7f0f5baf3fbe2">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#df9cb7adb6acabb6beb1f191b6acacbab19faaacbbbef1b8b0a9"><span class="__cf_email__" data-cfemail="1e5d766c776d6a777f703050776d6d7b705e6b6d7a7f30797168">[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) 720-8085, or Email:
<a href="/cdn-cgi/l/email-protection#f2a09b919a938096dcbe9d859780b287819693dc959d84"><span class="__cf_email__" data-cfemail="7f2d161c171e0d1b513310081a0d3f0a0c1b1e51181009">[email protected]</span></a>.
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 rulemaking is issued under Marketing Agreement No.
125 and Marketing Order No. 966, as amended (7 CFR part 966),
regulating the handling of tomatoes grown in Florida. Part 966 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 of fresh tomatoes operating within the
area of production.
The Agricultural Marketing Service (AMS) is issuing this rulemaking
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, supplements, and updates Executive Order 12866 and further
directs agencies to solicit and consider input from a wide range of
affected and interested parties through a variety of means. This action
falls within a category of regulatory actions that the Office of
Management and Budget (OMB) exempted from Executive Order 12866 review.
This rulemaking 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 rulemaking 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 rulemaking has been reviewed under Executive Order 12988--
Civil Justice Reform. Under the 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
will be applicable to all assessable tomatoes 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 8c(15)(A) of the
Act (7 U.S.C. 608c(15)(A)), any handler subject to an order may file
with the U.S. 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 not later than 20 days after the date of
the entry of the ruling.
This rulemaking increases the assessment rate for Florida tomatoes
handled under the Order from $0.025 per 25-pound container or
equivalent, the rate established for the 2017-2018 and subsequent
fiscal periods, to a rate of $0.035 per 25-pound container or
equivalent for the 2023-2024 and subsequent fiscal periods.
Sections 966.41 and 966.42 authorize 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 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 opportunity to participate and provide input.
For the 2017-2018 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.025 per 25-
pound container or equivalent of Florida tomatoes within the production
area. 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.
The Committee met on September 20, 2023, and unanimously
recommended
[[Page 55022]]
2023-2024 fiscal period expenditures of $1,155,764 and an assessment
rate of $0.035 per 25-pound container or equivalent of Florida tomatoes
handled for the 2023-2024 and subsequent fiscal periods. In comparison,
last fiscal period's budgeted expenditures were $1,156,773. The
assessment rate of $0.035 per 25-pound container or equivalent is $0.01
higher than the rate currently in effect. The Committee has used
financial reserves in previous seasons to help pay for budgeted
expenses. Increasing the assessment rate will allow the Committee to
replenish and maintain their financial reserves at the desired level of
$250,000. The Committee projects handler receipts of approximately
22,000,000 25-pound containers or equivalent of assessable Florida
tomatoes for the 2023-2024 fiscal period, an increase from the
21,815,350 containers handled for the 2022-2023 fiscal period.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $350,000 for research; $340,000 for
education and promotions; and $277,393 for management and staff. By
comparison, budgeted expenses for these items during the 2022-2023
fiscal period were $350,000; $330,000; and $274,105, respectively.
At the current assessment rate of $0.025, the expected 22,000,000
25-pound containers or equivalent of assessable Florida tomatoes would
generate $550,000 in assessment revenue (22,000,000 multiplied by
$0.025 assessment rate). By increasing the assessment rate by $0.01 to
$0.035, assessment income should generate $770,000 in assessment
revenue (22,000,000 multiplied by $0.035 assessment rate) for the 2023-
2024 fiscal period. This amount should be appropriate to ensure the
Committee has sufficient revenue, along with an anticipated $265,501 in
funds awarded through the Foreign Agricultural Service Market Access
Program and $129,071 in other income, to fully fund its recommended
2023-2024 fiscal period budgeted expenditures, while maintaining
financial reserves at around $250,000.
The Committee derived the recommended assessment rate by
considering anticipated fiscal period expenses, expected shipments of
Florida tomatoes, anticipated grant funds, and the amount of funds
available in financial reserve. Income derived from handler assessments
($770,000), Foreign Agricultural Service Market Access Program grants
($265,501), and other sources including administrative and interest
income ($129,071), should be adequate to cover budgeted expenses
($1,155,764). Funds available in the financial reserve (currently about
$241,000) will be kept within the maximum permitted by the Order
(approximately one fiscal period's expenses as authorized in Sec.
966.44).
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. 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. Further rulemaking will
be undertaken as necessary. The Committee's 2023-2024 fiscal period
budget, and those for subsequent fiscal periods, will 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 rulemaking 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 38 handlers of Florida tomatoes subject to regulation
under the Order and approximately 50 producers of Florida tomatoes in
the production area. At the time this analysis was prepared, the Small
Business Administration (SBA) defined small agricultural producers of
tomatoes as those having annual receipts of less than $3,500,000 (NAICS
code 111339, Other Non-citrus Fruit Farming), and small agricultural
service firms as those whose annual receipts are less than $34,000,000
(NAICS code 115114, Postharvest Crop Activities) (13 CFR 121.201).
