United States Standards for Soybeans, 15639-15643 [06-2967]

Agencies

• DEPARTMENT OF AGRICULTURE
• Grain Inspection, Packers and Stockyards Administration

[Federal Register Volume 71, Number 60 (Wednesday, March 29, 2006)]
[Proposed Rules]
[Pages 15639-15643]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-2967]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Parts 800 and 810

RIN 0580-AA90


United States Standards for Soybeans

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Proposed rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) proposes to revise the United States Standards for Soybeans to 
change the minimum test weight per bushel from a grade determining 
factor to an informational factor. Even though an informational factor, 
test weight per bushel will be reported on official certificates unless 
requested otherwise. GIPSA also proposes to change the reporting 
requirements for test weight per bushel in soybeans from whole and half 
pounds with a fraction of a half pound disregarded to reporting to the 
nearest tenth of a pound. Additionally, GIPSA proposes to clarify the 
reporting requirements for test weight in canola. These changes would 
further help to ensure market-relevant standards and grades and to 
clarify reporting requirements.

DATES: Comments must be received on or before May 30, 2006.

ADDRESSES: We invite you to submit comments on this proposed rule. You 
may submit comments by any of the following methods:
     E-Mail: Send comments via electronic mail to 
comments.gipsa@usda.gov.
     Mail: Send hardcopy written comments to Tess Butler, 
GIPSA, USDA, 1400 Independence Avenue, SW., Room 1647-S, Washington, DC 
20250-3604.
     Fax: Send comments by facsimile transmission to: (202) 
690-2755.
     Hand Delivery or Courier: Deliver comments to: Tess 
Butler, GIPSA, USDA, 1400 Independence Avenue, SW., Room 1647, 
Washington, DC 20250-3604.
     Federal eRulemaking Portal: Go to https://
www.regulations.gov. Follow the online instructions for submitting 
comments.
    Instructions: All comments should make reference to the date and 
page number of this issue of the Federal Register.
    Read Comments: All comments will be available for public inspection 
in the above office during regular business hours (7 CFR 1.27(b)).

FOR FURTHER INFORMATION CONTACT: Marianne Plaus, telephone (202) 690-
3460 at GIPSA, USDA, ROOM 2429, 1400 Independence Avenue, SW., 
Washington, DC, 20250-2429; Fax Number (202) 720-1015.

SUPPLEMENTARY INFORMATION:

Executive Order 12866

    This rule has been determined to be exempt for the purposes of 
Executive Order 12866, and therefore has not been reviewed by the 
Office of Management and Budget.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This action is not intended to have a retroactive 
effect.

[[Page 15640]]

The United States Grain Standards Act provides in section 87g that no 
State or subdivision may require or impose any requirements or 
restrictions concerning the inspection, weighing, or description of 
grain under the Act. Otherwise, this proposed rule will not preempt any 
State or local laws, regulations, or policies, unless they present any 
irreconcilable conflict with this rule. There are no administrative 
procedures, which must be exhausted prior to any judicial challenge to 
the provisions of this proposed rule.

