[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Rules and Regulations]
[Pages 10409-10410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4779]



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  Federal Register / Vol. 75, No. 44 / Monday, March 8, 2010 / Rules 
and Regulations  

[[Page 10409]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 966

[Doc. No. AMS-FV-09-0063; FV09-966-2 FIR]


Tomatoes Grown in Florida; Decreased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim final rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule that decreased the 
assessment rate established for the Florida Tomato Committee 
(Committee), for the 2009-10 and subsequent fiscal periods from $0.0375 
to $0.0275 per 25-pound carton of tomatoes handled. The Committee 
locally administers the marketing order, which regulates the handling 
of tomatoes grown in Florida. The interim final rule was necessary to 
align the Committee's expected revenue with decreases in its proposed 
budget for the 2009-10 and subsequent fiscal periods, which began on 
August 1. The assessment rate will remain in effect indefinitely unless 
modified, suspended, or terminated.

DATES: Effective Date: March 9, 2010.

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 obtain information on complying with this and 
other marketing order and agreement regulations by viewing a guide at 
the following Web site: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide; or by contacting Antoinette Carter, 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. 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 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 Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    Under the order, Florida tomato handlers are subject to 
assessments, which provide funds to administer the order. Assessment 
rates issued under the order are intended to be applicable to all 
assessable Florida tomatoes handled during the fiscal period and 
continue indefinitely until amended, suspended, or terminated. The 
Committee's fiscal period begins on August 1, and ends on July 31.
    In an interim final rule published in the Federal Register on 
November 4, 2009, and effective on November 5, 2009 (74 FR 57057; Doc. 
No. AMS-FV-09-0063, FV09-966-2 IFR), Sec.  966.232 was amended by 
decreasing the assessment rate established for the Committee for the 
2009-10 and subsequent fiscal periods from $0.0375 to $0.0275 per 25-
pound carton or equivalent of Florida tomatoes. The decrease in the 
per-unit assessment rate was possible due to a significant decrease in 
education and promotion expenses for 2009-10.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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 100 producers of tomatoes in the production 
area and approximately 70 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 $7,000,000 (13 CFR 121.201).
    Based on industry and Committee data, the average annual price for 
fresh Florida tomatoes during the 2008-09 season was approximately 
$8.13 per 25-pound carton, and total fresh shipments for the 2008-09 
season were 47,054,853 25-pound cartons of tomatoes. Committee data 
indicates 10 percent of the handlers handle 56 percent of the total 
volume shipped outside the regulated area. Based on the average price 
and the other data available, a majority of handlers could be 
considered small businesses under SBA's definition. In addition, based 
on production data, grower prices as reported by the National 
Agricultural Statistics Service, and the total number of Florida tomato 
growers, the average annual grower revenue is below $750,000. Thus, the 
majority of handlers and producers of Florida tomatoes 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 2009-10 and subsequent fiscal periods from $0.0375 to 
$0.0275 per 25-pound carton of tomatoes. The Committee unanimously 
recommended 2009-10 expenditures of $1,910,500 and an assessment rate 
of $0.0275 per 25-pound container of tomatoes. The assessment rate of 
$0.0275 is $0.01 lower than the 2008-09 rate. The quantity of 
assessable tomatoes for the 2009-10 season is

[[Page 10410]]

estimated at 50 million. Thus, the $0.0275 rate should provide 
$1,375,000 in assessment income. Income derived from handler 
assessments, along with interest income and funds from the Market 
Access Program will be adequate to cover budgeted expenses.
    The major expenditures recommended by the Committee for the 2009-10 
fiscal period include $700,000 for education and promotion, $475,500 
for salaries, $320,000 for research, and $70,000 for employee 
retirement. Budgeted expenses for these items in 2008-09 were 
$1,200,000, $505,500, $320,000, and $77,000, respectively.
    The Committee recommended the decrease in assessment rate due to 
the reduction in expenditures for education and promotion.
    Prior to arriving at this budget, the Committee considered 
information from various sources, such as the Committee's Finance, 
Research, and Education and Promotion Subcommittees. Alternative 
expenditure levels were discussed by these groups, based upon the 
relative value of various projects to the tomato industry. The 
assessment rate of $0.0275 per 25-pound carton of assessable tomatoes 
was then determined by dividing the total recommended budget by the 
quantity of assessable tomatoes, estimated at 50 million 25-pound 
cartons for the 2009-10 season. Considering income from assessments, 
interest, and income from other sources, total income will be 
approximately $41,500 above the 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 grower 
price for the 2009-10 season could range between $3.89 and $19.01 per 
25-pound carton of tomatoes. Therefore, the estimated assessment 
revenue for the 2009-10 season as a percentage of total grower revenue 
could range between .1 and .7 percent.
    This rule 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 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 August 20, 2009, 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap, or conflict with this rule.
    Comments on the interim final rule were required to be received on 
or before January 4, 2010. No comments were received. Therefore, for 
the reasons given in the interim final rule, we are adopting the 
interim final rule as a final rule, without change.
    To view the interim final rule, go to http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480a503fc.
    This action also affirms information contained in the interim final 
rule concerning the Executive Orders 12866 and 12988, the Paperwork 
Reduction Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 
101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim final rule, without change, as published in 
the Federal Register (74 FR 57057, November 4, 2009) 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.

PART 966--TOMATOES GROWN IN FLORIDA

0
Accordingly, the interim final rule amending 7 CFR part 966, which was 
published at 74 FR 57057 on November 4, 2009, is adopted as a final 
rule, without change.

    Dated: March 2, 2010.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. 2010-4779 Filed 3-5-10; 8:45 am]
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