According to data from the AMS Market News Tomato Fax Report, the
average price for fresh Florida tomatoes for the 2022-2023 season was
approximately $21.94 per 25-pound container, with total shipments of
around 21,815,350 25-pound containers. Based on the average terminal
market price and shipment information, the number of handlers, and
assuming a normal distribution, the majority of tomato handlers have
estimated average annual receipts of significantly less than
$34,000,000 ($21.94 multiplied by 21,815,350 containers equals
$478,628,779, divided by 38 handlers equals $12,595,494 per handler).
In addition, based on data from the National Agricultural
Statistics Service (NASS), the average price producers received for
fresh Florida tomatoes at the point of first sale during the 2022-2023
season was approximately $11.08 per 25-pound container, with total
shipments of around 21,815,350 containers. Using the average price
producers received and shipment information, the number of producers,
and assuming a normal distribution, the majority of producers have
estimated average annual receipts greater than $3.5 million ($11.08
multiplied by 21,815,350 containers equals $241,714,078, divided by 50
producers equals $4,834,282 per producer). Thus, a majority of
producers of Florida tomatoes may be classified as large entities,
while a majority of handlers may be classified as small entities.
This rulemaking will increase the assessment rate collected from
handlers for the 2023-2024 and subsequent fiscal periods from $0.025 to
$0.035 per 25-pound container or equivalent of Florida tomatoes. The
Committee unanimously recommended 2023-2024 fiscal period expenditures
of $1,155,764 and an assessment rate of $0.035 per 25-pound container
or equivalent of Florida tomatoes. The assessment rate of $0.035 is
$0.01 higher than the current rate. The Committee expects industry to
handle 22,000,000 25-pound containers or equivalent of Florida tomatoes
during the 2023-2024 fiscal period. Thus, the $0.035 rate per 25-pound
container or equivalent should provide $770,000 in assessment income
(22,000,000 containers multiplied by $0.035). The Committee expects to
use an anticipated $265,501 in funds awarded through the Foreign
Agricultural Service Market Access Program and $129,071 in other
sources to cover remaining expenses. Income derived from handler
assessments, Foreign Agricultural Service Market Access Program grants,
[[Page 55023]]
and other sources including member fees and interest income, should be
adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal period include $350,000 for research; $340,000 for
education and promotions; and $277,393 for management and staff. By
comparison, budgeted expenses for these items during the 2022-2023
fiscal period were $350,000; $330,000; and $274,105, respectively.
The Committee unanimously recommended increasing the assessment
rate after drawing down financial reserves in previous seasons. The
Committee desires to maintain a financial reserve of around $250,000,
and without increasing the assessment rate, the Committee will not be
able to maintain financial reserves at this level. The Committee
estimates production for the 2023-2024 fiscal period to be 22,000,000
25-pound containers or equivalent of Florida tomatoes. At the current
assessment rate, assessment income should equal $550,000 (22,000,000
containers multiplied by $0.025). By increasing the assessment rate by
$0.01, assessment income should be $770,000 (22,000,000 containers
multiplied by $0.035). This amount, along with Foreign Agricultural
Service Market Access Program grants, and other income, should provide
sufficient funds to meet anticipated 2023-2024 fiscal period expenses,
while maintaining financial reserves at around $250,000.
Prior to arriving at this budget and assessment rate, the Committee
considered maintaining the current assessment rate of $0.025. However,
the Committee would need to further draw down reserves to meet its
expenses. The Committee members did not want to utilize additional
funds from reserves to meet 2023-2024 fiscal period expenses.
Consequently, the alternative of maintaining the current assessment
rate was rejected.
A review of historical 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 25-pound container
of tomatoes or equivalent. Therefore, the estimated assessment revenue
for the 2023-2024 crop year as a percentage of total grower revenue
should be about 0.32 percent ($0.035 divided by $11.00 multiplied by
100).
This action increases the assessment obligation imposed on Florida
tomato 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 from the operation of
the Order.
The Committee's meetings are widely publicized throughout the
Florida tomato industry and all interested persons are invited to
attend the meeting and participate in Committee deliberations on all
issues. Like all Committee meetings, the September 20, 2023, meeting
was a public meeting and all entities, both large and small, were able
to express views on this issue. Finally, interested persons were
invited to submit comments on this rulemaking, 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. 0581-0178 Vegetable and
Specialty Crops. No changes in those requirements would be necessary as
a result of this rulemaking. Should any changes become necessary, they
would be submitted to OMB for approval.
This rulemaking will not impose any 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.
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 rulemaking.
A proposed rule concerning this action was published in the Federal
Register on March 7, 2024 (89 FR 16471). Copies of the proposed rule
were provided to all Florida tomato handlers. The proposal was also
made available through the internet by USDA and the Office of the
Federal Register. A 30-day comment period ending April 8, 2024, was
provided for interested persons to respond to the proposal. AMS
received three comments during the comment period. Two commentors
supported the action and one commenter did not address the merits of
the proposed rule. Accordingly, AMS made no changes 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:
<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.
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 rulemaking is
consistent with and will effectuate the purposes of the Act.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 966 as follows:
PART 966--TOMATOES GROWN IN FLORIDA
0
1. The authority citation for part 966 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 966.234 to read as follows:
Sec. 966.234 Assessment rate.
On and after August 1, 2023, an assessment rate of $0.035 per 25-
pound container or equivalent is established for Florida tomatoes.
Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2024-14551 Filed 7-2-24; 8:45 am]
BILLING CODE P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on July 3, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.