Rule2025-16409
Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 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
August 27, 2025
Effective
September 26, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements a recommendation from the Texas Valley Citrus Committee (Committee) to increase the assessment rate established for the 2024-2025 and subsequent fiscal periods from $0.03 to $0.04 per 7/10-bushel carton or equivalent of oranges and grapefruit grown in Texas. The assessment rate will remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 90 Issue 164 (Wednesday, August 27, 2025)</title>
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[Federal Register Volume 90, Number 164 (Wednesday, August 27, 2025)]
[Rules and Regulations]
[Pages 41761-41764]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16409]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 906
[Doc. No. AMS-SC-24-0046]
Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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[[Page 41762]]
SUMMARY: This final rule implements a recommendation from the Texas
Valley Citrus Committee (Committee) to increase the assessment rate
established for the 2024-2025 and subsequent fiscal periods from $0.03
to $0.04 per 7/10-bushel carton or equivalent of oranges and grapefruit
grown in Texas. The assessment rate will remain in effect indefinitely
unless modified, suspended, or terminated.
DATES: Effective September 26, 2025.
FOR FURTHER INFORMATION CONTACT: Delaney Fuhrmeister, Marketing
Specialist, or Christian D. Nissen, Chief, Southeast Region Branch,
Market Development Division, Specialty Crops Program, AMS, USDA;
telephone: (863) 324-3375 or email: <a href="/cdn-cgi/l/email-protection#7337161f121d160a5d35061b011e161a0007160133060017125d141c05"><span class="__cf_email__" data-cfemail="4703222b2629223e6901322f352a222e34332235073234232669202831">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#cd8ea5bfa4beb9a4aca3e383a4bebea8a38db8bea9ace3aaa2bb"><span class="__cf_email__" data-cfemail="e4a78c968d97908d858acaaa8d9797818aa491978085ca838b92">[email protected]</span></a>.
Small businesses may request information on complying with this
regulation by contacting Antoinette Carter, 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#7938170d1610171c0d0d1c573a180b0d1c0b390c0a1d18571e160f"><span class="__cf_email__" data-cfemail="15547b617a7c7b706161703b56746761706755606671743b727a63">[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 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 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 final rule
in conformance with Executive Order 12866, as amended by Executive
Order 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 final rule has been reviewed under Executive Order
13175, ``Consultation and Coordination with Indian Tribal
Governments,'' which requires Federal agencies to consider whether
their rulemaking actions would have Tribal implications. AMS has
determined that this final 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 final rule has been reviewed under Executive Order 12988,
``Civil Justice Reform.'' Under the Order now in effect, Texas orange
and grapefruit 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 Texas citrus for
the 2024-2025 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. 608(c)(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 final rule increases the assessment rate for Texas oranges and
grapefruit handled under the Order from $0.03 to $0.04 per 7/10-bushel
carton or equivalent for the 2024-2025 and subsequent fiscal periods.
Sections 906.33 and 906.34 of the Order 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 of the Committee are familiar with the Committee's needs and
with the costs of goods and services in their local area and can
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 2022-23 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.03 per 7/10-
bushel carton or equivalent of Texas citrus 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 June 18, 2024, and unanimously recommended
2024-2025 fiscal period expenditures of $134,970 and an increased
assessment rate of $0.04 per 7/10-bushel carton or equivalent of Texas
oranges and grapefruit handled for the 2024-2025 and subsequent fiscal
periods. The budgeted expenditures remain unchanged compared to last
year's recommended expenditures. The new assessment rate of $0.04 is
$0.01 higher than the previous rate. The Committee recommended
increasing the assessment rate to cover expenses for the current fiscal
year and replenish reserves. The Committee estimates shipments for the
2024-2025 fiscal period to be around 4,000,000 7/10-bushel cartons or
equivalents, similar to the 3,976,000 7/10-bushel cartons or
equivalents handled in the 2023-2024 fiscal period.
The major expenditures recommended by the Committee for the 2024-
2025 fiscal period include $66,220 for management expenses, $50,000 for
compliance, and $18,750 for general administrative expenses, the same
as budgeted for these items during the 2023-2024 fiscal period.
