Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; Change in the Minimum Maturity Requirements for Fresh Grapefruit, 23928-23930 [05-9109]
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Federal Register / Vol. 70, No. 87 / Friday, May 6, 2005 / Rules and Regulations
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV05–905–1 FIR]
Oranges, Grapefruit, Tangerines, and
Tangelos Grown in Florida; Change in
the Minimum Maturity Requirements
for Fresh Grapefruit
Agricultural Marketing Service,
USDA.
ACTION: Final rule.
AGENCY:
SUMMARY: The Department of
Agriculture (USDA) is adopting, as a
final rule, without change, an interim
final rule reducing the minimum
maturity requirements for fresh
grapefruit under the marketing order for
Oranges, Grapefruit, Tangerines, and
Tangelos Grown in Florida (order). The
Citrus Administrative Committee
(Committee), which locally administers
the order, recommended this change.
This rule continues in effect the action
that reduced the minimum maturity
requirement for soluble solids (sugars)
from 8.0 percent to 7.5 percent until
July 31, 2005. This action makes
additional quantities of grapefruit
available for the fresh market and will
help reduce the losses sustained by the
grapefruit industry during the recent
hurricanes in Florida.
DATES: Effective Date: June 6, 2005.
FOR FURTHER INFORMATION CONTACT:
Doris Jamieson, Southeast Marketing
Field Office, Marketing Order
Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 799
Overlook Drive, Suite A, Winter Haven,
Florida 33884–1671; Telephone: (863)
324–3375, Fax: (863) 325–8793; or
George Kelhart, Technical Advisor,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue SE., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938.
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or E-mail:
Jay.Guerber@usda.gov.
This rule
is issued under Marketing Agreement
No. 84 and Marketing Order No. 905,
both as amended (7 CFR part 905),
regulating the handling of oranges,
SUPPLEMENTARY INFORMATION:
VerDate jul<14>2003
09:53 May 05, 2005
Jkt 205001
grapefruit, tangerines, and tangelos
grown in Florida, hereinafter referred to
as the ‘‘order.’’ The order is effective
under the Agricultural Marketing
Agreement Act of 1937, as amended (7
U.S.C. 601–674), hereinafter referred to
as the ‘‘Act.’’
USDA is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule is not intended to
have retroactive effect. This rule will
not preempt any State or local laws,
regulations, or policies, unless they
present an irreconcilable conflict with
this rule.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) 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. A 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 USDA’s ruling on
the petition, provided an action is filed
not later than 20 days after the date of
the entry of the ruling.
This rule continues in effect the
action that reduced the minimum
maturity requirement for soluble solids
(sugars) of fresh grapefruit from 8.0
percent to 7.5 percent until July 31,
2005. This action makes additional
quantities of grapefruit available for the
fresh market and will help reduce the
losses sustained by the grapefruit
industry during the recent hurricanes in
Florida. This action was unanimously
recommended by the Committee at its
meeting on November 16, 2004.
Section 905.52 of the order provides
authority for establishment of grade and
size requirements for Florida citrus. One
element of grade is maturity. Section
905.306 of the order specifies, in part,
the minimum maturity requirements for
grapefruit. Prior to this change, the
minimum maturity requirements for
Florida grapefruit were 8.0 percent
soluble solids (sugars) and 7.5 to 1
solids to acid ratio with a sliding scale
minimum ratio of 7.2 to 1.
This rule reduces the minimum
maturity requirement for soluble solids
(sugars) from 8.0 percent to 7.5 percent
soluble solids for the remainder of the
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Fmt 4700
Sfmt 4700
2004–05 season which ends July 31,
2005. On August 1, 2005, the
requirement returns to 8.0 percent
soluble solids. The 7.5 to 1 solids to
acid ratio with a sliding scale minimum
of 7.2 to 1 remains unchanged by this
action.
