[Federal Register Volume 72, Number 233 (Wednesday, December 5, 2007)]
[Rules and Regulations]
[Pages 68471-68473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-23529]



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  Federal Register / Vol. 72, No. 233 / Wednesday, December 5, 2007 / 
Rules and Regulations  

[[Page 68471]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. AMS-FV-07-0088; FV07-905-1 FIR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule which decreased the 
assessment rate established for the Citrus Administrative Committee 
(Committee) for the 2007-08 and subsequent fiscal periods from $0.008 
to $0.0072 per \4/5\ bushel carton of oranges, grapefruit, tangerines, 
and tangelos handled. The Committee locally administers the marketing 
order which regulates the handling of oranges, grapefruit, tangerines, 
and tangelos grown in Florida. Assessments upon Florida citrus handlers 
are used by the Committee to fund reasonable and necessary expenses of 
the program. The fiscal period begins August 1 and ends July 31. The 
assessment rate will remain in effect indefinitely unless modified, 
suspended, or terminated.

EFFECTIVE DATE: January 4, 2008.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Manager, Southeast Marketing Field 
Office, Marketing Order Administration Branch, Fruit and Vegetable 
Programs, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 325-8793, or 
E-mail: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue, SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 
720-2491, Fax: (202) 720-8938, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR 
part 905), regulating the handling of oranges, grapefruit, tangerines, 
and tangelos grown in Florida, hereinafter referred to as the 
``order.'' 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.''
    USDA 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 citrus 
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 oranges, 
grapefruit, tangerines, and tangelos grown in Florida beginning August 
1, 2007, 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 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 rule continues in effect the action that decreased the 
assessment rate established for the Committee for the 2007-08 and 
subsequent fiscal periods from $0.008 per \4/5\ bushel carton to 
$0.0072 per \4/5\ bushel carton of oranges, grapefruit, tangerines, and 
tangelos grown in Florida.
    The Florida citrus marketing order provides authority for the 
Committee, with the approval of USDA, to formulate an annual budget of 
expenses and collect assessments from handlers to administer the 
program. The members of the Committee are producers and handlers of 
oranges, grapefruit, tangerines, and tangelos. 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 2005-06 and subsequent fiscal periods, the Committee 
recommended, and USDA approved, an assessment rate that would continue 
in effect from fiscal period to fiscal period unless modified, 
suspended, or terminated by USDA upon recommendation and information 
submitted by the Committee or other information available to USDA.
    The Committee met on May 29, 2007, and unanimously recommended 
2007-08 expenditures of $275,000 and an assessment rate of $0.0072 per 
\4/5\ bushel of oranges, grapefruit, tangerines, and tangelos grown in 
Florida. In comparison, last year's budgeted expenditures were 
$241,000. The assessment rate of $0.0072 is $0.0008 lower than the rate 
previously in effect. This reduction was recommended because the 
Committee experienced an unanticipated increase in shipments for the 
2006-07 fiscal period and had revenues greater than expenses. In 
addition, the industry has continued to recover from the hurricane 
damage sustained during the 2004-05 and 2005-06 seasons, which is 
expected to have a positive affect on total production.
    The major expenditures recommended by the Committee for the 2007-08 
fiscal year include $112,000 for salaries, $25,000 for Manifest

[[Page 68472]]

Department--Florida Department of Agriculture and Customer Services 
(FDACS), $17,800 for retirement plan, and $14,550 for insurance and 
bonds. Budgeted expenses for these items in 2006-07 were $110,000, 
$25,000, $17,250, and $14,550, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of oranges, 
grapefruit, tangerines, and tangelos. Florida citrus shipments for the 
year are estimated at 30 million \4/5\ bushels which should provide 
$216,000 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 approximately $60,000) will be kept within the 
maximum permitted by the order of not to exceed one half of one fiscal 
period's expenses as stated in Sec.  905.42(a).
    The assessment rate will continue in effect indefinitely unless 
modified, suspended, or terminated by USDA upon recommendation and 
information submitted by the Committee or other available information.
    Although this assessment rate is 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 USDA. 
Committee meetings are open to the public and interested persons may 
express their views at these meetings. USDA 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 2007-08 budget and those 
for subsequent fiscal periods will be reviewed and, as appropriate, 
approved by USDA.

