Expenses and Assessment Rates for Marketing Orders Covering Limes and Avocados Grown in Florida

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 911 and 915

[FV95-911-1FIR]

Expenses and Assessment Rates for Marketing Orders Covering Limes

and Avocados Grown in Florida

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Finalization of interim final rule.

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

SUMMARY: The Department of Agriculture (Department) is adopting as a

final rule, without change, the provisions of the interim final rule

which authorized expenses and established assessment rates for the

Florida Lime Administrative Committee and the Avocado Administrative

Committee (Committees) under Marketing Orders 911 and 915 for the 1995-

96 fiscal year. Authorization of these budgets enables the Committees

to incur expenses that are reasonable and necessary to administer their

respective programs. Funds to administer these programs are derived

from assessments on handlers.

EFFECTIVE DATE: Effective beginning April 1, 1995, through March 31,

1996.

FOR FURTHER INFORMATION CONTACT: Britthany Beadle, Marketing Order

Administration Branch, F&V, AMS, USDA, P.O. Box 96456, room 2523-S,

Washington, DC 20090-6456; telephone (202) 720-5331; or Aleck Jonas,

Southeast Marketing Field Office, Fruit and Vegetable Division, AMS,

USDA, P.O. Box 2276, Winter Haven, Florida 33883, telephone (813) 299-

4770.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing

Agreement and Order No. 911 [7 CFR Part 911], as amended, regulating

the handling of limes grown in Florida; and Marketing Agreement and

Order No. 915 [7 CFR Part 915] regulating the handling of avocados

grown in Florida. These agreements and orders are 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 is issuing this rule in conformance with Executive

Order 12866.

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. Under the marketing order provisions now in

effect, limes and avocados grown in Florida are [[Page 24538]] subject

to assessments. It is intended that the assessment rates as issued

herein will be applicable to all assessable Florida limes and avocados

handled during the 1995-96 fiscal year, beginning April 1, 1995,

through March 31, 1996. This interim final rule will not preempt any

State or local laws, regulations, or policies, unless they present an

irreconcilable conflict with this rule.

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 the Secretary 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. A handler is afforded the opportunity for a hearing on the

petition. After the hearing the Secretary 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 in equity to review the

Secretary's ruling on the petition, provided a bill in equity is filed

not later than 20 days after date of the entry of the ruling.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), the Administrator of the Agricultural Marketing Service

(AMS) has considered the economic impact of this rule on small

entities.

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 rules issued thereunder, are unique in that

they are brought about through group action of essentially small

entities acting on their own behalf. Thus, both statutes have small

entity orientation and compatibility.

There are approximately 45 handlers of limes grown in Florida, and

approximately 40 producers in the regulated area. Also, there are

approximately 65 handlers of avocados grown in Florida, and

approximately 95 producers in the regulated area. Small agricultural

producers have been defined by the Small Business Administration [13

CFR 121.601] as those having annual receipts of less than $500,000, and

small agricultural service firms are defined as those whose annual

receipts are less than $5,000,000. The majority of lime and avocado

producers and handlers may be classified as small entities.

The lime and avocado marketing orders, administered by the

Department, require that the assessment rates for a particular fiscal

year apply to all assessable limes and avocados handled from the

beginning of such year. Annual budgets of expenses are prepared by the

Committees, the agencies responsible for local administration of their

respective marketing orders, and submitted to the Department for

approval. Each Committee consists of producers, handlers and a non-

industry public member. They are familiar with the Committees' needs

and with the costs for goods, services, and personnel in their local

area and are thus in a position to formulate appropriate budgets. The

Committees' budgets are formulated and discussed in public meetings.

Thus, all directly affected persons have an opportunity to participate

and provide input.

The assessment rates recommended by the Committees are derived by

dividing anticipated expenses by expected shipments of limes and

avocados (in bushels). Because those rates are applied to actual

shipments, they must be established at rates which will produce

sufficient income to pay the Committees' expected expenses. The

recommended budgets and rates of assessment are usually acted upon by

the Committees shortly before a season starts, and expenses are

incurred on a continuous basis. Therefore, the budget and assessment

rate approval must be expedited so that the Committees will have funds

to pay their expenses.

