[Federal Register Volume 76, Number 192 (Tuesday, October 4, 2011)]
[Rules and Regulations]
[Pages 61249-61251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-25493]



 ========================================================================
 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. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 76, No. 192 / Tuesday, October 4, 2011 / 
Rules and Regulations  

[[Page 61249]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-FV-11-0057; FV11-906-1 FR]


Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 
Increased Assessment Rate

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule increases the assessment rate established for the 
Texas Valley Citrus Committee (Committee) for the 2011-12 and 
subsequent fiscal periods from $0.12 to $0.14 per 7/10-bushel carton or 
equivalent of oranges and grapefruit handled. The Committee locally 
administers the marketing order which regulates the handling of oranges 
and grapefruit grown in the Lower Rio Grande Valley in Texas. 
Assessments upon orange and grapefruit handlers are used by the 
Committee to fund reasonable and necessary expenses of the program. The 
fiscal period began on August 1 and ends July 31. The assessment rate 
will remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective Date: October 5, 2011.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Regional Manager, 
Texas Marketing Field Office, Marketing Order and Agreement Division, 
Fruit and Vegetable Programs, AMS, USDA; Telephone: (956) 632-5330, 
Fax: (956) 632-5358, or E-mail: [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Laurel May, Marketing Order Administration 
Division, 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 and Order No. 906, as amended (7 CFR part 906), regulating 
the handling of oranges and grapefruit grown in the Lower Rio Grande 
Valley in Texas, 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.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, orange and 
grapefruit handlers in the Lower Rio Grande Valley 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 and grapefruit beginning 
on August 1, 2011, and continue until amended, suspended, or 
terminated.
    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 increases the assessment rate established for the 
Committee for the 2011-12 and subsequent fiscal periods from $0.12 to 
$0.14 per 7/10-bushel carton or equivalent of oranges and grapefruit 
handled.
    The Texas orange and grapefruit 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 
Texas oranges and grapefruit. 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 2004-05 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 June 9, 2011, and unanimously recommended 
2011-12 expenditures of $1,224,037 and an assessment rate of $0.14 per 
7/10-bushel carton or equivalent of oranges and grapefruit handled. In 
comparison, last year's budgeted expenditures were $1,109,037. The 
assessment rate of $0.14 is $0.02 higher than the rate currently in 
effect. The Committee recommended a higher assessment rate due to an 
expected smaller crop and an increase in budgeted expenses. Budgeted 
expenses were increased to provide additional funding for the 
Committee's Mexican fruit fly program, and also to fund a Federal 
Agriculture Improvement Reform (FAIR) review analysis to be conducted 
next fiscal period. In 1996, Congress mandated that every five years 
commodity boards established under the oversight of the Secretary of 
Agriculture pursuant to a commodity promotion law should fund an 
independent evaluation of the effectiveness of their generic promotion 
program, which is now commonly known as a FAIR review.
    The Committee projected a reduced crop of 8,750,000 7/10-bushel 
carton equivalents, which would be 289,137 7/10-bushel carton 
equivalents less than the 9,039,137 7/10-bushel carton equivalents 
handled during the 2010-11

[[Page 61250]]