Regulatory Flexibility Act Certification

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et seq.) 
requires agencies to consider the economic impact of each rule on small 
entities and evaluate alternatives that would accomplish the objectives 
of the rule without unduly burdening small entities or erecting 
barriers that would restrict their ability to compete in the market. 
The purpose is to fit regulatory actions to the scale of businesses 
subject to the action.
    GIPSA has determined that this proposed rule will not have a 
significant economic impact on a substantial number of small entities, 
as defined in the Regulatory Flexibility Act. Under the provisions of 
the United States Grain Standards Act, grain exported from the United 
States must be officially inspected and weighed. Mandatory inspection 
and weighing services are provided by GIPSA at 36 export elevators 
(including 4 floating elevators). All of these facilities are owned by 
multi-national corporations, large cooperatives, or public entities 
that do not meet the requirements for small entities established by the 
Small Business Administration. GIPSA is proposing to amend the soybean 
standards to change the minimum test weight per bushel from a grade 
determining factor to an informational factor. GIPSA also is proposing 
to change the reporting requirements for test weight per bushel in 
soybeans from whole and half pounds with a fraction of a half pound 
disregarded to reporting to the nearest tenth of a pound. Additionally, 
GIPSA is proposing to clarify the reporting requirements for test 
weight in canola. These proposed changes are needed to ensure market-
relevant standards and to clarify reporting requirements. Further, the 
regulations and standards are applied equally to all entities. In 
addition to GIPSA, there are 58 official agencies that perform official 
services under the United States Grain Standards Act, and most of these 
entities do not meet the requirements for small entities.
    The U.S. soybean industry, including producers (approximately 
663,880), handlers (approximately 6,000 domestic elevators), traders 
(approximately 1,402 eligible soybean futures traders), processors 
(approximately 70 facilities), merchandisers, and exporters, are the 
primary users of the U.S. Standards for Soybean and utilize the 
official standards as a common trading language to market soybean. We 
assume that some of the entities may be small. Further, the United 
States Grain Standards Act (USGSA) (7 U.S.C. 87f-1) requires the 
registration of all persons engaged in the business of buying grain for 
sale in foreign commerce. In addition, those individuals who handle, 
weigh, or transport grain for sale in foreign commerce must also 
register. The USGSA regulations (7 CFR 800.30) define a foreign 
commerce grain business as persons who regularly engage in buying for 
sale, handling, weighing, or transporting grain totaling 15,000 metric 
tons or more during the preceding or current calendar year. At present, 
there are 92 registrants who account for practically 95 percent of U.S. 
soybean exports, which for fiscal year (FY) 2004 totaled approximately 
22,544,688 metric tons (MT). While most of the 92 registrants are large 
businesses, we assume that some may be small.

Paperwork Reduction Act

    Pursuant to the Paperwork Reduction Act of 1995, the existing 
information collection requirements are approved under OMB Number 0580-
0013. An insignificant change in burden will result from the soybean 
informational factor change. However, any burden measurement, as a 
result of this change, will remain within the previously approved 
information collection requirements. Accordingly, no further OMB 
clearance is required under the Paperwork Reduction Act.
    GIPSA is committed to compliance with the Government Paperwork 
Elimination Act, which requires Government agencies, in general, to 
provide the public the option of submitting information or transacting 
business electronically to the maximum extent possible.

Background

    The U.S. Standards for Grain serve as the starting point to define 
U.S. grain quality in the marketplace. The United States Standards for 
Soybeans (7 CFR 810.1601-810.1605) were established in 1940 under the 
authority of the United States Grain Standards Act (7 U.S.C. 71 et 
seq.) and since establishment, minimum test weight per bushel has been 
included as a mandatory grade determining factor. Test weight is the 
weight of a measured volume of grain (bulk density) and is expressed in 
pounds per Winchester bushel. In the current U.S. Standards for 
Soybeans (7 CFR 810.1604), the minimum allowable test weight per bushel 
is stated for each numerical grade. The grade table for soybeans (Sec.  
810.1604) contains the minimum test weight limits for grades U.S. Nos. 
1, 2, 3, and 4 as 56.0, 54.0, 52.0, and 49.0 respectively.
    Over the past several years, GIPSA's Grain Inspection Advisory 
Committee has engaged in the discussion of test weight (TW), and in 
November 2003 passed the following resolution:

    The Grain Inspection Advisory Committee supports GIPSA's efforts 
to assure the U.S. Standards for soybeans are meeting the needs of 
the U.S. soybean market. GIPSA should continue its efforts in this 
area by proposing to remove TW from the standards as a grade 
determining factor. Further GIPSA should propose changes to report 
soybean TW to the nearest tenth pound per bushel.

    The specific issues for consideration in this proposed rule are: 
(1) Designation of test weight in soybeans as a non-grade determining 
informational factor; and (2) amending the definition to report test 
weight to the nearest tenth pound. While proposing to amend the 
standards, GIPSA will also clarify the regulations concerning the 
certification requirements for test weight in soybeans and canola.

