Mar 11, 2024

Florida Tomato Committee proposes assessment increase

The Florida Tomato Committee is proposing to raise the rate growers and handlers are assessed from 2.5 cents to 3.5 cents for each 25 pounds.

The USDA’s Agricultural Marketing Service, which oversees the Florida, will accept comments on the proposal until April 8. Comments can be sent to [email protected] or at the Federal Register. Comments should reference the document number and the date and page number of this issue of the Federal Register.

Comments submitted will be included in the record and will be made available to the public and can be viewed https://www.regulations.gov. The identity of the individuals or entities submitting comments will be made public.

The Florida Tomato Committee requested the increase after meeting on Sept. 20, 2023, and unanimously recommending a 2023-24 fiscal period expenditures of $1.16 million and the penny per 25-pound assessment increase.

The Florida Tomato Committee has used financial reserves in previous seasons
to help pay for budgeted expenses, and increasing the assessment rate would
allow it to replenish and maintain financial reserves of $250,000, according to the Federal Register. The committee projects that about 22 million 25-pound containers or equivalent of assessable Florida tomatoes for the 2023-24 fiscal period, an increase from 21.82 million containers handled for the 2022-23
fiscal period.

Major expenditures recommended by the committee for the 2023-24 fiscal period include $350,000 for research, $340,000 for education and promotions, and $277,393 for management and staff. Budgeted expenses for these items in the 2022-23 fiscal period were $350,000, $330,000 and $274,105, respectively.
Increasing the assessment rate to 3.5 cents, assessment income would generate $770,000 in assessment revenue.

This should ensure the committee has sufficient revenue, along with an anticipated $265,501 in funds awarded through the Foreign Agricultural Service Market Access Program and $129,071 in other income, to fully fund its recommended 2023-24 fiscal period budgeted expenditures, while maintaining financial reserves at around $250,000, according to the Federal Register.

There are 38 handlers of Florida tomatoes subject to regulation
under the order and approximately 50 producers of Florida tomatoes in
the production area.