Proposed Rule2025-19220
Oranges, Grapefruit, Tangerines, and Pummelos 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
October 1, 2025
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This proposed rule would implement a recommendation from the Citrus Administrative Committee (Committee) to increase the assessment rate established for the 2024-2025 and subsequent fiscal periods from $0.02 to $0.025 per \4/5\-bushel carton or equivalent for oranges, grapefruit, tangerines and pummelos grown in Florida. The proposed assessment rate would remain in effect indefinitely unless modified, suspended, or terminated.
Full Text
<html>
<head>
<title>Federal Register, Volume 90 Issue 188 (Wednesday, October 1, 2025)</title>
</head>
<body><pre>
[Federal Register Volume 90, Number 188 (Wednesday, October 1, 2025)]
[Proposed Rules]
[Pages 47240-47242]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-19220]
========================================================================
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.
========================================================================
Federal Register / Vol. 90, No. 188 / Wednesday, October 1, 2025 /
Proposed Rules
[[Page 47240]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS-SC-24-0071]
Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This proposed rule would implement a recommendation from the
Citrus Administrative Committee (Committee) to increase the assessment
rate established for the 2024-2025 and subsequent fiscal periods from
$0.02 to $0.025 per \4/5\-bushel carton or equivalent for oranges,
grapefruit, tangerines and pummelos grown in Florida. The proposed
assessment rate would remain in effect indefinitely unless modified,
suspended, or terminated.
DATES: Comments must be received by October 31, 2025.
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#c78aa6b5aca2b3aea9a088b5a3a2b584a8aaaaa2a9b387b2b4a3a6e9a0a8b1"><span class="__cf_email__" data-cfemail="aae7cbd8c1cfdec3c4cde5d8cecfd8e9c5c7c7cfc4deeadfd9cecb84cdc5dc">[email protected]</span></a> or via the internet: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number, the
date, and the page number of this issue of the Federal Register.
Comments submitted in response to this proposed rule will be included
in the record, will be made available to the public, and can be viewed
at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. 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: Jennie M. Varela, 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#ace6c9c2c2c5c982facddec9c0cdecd9dfc8cd82cbc3da"><span class="__cf_email__" data-cfemail="5e143b3030373b70083f2c3b323f1e2b2d3a3f70393128">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#4d0e253f243e39242c236303243e3e28230d383e292c632a223b"><span class="__cf_email__" data-cfemail="eead869c879d9a878f80c0a0879d9d8b80ae9b9d8a8fc0898198">[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#db9ab5afb4b2b5beafafbef598baa9afbea99baea8bfbaf5bcb4ad"><span class="__cf_email__" data-cfemail="a2e3ccd6cdcbccc7d6d6c78ce1c3d0d6c7d0e2d7d1c6c38cc5cdd4">[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. 905, as amended (7 CFR part 905), regulating the handling of
oranges, grapefruit, tangerines, and pummelos grown in Florida. Part
905 (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 growers of fresh citrus
operating within the area of production, and one public member.
The Agricultural Marketing Service (AMS) is issuing this proposed
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 proposed 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 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, Florida citrus
handlers are subject to assessments. Funds to administer the Order are
derived from such assessments. It is intended that the proposed
assessment rate would be applicable to all assessable Florida 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 608c(15)(A) of the
Act, 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 proposed rule would increase the assessment rate for Florida
citrus handled under the Order from $0.02 to $0.025 per \4/5\-bushel
carton or equivalent, for the 2024-2025 and subsequent fiscal periods.
