[Federal Register Volume 76, Number 27 (Wednesday, February 9, 2011)]
[Rules and Regulations]
[Pages 7095-7096]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-2888]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 76, No. 27 / Wednesday, February 9, 2011 /
Rules and Regulations
[[Page 7095]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 915
[Doc. No. AMS-FV-10-0067; FV10-915-1 FIR]
Avocados Grown in South Florida; Increased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Affirmation of interim rule as final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim rule that increased the assessment
rate established for the Avocado Administrative Committee (Committee),
for the 2010-11 and subsequent fiscal periods from $0.27 to $0.37 per
55-pound bushel container of Florida avocados handled. The Committee
locally administers the marketing order which regulates the handling of
avocados grown in South Florida. The assessment rate will remain in
effect indefinitely unless modified, suspended, or terminated.
DATES: Effective Date: Effective February 10, 2011.
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 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 Order
No. 915, as amended (7 CFR part 915), regulating the handling of
avocados grown in South 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.
Under the order, Florida avocado 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 avocados for the entire fiscal period, and continue
indefinitely until amended, suspended, or terminated. The Committee's
fiscal period begins on April 1, and ends on March 31.
In an interim rule published in the Federal Register on September
15, 2010, and effective on September 16, 2010 (75 FR 55942, Doc. No.
AMS-FV-10-0067; FV10-915-1 IR), Sec. 915.235 was amended by increasing
the assessment rate established for the Committee for the 2010-11 and
subsequent fiscal periods from $0.27 to $0.37 per 55-pound container or
equivalent of Florida avocados. The increase in the per-unit assessment
rate was necessary to fund research to find an insecticide that will
kill or control the Red Bay Ambrosia beetle.
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 30 handlers of Florida avocados subject to
regulation under the order and approximately 300 producers of avocados
in the production area. Small agricultural service firms, which include
avocado handlers, are defined by the Small Business Administration
(SBA) as those whose annual receipts are less than $7,000,000, and
small agricultural producers are defined as those having annual
receipts less than $750,000 (13 CFR 121.201).
According to Committee data and information from the National
Agricultural Statistical Service, the average price for Florida
avocados during the 2009-10 season was around $16.50 per 55-pound
bushel container and total shipments were near 900,000 55-pound
bushels. Using the average price and shipment information provided by
the Committee, the majority of avocado handlers could be considered
small businesses under SBA's definition. In addition, based on avocado
production, producer prices, and the total number of Florida avocado
producers, the average annual producer revenue is less than $750,000.
Consequently, the majority of avocado handlers and producers may be
classified as small entities.
This rule continues in effect the action that increased the
assessment rate established for the Committee and collected from
handlers for the 2010-11 and subsequent fiscal periods from $0.27 to
$0.37 per 55-pound bushel container of Florida avocados. The Committee
unanimously recommended 2010-11 expenditures of $351,502 and an
assessment rate of $0.37 per 55-pound bushel container. The assessment
rate of $0.37 is $0.10 higher than the 2009-10 rate. The quantity of
assessable Florida avocados for the 2010-11 season is estimated at
1,000,000. Thus, the $0.37 rate should provide $370,000 in assessment
income and be adequate to meet this year's expenses. Income derived
from handler assessments, along with interest income and funds from the
Committee's authorized reserve fund will be adequate to cover budgeted
expenses.
[[Page 7096]]
The major expenditures recommended by the Committee for the 2010-11
year include $110,000 for research, $98,732 for salaries, $48,000 for
employee benefits, and $25,300 for insurance and bonds. Budgeted
expenses for these items in 2009-10 were $25,000, $94,030, $48,000, and
$25,300, respectively.
The increase in assessment rate is needed to fund research to find
an insecticide that will kill or control the Red Bay Ambrosia beetle.
The beetle carries the Laurel Wilt fungus which can infect and kill
avocado trees. Research into the beetle and fungus had been funded by
the University of Florida. However, the Committee was informed that
funding ceased on August 1, 2010. Without funding, researchers would
have been unable to continue testing to determine which insecticides
work best to kill/control the beetle and at what application rate. The
Committee believes it is essential for the industry that the research
continues. Therefore, they voted to increase the assessment rate to
provide the additional research money.
Prior to arriving at this budget, alternative expenditure levels
were discussed based upon the relative value of various research
projects to the Florida avocado industry. The assessment rate of $0.37
per 55-pound bushel container of assessable Florida avocados was then
determined by dividing the total recommended budget by the quantity of
assessable avocados, estimated at 1,000,000 55-pound bushel containers
for the 2010-11 season. Considering income from assessments and
interest, total income will be approximately $18,400 above the
anticipated expenses, which the Committee determined to be acceptable.
A review of historical information and preliminary information
pertaining to the upcoming crop year indicates that the grower price
for the 2010-11 season could range between $9.00 and $66.00 per 55-
pound bushel container of avocados. Therefore, the estimated assessment
revenue for the 2010-11 season as a percentage of total grower revenue
could range between .6 and 4 percent.
This rule continues in effect the action that increased the
assessment obligation imposed on handlers. While assessments impose
some additional costs on handlers, the costs are minimal and uniform on
all handlers. Some of the additional costs may be passed on to
producers. However, these costs are offset by the benefits derived by
the operation of the marketing order. In addition, the Committee's
meeting was widely publicized throughout the Florida avocado industry
and all interested persons were invited to attend the meeting and
participate in Committee deliberations on all issues. Like all
Committee meetings, the July 22, 2010, 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 avocado 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.
USDA has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this rule.
Comments on the interim rule were required to be received on or
before November 15, 2010. No comments were received. Therefore, for the
reasons given in the interim rule, we are adopting the interim rule as
a final rule, without change. To view the interim rule, go to http://www.regulations.gov/search/Regs/home.html#documentDetail?R=0900006480b4f5ec.
This action also affirms information contained in the interim 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 rule, without change, as published in the
Federal Register (75 FR 55942, September 15, 2010) will tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 915
Avocados, Reporting and recordkeeping requirements.
PART 915--AVOCADOS GROWN IN SOUTH FLORIDA
0
Accordingly, the interim rule amending 7 CFR part 915, which was
published at 75 FR 55942 on September 15, 2010, is adopted as a final
rule, without change.
Dated: February 3, 2011.
David R. Shipman,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2011-2888 Filed 2-8-11; 8:45 am]
BILLING CODE 3410-02-P