At the previous assessment rate of $0.03, the expected 4,000,000 7/
10-bushel cartons or equivalents would generate $120,000 in assessment
revenue (4,000,000 7/10-bushel cartons or equivalents multiplied by
$0.03 assessment rate), which would not have covered budgeted expenses.
Further, shipments from the 2023-2024 fiscal period were approximately
4,000,000 7/10-bushel cartons or equivalents of citrus, which was well
below the estimated crop of 5,000,000 7/10-bushel cartons or
equivalents. The smaller crop forced the Committee to use the remainder
of their reserves to help cover 2023-2024 fiscal period expenses.
Consequently, the Committee recommended increasing the assessment rate
to meet necessary expenses and restore reserves. By increasing the
assessment rate from $0.03 to $0.04,
[[Page 41763]]
assessment income will generate $160,000 in assessment revenue
(4,000,000 7/10-bushel cartons or equivalents multiplied by $0.04
assessment rate). This amount should be appropriate to ensure the
Committee has sufficient revenue to fully fund its recommended 2024-
2025 budgeted expenditures and replenish the Committee's reserve funds.
The Committee derived the recommended assessment rate by reviewing
anticipated expenses, the estimated volume of assessable Texas citrus,
and the level of funds available in the financial reserve. Income
generated from handler assessments should be sufficient to meet the
Committee's estimated program expenditures of $134,970. Funds available
in the financial reserve (currently about $0) would be kept within the
maximum permitted by the Order (approximately one fiscal period's
expenses as authorized in Sec. 906.35).
This assessment rate established herein 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 2024-2025
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 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 17 handlers of Texas oranges and grapefruit subject to
regulation under the Order and approximately 75 orange and grapefruit
producers in the regulated area. At the time this analysis was
prepared, the Small Business Administration (SBA) defined small
agricultural producers as those having annual receipts equal to or less
than $4 million for orange producers (North American Industry
Classification System (NAICS) code 111310), and $4.25 million for other
citrus producers (including grapefruit) (NAICS code 111320). Small
agricultural service firms, including handlers, are defined as those
whose annual receipts are equal to or less than $34 million (NAICS code
115114) (13 CFR 121.201).
According to data from the National Agricultural Statistics Service
(NASS), the producer prices for U.S. fresh oranges and grapefruit were
$11.63 and $15.63 per carton, respectively. The prices for U.S. fresh
oranges and grapefruit are used for this RFA because NASS does not
publish fresh citrus prices for Texas. Based on data provided by the
Committee, the number of orange and grapefruit 7/10-bushel cartons or
equivalents shipped in the 2023-2024 season were 1,462,800 and
2,513,258, respectively.
Using the producer prices, shipment data, and the total number of
Texas orange and grapefruit producers, the majority of producers have
estimated average annual receipts of significantly less than the SBA
threshold of $4 million ($11.63 multiplied by 1,462,800 cartons plus
$15.63 multiplied by 2,513,258 cartons equals $112,564,041, divided by
75 producers equals $750,594 per producer).
In addition, based on the NASS data, the average prices of fresh
U.S. oranges and grapefruit handled for 2023-2024 were $18.40 and
$23.05, respectively. Using the same shipment data from the Committee,
the number of orange and grapefruit cartons shipped in the 2023-2024
season, the majority of Texas orange and grapefruit handlers have
average annual receipts of less than $34 million ($18.40 multiplied by
1,462,800 cartons plus $23.05 multiplied by 2,513,258 cartons equals
$84,846,117, divided by 17 handlers equals $4,990,948 per handler).
Thus, the majority of Texas orange and grapefruit producers and
handlers may be classified as small entities.
