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Federal Register / Vol. 86, No. 121 / Monday, June 28, 2021 / Proposed Rules
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the district for which selected and a resident of the production area. Section 966.160 defines the two districts from which producers serve as representatives on the Committee.
Section 966.25 provides the authority for the Committee to recommend, with the approval of the Secretary, reapportionment of members among districts, and the reestablishment of districts within the production area.
Section 966.161 apportions Committee membership among the two districts pursuant to 966.25.
The Committee met on November 1, 2018, and February 27, 2019, to recommend changes to the Order. These recommendations included reducing the Committee size from 12 members to 10;
reducing the number of districts in the production area from four districts to two, maintaining that membership on the Committee be divided evenly between the two districts. The reduction to two districts and the reapportionment of Committee membership that provided equal representation of six members in each of those newly formed districts were completed under a separate rulemaking action published in the Federal Register on September 26, 2019
84 FR 50711.
During the Committees discussion of the amendments and the reduction in Committee size, members indicated they wanted to maintain the equity in membership between the two districts.
With the reduction in the Committee size from 12 members and their alternates to 10 members and their alternates, this rule would make a conforming change to the Committee membership as apportioned in 966.161. This action would reduce the seats in each district from six members and their alternates to five members and their alternates. This would maintain the equitable representation on the Committee and bring the number of apportioned seats in line with the reduced number of members authorized in the Order.
Accordingly, each district would nominate five members and five alternates for a total of 10 members and 10 alternate nominees to serve on the Committee.
Initial Regulatory Flexibility Analysis Pursuant to requirements set forth in the Regulatory Flexibility Act RFA 5
U.S.C. 601612, the Agricultural Marketing Service AMS has considered the economic impact of this proposed 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
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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 65 producers of Florida tomatoes in the production area and 41 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.
With an estimated producer price of $14.00 per 25-pound container, the number of Florida tomato producers, and a normal distribution assumed, the average annual producer revenue is above $1,000,000, $14.00 times 22.3
million containers equals $312,200,000
divided by 65 producers equals $4,803,077 per producer. Thus, the majority of producers of Florida tomatoes may be classified as large entities.
According to industry and Committee data, the average annual price for fresh Florida tomatoes during the 201920
season was approximately $19.07 per 25-pound container, and total fresh shipments were 22.3 million containers.
Using the average price and shipment information, the number of handlers, and a normal distribution assumed, the majority of handlers have average annual receipts of less than $30,000,000, $19.07 times 22.3 million containers equals $425,261,000 divided by 41
handlers equals $10,372,220 per handler. Thus, the majority of handlers of Florida tomatoes may be classified as small entities.
This proposed rule would adjust the number of member seats apportioned on the Committee. USDA is taking this action based on an amendatory change to the Order, which reduced the size of the Committee from 12 members to 10.
This action would reduce the member seats in each of the two districts from six members and their alternates to five members and their alternates. This change would revise 966.161 pursuant to the authority in 966.25.
It is not anticipated that this action would impose any additional costs on the industry. This change is a conforming change and would not establish any new regulatory requirements on handlers. There would be no change in financial costs,
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reporting, or recordkeeping requirements because of this action.
This action would reduce the apportioned members from six members and their alternates to five members and their alternates in each of the two districts to reflect the recent amendatory action which reduced the size of the Committee. The balance of representation on the Committee would remain the same with member seats divided evenly between the two districts. The effects of this rule would not be disproportionately greater or less for small entities than for larger entities.
Alternatives to reapportionment were discussed and considered by the Committee. However, these alternatives were rejected. The Committee agreed that given the number of producers had decreased, reducing the Committee size would make it more reflective of todays industry. The Committee also wanted to maintain the balance of representation between the two districts. With the amendatory change to the Order, this action is necessary to make the regulations conform to the Order requirements.
In accordance with the Paperwork Reduction Act of 1995 44 U.S.C.
Chapter 35, the Orders information collection requirements have been previously approved by OMB and assigned OMB No. 05810178, Vegetable and Specialty Crops. No changes in those requirements would be necessary because of this proposed rule.
Should any changes become necessary, they would be submitted to OMB for approval.
This proposed rule would not impose any additional reporting or recordkeeping requirements on either small or large Florida tomato 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.
The Committees meetings are widely publicized throughout the Florida tomato industry, and all interested persons are invited to attend the meetings and participate in Committee deliberations on all issues. Like all Committee meetings, the November 1, 2018, and February 27, 2019, meetings were open to the public, and all entities, both large and small, were able to express their views on this issue.
Finally, interested persons are invited to submit comments on this proposed rule, including the regulatory and information collection impacts of this action on small businesses.
AMS is committed to complying with the E-Government Act, to promote the
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