Tomatoes Grown in Florida; Partial Exemption to the Minimum Grade Requirements, 37014-37016 [06-5833]
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37014
Federal Register / Vol. 71, No. 125 / Thursday, June 29, 2006 / Proposed Rules
d. Revise paragraphs (i)(1) and (i)(2) .
The amendments to § 950.901 read as
follows:
§ 950.801
wwhite on PROD1PC61 with PROPOSALS
periods. For example, documentation
regarding the 2006 campaign, which
would include selection of the PCFO in
March of 2006 through the final
distribution of contributions in
approximately March 2008, must be
retained through the completion of the
2007, 2008 and 2009 campaign periods
(i.e. until approximately March 2011).
Documents requested by OPM must be
made available within 10 business days
of the request.
26. Amend § 950.801 as follows:
a. In paragraph (a)(1), remove the text
‘‘one 30-day calendar day’’ and add in
its place the word ‘‘a’’, remove the text
‘‘January and March’’ and add in its
place the text ‘‘December and January’’,
and add the text ‘‘and international’’ to
the last sentence after the word
‘‘national’’;
b. Revise paragraph (a)(2);
c. In paragraph (a)(3), remove the date
‘‘March 15’’ and add in its place ‘‘a date
to be determined by OPM. The date will
be part of the annual timetable issued by
the Director under § 950.801(b).’’;
d. In paragraph (a)(4), remove the text
‘‘June 30’’ and add in its place ‘‘a date
to be determined by OPM. The date will
be part of the annual timetable issued by
the Director under § 950.801(b).’’; and
e. In paragraph (b), add the text ‘‘and
international’’ in the first sentence after
the word ‘‘national’’, and add a second
sentence to read as follows: ‘‘The
Director will issue the timetable for a
campaign period no later than October
31 of the year preceding the campaign
period.’’
The amendments to § 950.801 read as
follows:
7 CFR Part 966
Campaign schedule.
(a) * * *
(2) The Director will determine a date
after the closing of the receipt of
applications by which the Director will
issue notices to each national and
international applicant organization of
the results of the Director’s review. The
date will be part of the annual timetable
issued by the Director under
§ 950.801(b).
*
*
*
*
*
27. Amend § 950.901 as follows:
a. In paragraph (c)(1), remove the text
‘‘printed or purchased from a central
source’’ and add in its place
‘‘reproduced’’, and remove the word
‘‘distributed’’ and add in its place
‘‘made available’’;
b. In paragraph (c)(2), add the word
‘‘paper’’ after the word ‘‘each’’, and add
the text ‘‘or an acceptable electronic
version’’ after the word ‘‘authorization’’;
c. In paragraph (f)(1), add the text
‘‘pay period number,’’ after the word
‘‘period,’’; and
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16:10 Jun 28, 2006
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§ 950.901
Payroll allotment.
*
*
*
*
*
(i) * * *
(1) The PCFO shall notify the
federations, national and international
organizations, and local organizations as
soon as practicable after the completion
of the campaign, but in no case later
than a date to be determined by OPM,
of the amounts, if any, designated to
them and their member agencies and of
the amounts of the undesignated funds,
if any, allocated to them. The date will
be part of the annual timetable issued by
the Director under § 950.801(b).
(2) The PCFO is responsible for the
accuracy of disbursements it transmits
to recipients. It shall transmit
disbursements at least quarterly, minus
the approved proportionate share for
administrative cost reimbursement and
the PCFO fee set forth in § 950.106. It
shall remit the contributions to each
organization or to the federation, if any,
of which the organization is a member.
The PCFO will distribute all CFC
receipts beginning April 1, and
quarterly thereafter. At the close of each
disbursement period, the PCFO’s CFC
account shall have a balance of zero.
*
*
*
*
*
[FR Doc. 06–5795 Filed 6–26–06; 1:37 pm]
BILLING CODE 6325–46–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
[Docket No. FVO6–966–1 PR]
Tomatoes Grown in Florida; Partial
Exemption to the Minimum Grade
Requirements
ACTION:
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Comments must be received by
August 28, 2006.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this proposal. Comments
must be sent to the Docket Clerk,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Fax: (202) 720–8938; Email: moab.docketclerk@usda.gov; or
Internet: https://www.regulations.gov. All
comments should reference the docket
number and the date and page number
of this issue of the Federal Register and
will be made available for public
inspection in the Office of the Docket
Clerk during regular business hours, or
can be viewed at: https://
www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT:
William Pimental, Southeast Marketing
Field Office, Marketing Order
Administration Branch, Fruit and
Vegetable Programs, AMS, USDA;
telephone: (863) 324–3375, Fax: (863)
325–8793, or e-mail
William.pimental@usda.gov; or
Christian Nissen, Regional Manager,
Southeast Marketing Field Office,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA; telephone: (863) 324–
3375, Fax: (863) 325–8793, or e-mail:
Christian.nissen@usda.gov.