Sections 905.40 and 905.41 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
[[Page 47241]]
Committee's needs and with the costs of goods and services in their
local area and, thus, 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 2023-2024 and subsequent fiscal periods, the Committee
recommended, and AMS approved, an assessment rate of $0.02 per \4/5\-
bushel carton of citrus or equivalent. 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 23, 2024, and unanimously
recommended 2024-2025 fiscal period expenditures of $119,624 and an
increased assessment rate of $0.025 per \4/5\-bushel carton of citrus
or equivalent handled for the 2024-2025 fiscal period and subsequent
fiscal periods. In comparison, budgeted expenditures for the 2023-2024
fiscal year were $124,624. The proposed assessment rate of $0.025 is
$0.005 higher than the rate currently in effect. The Committee
recommended increasing the assessment rate to reduce the burden on its
financial reserve, which had been strained during the previous two
seasons after unexpected, decreased shipment volumes. Following
Hurricanes Helene and Milton, the Committee met again on November 14,
2024, and reaffirmed its recommendation for an assessment rate increase
to help respond to damage incurred by both weather events. The
Committee estimates shipments of approximately 4,500,000 \4/5\-bushel
cartons of citrus or equivalent for the 2024-2025 fiscal period, which
is 1,145,904 fewer cartons than was handled for the 2023-2024 fiscal
period.
The major expenditures recommended by the Committee for the 2024-
2025 fiscal period include management, auditing, and compliance travel
expenses--the same as budgeted for the 2023-2024 fiscal period.
The Committee derived the recommended assessment rate by
considering anticipated expenses, an estimated 4,500,000 \4/5\-bushel
cartons or equivalent of assessable Florida citrus, and the amount of
funds available in the authorized reserve. At the current assessment
rate of $0.02, the expected 4,500,000 \4/5\-bushel cartons or
equivalent of the assessable Florida citrus would generate $90,000 in
assessment revenue (4,500,000 cartons multiplied by the $0.02
assessment rate), which would require the use of $29,624 of reserves to
cover the anticipated expenditures of $119,624 for the 2024-2025 fiscal
period. By increasing the assessment rate by $0.005 to $0.025,
assessment revenue would generate $112,500 (4,500,000 cartons
multiplied by the $0.025 assessment rate) for the 2024-2025 fiscal
period and would only require $7,124 in reserves to cover expenditures.
Income derived from handler assessments, along with reserve funds and
interest income, would be sufficient to meet the Committee's
recommended budgeted expenditures of $119,624 for the 2024-2025 fiscal
period. Funds available in the reserve (approximately $146,000) are
expected to be kept within the maximum permitted by the Order
(approximately two fiscal periods' expenses as authorized in Sec.
905.42).
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 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 would 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.
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 12 handlers of Florida citrus who are subject to
regulation under the Order and approximately 500 citrus 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 $4.0 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 $34.0 million (NAICS 115114) (13 CFR 121.201).
According to the data from the National Agricultural Statistic
Service (NASS), the average free on board (FOB) price for fresh Florida
oranges for the 2023-2024 season was approximately $18.15 per carton
with total shipments of 3,504,000 cartons for a total value of
$63,597,600. The average FOB price for fresh Florida grapefruit for the
2023-2024 season was $22.75 per carton with total fresh shipments of
1,201,000 cartons for a total value of $54,645,000. Based on this
information, the majority of fresh citrus handlers have average annual
receipts less than $34,000,000 ($63,597,600 plus $54,645,500 equals
$118,243,100 divided by 12 handlers equals $9,853,591.67).
In addition, based on the NASS data, the on-tree price for growers
for the 2023-2024 season was estimated at a weighted average price of
$4.51 per carton. Fresh oranges make up a small segment of the citrus
industry. The on-tree price for fresh oranges was $7.93 per carton with
shipments of 3,504,000 cartons for a value of $27,786,720, while
oranges for processing were $4.14 per carton with shipments of
32,416,000 cartons for a total value of $134,040,160.
Conversely, the grapefruit market is predominantly fresh. The on-
tree price for fresh grapefruit was $13.44 per carton during the same
period with shipments of 2,402,000 for a total value of $32,282,880.
NASS could not estimate an on-tree price for processing. Based on
grower prices, shipment data, and the total number of Florida growers,
the average annual grower revenue, even including oranges for
processing, is well below $4,000,000 ($27,786,720 in fresh orange
shipments plus $134,040,160 in processed orange shipments, plus
$32,282,880 in fresh grapefruit shipments equals $194,109,760 divided
by 500 growers equals $388,219). Thus, the majority of
[[Page 47242]]
Florida citrus handlers and growers may be classified as small
entities.
