Effective April 10, the USDA will decrease the assessment rate for Texas oranges and grapefruit.
In a final rule published March 9, the USDA said it is implementing a recommendation from the Texas Valley Citrus Committee to decrease the assessment rate established for the 2022-23 and subsequent fiscal periods.
The committee met on May 24 last year and recommended 2022-23 expenditures of $134,970 and an assessment rate of 3 cents per carton. In comparison, last year’s budgeted expenditures were $43,900.
The assessment rate of 3 cents is 2 cents lower than the rate currently in effect. The committee voted to decrease the assessment rate due to an increase in production.
The committee estimates production for 2022-23 fiscal period to be approximately 4 million cartons, an increase from the 1 million cartons estimated to be produced the previous year.
At the current assessment rate, assessment income would equal $200,000, exceeding the committee’s anticipated expenditures of $134,970. By decreasing the assessment rate by 2 cents, assessment income will be approximately $120,000, the rule said.
This amount, along with reserve funds and interest income, should provide sufficient funds to meet 2022-23 anticipated expenses, the final rule said.