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.
DATES:
This
proposal is issued under Marketing
Agreement No. 125 and Marketing
Order No. 966, both as amended (7 CFR
part 966), regulating the handling of
tomatoes grown in certain designated
counties in Florida, hereinafter referred
to as the ‘‘order.’’ The marketing
agreement and order are effective under
the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601–
674), hereinafter referred to as the
‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This proposal has been reviewed
under Executive Order 12988, Civil
SUPPLEMENTARY INFORMATION:
Proposed rule.
SUMMARY: This rule invites comments
on a proposed partial exemption to the
minimum grade requirements under the
marketing order for tomatoes grown in
Florida (order). The Florida Tomato
Committee (Committee) locally
administers the order. Under the order,
Florida tomatoes must meet at least a
U.S. No. 2 grade before they can be
shipped and sold outside the regulated
area. This rule would exempt
UglyRipeTM (UglyRipe) tomatoes from
the shape requirements associated with
the U.S. No. 2 grade. This change would
increase the volume of UglyRipe
tomatoes that would meet the order
requirements, and would help increase
PO 00000
shipments and availability of these
tomatoes.
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Federal Register / Vol. 71, No. 125 / Thursday, June 29, 2006 / Proposed Rules
Justice Reform. This rule is not intended
to have retroactive effect. This proposal
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 invites comments on a
proposed partial exemption to the
minimum grade requirements
prescribed under the order. The order’s
rules and regulations specify that
Florida tomatoes must meet at least a
U.S. No. 2 grade before they can be
shipped and sold outside the regulated
area. This rule would exempt UglyRipe
tomatoes from the shape requirements
associated with the U.S. No. 2 grade.
This change would increase the volume
of UglyRipe tomatoes that would meet
the order requirements, and would help
increase shipments and availability of
these tomatoes. In addition, it is
anticipated that this change would help
promote continued innovation within
the industry.
Section 966.52 of the order provides
the authority for the establishment of
grade and size requirements for Florida
tomatoes. Form and shape represent
part of the factors of grade. Section
966.323 of the order’s rules and
regulations specifies, in part, the
minimum grade requirements for
Florida tomatoes. The current minimum
grade requirement for Florida tomatoes
is a U.S. No. 2. The specifics of this
grade requirement are listed under the
U.S. Standards for Grades of Fresh
Tomatoes (7 CFR 51.1855–51.1877).
The U.S. Standards for Grades of
Fresh Tomatoes (Standards) specify the
criteria tomatoes must meet to grade a
U.S. No. 2, including that they must be
reasonably well formed, and not more
than slightly rough. These two factors
relate specifically to the shape of the
tomato. The definitions section of the
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Jkt 208001
Standards defines reasonably well
formed as not decidedly kidney shaped,
lopsided, elongated, angular, or
otherwise decidedly deformed. The
term slightly rough means that the
tomato is not decidedly ridged or
grooved. This rule would amend
§ 966.323 to exempt UglyRipe tomatoes
from these shape requirements as
specified under the grade for a U.S. No.
2.
UglyRipe tomatoes are a trademarked
tomato variety bred to look and taste
like an heirloom-type tomato. One of the
characteristics of this variety is its
appearance. UglyRipe tomatoes are
often shaped differently from other
round tomatoes. Depending on the time
of year and the weather, UglyRipe
tomatoes are concave on the stem end
with deep, ridged shoulders. They can
also appear kidney shaped and
lopsided. Because of this variance in
shape and appearance, UglyRipe
tomatoes can have difficulty meeting the
shape requirements of the U.S. No. 2
grade.
This rule would provide UglyRipe
tomatoes with a partial exemption from
the grade requirements under the order.
UglyRipe tomatoes would only be
exempt from the shape requirements of
the grade and would still be required to
meet all other aspects of the U.S. No. 2
grade. The UglyRipe tomato continues
to be required to meet all other
requirements under the marketing order,
such as size, pack and container, and
inspection.
Prior to the 1998–99 season, the
Committee recommended that the
minimum grade be increased from a
U.S. No. 3 to a U.S. No. 2. Committee
members agree that increasing the grade
requirement has been very beneficial to
the industry and in the marketing of
Florida tomatoes. Further, some
Committee members have stated that a
large part of the volume of the standard
commercial varieties of tomatoes which
fail to make the grade are rejected
because of their shape and appearance.