Designation of Minimum Test Weight Per Bushel

    Since the establishment of the United States Standards for Soybeans 
in 1940, minimum TW has been included as a mandatory grade determining 
factor and has historically been perceived as a general indicator of 
overall soybean quality. Some perceive that a higher TW, or density, is 
indicative of a higher yield of oil and protein. Research indicates, 
however, that TW is not a good indicator of the oil and protein yield 
of processed soybeans (Ref. 1, 2). A University of Illinois study 
concludes that the correlation coefficients between TW and protein and 
oil content are as low as 0.077 and 0.016 respectively (Ref. 3). 
GIPSA's analysis of its own inspection data supports the researchers' 
findings. In recognition of protein and oil as the true determinants of 
value in soybean processing and the markets' need to identify these 
intrinsic properties, GIPSA incorporated tests for both soybean protein 
and oil as official criteria under the USGSA (54 FR 33702) in 1989.
    As part of its evaluation of TW, GIPSA conducted a statistical 
review of

[[Page 15641]]

inspection data to determine the impact of removing TW as a grade 
determining factor on the certified grades. The review established that 
in over 400,000 soybean inspections, certified between January 1, 2001, 
and September 30, 2003, 99.5 percent of the official grades would have 
been unaffected by the removal of TW as a grading factor. In other 
words, the market should not anticipate grade inflation or deflation 
due to GIPSA's actions.
    Although TW does not imply intrinsic quality, TW is of value as a 
measurement of stock and production, in stowage calculations, and in 
determining operational value. The USDA's Risk Management Agency and 
Farm Service Agency, as well as private auditors, use TW to verify 
stock and production. Soybean handlers use TW in stowage calculations 
to determine the appropriate container size for a specific quantity of 
soybeans. Some processors use TW to determine the operations value of 
soybean lots. For example, one processor explained that knowing the TW 
of a lot of soybeans allowed him to know the approximate amount of 
soybeans that would fit into a crusher and approximately how much flake 
would be produced.
    Based on its findings, GIPSA proposes that the minimum TW per 
bushel be changed from a grade determining factor to a non-grade 
determining informational factor in the official U.S. Standards for 
Soybeans. Even though an informational factor, GIPSA will require the 
measurement and reporting of TW for each official soybean grade 
inspection. GIPSA's evaluation indicates that not all buyers of 
soybeans are interested in the TW information; consequently, GIPSA will 
also propose regulatory language to allow for an optional exemption in 
the certification reporting requirements.

Reporting and Certification of Minimum Test Weight Per Bushel

    GIPSA proposes to revise Sec.  810.102(d) of the United States 
Standards for Grain to report TW in soybeans to the nearest tenth of a 
pound. Presently, TW in soybeans is certified in whole and half pounds 
with fractions of a half pound disregarded. This change will bring the 
reporting requirements for TW into line with the reporting requirements 
for other factors in the Official Standards for Soybeans, such as 
foreign material and moisture content.

Inspection Plan Tolerances

    To reflect the proposed change of TW from a grade determining 
factor to a non-grade determining informational factor, GIPSA proposes 
to revise the tables pertaining to soybean grade limits in Sec.  800.86 
of the regulations. Shiplots, unit trains, and lash barge lots are 
inspected in accordance to a statistically based inspection plan (55 FR 
24030; June 13, 1990). Inspection tolerances, commonly referred to as 
breakpoints, are used to determine acceptable quality. GIPSA's proposal 
to change TW from a grade determining factor to an informational factor 
necessitates removing soybean TW breakpoints from the Grade Limits and 
Breakpoints for Soybeans table and replacing them in the Breakpoints 
for Soybean Special Grades and Factors table.

Certification

    As GIPSA proposes changes to the soybean standards for TW, it 
allows GIPSA to clarify the TW certification reporting requirements for 
both soybeans and canola in Sec.  800.162(c). With regard to soybeans, 
GIPSA proposes to clarify the reporting requirements for test weight as 
a non-grade determining factor and the optional exemption for TW 
determination. The exemption will allow the applicant for inspection to 
request that TW not be determined, and therefore not reported. With 
regard to canola, GIPSA proposes to clarify that TW in canola is only 
determined and reported upon request of an applicant.