The Florida Lime Administrative Committee met on December 14, 1994,

and unanimously recommended 1995-96 expenses of $92,270. In comparison,

the 1994-95 fiscal year expense amount was $92,197, which is $73 less

in expenses than the amount recommended for this fiscal year.

The Committee also unanimously recommended an assessment rate of

$0.16 per 55-pound bushel of limes. The 1995-96 assessment rate remains

unchanged from the previous fiscal year. Assessment income for 1995-96

is estimated to total $64,000 based on anticipated fresh domestic

shipments of 400,000 bushels of limes. This, along with $2,500 in

interest income, and a withdrawal of $25,770 from the Committee's

reserve fund will be adequate to cover estimated expenses. Funds in the

reserve at the end of the 1995-96 fiscal year are within the maximum

permitted by the order of three fiscal years' expenses.

Major budget categories for the 1995-96 fiscal year are $34,000 for

administrative staff salaries, $10,000 for research, $8,300 for

compliance, and $7,300 for employee benefits.

The Avocado Administrative Committee also met on December 14, 1994,

and unanimously recommended 1995-96 expenses of $107,570. In

comparison, 1994-95 fiscal year expenses were $116,420, which is $8,850

more than the $107,570 recommended for this fiscal year.

An assessment rate of $0.16 per 55-pound bushel of avocados was

also unanimously recommended by the Committee. The 1995-96 rate of

assessment remains the same as the previous fiscal year. Assessment

income for 1995-96 is estimated to total $112,000 based on anticipated

fresh domestic shipments of 700,000 bushels of avocados. Assessment

income, plus an additional $1,500 in interest income will provide

sufficient funds to cover budgeted expenses. The Committee anticipates

a reserve fund increase of $5,930 because assessment income is more

than budgeted expenses. Funds in the reserve at the end of the 1995-96

fiscal year are within the maximum permitted by the order of three

fiscal years' expenses.

Major budget categories for the 1995-96 fiscal year are $34,000 for

administrative staff salaries, $15,600 for compliance, $12,810 for

insurance and bonds, and $10,000 for research.

An interim final rule was issued on February 8, 1995, and published

in the Federal Register [60 FR 8523; February 15, 1995] and provided a

30-day comment period for interested persons. No comments were

received.

While this action will impose some additional costs on handlers,

the costs are in the form of uniform assessments on all handlers. Some

of the additional costs may be passed on to producers. However, these

costs will be offset by the benefits derived from the operation of the

marketing orders. Therefore, the Administrator of the AMS has

determined that this action will not have a significant economic impact

on a substantial number of small entities.

It is found that the specified expenses for the marketing orders

covered in this rule are reasonable and likely to be incurred and that

such expenses and the specified assessment rates to cover such expenses

will tend to effectuate the declared policy of the Act.

It is further found that good cause exists for not postponing the

effective date of this action until 30 days after publication in the

Federal Register [5 U.S.C. 553] because the Committees need to have

sufficient funds to pay their expenses which are incurred on a

continuous basis. The 1995-96 fiscal year for the programs began April

1, [[Page 24539]] 1995. The marketing orders require that the rates of

assessment apply to all assessable limes and avocados handled during

the fiscal year. In addition, handlers are aware of this action which

was recommended by the Committees at public meetings and published in

the Federal Register as an interim final rule. No comments were

received concerning the interim final rule that is adopted in this

action as a final rule without change.

List of Subjects

7 CFR Part 911

Limes, Marketing agreements, Reporting and recordkeeping

requirements.

7 CFR Part 915

Avocados, Marketing agreements, Reporting and recordkeeping

requirements.

For the reasons set forth in the preamble, 7 CFR parts 911 and 915

are amended as follows:

1. The authority citation for both 7 CFR parts 911 and 915

continues to read as follows:

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

PART 911--LIMES GROWN IN FLORIDA

Accordingly, the interim final rule amending 7 CFR part 911 which

was published at 60 FR 8523 on February 15, 1995, is adopted as a final

rule without change.

PART 915--AVOCADOS GROWN IN SOUTH FLORIDA

Accordingly, the interim final rule amending 7 CFR part 915 which

was published at 60 FR 8523 on February 15, 1995, is adopted as a final

rule without change.

Dated: May 3, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-11307 Filed 5-8-95; 8:45 am]

BILLING CODE 3410-02-P