[Federal Register Volume 79, Number 157 (Thursday, August 14, 2014)]
[Rules and Regulations]
[Pages 47551-47553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-19306]



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  Federal Register / Vol. 79, No. 157 / Thursday, August 14, 2014 / 
Rules and Regulations  

[[Page 47551]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-FV-14-0054; FV14-906-3 IR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This rule decreases the assessment rate established for the 
Texas Valley Citrus Committee (Committee) for the 2014-15 and 
subsequent fiscal periods from $0.16 to $0.11 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 begins August 1 and ends July 31. The assessment rate 
will remain in effect indefinitely unless modified, suspended, or 
terminated.

DATES: Effective August 15, 2014. Comments received by October 14, 
2014, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order and Agreement Division, Fruit and Vegetable Program, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. Comments should reference the document number and 
the date and page number of this issue of the Federal Register and will 
be available for public inspection in the Office of the Docket Clerk 
during regular business hours, or can be viewed at: http://www.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting the comments will be made public on the internet at 
the address provided above.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 325-8793, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [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 Orders 12866, 13563, and 13175.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order now in effect, orange and 
grapefruit 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 and grapefruit beginning August 1, 2014, 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 decreases the assessment rate established for the 
Committee for the 2014-15 and subsequent fiscal periods from $0.16 to 
$0.11 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 (7 CFR 906.34). The members of the Committee are producers 
and handlers of Texas oranges and grapefruit. They are familiar with 
the Committee's needs and 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 2012-13 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 5, 2014, and recommended 2014-15 
expenditures of $809,500 and an assessment rate of $0.11 per 7/10-
bushel carton or equivalent of oranges and

[[Page 47552]]

grapefruit handled. In comparison, last year's budgeted expenditures 
were $1,353,300. The assessment rate of $0.11 is $0.05 lower than the 
rate currently in effect. The Committee reviewed and recommended 2014-
15 expenditures of $809,500, which includes a decrease in the marketing 
program and management fees. The Committee considered proposed expenses 
and recommended decreasing the assessment rate to more closely align 
assessment income to the lower budget.
    The major expenditures recommended by the Committee for the 2014-15 
year include $503,000 for the Mexican fruit fly control program, 
$175,000 for management and compliance, and $100,000 for marketing and 
promotion. Budgeted expenses for these items in 2013-14 were $503,000, 
$200,000, and $600,000, respectively.
    The assessment rate recommended by the Committee was derived by 
dividing anticipated expenses by expected shipments of Texas oranges 
and grapefruit. Orange and grapefruit shipments for the 2014-2015 year 
are estimated at 8.2 million 7/10-bushel cartons or equivalent, which 
should provide $902,000 in assessment income. That is approximately 
$92,500 above the anticipated expenses of $809,500; therefore income 
derived from handler assessments will be adequate to cover budgeted 
expenses. Excess funds will be added to the reserve, (currently $0.00), 
which will be kept within the maximum permitted by the order 
(approximately one fiscal period's expenses as stated in 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 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 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 2014-15 budget and those 
for subsequent fiscal periods will be reviewed and, as appropriate, 
approved by USDA.

Initial 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 initial regulatory flexibility 
analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
businesses 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 170 producers of oranges and grapefruit in 
the production area and 13 handlers subject to regulation under the 
marketing order. Small agricultural producers are defined by the Small 
Business Administration (SBA) as those having annual receipts of 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)
    According to Committee data and information from the National 
Agricultural Statistics Service, the weighted average grower price for 
Texas citrus during the 2012-13 season was around $12.98 per box and 
total shipments were near 8.5 million boxes. Using the weighted average 
price and shipment information, and assuming a normal distribution, the 
majority of growers would have annual receipts of less than $750,000. 
In addition, based on available information, the majority of handlers 
have annual receipts of less than $7,000,000 and could be considered 
small businesses under SBA's definition. Thus, the majority of 
producers and handlers of Texas citrus may be classified as small 
entities.
    This rule decreases the assessment rate established for the 
Committee and collected from handlers for the 2014-15 and subsequent 
fiscal periods from $0.16 to $0.11 per 7/10-bushel carton or equivalent 
of Texas citrus. The Committee recommended 2014-15 expenditures of 
$809,500 and an assessment rate of $0.11 per 7/10-bushel carton or 
equivalent handled. The assessment rate of $0.11 is $0.05 lower than 
the 2013-14 rate. The quantity of assessable oranges and grapefruit for 
the 2014-15 fiscal period is estimated at 8.2 million 7/10-bushel 
cartons. Thus, the $0.11 rate should provide $902,000 in assessment 
income and be adequate to meet this year's expenses.
    The major expenditures recommended by the Committee for the 2014-15 
year include $503,000 for the Mexican fruit fly control program, 
$175,000 for management and compliance, and $100,000 for marketing and 
promotion. Budgeted expenses for these items in 2013-14 were $503,000, 
$200,000, and $600,000, respectively.
    The Committee reviewed and recommended 2014-15 expenditures of 
$809,500, which includes decreases in the amount budgeted for the 
marketing program and management. The Committee considered proposed 
expenses and recommended decreasing the assessment rate to more closely 
align assessment income to the lower budget.
    Prior to arriving at this budget, the Committee considered 
information from various sources, such as the Committee's Budget and 
Personnel Committee and the Market Development Committee. Alternate 
expenditure levels were discussed by these groups, based upon the 
relative value of various research and promotion projects to the Texas 
citrus industry. The assessment rate of $0.11 per 7/10-bushel carton or 
equivalent of assessable oranges and grapefruit was then determined by 
considering the total recommended budget in relation to the quantity of 
assessable oranges and grapefruit, estimated at 8.2 million 7/10-bushel 
cartons for the 2014-15 fiscal period. Based on estimated shipments, 
the recommended assessment rate of $0.11 should provide $902,000 in 
assessment income. This is approximately $92,500 above the anticipated 
expenses of $809,500, which the Committee determined to be acceptable 
as any assessments collected above expenditures are to be added to 
reserves.
    A review of historical information and preliminary information 
pertaining to the upcoming fiscal period indicates that the grower 
price for the 2014-15 season could range between $3.02 and $19.22 per 
7/10-bushel carton or equivalent of oranges and grapefruit. Therefore, 
the estimated assessment revenue for the 2014-15 fiscal period, as a 
percentage of total grower revenue, could range between .5 and 3.6 
percent.
    This action decreases 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.

[[Page 47553]]

    In addition, the Committee's meeting was widely publicized 
throughout the Texas 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 June 5, 
2014, meeting was a public meeting and all entities, both large and 
small, were able to express views on this issue. Finally, interested 
persons are invited to submit comments on this interim rule, including 
the regulatory and informational impacts of this action on small 
businesses.
    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. 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 action 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.
    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.
    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 Jeffrey Smutny 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 upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and 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 2014-15 fiscal period begins on August 1, 
2014, 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) this action decreases the 
assessment rate for assessable oranges and grapefruit grown in Texas 
beginning with the 2014-15 fiscal period; (3) handlers are aware of 
this action which was recommended by the Committee at a public meeting 
and is similar to other assessment rate actions issued in past years; 
and (4) this interim rule provides a 60-day comment period, and all 
comments timely received will be considered prior to finalization of 
this 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, 2014, an assessment rate of $0.11 per 7/10-
bushel carton or equivalent is established for oranges and grapefruit 
grown in the Lower Rio Grande Valley in Texas.

    Dated: August 11, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-19306 Filed 8-13-14; 8:45 am]
BILLING CODE 3410-02-P