Proposed GIPSA Action

    GIPSA proposes to revise Sec.  810.1604, Grades and grade 
requirements for soybeans. It is proposed that minimum TW per bushel be 
eliminated from the grade chart as a mandatory grade determining 
factor, but be retained in the standards as a non-grade determining 
informational factor.
    GIPSA proposes to revise Sec.  810.102, Definition of other terms, 
by revising subparagraph (d), TW per bushel. It is proposed that TW in 
soybeans be reported to the nearest tenth of a pound per bushel.
    GIPSA also proposes to revise Sec.  800.86, Inspection of shiplot, 
unit train, and lash barge grain in single lots, paragraph (c)(2) by 
reassigning TW from table 17 to table 18.
    Finally, GIPSA proposes to incorporate clarification for the TW 
certification reporting requirements for both soybeans and canola in 
Sec.  800.162(a) and Sec.  800.162(c).
    Comments, including data, views, and arguments are solicited from 
interested persons. Pursuant to section 4(b)(1) of the United States 
Grain Standards Act, as amended (7 U.S.C. 76(b)(1)), upon request, such 
information concerning changes to the standards may be presented orally 
in an informal manner. Also, pursuant to this section, no standards 
established or amendments or revocations of standards are to become 
effective less than one calendar year after promulgation unless, in the 
judgment of the Secretary, the public health, interest, or safety 
require that they become effective sooner.

References

(1) Hill, L.D., ``Changes in the Grain Standards Act,'' Grain Grades 
and Standards, 113-184.
(2) West, V.J., ``How Good Are Soybean Grades?,'' Illinois Farm 
Economics, No. 192, Extension Service in Agriculture and Home 
Economics, College of Agriculture, University of Illinois, May 1951, 
p. 1166.
(3) Hill, L.D., ``Improving Grades and Standards for Soybeans,'' p. 
829.

List of Subjects

7 CFR Part 800

    Administrative practice and procedure, Grain.

7 CFR Part 810

    Export, Grain.
    For reasons set out in the preamble, 7 CFR parts 800 and 810 are 
proposed to be amended as follows:

PART 800--GENERAL REGULATIONS

    1. The authority citation for part 800 continues to read as 
follows:

    Authority: Pub. L. 94-582, 90 Stat. 2867, as amended (7 U.S.C. 
71 et seq.).

    2. In Sec.  800.86(c)(2), tables 17 and 18 are revised to read as 
follows:


Sec.  800.86  Inspection of shiplot, unit train, and lash barge grain 
in single lots.

* * * * *
    (c) * * *
    (2) * * *

[[Page 15642]]



                                             Table 17.--Grade Limits (GL) and Breakpoints (BP) for Soybeans
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Maximum limits of--
                                                          ----------------------------------------------------------------------------------------------
                                                                      Damaged kernels
                          Grade                           --------------------------------------  Foreign material                     Soybeans of other
                                                              Heat-damaged                           (percent)       Splits (percent)   colors (percent)
                                                               (percent)       Total (percent)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       GL BP              GL BP              GL BP              GL BP              GL BP
                                                          ----------------------------------------------------------------------------------------------
U.S. No. 1...............................................            0.2 0.2            2.0 0.8            1.0 0.2           10.0 1.6            1.0 0.7
U.S. No. 2...............................................            0.5 0.3            3.0 0.9            2.0 0.3           20.0 2.2            2.0 1.0
U.S. No. 3 \1\...........................................            1.0 0.5            5.0 1.2            3.0 0.4           30.0 2.5            5.0 1.6
U.S. No. 4 \2\...........................................            3.0 0.9            8.0 1.5            5.0 0.5           40.0 2.7          10.0 2.3
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Soybeans which are purple mottles or stained shall be graded not higher than U.S. No. 3.
\2\ Soybeans which are materially weathered shall be graded not higher than U.S. No. 4.


      Table 18.--Breakpoints for Soybean Special Grades and Factors
------------------------------------------------------------------------
     Special grade or factor              Grade limit         Breakpoint
------------------------------------------------------------------------
Garlicky.........................  5 or more per 1,000                 2
                                    grams.
Infested.........................  Same as in Sec.                     0
                                    810.107.
Soybeans of other colors.........  Not more than 10.0%.....          2.3
Moisture.........................  As specified by contract          0.3
                                    or load order grade.
Test Weight......................  As specified by contract         -0.4
                                    or load order.
------------------------------------------------------------------------

* * * * *
    3. In Sec.  800.162, paragraph (a) is revised and paragraph (c) is 
added to read as follows:


Sec.  800.162  Certification of grade; special requirements.