Consequently, there was some industry
concern that providing an exemption for
the UglyRipe tomato could result in the
shipment of U.S. No. 3 grade tomatoes
of other varieties, contrary to the
objectives of the exemption and the
order.
To address this concern, the
producers of UglyRipe tomatoes
pursued entry into USDA’s Identity
Preservation (IP) program. This program
was developed by the Agricultural
Marketing Service to assist companies
in marketing products having unique
traits. The program provides
independent, third-party verification of
the segregation of a company’s unique
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37015
product at every stage, from seed,
production and processing, to
distribution. The UglyRipe tomato was
granted positive program status in early
2006.
This partial exemption would only
extend to UglyRipe tomatoes covered
under the IP program. As such, this
should help ensure that only UglyRipe
tomatoes would be shipped under the
proposed exemption. In addition, this
exemption would be contingent upon
the UglyRipe tomatoes continuing to
meet the requirements of the IP
program.
This rule would exempt UglyRipe
tomatoes from the shape requirements
associated with the U.S. No. 2 grade.
This change would increase the volume
of UglyRipe tomatoes that would meet
order requirements, and would help
increase shipments and availability of
these tomatoes.
Section 8e of the Act provides that
when certain domestically produced
commodities, including tomatoes, are
regulated under a Federal marketing
order, imports of that commodity must
meet the same or comparable grade,
size, quality, and maturity requirements.
Since this rule would provide a partial
exemption to the minimum grade
requirements under the domestic
handling regulations, a corresponding
change to the import regulations would
also need to be accomplished. A
proposed rule that would provide a
similar partial exemption to the
minimum grade requirements under the
import regulations will be issued as a
separate action.
Initial 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
initial 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 rules issued there under, 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 100
producers of tomatoes in the production
area and approximately 70 handlers
subject to regulation under the
marketing order. Small agricultural
producers are defined by the Small
Business Administration (SBA) as those
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37016
Federal Register / Vol. 71, No. 125 / Thursday, June 29, 2006 / Proposed Rules
having annual receipts less than
$750,000, and small agricultural service
firms are defined as those whose annual
receipts are less than $6,500,000 (13
CFR 121.201).
Based on industry and Committee
data, the average annual price for fresh
Florida tomatoes during the 2004–05
season was approximately $12.50 per
25-pound container, and fresh
shipments totaled 53,025,915 25-pound
cartons of tomatoes. Committee data
indicates approximately 27 percent of
the handlers handle 95 percent of the
total volume shipped outside the
regulated area. Based on the average
price, about 75 percent of handlers
could be considered small businesses
under SBA’s definition. In addition,
based on production, grower prices as
reported by the National Agricultural
Statistics Service, and the total number
of Florida tomato growers, the average
annual grower revenue is below
$750,000. Thus, the majority of handlers
and producers of Florida tomatoes may
be classified as small entities.
This rule would provide a partial
exemption to the minimum grade
requirements for tomatoes grown in
Florida. Under the order, Florida
tomatoes must meet at least a U.S. No.
2 grade before they can be shipped and
sold outside the regulated area. This
rule would exempt UglyRipe tomatoes
from the shape requirements specified
under the Standards for a U.S. No. 2
grade. This change would increase the
volume of UglyRipe tomatoes that
would meet the order requirements, and
would help increase shipments and
availability of these tomatoes for
consumers. This rule would amend the
provisions of § 966.323. Authority for
this action is provided in § 966.52 of the
order.
This change would represent a small
increase in costs for producers and
handlers of UglyRipe tomatoes,
primarily from costs associated with
developing and maintaining the IP
program. However, the majority of
facilities associated with UglyRipe
tomatoes were involved with the IP
program prior to this proposed rule and
have already received a successful
audit. Therefore, the additional costs
associated with this action would be
those costs related to maintaining and
complying with the IP program. It is
anticipated that these costs would be
minimal.
In addition, this rule would make
additional volumes of UglyRipe
tomatoes available for shipment. This
should result in increased sales of
UglyRipe tomatoes. Consequently, the
benefits of this action should more than
offset the associated costs.
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16:10 Jun 28, 2006
Jkt 208001
One alternative to this action that was
considered was to not provide an
exemption from shape requirements for
UglyRipe tomatoes. However, providing
the exemption would increase the
volume of UglyRipe tomatoes that
would meet the order requirements, and
would help increase shipments and
availability of these tomatoes. Therefore,
this alternative was rejected.
This rule would not impose any
additional reporting or recordkeeping
requirements beyond the IP program on
either small or large tomato 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.
AMS is committed to compliance
with the Government Paperwork
Elimination Act (GPEA), which requires
Government agencies in general to
provide the public the option of
submitting information or transacting
business electronically to the maximum
extent possible.
