Rule2026-08358
Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Increased Assessment Rate
Primary source
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Published
April 29, 2026
Effective
May 29, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This final rule implements a recommendation from the Citrus Administrative Committee to increase the assessment rate established for the 2024-2025 fiscal period and subsequent fiscal periods from $0.02 to $0.025 per 4/5-bushel carton or equivalent of oranges, grapefruit, tangerines, and pummelos grown in Florida. The assessment rate will remain in effect indefinitely until modified, suspended, or terminated.
Full Text
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<title>Federal Register, Volume 91 Issue 82 (Wednesday, April 29, 2026)</title>
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[Federal Register Volume 91, Number 82 (Wednesday, April 29, 2026)]
[Rules and Regulations]
[Pages 22949-22952]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08358]
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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.
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Federal Register / Vol. 91, No. 82 / Wednesday, April 29, 2026 /
Rules and Regulations
[[Page 22949]]
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: Final rule.
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SUMMARY: This final rule implements a recommendation from the Citrus
Administrative Committee to increase the assessment rate established
for the 2024-2025 fiscal period and subsequent fiscal periods from
$0.02 to $0.025 per 4/5-bushel carton or equivalent of oranges,
grapefruit, tangerines, and pummelos grown in Florida. The assessment
rate will remain in effect indefinitely until modified, suspended, or
terminated.
DATES: Effective May 29, 2026.
FOR FURTHER INFORMATION CONTACT: Rebecca Geller, 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#8fddeaedeaececeea1c8eae3e3eafdcffafcebeea1e8e0f9"><span class="__cf_email__" data-cfemail="52003730373131337c15373e3e372012272136337c353d24">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#43002b312a30372a222d6d0d2a3030262d03363027226d242c35"><span class="__cf_email__" data-cfemail="99daf1ebf0eaedf0f8f7b7d7f0eaeafcf7d9eceafdf8b7fef6ef">[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 final rule is issued under the Agricultural
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674) (the
Act), amending Marketing Order No. 905 (7 CFR part 905; the Order),
regulating the handling of oranges, grapefruit, tangerines, and
pummelos grown in Florida. The Citrus Administrative Committee
(Committee) locally administers the Order and is comprised of growers
of fresh citrus operating within the area of production, as well as a
public member.
This action is exempt from the Office of Management and Budget
(OMB) review process required by Executive Order 12866. This rule
amends existing Marketing Order No. 905, as amended (7 CFR part 905),
Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida, and is
necessary for the continued operation of Marketing Order No. 905.
Additionally, this action is exempt from the requirements of Executive
Order 14192, ``Unleashing Prosperity Through Deregulation,'' pursuant
to section 5(c).
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. The Agricultural Marketing Service
(AMS) has determined that 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 final 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 assessment rate
will 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 remedies must be exhausted
before parties may file suit in court. Under section 608(c)(15)(A) of
the Act, any handler subject to an order may file with 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 Florida citrus
handled under the Order from $0.02 to $0.025 per 4/5-bushel carton or
equivalent for the 2024-2025 fiscal period and subsequent fiscal
periods.
Sections 905.40 and 905.41 of the Order authorize the Committee,
with AMS approval, 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 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 2023-2024 fiscal period and subsequent fiscal periods, the
Committee recommended, and AMS approved, an assessment rate of $0.02
per 4/5-bushel carton or equivalent of Florida citrus. 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, with a vote of 18 in favor and none opposed, 2024-2025
fiscal period expenditures of $119,624 and an assessment rate of $0.025
per 4/5-bushel carton or equivalent of citrus handled for the 2024-2025
fiscal period and subsequent fiscal periods. In comparison, budgeted
expenditures for the 2023-2024 fiscal period were $124,624. The
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
[[Page 22950]]
increase to help respond to the damage incurred by both weather events.
The Committee estimates shipments of approximately 4,500,000 4/5-bushel
cartons or equivalent of citrus for the 2024-2025 fiscal period, which
is 1,145,904 cartons fewer than was handled 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 (4,500,000
cartons multiplied by $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 income is expected to generate
$112,500 (4,500,000 cartons multiplied by $0.025 assessment rate) for
the 2024-2025 fiscal period and only require $7,124 in reserves to
cover expenditures. Income derived from handler assessments along with
reserve funds and interest income should be sufficient to meet the
Committee's recommended budgeted expenditures of $119,624 for the 2024-
2025 fiscal period. Funds available in reserves (approximately
$146,000) will be kept within the maximum permitted by the Order
(approximately two fiscal periods' expenses as authorized in Sec.
