Texas Oranges Face Fee Squeeze in Rio Grande Valley
Published Date: 4/29/2026
Proposed Rule
Summary
Orange and grapefruit growers in Texas’ Lower Rio Grande Valley might pay a bit more soon! The proposed rule suggests raising the fee from 4 cents to 7 cents per small carton starting in the 2025-2026 season and beyond. This change helps support the citrus industry, and folks have until May 29, 2026, to share their thoughts.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 3 costs, 0 mixed.
Handlers Pay Higher Assessments
If you handle oranges or grapefruit grown in the Lower Rio Grande Valley in Texas, the assessment you pay would increase from $0.04 to $0.07 per 7/10-bushel carton (an increase of $0.03) starting August 1, 2025. Under the Committee's estimates, assessment income would rise from $144,000 (at $0.04) to $252,000 (at $0.07) for the 2025-2026 fiscal period and subsequent periods.
Producers May Bear Some Costs
Assessments are collected from handlers, but the rule notes that some of those costs may be passed on to producers. Using an estimated average producer price of $14.15 per 7/10-bushel carton, the $0.07 assessment would represent about 0.5 percent of producer revenue per carton.
Rule Mainly Hits Small Citrus Businesses
The rule affects an industry with about 75 producers and 17 handlers in the production area; based on SBA size standards and the Committee's data, the majority of those producers and handlers may qualify as small entities. AMS's analysis uses shipment and price data to show estimated average receipts of about $750,594 per producer and about $4,990,948 per handler, indicating most could be classified as small businesses under SBA thresholds.
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