During the months of August and
September, the major grapefruit growing
regions in Florida suffered significant
damage and fruit loss from multiple
hurricanes. The strong winds from the
storms blew substantial volumes of the
setting fruit off the trees. The impact of
the storms also produced a much higher
than normal fruit drop. The extent of the
loss is evident in the official USDA crop
estimate for this season which reflects a
69 percent decrease from last year’s
estimate.
In inspecting groves following the
storms, growers found that the younger
trees retained their fruit better compared
to trees in established groves. However,
based on Committee discussion, the
fruit from younger trees has more
difficulty meeting the current maturity
requirement. To address the situation,
the Committee considered how the
maturity requirements might be
adjusted so that more fruit from the
younger trees would be available for the
fresh market.
The Committee considered several
options to address this issue including
a one-point reduction in the soluble
solids and a reduction in the minimum
ratio. Several members were concerned
about reducing requirements too much
and believed that reducing maturity
requirements by a full point would
impact the quality of the fruit. It was
also stated that the industry should not
pack inferior fruit just because there is
a shortage of volume. The Committee
agreed that the current maturity
standards have been well received by
the market. However, Committee
members also recognized that the
special circumstances surrounding this
season were unprecedented in the
history of the grapefruit industry, and
based on that, if it was possible, some
allowances should be made to assist
growers and provide some additional
volume to the market.
The Committee reached a compromise
position where the soluble solid
requirement was reduced by a half a
point and the ratios were maintained at
current levels. The Committee stressed
that this change be made for the
remainder of the current season only,
and starting August 1, 2005, the
maturity requirements return to their
previous level. The Committee believes
by reducing the soluble solids level and
maintaining the minimum ratio
combinations at the current levels for
E:\FR\FM\06MYR1.SGM
06MYR1
Federal Register / Vol. 70, No. 87 / Friday, May 6, 2005 / Rules and Regulations
the remainder of the season, additional
quantities of grapefruit can be made
available for the fresh market without a
significant reduction in quality.
Therefore, the Committee voted
unanimously to reduce the minimum
soluble solid level from 8.0 to 7.5 until
July 31, 2005. This change benefits both
growers and consumers by increasing
the available supply of fresh grapefruit.
Section 8e of the Act provides that
when certain domestically produced
commodities, including grapefruit, are
regulated under a Federal marketing
order, imports of that commodity must
meet the same or comparable grade,
size, quality, and maturity requirements.
As this rule changes the minimum
maturity requirements under the
domestic handling regulations, a
corresponding change to the import
regulations must be considered. Such
change to the import regulations would
be made under a separate action.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA), the
Agricultural Marketing Service (AMS)
has considered the economic impact of
this action 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
business 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 75 grapefruit
handlers subject to regulation under the
order and approximately 11,000
producers of citrus in the regulated area.
Small agricultural service firms, which
includes handlers, are defined by the
Small Business Administration (SBA) as
those having annual receipts of less than
$6,000,000, and small agricultural
producers are defined as those having
annual receipts of less than $750,000
(13 CFR 121.201).
Based on industry and Committee
data, the average annual f.o.b. price for
fresh Florida grapefruit during the
2003–04 season was approximately
$8.00 per 4⁄5-bushel carton, and total
fresh shipments for the 2003–04 season
are estimated at 26 million cartons of
grapefruit.
Approximately 25 percent of all
handlers handled 75 percent of Florida’s
grapefruit shipments. Using the average
f.o.b. price, at least 69 percent of the
VerDate jul<14>2003
09:53 May 05, 2005
Jkt 205001
grapefruit handlers could be considered
small businesses under SBA’s
definition. In addition, based on
production and grower prices reported
by the National Agricultural Statistics
Service, and the total number of
grapefruit growers, the average annual
grower revenue is approximately
$20,600. In view of the foregoing, it can
be concluded that the majority of
handlers and producers of Florida
grapefruit may be classified as small
entities.
This rule continues in effect the
action that reduced the minimum
maturity requirement for soluble solids
(sugars) from 8.0 percent to 7.5 percent
for fresh grapefruit until July 31, 2005.