This proposed rule would increase the assessment rate for the 2024-
2025 fiscal year and subsequent fiscal years from $0.02 to $0.025 per
\4/5\-bushel carton of citrus or equivalent. The Committee recommended
2024-2025 expenditures of $119,624 and an assessment rate of $0.025 per
\4/5\-bushel carton. The proposed assessment rate of $0.025 is $0.005
more than the current assessment rate. The quantity of assessable
Florida citrus for the 2024-2025 season is estimated at 4,500,000 \4/
5\-bushel cartons or equivalent. The $0.025 rate should provide
$112,500 in assessment income (4,500,000 cartons multiplied by $0.025
assessment rate). Income derived from handler assessments along with
reserve funds and interest income, should provide sufficient funds to
cover budget expenses.
The major expenditures recommended by the Committee for the 2023-
2024 fiscal year include management, auditing, and compliance travel
expenses--the same as budgeted for the 2023-2024 fiscal period.
The Committee recommended increasing the assessment rate to
minimize the use of reserves after drawing down these funds over the
past two seasons due to shipment volumes and assessment being lower
than expected. The Committee estimates shipments of approximately
4,500,000 \4/5\-bushel cartons of citrus or equivalent for the 2024-
2025 fiscal year which is 1,145,904 fewer cartons than was handled for
the 2023-2024 fiscal year. At the current assessment rate of $0.02, the
expected 4,500,000 \4/5\-bushel cartons or equivalent of the assessable
Florida citrus would generate $90,000 (4,500,000 cartons multiplied by
$0.02 assessment rate), which would require the use of close to $30,000
of reserves to cover the anticipated expenditures of $119,624 for the
2024-2025 fiscal period. By increasing the assessment rate by $0.005 to
$0.025, assessment income would generate $112,500 (4,500,000 cartons
multiplied by $0.025 assessment rate) for the 2024-2025 fiscal year and
require the use of less reserve funds to cover expenditures. The
increased assessment amount, along with reserve funds and interest
income, should provide sufficient funds to meet anticipated expenses
for the 2024-2025 fiscal period.
Prior to arriving at this budget and assessment rate, the Committee
considered alternatives, including raising the assessment rate to $0.03
per carton to replenish reserves. However, Committee members determined
that because annual expenditures were relatively stable, it was not
crucial to add to reserves at this time and the alternative was
rejected. The Committee also considered maintaining the current
assessment rate of $0.02 per carton. However, the Committee members did
not want to make another large draw on reserves to meet 2024-2025
expenses after doing so in previous seasons. Consequently, this
alternative was rejected.
A review of historical and preliminary information pertaining to
the 2024-2025 fiscal period indicates the average grower price should
be approximately $7.43 \4/5\-bushel carton of citrus or equivalent.
Therefore, the estimated assessment revenue for the 2024-2025 fiscal
period as a percentage of total grower revenue would be about 0.34
percent ($0.025 divided by $7.43 multiplied by 100).
This proposed rule would increase 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, these costs
are expected to be offset by the benefits derived by the operations of
the Order.
The Committee's meetings are widely publicized throughout the
Florida citrus 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 23, 2024, and
November 14, 2024, meetings were public meetings 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 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 to those requirements would be necessary based on 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 Florida 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 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 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 proposed rule
is consistent with and would effectuate the purposes of the Act.
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 rule.
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Pummelos, Reporting and
recordkeeping requirements, Tangerines.
For the reasons set forth in the preamble, the Agricultural
Marketing Service proposes to amend 7 CFR part 905 as follows:
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND PUMMELOS GROWN IN
FLORIDA
0
1. The authority citation for 7 CFR part 905 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 905.235 is revised to read as follows:
Sec. 905.235 Assessment rate.
On and after August 1, 2024, an assessment rate of $0.025 per \4/
5\-bushel carton or equivalent is established for Florida citrus
covered under the Order.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2025-19220 Filed 9-30-25; 8:45 am]
BILLING CODE 3410-02-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 October 1, 2025.
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.