[Federal Register Volume 65, Number 10 (Friday, January 14, 2000)]
[Rules and Regulations]
[Pages 2281-2283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-978]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Docket No. FV99-966-1 FIR]
Tomatoes Grown in Florida; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting, as a
final rule, without change, the provisions of an interim final rule
which decreased the assessment rate established for the Florida Tomato
Committee (Committee) for the 1999-2000 and subsequent fiscal periods
from $0.03 per 25-pound container to $0.025 per 25-pound container of
tomatoes handled. The Committee is responsible for local administration
of the marketing order which regulates the handling of tomatoes grown
in Florida. Authorization to assess tomato handlers enables the
Committee to incur expenses that are reasonable and necessary to
administer the program. The fiscal period began August 1 and ends July
31. The assessment rate will remain in effect indefinitely unless
modified, suspended, or terminated.
EFFECTIVE DATE: February 14, 2000.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Southeast Marketing
Field Office, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 2276,
Winter Haven, FL 33883-2276; telephone: (863) 299-4770, Fax: (863) 299-
5169; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, room
2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202)
720-2491, Fax: (202) 720-5698.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, room
2525-S, Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202)
720-5698, or E-mail: Jay.G[email protected].
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement
[[Page 2282]]
No. 125 and Order No. 966, both as amended (7 CFR part 966), regulating
the handling of tomatoes grown in Florida, hereinafter referred to as
the ``order.'' The marketing agreement and order are effective under
the Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C.
601-674), hereinafter referred to as the ``Act.''
The Department is issuing this rule in conformance with Executive
Order 12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the marketing 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
as issued herein will be applicable to all assessable Florida tomatoes
beginning August 1, 1999, and continue until amended, suspended, or
terminated. This rule will not preempt any State or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
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 Secretary 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 the Secretary 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 the
Secretary'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 rule continues to decrease the assessment rate established for
the Florida Tomato Committee for the 1999-2000 and subsequent fiscal
periods from $0.03 per 25-pound container to $0.025 per 25-pound
container of tomatoes.
The Florida tomato marketing order provides authority for the
Committee, with the approval of the Department, to formulate an annual
budget of expenses and collect assessments from handlers to administer
the program. The members of the Committee are producers of Florida
tomatoes. They are familiar with the Committee's needs and with the
costs for goods and services in their local area and are thus in a
position to formulate an appropriate budget and assessment rate. The
assessment rate is formulated and discussed in a public meeting. Thus,
all directly affected persons have an opportunity to participate and
provide input.
For the 1996-97 and subsequent fiscal periods, the Committee
recommended, and the Department approved, an assessment rate that would
continue in effect from fiscal period to fiscal period unless modified,
suspended, or terminated by the Secretary upon recommendation and
information submitted by the Committee or other information available
to the Secretary.
The Committee met on September 10, 1999, and unanimously
recommended 1999-2000 expenditures of $2,088,900 and an assessment rate
of $0.025 per 25-pound container of tomatoes. In comparison, last
year's budgeted expenditures were $1,926,000. The assessment rate of
$0.025 is $0.005 lower than the rate previously in effect. For the
previous fiscal period (1998-99), the Committee had planned to use
funds from its authorized reserves to cover some of its approved
expenses. The reserve fund was larger than the Committee believed it
needed for program operations. However, there was a larger than
expected supply of assessable tomatoes during 1998-99, and instead of
the reduction, the amount in the reserve fund increased. In another
effort to reduce the amount in the reserve fund, the Committee
unanimously recommended reducing the assessment rate and using reserve
funds to pay some of its operating expenses during 1999-2000.
The major expenditures recommended by the Committee for the 1999-
2000 fiscal period include $436,000 for salaries, $241,000 for
research, $1,000,000 for education and promotion, and $150,000 for
Market Assess Program export promotion. Budgeted expenses for these
items in 1998-99 were $364,000, $212,000, $900,000, and $200,000,
respectively.
The assessment rate recommended by the Committee was derived by
dividing anticipated expenses by expected shipments of Florida
tomatoes. Tomato shipments for the year are estimated at 50,000,000 25-
pound containers which should provide $1,250,000 in assessment income.
Income derived from handler assessments, along with interest income and
funds from the Committee's authorized reserve, will be adequate to
cover budgeted expenses. Funds in the reserve (currently $1,879,557)
will be kept within the maximum permitted by the order (Sec. 966.44;
approximately one fiscal period's expenses).
The assessment rate will continue in effect indefinitely unless
modified, suspended, or terminated by the Secretary upon recommendation
and information submitted by the Committee or other available
information.
Although this assessment rate is effective 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 the
Department. Committee meetings are open to the public and interested
persons may express their views at these meetings. The Department 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
1999-2000 budget and those for subsequent fiscal periods will be
reviewed and, as appropriate, approved by the Department.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (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
business 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 75 producers of tomatoes in the production
area and approximately 65 handlers subject to regulation under the
marketing order. Small agricultural producers have been defined by the
Small Business Administration (13 CFR 121.601) as those having annual
receipts less than $500,000, and small agricultural service firms are
defined as those whose annual receipts are less than $5,000,000.