This action makes additional quantities
of grapefruit available for the fresh
market and will help reduce the losses
sustained by the grapefruit industry
during the recent hurricanes in Florida.
This action was unanimously
recommended by the Committee at its
meeting on November 16, 2004. This
rule modifies the maturity requirements
specified in § 905.306. Authority for this
action is provided for in § 905.52 of the
order.
With respect to the impact of this
action, it is anticipated that this
temporary change will not result in any
increase in grower or handler costs.
However, it makes some additional
quantities of grapefruit available for the
fresh market. This will help growers
maximize their fresh shipments in a
year where there may be potential
shortages of grapefruit. This will help
increase grower returns and address
some of the losses sustained from the
storms.
The Committee believes by reducing
the soluble solids level and maintaining
the minimum ratio combinations at the
current levels for the remainder of the
2004–05 season, additional quantities of
grapefruit will be made available for the
fresh market without a significant
reduction in quality. This change
benefits both growers and consumers by
increasing the available supply of fresh
grapefruit.
The purpose of this rule is to help
improve producer returns and provide
some additional volume of grapefruit to
the market. The opportunities and
benefits of this rule are expected to be
available to all grapefruit handlers and
producers regardless of their size of
operation.
The Committee considered several
alternatives to taking this action. One
alternative considered was a reduction
in maturity requirements to 7.0 percent
soluble solids with 7.0 to 1 solids to
acid ratio. Committee members believed
that this was too much of a change and
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Frm 00003
Fmt 4700
Sfmt 4700
23929
that it would negatively impact the
quality of the fruit. Therefore, this
option was rejected. Another alternative
considered was making no change to the
maturity requirement. However, the
Committee believed that some
adjustment should be made to
accommodate fruit from young trees.
The Committee also recognized the
special circumstances surrounding this
season as a result of the hurricanes.
Consequently, the Committee
unanimously supported the action taken
by this rule.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
grapefruit handlers. As with all Federal
marketing order programs, reports and
forms are periodically reviewed to
reduce information requirements and
duplication by industry and public
sector agencies. In addition, as noted in
the initial regulatory flexibility analysis,
USDA has not identified any relevant
Federal rules that duplicate, overlap or
conflict with this rule. However,
grapefruit must meet the requirements
as specified in the U.S. Standards for
Grades of Florida Grapefruit (7 CFR
51.760 through 51.784) issued under the
Agricultural Marketing Act of 1946 (7
U.S.C. 1621 through 1627).
The Committee’s meeting was widely
publicized throughout the citrus
industry and all interested persons were
invited to attend the meeting and
participate in Committee deliberations
on all issues. Like all Committee
meetings, the November 16, 2004,
meeting was a public meeting and all
entities, both large and small, were able
to express their views on this issue.
An interim final rule concerning this
action was published in the Federal
Register on December 22, 2004 (69 FR
76597). Copies of the rule were mailed
by the Committee’s staff to all
Committee members and Florida citrus
handlers. In addition, the rule was made
available through the Internet by USDA
and the Office of the Federal Register.
That rule provided for a 60-day
comment period which ended February
22, 2005. Two comments were received.
One commenter supported in
principle the relaxation. The second
commenter stated that the order should
be eliminated and the Committee be
disbanded. USDA disagrees with these
suggestions.
The marketing order was
implemented and is being administered
consistent with the authority in the
Agricultural Marketing Agreement Act
of 1937, and was favored by citrus
growers in a recent continuance
referendum. In addition, actions taken
by the Committee under the order have
E:\FR\FM\06MYR1.SGM
06MYR1
23930
Federal Register / Vol. 70, No. 87 / Friday, May 6, 2005 / Rules and Regulations
helped increase grower returns to levels
above the cost of production, which
may contribute to more growers
maintaining their groves. This rule is
making more fruit available at a time
when much of the crop was destroyed
by last year’s hurricanes without
sacrificing fruit quality. This change
benefits both growers and consumers by
increasing the available supply of fresh
grapefruit.