Final Regulatory Flexibility Analysis

    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.
    There are approximately 8,000 producers of oranges, grapefruit, 
tangerines, and tangelos in the production area and approximately 55 
handlers subject to regulation under the marketing order. Small 
agricultural producers are defined by the Small Business Administration 
(SBA) as those having annual receipts less than $750,000, and small 
agricultural service firms are defined as those whose annual receipts 
are less than $6,500,000 (13 CFR 121.201).
    Based on industry and Committee data, the average annual f.o.b. 
price for fresh Florida citrus during the 2005-06 season was 
approximately $11.50 per \4/5\-bushel carton, and total fresh shipments 
were approximately 29.1 million cartons. Using the average f.o.b. 
price, at least 70 percent of the Florida citrus handlers could be 
considered small businesses under SBA's definition. In addition, based 
on production and producer prices reported by the National Agricultural 
Statistics Service, and the total number of Florida citrus producers, 
the average annual producer revenue is approximately $55,540. 
Therefore, the majority of handlers and producers of Florida citrus may 
be classified as small entities.
    This rule continues in effect the action that decreased the 
assessment rate established for the Committee and collected from 
handlers for the 2007-08 and subsequent fiscal periods from $0.008 to 
$0.0072 per \4/5\ bushel carton of oranges, grapefruit, tangerines, and 
tangelos. The Committee unanimously recommended 2007-08 expenditures of 
$275,000 and an assessment rate of $0.0072 per \4/5\ bushel carton. The 
assessment rate of $0.0072 is $0.0008 lower than the 2006-07 rate. The 
quantity of assessable oranges, grapefruit, tangerines, and tangelos 
for the 2007-08 season is estimated at 30 million \4/5\ bushel cartons. 
Thus, the $0.0072 rate should provide $216,000 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 2007-08 
fiscal year include $112,000 for salaries, $25,000 for Manifest 
Department--FDACS, $17,800 for retirement plan, and $14,550 for 
insurance and bonds. Budgeted expenses for these items in 2006-07 were 
$110,000, $25,000, $17,250, and $14,550, respectively.
    The reduction in the assessment rate was recommended by the 
Committee as a result of an unanticipated increase in shipments for the 
2006-07 fiscal period, which produced revenues that were greater than 
expenses. In addition, the industry has continued to recover from the 
hurricane damage sustained during the 2004-05 and 2005-06 seasons, 
which is expected to have a positive impact on production.
    The Committee reviewed and unanimously recommended 2007-08 
expenditures of $275,000. Prior to arriving at this budget, the 
Committee considered information from various sources including the 
Committee's Budget Subcommittee. Alternative expenditure levels were 
discussed by this group, based on different estimates of assessable 
cartons and budget expenses. The assessment rate of $0.0072 per \4/5\ 
bushel carton of assessable oranges, grapefruit, tangerines, and 
tangelos was then determined by dividing the total recommended budget 
by the quantity of assessable Florida citrus, estimated at 30 million 
\4/5\ bushel cartons for the 2007-08 season, taking into consideration 
the availability of reserve funds and interest income. This is 
approximately $59,000 under anticipated expenses, which the Committee 
determined to be acceptable.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the producer 
price for the 2007-08 season could range between $1.83 and $9.76 per 
\4/5\ bushels of oranges, grapefruit, tangerines, and tangelos. 
Therefore, the estimated assessment revenue for the 2007-08 fiscal 
period as a percentage of total producer revenue could range between 
.07 and .39 percent.
    This action continues in effect the action that decreased 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 citrus 
industry and all interested persons were invited to attend the meeting 
and participate in Committee deliberations on all issues. Like all 
Committee meetings, the May 29, 2007, 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

[[Page 68473]]

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.
    USDA 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 July 30, 2007 (72 FR 41423). Copies of that rule 
were also mailed or sent via facsimile to all citrus handlers. Finally, 
the interim final rule was made available through the Internet by USDA 
and 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 September 28, 2007, 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: 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 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

0
Accordingly, the interim final rule amending 7 CFR part 905 which was 
published at 72 FR 41423 on July 30, 2007, is adopted as a final rule 
without change.

    Dated: November 29, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-23529 Filed 12-4-07; 8:45 am]
BILLING CODE 3410-02-P