Avocados Grown in South Florida; Increased Assessment Rate
| Published date | 07 December 2021 |
| Citation | 86 FR 69159 |
| Record Number | 2021-26494 |
| Section | Rules and Regulations |
| Court | Agricultural Marketing Service |
Federal Register, Volume 86 Issue 232 (Tuesday, December 7, 2021)
[Federal Register Volume 86, Number 232 (Tuesday, December 7, 2021)]
[Rules and Regulations]
[Pages 69159-69161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-26494]
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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.
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Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 /
Rules and Regulations
[[Page 69159]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 915
[Doc. No. AMS-SC-21-0040; SC21-915-1 FR]
Avocados Grown in South Florida; Increased Assessment Rate
AGENCY: Agricultural Marketing Service (AMS), Department of Agriculture
(USDA).
ACTION: Final rule.
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SUMMARY: This rule implements a recommendation from the Avocado
Administrative Committee to increase the assessment rate established
for the 2021-22 and subsequent fiscal years. The assessment rate will
remain in effect indefinitely unless modified, suspended, or
terminated.
DATES: Effective January 6, 2022.
FOR FURTHER INFORMATION CONTACT: Abigail Campos, Marketing Specialist,
or Christian D. Nissen, Regional Director, Southeast Region Branch,
Market Development Division, Specialty Crops Program, AMS, USDA;
Telephone: (863) 324-3375, Fax: (863) 291-8614, or Email:
[email protected] or [email protected].
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Market Development Division,
Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP
0237, Washington, DC 20250-0237; Telephone: (202) 720-2491, or Email:
[email protected].
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This rule is issued under Marketing Agreement No. 121
and Marketing Order No. 915, both as amended (7 CFR part 915),
regulating the handling of avocados grown in south Florida. Part 915,
(referred to as ``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 Avocado Administrative
Committee (Committee) locally administers the Order and is comprised of
growers and handlers operating within the area of production, and a
public member.
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Orders 12866 and 13563. Executive Orders
12866 and 13563 direct agencies to assess all costs and benefits of
available regulatory alternatives and, if regulation is necessary, to
select regulatory approaches that maximize net benefits (including
potential economic, environmental, public health and safety effects,
distributive impacts, and equity). Executive Order 13563 emphasizes the
importance of quantifying both costs and benefits, reducing costs,
harmonizing rules, and promoting flexibility. This action falls within
a category of regulatory actions that the Office of Management and
Budget (OMB) exempted from Executive Order 12866 review.
This rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which
requires agencies to consider whether their rulemaking actions would
have tribal implications. AMS has determined this rule is unlikely to
have substantial direct effects on one or more Indian tribes, on the
relationship between the Federal Government and Indian tribes, or on
the distribution of power and responsibilities between the Federal
Government and Indian tribes.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. Under the 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 be
applicable to all assessable Florida avocados for the 2021-22 fiscal
year, and continue unless 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 2021-22 and subsequent fiscal years, from $0.35 to
$0.45 per 55-pound bushel container of avocados.
The Order authorizes the Committee, with the approval of USDA, to
formulate an annual budget of expenses and collect assessments from
handlers to administer the program. Nine of the ten 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 able to formulate an appropriate
budget and assessment rate. The assessment rate is formulated and
discussed in a public meeting and all directly affected persons have an
opportunity to participate and provide input.
For the 2016-17 and subsequent fiscal years, the Committee
recommended, and USDA approved, an assessment rate that would continue
in effect from fiscal year to fiscal year 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 April 14, 2021, and recommended 2021-22
expenditures of $348,484 and an assessment rate of $0.45 per 55-pound
bushel container of avocados. In comparison, the previous fiscal year's
budgeted expenditures were $280,484. The assessment rate of $0.45 is
$0.10 higher than the rate currently in effect. During the last few
fiscal years, the Committee has not funded research projects. However,
the laurel wilt disease continues to challenge the avocado industry.
The Committee
[[Page 69160]]
discussed the need for research funding and added $80,000 to its
proposed budget for this research and recommended increasing the
assessment rate to cover the additional expense. At the current
assessment rate, assessment income would equal only $280,000, an amount
insufficient to cover the Committee's anticipated expenditures of
$348,484. By increasing the assessment rate by $0.10, assessment income
will be $360,000. This amount should provide sufficient funds to meet
2021-2022 anticipated expenses.
Major expenditures recommended by the Committee for the 2021-22
fiscal year include $116,164 for salaries, $80,000 for research, and
$53,350 for employee benefits. Budgeted expenses for these items in
2020-21 were $116,164, $0, and $53,350, respectively.