Therefore, no changees will be made
as a result of these comments.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: https://www.ams.usda.gov/
fv/moab.html. Any questions about the
compliance guide should be sent to Jay
Guerber at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that
finalizing the interim final rule, without
change, as published in the Federal
Register (69 FR 76597, December 22,
2004) will tend to effectuate the
declared policy of the Act.
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements,
Oranges, Reporting and recordkeeping
requirements, Tangelos, Tangerines.
PART 905—ORANGES, GRAPEFRUIT,
TANGERINES, AND TANGELOS
GROWN IN FLORIDA
Accordingly, the interim final rule
amending 7 CFR part 905 which was
published at 69 FR 76597 on December
22, 2004, is adopted as a final rule
without change.
I
Dated: May 3, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 05–9109 Filed 5–5–05; 8:45 am]
BILLING CODE 3410–02–P
VerDate jul<14>2003
09:53 May 05, 2005
Jkt 205001
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2004–19693; Directorate
Identifier 2004–CE–40–AD; Amendment 39–
14076; AD 2004–25–16 R1]
RIN 2120–AA64
Airworthiness Directives; Kelly
Aerospace Power Systems Part
Number (P/N) 14D11, A14D11, B14D11,
C14D11, 23D04, A23D04, B23D04,
C23D04, or P23D04 Fuel Regulator
Shutoff Valves (Formerly Owned by
ElectroSystems, JanAero Devices,
Janitrol, C&D Airmotive Products, FL
Aerospace, and Midland-Ross
Corporation)
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
Discussion
The FAA is revising
Airworthiness Directive (AD) 2004–25–
16, which applies to aircraft equipped
with a fuel regulator shutoff valve part
number (P/N) 14D11, A14D11, B14D11,
C14D11, 23D04, A23D04, B23D04,
C23D04, or P23D04 used with B1500,
B2030, B2500, B3040, B3500, B4050, or
B4500 B-Series combustion heaters. AD
2004–25–16 currently requires you to
repetitively inspect the fuel regulator
shutoff valve (visually or by pressure
test) for fuel leakage and replace the fuel
regulator shutoff valve with an
improved design replacement part with
a manufacturer’s date code of 02/02 or
later if fuel leakage is found. AD 2004–
25–16 also allows you to disable the
heater as an alternative method of
compliance. Since we issued AD 2004–
25–16, we received several comments
requesting a revision to paragraph (e)(2).
Consequently, this AD retains the
actions required in AD 2004–25–16 and
revises the requirements in paragraph
(e)(2) to remove a required action. We
are issuing this AD to prevent failure of
the fuel regulator shutoff valve, which
could result in fuel leakage in aircraft
with these combustion heaters. This
failure could result in an aircraft fire.
DATES: This AD becomes effective on
June 20, 2005.
On January 5, 2005 (69 FR 75228,
December 16, 2004), the Director of the
Federal Register approved the
incorporation by reference of Kelly
Aerospace Power Systems Service
Bulletin No. A–107A, Issue Date:
September 6, 2002; and Piper Vendor
Service Publication VSP–150, dated
January 31, 2003.
SUMMARY:
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
To get the service
information identified in this AD,
contact Kelly Aerospace Power Systems,
P.O. Box 273, Fort Deposit, Alabama
36032; telephone: (334) 227–8306;
facsimile: (334) 227–8596; Internet:
https://www.kellyaerospace.com.
To view the AD docket, go to the
Docket Management Facility; U.S.
Department of Transportation, 400
Seventh Street, SW., Nassif Building,
Room PL–401, Washington, DC 20590–
001 or on the Internet at https://
dms.dot.gov. The docket number is
FAA–2004–19693; Directorate Identifier
2004–CE–40–AD.
FOR FURTHER INFORMATION CONTACT:
Kevin L. Brane, Aerospace Engineer,
Atlanta Aircraft Certification Office,
FAA, One Crown Center, 1985 Phoenix
Boulevard, Suite 450, Atlanta, GA
30349; telephone: (770) 703–6063;
facsimile: (770) 703–6097.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
What events have caused this AD?
