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Federal Register / Vol. 86, No. 232 / Tuesday, December 7, 2021 / Rules and Regulations
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 will be $360,000. This amount should provide sufficient funds to meet 20212022
anticipated expenses.
Major expenditures recommended by the Committee for the 202122 fiscal 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 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
$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 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 Committees 202122 budget and those for subsequent fiscal years will be reviewed and, as appropriate, approved by USDA.

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Final 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 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 202021
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 202122
and subsequent fiscal years from $0.35
to $0.45 per 55-pound bushel container of avocados. The Committee recommended 202122 expenditures of $348,484 and an assessment rate of
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$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 202122 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 years expenses.
Major expenditures recommended by the Committee for the 202122 fiscal 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.
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 202122
crop estimated to be 800,000 55-pound bushel containers, 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 approximately $360,000. This amount will provide sufficient funds to meet 202122 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 202122 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 202122 season should be around $2025 per 55-pound bushel container of avocados. Therefore, the estimated assessment revenue for the 202122 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
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