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Federal Register / Vol. 86, No. 161 / Tuesday, August 24, 2021 / Proposed Rules inspection in the Office of the Docket Clerk during regular business hours, or can be viewed at: https
www.regulations.gov. All comments submitted in response to this proposed rule will be included in the record and will be made available to the public.
Please be advised that the identity of individuals or entities submitting comments will be made public on the internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Abigail Campos, Marketing Specialist, or Christian D. Nissen, Regional Director, Southeast Marketing Field Office, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA; Telephone: 863 324
3375, Fax: 863 2918614, or Email:
Abigail.Campos@usda.gov or Christian.Nissen@usda.gov.
Small businesses may request information on complying with this regulation by contacting Richard Lower, Marketing Order and Agreement Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue SW, STOP 0237, Washington, DC 202500237; Telephone: 202 720
2491, or Email: Richard.Lower@
usda.gov.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, proposes an amendment to regulations issued to carry out a marketing order as defined in 7 CFR 900.2j. This proposed 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. 601674, 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 proposed 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
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category of regulatory actions that the Office of Management and Budget OMB exempted from Executive Order 12866 review.
This proposed 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 that this proposed 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 proposed 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 proposed herein would be applicable to all assessable Florida avocados for the 202122 fiscal year, 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 608c15A 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 USDAs ruling on the petition, provided an action is filed not later than 20 days after the date of the entry of the ruling.
This proposed rule would increase the assessment rate established for the Committee for the 202122 and subsequent fiscal years from $0.35 to $0.45 per 55-pound bushel container of avocados.
The 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.
Nine of ten members of the Committee are producers and handlers of Florida avocados. They are familiar with the Committees needs and with costs for
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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 201617 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 202122
expenditures of $348,484 and an assessment rate of $0.45 per 55-pound bushel container of avocados. In comparison, last years 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 seasons, the Committee has not funded research projects. However, the laurel wilt disease continues to challenge the avocado industry. The Committee 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 Committees anticipated expenditures of $348,484. By increasing the assessment rate by $0.10, assessment income would be $360,000. This amount should provide sufficient funds to meet 20212022 anticipated expenses.
Major expenditures recommended by the Committee for the 202122 year include $116,164 for salaries, $80,000
for research, and $53,350 for employee benefits. Budgeted expenses for these items in 202021 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 the amount 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
$0.45. Income derived from handler assessments at the proposed rate, along with interest income, should be adequate to cover budgeted expenses.
Funds in the reserve currently about $250,000 are expected to be kept within the maximum permitted by the Order
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