Reports of certain regulator shutoff
valves leaking caused FAA to issue AD
2001–08–01, Amendment 39–12178 (66
FR 19718, April 17, 2001). AD 2001–08–
01 required you to visually inspect and
pressure test the fuel regulator shutoff
valves for leaks and replace the fuel
regulator shutoff valve if leaks were
found.
The affected fuel regulator shutoff
valves are part of the B1500, B2030,
B2500, B3040, B3500, B4050, and B4500
combustion heater configuration.
Operators of aircraft with the affected
fuel regulator shutoff valves installed
and mechanics who did the actions of
AD 2001–08–01 provided suggestions
for improvement to the AD. Based on
that feedback, FAA superseded AD
2001–08–01 with AD 2001–17–13,
Amendment 39–12404 (66 FR 44027,
August 22, 2001).
AD 2001–17–13 retained the actions
of AD 2001–08–01, except it required
only the visual inspection or the
pressure test of the fuel regulator shutoff
valves (not both) and listed the affected
fuel regulator shutoff valves by part
number instead of series. AD 2001–17–
13 also included a provision for
disabling the heater as an alternative
method of compliance.
The FAA continued to receive reports
of problems with these fuel regulator
shutoff valves. This service history
reflects that the inspections should be
repetitive instead of one-time. Based on
this information, FAA superseded AD
2001–17–13 with AD 2004–25–16,
Amendment 39–13904 (69 FR 75228,
December 16, 2004).
E:\FR\FM\06MYR1.SGM
06MYR1
]]>Agencies
[Federal Register Volume 70, Number 87 (Friday, May 6, 2005)]
[Rules and Regulations]
[Pages 23928-23930]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-9109]
[[Page 23928]]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV05-905-1 FIR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Change in the Minimum Maturity Requirements for Fresh Grapefruit
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule reducing the minimum
maturity requirements for fresh grapefruit under the marketing order
for Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida
(order). The Citrus Administrative Committee (Committee), which locally
administers the order, recommended this change. This rule continues in
effect the action that reduced the minimum maturity requirement for
soluble solids (sugars) from 8.0 percent to 7.5 percent until July 31,
2005. This action makes additional quantities of grapefruit available
for the fresh market and will help reduce the losses sustained by the
grapefruit industry during the recent hurricanes in Florida.
DATES: Effective Date: June 6, 2005.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Southeast Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 799 Overlook Drive, Suite A, Winter
Haven, Florida 33884-1671; Telephone: (863) 324-3375, Fax: (863) 325-
8793; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue SE., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR
part 905), regulating the handling of oranges, grapefruit, tangerines,
and tangelos grown in Florida, hereinafter referred to as the
``order.'' The order is effective under the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601-674), hereinafter
referred to as the ``Act.''
USDA is issuing this rule in conformance with Executive Order
12866.
This rule has been reviewed under Executive Order 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This rule will not preempt any State or local laws, regulations, or
policies, unless they present an irreconcilable conflict with this
rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) 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. A
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 USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule continues in effect the action that reduced the minimum
maturity requirement for soluble solids (sugars) of fresh grapefruit
from 8.0 percent to 7.5 percent until July 31, 2005. This action makes
additional quantities of grapefruit available for the fresh market and
will help reduce the losses sustained by the grapefruit industry during
the recent hurricanes in Florida. This action was unanimously
recommended by the Committee at its meeting on November 16, 2004.
Section 905.52 of the order provides authority for establishment of
grade and size requirements for Florida citrus. One element of grade is
maturity. Section 905.306 of the order specifies, in part, the minimum
maturity requirements for grapefruit. Prior to this change, the minimum
maturity requirements for Florida grapefruit were 8.0 percent soluble
solids (sugars) and 7.5 to 1 solids to acid ratio with a sliding scale
minimum ratio of 7.2 to 1.