The assessment rate recommended by the Committee was derived by
reviewing anticipated expenses, expected shipments of Florida avocados,
and fiscal the level of funds in reserve. Avocado shipments for the
year are estimated at 800,000 55-pound bushel containers, which, as
mentioned before, should provide $360,000 in assessment income (80,000
containers x $0.45). Income derived from handler assessments at the new
rate, along with interest income, should be adequate to cover budgeted
expenses. Funds in the reserve (currently about $250,000) will be kept
within the maximum permitted by the Order (approximately three fiscal
years' expenses as authorized 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 will be in effect for an indefinite
period, the Committee will continue to meet prior to or during each
fiscal year 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 would
be undertaken as necessary. The Committee's 2021-22 budget and those
for subsequent fiscal years 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
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 325 producers of Florida avocados in the
production area and 25 handlers subject to regulation under the Order.
Small agricultural producers are defined by the Small Business
Administration (SBA) as those having annual receipts less than
$1,000,000, and small agricultural service firms are defined as those
whose annual receipts are less than $30,000,000 (13 CFR 121.201).
According to the National Agricultural Statistical Service (NASS),
the average grower price paid for Florida avocados during the 2020-21
fiscal year was $21.97 per 55-pound bushel. Utilized production was
equivalent to 624,364 55-pound bushels for a total value of
approximately $13,718,830. Dividing the crop value by the estimated
number of producers (325) yields an estimated average receipt per
producer of $42,212, so the majority of producers will have annual
receipts of less than $1,000,000.
USDA Market News reported April 2021 terminal market prices for
green skinned avocados were about $36.43 per 24-pound container. Using
this price and the total utilization, the total 2020-21 handler crop
value is estimated at $52.1 million. Dividing this figure by the number
of handlers (25) yields an estimated average annual handler receipts of
over $2 million, which is below the SBA threshold for small
agricultural service firms. Thus, the majority of Florida avocado
producers and handlers are classified as small entities.
This rule increases the assessment rate established for the
Committee and collected from handlers for the 2021-22 and subsequent
fiscal years from $0.35 to $0.45 per 55-pound bushel container of
avocados. The Committee recommended 2021-22 expenditures of $348,484
and an assessment rate of $0.45 per 55-pound bushel container. The
assessment rate of $0.45 is $0.10 higher than the previous rate. The
quantity of assessable avocados for the 2021-22 season is estimated at
800,000 55-pound bushel containers. Thus, the $0.45 rate will provide
$360,000 in assessment income and be adequate to meet this year's
expenses.
Major expenditures recommended by the Committee for the 2021-22
fiscal year include $116,164 for salaries, $80,000 for research, and
$53,350 for employee benefits. Budgeted expenses for these items in
2020-21 were $116,164, $0, and $53,350, respectively.
In recent years, the Committee did not fund any research. However,
Committee members believe further research is needed to address laurel
wilt disease and voted to commit $80,000 to research in the coming
fiscal year. At the current assessment rate and with the 2021-22 crop
estimated to be 800,000 55-pound bushel containers, assessment income
would equal only $280,000, an amount insufficient to cover the
Committee's anticipated expenditures of $348,484. By increasing the
assessment rate by $0.10, assessment income would be approximately
$360,000. This amount will provide sufficient funds to meet 2021-22
anticipated expenses. Consequently, the Committee recommended
increasing the assessment rate.
Prior to arriving at this budget and assessment rate, the Committee
considered information from various sources, including its Research
Subcommittee. The Committee discussed alternative expenditure levels
based upon the relative value of various activities to the south
Florida avocado industry. The Committee ultimately determined that
2021-22 expenditures of $348,484, including the additional funds for
research, were appropriate, and the recommended assessment rate, along
with interest income, should generate sufficient revenue to meet its
expenses.
A review of historical information and preliminary information
pertaining to the upcoming season indicates that the grower price for
the 2021-22 season should be around $20-25 per 55-pound bushel
container of avocados. Therefore, the estimated assessment revenue for
the 2021-22 fiscal year as a percentage of total grower revenue would
be between 1.8 and 2.25 percent.
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. Additionally, these
costs will be offset
[[Page 69161]]
by the benefits derived by the operation of the Order.
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 April 14, 2021, 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 OMB and assigned OMB No. 0581-0189 Fruit Crops.
No changes in those requirements are necessary as a result of this
action. 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 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. As noted in the
initial regulatory flexibility analysis, USDA has not identified any
relevant Federal rules that duplicate, overlap, or conflict with this
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 24, 2021 (86 FR 47248). Copies of the proposed rule
were also mailed or sent via email to all Florida avocado handlers. The
proposal was made available through the internet by USDA and the Office
of the Federal Register. A 30-day comment period ending September 23,
2021, was provided for interested persons to respond to the proposal.
During the comment period, one comment was received in response to
the proposal. The comment received did not address the merits of this
rule. Accordingly, no changes will be made to the rule as proposed,
based on the comment received.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at:
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any
questions about the compliance guide should be sent to Richard Lower 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 will tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 915
Avocados, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 915 is
amended as follows:
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, 2021, an assessment rate of $0.45 per 55-
pound container or equivalent is established for avocados grown in
South Florida.
Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2021-26494 Filed 12-6-21; 8:45 am]
BILLING CODE 3410-02-P