Based on industry and Committee data for the 1998-99 season, the
average annual f.o.b. price for fresh Florida tomatoes during the 1998-
99 season was around $7.17 per 25-pound container, and total fresh
shipments for the 1998-99 season approximated 56.7 million 25-pound
containers of tomatoes. Committee data indicates that approximately 20
percent of the Florida
[[Page 2283]]
handlers handle 80 percent of the total volume shipped outside the
regulated area. Based on this information, the shipment information for
the 1998-99 season, and the 1998-99 season average price, the majority
of handlers would be classified as small entities as defined by the
SBA. The majority of producers of Florida tomatoes also may be
classified as small entities.
This rule continues to decrease the assessment rate established for
the Committee and collected from handlers for the 1999-2000 and
subsequent fiscal periods from $0.03 per 25-pound container to $0.025
per 25-pound container of tomatoes. The Committee unanimously
recommended 1999-2000 expenditures of $2,088,900 and an assessment rate
of $0.025 per 25-pound container. The assessment rate of $0.025 is
$0.005 lower than the 1998-99 rate. The quantity of assessable tomatoes
for the 1999-2000 season is estimated at 50,000,000 25-pound
containers. Thus, the $0.025 rate should provide $1,250,000 in
assessment income. Income derived from handler assessments, along with
interest income and funds from the Committee's authorized reserve, will
be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 1999-
2000 year include $436,000 for salaries, $241,000 for research,
$1,000,000 for education and promotion, and $150,000 for Market Assess
Program export promotion. Budgeted expenses for these items in 1998-99
were $364,000, $212,000, $900,000, and $200,000, respectively.
For the 1998-99 fiscal period, the Committee decided to use reserve
funds to cover some of its authorized expenses. The reserve fund was
larger than the Committee believed it needed for program operations.
However, there was a larger than expected supply of assessable tomatoes
in 1998-99, and instead of the anticipated reduction, the amount in the
reserve fund increased. In another effort to reduce the amount in the
reserve fund, the Committee unanimously recommended reducing the
assessment rate. The funds collected from assessments, along with money
from the reserve fund will be adequate to cover the Committee's
expenditures for the 1999-2000 fiscal year. Pursuant to Sec. 966.44,
the Committee is authorized to maintain an operating reserve not to
exceed approximately one fiscal period's expenses.
The Committee reviewed and unanimously recommended 1999-2000
expenditures of $2,088,900 which included increases in salaries,
research, and education and promotion programs. Prior to arriving at
this budget, the Committee considered information from various sources,
such as the Committee's Executive Subcommittee, Finance Subcommittee,
Research Subcommittee, and Education and Promotion Subcommittee.
Alternative expenditure levels were discussed by these groups, based
upon the relative value of various research projects to the Florida
tomato industry. The assessment rate of $0.025 per 25-pound container
of assessable tomatoes was then determined by dividing the total
recommended budget by the quantity of assessable commodity, estimated
at 50,000,000 25-pound containers for the 1999-2000 fiscal period. This
is approximately $624,900 below the anticipated expenses, which the
Committee determined to be acceptable as a means of reducing its
operating reserves.
A review of historical information and preliminary information
pertaining to the 1999-2000 fiscal period indicates that the grower
price for 1999-2000 could range between $6.09 and $9.70 per 25-pound
container of tomatoes. Therefore, the estimated assessment revenue for
the 1999-2000 fiscal period as a percentage of total grower revenue
could range between .26 and .41 percent.
This action continues to 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 reduce the
burden on producers. In addition, the Committee's meeting was widely
publicized throughout the Florida tomato industry and all interested
persons were invited to attend the meeting and participate in Committee
deliberations on all issues. Like all Committee meetings, the September
10, 1999, meeting was a public meeting and all entities, both large and
small, were able to express views on this issue.
This action imposes no 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.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this rule.
An interim final rule concerning this action was published in the
Federal Register on October 25, 1999 (64 FR 57361). Copies of that rule
were also mailed or sent via facsimile to all tomato handlers. Finally,
the interim final rule was made available through the Internet by the
Office of the Federal Register. A 60-day comment period was provided
for interested persons to respond to the interim final rule. The
comment period ended on December 27, 1999, and no comments were
received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at the
following web site: http://www.ams.usda.gov/fv/moab.html. Any questions
about the compliance guide should be sent to Jay Guerber at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
After consideration of all relevant material presented, including
the information and recommendation submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
Tomatoes Grown in Florida
Accordingly, the interim final rule amending 7 CFR part 966 which
was published at 64 FR 57361 on October 25, 1999, is adopted as a final
rule without change.
Dated: January 10, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-978 Filed 1-13-00; 8:45 am]
BILLING CODE 3410-02-P