This rule reduces the minimum maturity requirement for soluble
solids (sugars) from 8.0 percent to 7.5 percent soluble solids for the
remainder of the 2004-05 season which ends July 31, 2005. On August 1,
2005, the requirement returns to 8.0 percent soluble solids. The 7.5 to
1 solids to acid ratio with a sliding scale minimum of 7.2 to 1 remains
unchanged by this action.
During the months of August and September, the major grapefruit
growing regions in Florida suffered significant damage and fruit loss
from multiple hurricanes. The strong winds from the storms blew
substantial volumes of the setting fruit off the trees. The impact of
the storms also produced a much higher than normal fruit drop. The
extent of the loss is evident in the official USDA crop estimate for
this season which reflects a 69 percent decrease from last year's
estimate.
In inspecting groves following the storms, growers found that the
younger trees retained their fruit better compared to trees in
established groves. However, based on Committee discussion, the fruit
from younger trees has more difficulty meeting the current maturity
requirement. To address the situation, the Committee considered how the
maturity requirements might be adjusted so that more fruit from the
younger trees would be available for the fresh market.
The Committee considered several options to address this issue
including a one-point reduction in the soluble solids and a reduction
in the minimum ratio. Several members were concerned about reducing
requirements too much and believed that reducing maturity requirements
by a full point would impact the quality of the fruit. It was also
stated that the industry should not pack inferior fruit just because
there is a shortage of volume. The Committee agreed that the current
maturity standards have been well received by the market. However,
Committee members also recognized that the special circumstances
surrounding this season were unprecedented in the history of the
grapefruit industry, and based on that, if it was possible, some
allowances should be made to assist growers and provide some additional
volume to the market.
The Committee reached a compromise position where the soluble solid
requirement was reduced by a half a point and the ratios were
maintained at current levels. The Committee stressed that this change
be made for the remainder of the current season only, and starting
August 1, 2005, the maturity requirements return to their previous
level. The Committee believes by reducing the soluble solids level and
maintaining the minimum ratio combinations at the current levels for
[[Page 23929]]
the remainder of the season, additional quantities of grapefruit can be
made available for the fresh market without a significant reduction in
quality. Therefore, the Committee voted unanimously to reduce the
minimum soluble solid level from 8.0 to 7.5 until July 31, 2005. This
change benefits both growers and consumers by increasing the available
supply of fresh grapefruit.
Section 8e of the Act provides that when certain domestically
produced commodities, including grapefruit, are regulated under a
Federal marketing order, imports of that commodity must meet the same
or comparable grade, size, quality, and maturity requirements. As this
rule changes the minimum maturity requirements under the domestic
handling regulations, a corresponding change to the import regulations
must be considered. Such change to the import regulations would be made
under a separate action.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action 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
business 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. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 75 grapefruit handlers subject to
regulation under the order and approximately 11,000 producers of citrus
in the regulated area. Small agricultural service firms, which includes
handlers, are defined by the Small Business Administration (SBA) as
those having annual receipts of less than $6,000,000, and small
agricultural producers are defined as those having annual receipts of
less than $750,000 (13 CFR 121.201).
Based on industry and Committee data, the average annual f.o.b.
price for fresh Florida grapefruit during the 2003-04 season was
approximately $8.00 per \4/5\-bushel carton, and total fresh shipments
for the 2003-04 season are estimated at 26 million cartons of
grapefruit.
Approximately 25 percent of all handlers handled 75 percent of
Florida's grapefruit shipments. Using the average f.o.b. price, at
least 69 percent of the grapefruit handlers could be considered small
businesses under SBA's definition. In addition, based on production and
grower prices reported by the National Agricultural Statistics Service,
and the total number of grapefruit growers, the average annual grower
revenue is approximately $20,600. In view of the foregoing, it can be
concluded that the majority of handlers and producers of Florida
grapefruit may be classified as small entities.
This rule continues in effect the action that reduced the minimum
maturity requirement for soluble solids (sugars) from 8.0 percent to
7.5 percent for fresh grapefruit until July 31, 2005. This action makes
additional quantities of grapefruit available for the fresh market and
will help reduce the losses sustained by the grapefruit industry during
the recent hurricanes in Florida. This action was unanimously
recommended by the Committee at its meeting on November 16, 2004. This
rule modifies the maturity requirements specified in Sec. 905.306.