905.42).
The assessment rate will continue in effect indefinitely until
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 from
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.
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 final 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 action in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act are unique regulations in that they are brought
about through group action of typically small entities acting on their
own behalf.
There are approximately 500 producers of Florida citrus in the
production area and 12 handlers subject to regulation under the Order.
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 $4,000,000 for orange
producers (North American Industry Classification System (NAICS) code
111310), and $4,250,000 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 $34,000,000 (NAICS 115114, Postharvest Crop
Activities) (13 CFR 121.201).
The USDA National Agricultural Statistics Service (NASS) reported
an average free on board (FOB) price for fresh Florida oranges for the
2023-2024 season of 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 $134,202,240.
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 $134,202,240 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 Florida citrus
handlers and growers may be classified as small entities.
This final rule increases the assessment rate for the 2024-2025
fiscal period and subsequent fiscal periods from $0.02 to $0.025 per 4/
5-bushel carton or equivalent of Florida citrus. The Committee
recommended 2024-2025 expenditures of $119,624 and an assessment rate
of $0.025 per 4/5-bushel carton or equivalent of Florida citrus. The
new 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 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 assessments being lower
than expected. The Committee estimates shipments of approximately
4,500,000 4/5-bushel cartons or equivalent of citrus 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 should generate
[[Page 22951]]
$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 also 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 per 4/5-bushel carton or equivalent of citrus.
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 final rule increases 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.
Committee meetings are widely publicized throughout the production
area. 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 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 as a result of this
final rule. Should any changes become necessary, they would be
submitted to OMB for approval.
This final rule will 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 final rule.
A proposed rule concerning this action was published in the Federal
Register on October 1, 2025 (90 FR 47240). Copies of the proposed rule
were provided to all Florida citrus handlers. In addition, the proposal
was made available through the internet by AMS 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 October 31, 2025, was provided for interested persons to
respond to the proposal. AMS received four comments during the comment
period. Two comments supported the proposal and one comment did not
pertain to the merits of the rule. One comment challenged the
procedural sufficiency of the rulemaking, asserting that AMS did not
adhere to the requirements of the Administrative Procedure Act and the
Regulatory Flexibility Act.
Specifically, the commenter claimed that AMS procedurally bypassed
notice and comment or waived the 30-day delayed effective date without
adequate good cause and failed to present a clear analysis of the
impacts on small businesses. The commenter also claimed that this
action would have an impermissible retroactive effect to the start of
the fiscal period on August 1, 2024. After review of the comment, AMS
determined that all the statutory and procedural requirements for
rulemaking have been met regarding this action.
Contrary to the comment's assertions, AMS did not bypass notice and
comment or invoke good cause. Interested persons had numerous
opportunities to review pertinent information, present their views, and
participate in the rulemaking process. As noted above, AMS published a
notice of proposed rulemaking to the Federal Register on October 1,
2025, that included a 30-day comment period for interested persons,
ending October 31, 2025. The proposed rulemaking also included an
Initial Regulatory Flexibility Analysis, pursuant to requirements set
forth in the Regulatory Flexibility Act, that considered and detailed
for the public's review, the economic impact of this rule on small
entities. AMS has provided adequate opportunity for interested persons
to consider the proposal and provide comments. Accordingly, AMS made no
changes to the rule as proposed.
Regarding the retroactive effect of this action, the commenter also
cited Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 208 (1988) for the
proposition that there is a ``presumption against retroactivity''
absent clear congressional authorization. Even if the assessments are
retroactive rules, Congress expressly granted the Secretary the power
to promulgate them. The Act provides that handlers shall pay
assessments for such expenses ``as the Secretary may find are
reasonable and are likely to be incurred by such authority or agency,
during any period specified by him[.]'' 7 U.S.C. 610(b)(2)(ii). See
Cal-Almond, Inc. v. U.S. Dep't of Agric., 14 F.3d 429, 442-43 (9th Cir.
1993). Accordingly, AMS made no changes to the rule as proposed.
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 final rule is
consistent with and effectuates the purposes of the Act.
Lists of Subjects in 7 CFR Part 905
Grapefruit, Marking agreements, Oranges, Pummelos, Reporting and
recordkeeping requirements, Tangerines.
For the reasons set forth in the preamble, 7 CFR part 905 is
amended 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
[[Page 22952]]
carton or equivalent is established for Florida citrus covered under
the Order.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-08358 Filed 4-28-26; 8:45 am]
BILLING CODE P
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