fiscal period. Furthermore, due to severe cuts in the State of Texas' 
budget, the Texas Department of Agriculture requested the citrus 
industry's assistance in funding a Mexican fruit fly trapping program, 
which is essential to the industry's well-being. Based on a decreased 
crop estimate and anticipated expenditure increases, the Committee 
unanimously recommended that the assessment rate of $0.12 currently in 
effect be increased by $0.02. Income derived from handler assessments 
and interest should be adequate to cover budgeted expenses.
    The major expenditures recommended by the Committee for the 2011-12 
fiscal period include $479,000 for the Mexican fruit fly support, 
trapping, and bait spray programs; $425,000 for promotion; and $250,737 
for management, administration, and compliance oversight. In 
comparison, major expenditures for these items in 2010-11 (last fiscal 
period) were $229,000, $600,000, and $246,737, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenditures by estimated shipments of Texas 
oranges and grapefruit. As mentioned earlier, orange and grapefruit 
shipments for the 2011-12 fiscal period are estimated at 8.75 million 
7/10-bushel carton equivalents, which should provide $1,225,000 in 
assessment income. Income generated through the $0.14 assessment rate 
and interest would be more than sufficient to meet anticipated expenses 
($1,224,037). Reserve funds at the end of 2011-12 are projected at 
$283,774, well below one fiscal period's expenses, which would be 
within the maximum reserve amount permitted under the order (Sec.  
906.35).
    The assessment rate established in this rule 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 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 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 2011-12 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) (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 177 producers of oranges and grapefruit in 
the production area and approximately 12 handlers subject to regulation 
under the marketing order. Small agricultural producers are defined by 
the Small Business Administration (SBA) (13 CFR 121.201) 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.
    An updated Texas citrus industry profile shows that 6 of the 12 
handlers (50 percent) would be considered large businesses under SBA's 
definition, and the remaining 6 handlers (50 percent) would be 
considered small businesses. Of the approximately 177 producers within 
the production area, few have sufficient acreage to generate sales in 
excess of $750,000. Thus, half of the handlers and the majority of 
producers of Texas oranges and grapefruit may be classified as small 
entities.
    This rule increases the assessment rate established for the 
Committee and collected from handlers for the 2011-12 and subsequent 
fiscal periods from $0.12 to $0.14 per 7/10-bushel carton or equivalent 
of oranges and grapefruit. The Committee unanimously recommended 2011-
12 expenditures of $1,224,037 and an assessment rate of $0.14 per 7/10-
bushel carton or equivalent handled. The quantity of assessable oranges 
and grapefruit for the 2011-12 fiscal period is estimated at 8.75 
million 7/10-bushel carton equivalents. Thus, the $0.14 assessment rate 
should provide $1,225,000 in assessment income which should be 
sufficient to meet anticipated expenses.
    The major expenditures recommended by the Committee for the 2011-12 
fiscal period include $479,000 for the Mexican Fruit Fly support, 
trapping, and bait spray programs; $425,000 for promotion; and $250,737 
for management, administration, and compliance oversight. Major 
expenditures for these items in 2010-11 were $229,000, $600,000, and 
$246,737, respectively.
    The increased assessment rate recommended by the Committee was due 
to a reduced crop estimate (8.75 million 7/10-bushel carton equivalents 
of oranges and grapefruit), and an increase in budgeted expenditures to 
provide additional funding for the Mexican fruit fly program and a FAIR 
analysis. With anticipated assessment income of $1,225,000, and 
anticipated expenditures of $1,224,037, funds in the reserve would be 
kept within the maximum of one fiscal period's expenses permitted by 
the order (Sec.  906.35).
    In arriving at its recommended budget, the Committee considered 
alternative expenditure levels based upon the relative need of the 
Mexican fruit fly trapping and promotion programs to the Texas citrus 
industry. The assessment rate of $0.14 per 7/10-bushel carton 
equivalent was then determined by dividing the total recommended budget 
by the quantity of assessable oranges and grapefruit, estimated at 8.75 
million 7/10 bushel carton equivalents for the 2011-12 fiscal period. 
Considering assessment revenue and interest, total revenue would be 
approximately $2,463 above the anticipated expenses, which the 
Committee determined to be acceptable.
    A review of historical information from recent seasons (2008-2010) 
and preliminary information pertaining to the current fiscal period 
indicates that the season average packinghouse door price for the 2011-
12 fiscal period could likely range from $6.24 to $8.23 per 7/10-bushel 
carton equivalent of Texas oranges, and from $10.90 to $15.55 for Texas 
grapefruit. Therefore, the estimated assessment revenue for the 2011-12 
fiscal period as a percentage of total grower (packinghouse door) 
revenue could range between 1.7 and 2.2 percent for oranges and between 
0.9 and 1.3 percent for grapefruit.
    This action increases 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

[[Page 61251]]

offset by the benefits derived by the operation of the order. In 
addition, the Committee's meeting was widely publicized throughout the 
Texas orange and grapefruit industry and all interested persons were 
invited to attend the meeting and participate in Committee 
deliberations on all issues. Like all Committee meetings, the June 9, 
2011, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue.
    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 the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189 (Generic Fruit Crops--Mandatory). No changes 
in those requirements as a result of this action are necessary. Should 
any changes become necessary, they would be submitted to OMB for 
approval.
    This rule imposes no additional reporting or recordkeeping 
requirements on either small or large Texas orange and grapefruit 
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. As noted in the 
initial regulatory flexibility analysis, USDA has not identified any 
relevant Federal rules that duplicate, overlap, or conflict with this 
final rule.
    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.
    A proposed rule concerning this action was published in the Federal 
Register on August 10, 2011 (76 FR 49381). Copies of the proposed rule 
were also mailed or sent via facsimile to all orange and grapefruit 
handlers. Finally, the proposal was made available through the Internet 
by USDA and the Office of the Federal Register. A 10-day comment period 
ending August 22, 2011, was provided for interested persons to respond 
to the proposal. 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/MarketingOrdersSmallBusinessGuide. Any questions 
about the compliance guide should be sent to Laurel May 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.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) The 
2011-12 fiscal period began on August 1, 2011, and the marketing order 
requires that the rate of assessment for each fiscal period apply to 
all assessable oranges and grapefruit handled during such fiscal 
period; (2) the Committee needs to have sufficient funds to pay its 
expenses, which are incurred on a continuous basis; and (3) handlers 
are aware of this rule which was unanimously recommended by the 
Committee at a public meeting and is similar to other assessment rate 
actions issued in past years. Also, a 10-day comment period was 
provided for in the proposed rule.

List of Subjects in 7 CFR Part 906

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements.
    For the reasons set forth in the preamble, 7 CFR part 906 is 
amended as follows:

PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY 
IN TEXAS

0
1. The authority citation for 7 CFR part 906 continues to read as 
follows:

    Authority:  7 U.S.C. 601-674.

0
2. Section 906.235 is revised to read as follows:


Sec.  906.235  Assessment rate.

    On and after August 1, 2011, an assessment rate of $0.14 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit 
grown in the Lower Rio Grande Valley in Texas.

    Dated: September 29, 2011.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2011-25493 Filed 10-3-11; 8:45 am]
BILLING CODE 3410-02-P