    (a) General. Except as provided in paragraph (c) of this section, 
each official certificate for grade shall show:
    (1) The grade and factor information required by the Official U.S. 
Standards for Grain;
    (2) The test weight of the grain, if applicable;
    (3) The moisture content of the grain;
    (4) The results for each official factor for which a determination 
was made;
    (5) The results for each official factor that determined the grade 
when the grain is graded other than U.S. No. 1;
    (6) Any other factor information considered necessary to describe 
the grain; and
    (7) Any additional factor results requested by the applicant for 
official factors defined in the Official U.S. Standards for Grain.
* * * * *
    (c) Test weight for canola and soybeans. Official canola inspection 
certificates shall show, in addition to the requirements of paragraphs 
(a) and (b) of this section, the official test weight per bushel only 
upon request by the applicant. Official soybean inspection certificates 
shall show, in addition to the requirements of paragraphs (a) and (b) 
of this section, the official test weight per bushel unless the 
applicant requests that test weight not be determined. Upon request, 
soybean test weight results will not be determined and/or reported on 
the official certificate.
* * * * *

PART 810--OFFICIAL UNITED STATES STANDARDS FOR GRAIN

    4. The authority citation for part 810 is revised to read as 
follows:

    Authority: Pub. L. 94-582, 90 Stat. 2067 as amended (7 U.S.C. 71 
et seq.).

    5. In Sec.  810.102, paragraph (d) is revised to read as follows:


Sec.  810.102  Definition of other terms.

* * * * *
    (d) Test weight per bushel. The weight per Winchester bushel 
(2,150.42 cubic inches) as determined using an approved device 
according to procedures prescribed in FGIS instructions. Test weight 
per bushel in the standards for corn, mixed grain, oats, sorghum, and 
soybeans is determined on the original sample. Test weight per bushel 
in the standards for barley, flaxseed, rye, sunflower seed, triticale, 
and wheat is determined after mechanically cleaning the original 
sample. Test weight per bushel is recorded to the nearest tenth pound 
for corn, rye, soybeans, triticale, and wheat. Test weight per bushel 
for all other grains, if applicable, is recorded in whole and half 
pounds with a fraction of a half pound disregarded. Test weight per 
bushel is not an official factor for canola.
* * * * *
    6. Section 810.1604 is revised to read as follows:


Sec.  810.1604  Grades and grade requirements for soybeans.

------------------------------------------------------------------------
                                             Grades U.S. Nos.
         Grading factors         ---------------------------------------
                                      1         2         3         4
------------------------------------------------------------------------
                                         Maximum percent limits of:
                                 ---------------------------------------
Damaged kernels:
    Heat (part of total)........       0.2       0.5       1.0       3.0
    Total.......................       2.0       3.0       5.0       8.0
    Foreign material............       1.0       2.0       3.0       5.0
    Splits......................      10.0      20.0      30.0      40.0

[[Page 15643]]

 
    Soybeans of other colors \1\       1.0       2.0       5.0      10.0
                                 ---------------------------------------
                                          Maximum count limits of:
                                 ---------------------------------------
Other material:
    Animal filth................         9         9         9         9
    Caster beans................         1         1         1         1
    Crotalaria seeds............         2         2         2         2
    Glass.......................         0         0         0         0
    Stones \2\..................         3         3         3         3
    Unknown foreign substance...         3         3         3         3
                                 ---------------------------------------
        Total \3\...............        10        10        10        10
------------------------------------------------------------------------
U.S. Sample grade is Soybeans that:
 (a) Does not meet the requirements for U.S. Nos. 1, 2, 3, or 4; or
 (b) Have a musty, sour, or commercially objectionable foreign odor
 (except smut or garlic odor); or
 (c) Are heating or of distinctly low quality.
------------------------------------------------------------------------
\1\ Disregard for Mixed soybeans.
\2\ In addition to the maximum count limit, stones must exceed 0.1
  percent of the sample weight.
\3\ Includes any combination of animal filth, castor beans, crotalaria
  seeds, glass, stones, and unknown substances. The weight of stones is
  not applicable for total other material.


James E. Link,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 06-2967 Filed 3-28-06; 8:45 am]
BILLING CODE 3410-EN-P