This final rule increases the assessment rate collected from
handlers for the 2024-2025 and subsequent fiscal periods from $0.03 to
$0.04 per 7/10-bushel carton or equivalent of Texas oranges and
grapefruit. The Committee unanimously recommended 2024-2025
expenditures of $134,970 and an assessment rate of $0.04 per 7/10-
bushel carton or equivalent. The assessment rate of $0.04 is $0.01
higher than the previous rate. The 2024-2025 crop year is estimated to
be 4,000,000 7/10-bushel cartons or equivalents. The $0.04 per 7/10-
bushel carton or equivalent assessment rate should provide $160,000 in
assessment income (4,000,000 7/10-bushel cartons or equivalents
multiplied by $0.04 assessment rate). Income derived from handler
assessments should be sufficient to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2024-25
fiscal period include $66,220 for management expenses, $50,000 for
compliance, and $18,750 for general administrative expenses. This is
the same as budgeted for these items during the 2023-2024 fiscal
period.
The Committee recommended increasing the assessment rate to meet
necessary expenses and restore reserves. The reserves were depleted
when shipments from the 2023-2024 fiscal period were approximately
4,000,000 7/10-bushel cartons or equivalents, which was well below the
estimated crop of 5,000,000 7/10-bushel cartons or equivalents. The
Committee estimates shipments for the 2024-2025 season to be around
4,000,000 7/10-bushel cartons or equivalents. Given the estimated
number of shipments, the previous assessment rate of $0.03 would
generate $120,000 in assessment income (4,000,000 7/10-bushel cartons
or equivalents multiplied by $0.03 assessment rate), which would not
cover budgeted expenses. By increasing the assessment rate from $0.03
to $0.04, assessment income will be approximately $160,000 (4,000,000
7/10-bushel cartons or equivalents multiplied by $0.04 assessment
rate). This amount should provide sufficient funds to meet anticipated
2024-2025 expenses, while adding money to the financial reserve.
Prior to arriving at this budget and assessment rate
recommendation, the Committee considered alternatives from the
Committee staff during a discussion at the June 18, 2024, meeting.
Staff prepared fifteen different proposed budgets with different
combinations of assessment rates, estimated shipments, and alternate
expenditure levels. The Committee determined maintaining
[[Page 41764]]
expenses and estimated shipments of 4,000,000 7/10-bushel cartons or
equivalent of oranges and grapefruit were representative of the 2024-
2025 fiscal period, and an assessment rate of $0.04 should cover
expenditures and add funds to the financial reserve. Consequently, the
other alternatives were rejected.
A review of historical and preliminary information pertaining to
the 2024-2025 fiscal period indicates the average producer price for
Texas oranges and grapefruit for the 2024-2025 season should be
approximately $14.15 per 7/10-bushel carton or equivalent. Therefore,
utilizing the recommended assessment rate of $0.04 per 7/10-bushel
carton or equivalent, assessment revenue for the 2024 fiscal period as
a percentage of total producer revenue should be approximately 0.3
percent ($0.04 divided by $14.15 times 100).
This final rule increases the assessment obligation imposed on
Texas orange and grapefruit 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 operation of the Order.
The Committee's meetings are widely publicized throughout the Texas
citrus industry and all interested persons are invited to attend the
meetings and participate in Committee deliberations on all issues. Like
all Committee meetings, the June 18, 2024, 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 rule, including the regulatory and information collection
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 because of this
final 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 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 rule.
A proposed rule concerning this action was published in the Federal
Register on January 15, 2025 (90 FR 3720). Copies of the proposed rule
were also mailed or sent via email to all Texas citrus handlers. The
proposal was also made available through the internet by USDA and the
Office of the Federal Register via <a href="https://www.regulations.gov">https://www.regulations.gov</a>. A 30-
day comment period ending February 14, 2025, was provided for
interested persons to respond to the proposal. AMS received one comment
supporting the proposed change. Accordingly, AMS made no changes to the
rule based on the comment received, as proposed.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: <a href="http://www.ams.usda.gov/rules-regulations/moa/small-businesses">http://www.ams.usda.gov/rules-regulations/moa/small-businesses</a>. Any questions
about the compliance guide should be sent to Antoinette Carter 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 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
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, 2024, an assessment rate of $0.04 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit
grown in the Lower Rio Grande Valley in Texas.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-16409 Filed 8-26-25; 8:45 am]
BILLING CODE P
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