[Federal Register Volume 77, Number 127 (Monday, July 2, 2012)]
[Rules and Regulations]
[Pages 39150-39153]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16063]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 915
[Doc. No. AMS-FV-11-0094; FV12-915-1 IR]
Avocados Grown in South Florida; Decreased Assessment Rate
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule decreases the assessment rate established for the
Avocado Administrative Committee (Committee) for the 2012-13 and
subsequent fiscal periods from $0.37 to $0.25 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. Assessments upon Florida avocado
handlers are used by the Committee to fund reasonable and necessary
expenses of the program. The fiscal period begins April 1 and ends
March 31. The assessment rate will remain in effect indefinitely unless
modified, suspended, or terminated.
DATES: Effective July 3, 2012. Comments received by August 31, 2012,
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
[[Page 39151]]
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 Manager, 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: Doris.Jamieson@ams.usda.gov or Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Laurel May, 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: Laurel.May@ams.usda.gov.
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.''
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, Florida
avocado 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
Florida avocados beginning April 1, 2012, 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 2012-13 and subsequent fiscal periods from $0.37 to
$0.25 per 55-pound bushel container of avocados.
The Florida avocado 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
Florida avocados. 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 2010-11 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 December 14, 2011, and unanimously recommended
2012-13 expenditures of $324,575 and an assessment rate of $0.25 per
55-pound bushel container of avocados. In comparison, last year's
budgeted expenditures were $349,575. The assessment rate of $0.25 is
$0.12 lower than the rate currently in effect. The Committee
recommended the decrease in assessment rate due to a reduction in
expenditures for research and to help reduce industry costs.
The major expenditures recommended by the Committee for the 2012-13
year include $101,705 for salaries, $75,000 for research, $48,000 for
employee benefits, and $25,800 for insurance and bonds. Budgeted
expenses for these items in 2011-12 were $101,705, $100,000, $48,000,
and $25,800, respectively.
The assessment rate recommended by the Committee was derived by
reviewing anticipated expenses, expected shipments of Florida avocados,
and available reserves. Florida avocado shipments for the year are
estimated at 1,000,000 55-pound bushel containers which should provide
$250,000 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 $315,000) will be kept within the maximum permitted
by the order (approximately three fiscal periods' expenses as stated in
Sec. 915.42).
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 2012-13 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
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.
[[Page 39152]]
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 (NASS), the average price for Florida
avocados during the 2011-12 season was around $16.50 per 55-pound
bushel container and total shipments were near 1,200,000 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 decreases the assessment rate established for the
Committee and collected from handlers for the 2012-13 and subsequent
fiscal periods from $0.37 to $0.25 per 55-pound bushel container of
avocados. The Committee unanimously recommended 2012-13 expenditures of
$324,575 and an assessment rate of $0.25 per 55-pound bushel container.
The assessment rate of $0.25 is $0.12 lower than the 2011-12 rate. The
quantity of assessable Florida avocados for the 2012-13 season is
estimated at 1,000,000. Thus, the $0.25 rate should provide $250,000 in
assessment income. Income derived from handler assessments, along with
interest income and funds from the Committee's authorized reserves,
will be adequate to cover budgeted expenses.
The major expenditures recommended by the Committee for the 2012-13
year include $101,705 for salaries, $75,000 for research, $48,000 for
employee benefits, and $25,800 for insurance and bonds. Budgeted
expenses for these items in 2011-12 were $101,705, $100,000, $48,000,
and $25,800, respectively.
The Committee recommended the decrease in assessment rate due to a
reduction in expenditures for research and to help reduce industry
costs.
The Committee reviewed and unanimously recommended 2012-13
expenditures of $324,575 which included decreases in research programs.
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 $0.25 per 55-lb
bushel container of assessable avocados was then determined by
reviewing the total recommended budget, the quantity of assessable
avocados, estimated at 1,000,000 55-lb bushel containers for the 2012-
13 season, and available reserves. Assessments will be approximately
$74,575 less than 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 $5.00 and $56.00 per 55-
pound bushel container of avocados. Therefore, the estimated assessment
revenue for the 2012-13 season as a percentage of total grower revenue
could range between .4 and 5 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. 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 December
14, 2011, 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 OMB 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 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.
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:
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 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 2012-13 fiscal period begins on April 1,
2012, and the marketing order requires that the rate of assessment for
each fiscal period apply to all assessable Florida avocados handled
during such fiscal period; (2) the Committee needs to have sufficient
funds to pay its expenses which are incurred on a continuous basis; (3)
handlers are aware of this action which was unanimously 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 915
Avocados, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 915 is
amended as follows:
[[Page 39153]]
PART 915--AVOCADOS GROWN IN SOUTH FLORIDA
0
1. The authority citation for 7 CFR part 915 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 915.235 is revised to read as follows:
Sec. 915.235 Assessment rate.
On and after April 1, 2012, an assessment rate of $0.25 per 55-
pound container or equivalent is established for avocados grown in
South Florida.
Dated: June 26, 2012.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2012-16063 Filed 6-29-12; 8:45 am]
BILLING CODE 3410-02-P