Authority for this action is provided for in Sec. 905.52 of the order.
With respect to the impact of this action, it is anticipated that
this temporary change will not result in any increase in grower or
handler costs. However, it makes some additional quantities of
grapefruit available for the fresh market. This will help growers
maximize their fresh shipments in a year where there may be potential
shortages of grapefruit. This will help increase grower returns and
address some of the losses sustained from the storms.
The Committee believes by reducing the soluble solids level and
maintaining the minimum ratio combinations at the current levels for
the remainder of the 2004-05 season, additional quantities of
grapefruit will be made available for the fresh market without a
significant reduction in quality. This change benefits both growers and
consumers by increasing the available supply of fresh grapefruit.
The purpose of this rule is to help improve producer returns and
provide some additional volume of grapefruit to the market. The
opportunities and benefits of this rule are expected to be available to
all grapefruit handlers and producers regardless of their size of
operation.
The Committee considered several alternatives to taking this
action. One alternative considered was a reduction in maturity
requirements to 7.0 percent soluble solids with 7.0 to 1 solids to acid
ratio. Committee members believed that this was too much of a change
and that it would negatively impact the quality of the fruit.
Therefore, this option was rejected. Another alternative considered was
making no change to the maturity requirement. However, the Committee
believed that some adjustment should be made to accommodate fruit from
young trees. The Committee also recognized the special circumstances
surrounding this season as a result of the hurricanes. Consequently,
the Committee unanimously supported the action taken by this rule.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large grapefruit handlers. As with all
Federal marketing order programs, reports and forms are periodically
reviewed to reduce information requirements and duplication by industry
and public sector agencies. In addition, as noted in the initial
regulatory flexibility analysis, USDA has not identified any relevant
Federal rules that duplicate, overlap or conflict with this rule.
However, grapefruit must meet the requirements as specified in the U.S.
Standards for Grades of Florida Grapefruit (7 CFR 51.760 through
51.784) issued under the Agricultural Marketing Act of 1946 (7 U.S.C.
1621 through 1627).
The Committee's meeting was widely publicized throughout the citrus
industry and all interested persons were invited to attend the meeting
and participate in Committee deliberations on all issues. Like all
Committee meetings, the November 16, 2004, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue.
An interim final rule concerning this action was published in the
Federal Register on December 22, 2004 (69 FR 76597). Copies of the rule
were mailed by the Committee's staff to all Committee members and
Florida citrus handlers. In addition, the rule was made available
through the Internet by USDA and the Office of the Federal Register.
That rule provided for a 60-day comment period which ended February 22,
2005. Two comments were received.
One commenter supported in principle the relaxation. The second
commenter stated that the order should be eliminated and the Committee
be disbanded. USDA disagrees with these suggestions.
The marketing order was implemented and is being administered
consistent with the authority in the Agricultural Marketing Agreement
Act of 1937, and was favored by citrus growers in a recent continuance
referendum. In addition, actions taken by the Committee under the order
have
[[Page 23930]]
helped increase grower returns to levels above the cost of production,
which may contribute to more growers maintaining their groves. This
rule is making more fruit available at a time when much of the crop was
destroyed by last year's hurricanes without sacrificing fruit quality.
This change benefits both growers and consumers by increasing the
available supply of fresh grapefruit.
Therefore, no changees will be made as a result of these comments.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http:/
/www.ams.usda.gov/fv/moab.html. Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
finalizing the interim final rule, without change, as published in the
Federal Register (69 FR 76597, December 22, 2004) will tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
0
Accordingly, the interim final rule amending 7 CFR part 905 which was
published at 69 FR 76597 on December 22, 2004, is adopted as a final
rule without change.
Dated: May 3, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-9109 Filed 5-5-05; 8:45 am]
BILLING CODE 3410-02-P