USDA has not identified any relevant
Federal rules that duplicate, overlap or
conflict with this proposed rule.
Interested persons are invited to
submit information on the regulatory
and informational impacts of this action
on small businesses.
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.
This rule invites comments on a
proposed partial exemption to the
minimum grade requirements
prescribed under the order. A 60-day
comment period is provided to allow
interested persons to respond to this
proposal. All written comments timely
received will be considered before a
final determination is made on this
matter.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and
recordkeeping requirements, Tomatoes.
For the reasons set forth in the
preamble, 7 CFR part 966 is proposed to
be amended as follows:
PART 966—TOMATOES GROWN IN
FLORIDA
1. The authority citation for 7 CFR
part 966 continues to read as follows:
Authority: 7 U.S.C. 601–674.
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2. Amend § 966.323, by adding a new
paragraph (d)(5) to read as follows:
§ 966.323
Handling regulation.
*
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*
*
*
(d) * * *
(5) For UglyRipeTM tomatoes.
UglyRipe TM tomatoes must meet all the
requirements of this section: Provided,
That UglyRipeTM tomatoes shall be
graded and at least meet the
requirements specified for U.S. No. 2
under the U.S. Standards for Grades of
Fresh Tomatoes, except they are exempt
from the requirements that they be
reasonably well formed and not more
than slightly rough, and Provided,
Further that the UglyRipeTM tomatoes
meet the requirements of the Identity
Preservation program, Fresh Products
Branch, Fruit and Vegetable Programs,
AMS, USDA.
*
*
*
*
*
Dated: June 26, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing
Service.
[FR Doc. 06–5833 Filed 6–27–06; 12:01 pm]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 980
[Docket No. FV06–980–1 PR]
Vegetables, Import Regulations; Partial
Exemption to the Minimum Grade
Requirements for Fresh Tomatoes
Agricultural Marketing Service,
USDA.
ACTION: Proposed rule.
AGENCY:
SUMMARY: This rule invites comments
on a proposed partial exemption to the
minimum grade requirements under the
tomato import regulation. The import
regulation is authorized under section
8e of the Agricultural Marketing
Agreement Act of 1937 (Act). Section 8e
requires imported tomatoes to meet the
same or comparable grade and size
requirements as those in effect under
Federal Marketing Order No. 966
(order). The order regulates the handling
of tomatoes grown in Florida. A separate
proposed rule to amend the rules and
regulations under the order to exempt
UglyRipe (UglyRipe) tomatoes from the
shape requirements associated with the
U.S. No. 2 grade is being issued by
Department of Agriculture (USDA). This
rule would provide the same partial
exemption under the import regulation
so it would conform to the regulations
for Florida tomatoes under the order.
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]]>Agencies
[Federal Register Volume 71, Number 125 (Thursday, June 29, 2006)]
[Proposed Rules]
[Pages 37014-37016]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-5833]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 966
[Docket No. FVO6-966-1 PR]
Tomatoes Grown in Florida; Partial Exemption to the Minimum Grade
Requirements
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: This rule invites comments on a proposed partial exemption to
the minimum grade requirements under the marketing order for tomatoes
grown in Florida (order). The Florida Tomato Committee (Committee)
locally administers the order. Under the order, Florida tomatoes must
meet at least a U.S. No. 2 grade before they can be shipped and sold
outside the regulated area. This rule would exempt
UglyRipeTM (UglyRipe) tomatoes from the shape requirements
associated with the U.S. No. 2 grade. This change would increase the
volume of UglyRipe tomatoes that would meet the order requirements, and
would help increase shipments and availability of these tomatoes.
DATES: Comments must be received by August 28, 2006.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposal. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; E-mail: moab.docketclerk@usda.gov; or
Internet: https://www.regulations.gov. All comments should reference the
docket number and the date and page number of this issue of the Federal
Register and will be made available for public inspection in the Office
of the Docket Clerk during regular business hours, or can be viewed at:
https://www.ams.usda.gov/fv/moab.html.
FOR FURTHER INFORMATION CONTACT: William Pimental, Southeast Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA; telephone: (863) 324-3375, Fax: (863)
325-8793, or e-mail William.pimental@usda.gov; or Christian Nissen,
Regional Manager, Southeast Marketing Field Office, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA;
telephone: (863) 324-3375, Fax: (863) 325-8793, or e-mail:
Christian.nissen@usda.gov.
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 proposal is issued under Marketing
Agreement No. 125 and Marketing Order No. 966, both as amended (7 CFR
part 966), regulating the handling of tomatoes grown in certain
designated counties in Florida, hereinafter referred to as the
``order.'' The marketing agreement and order are effective under the
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674), hereinafter referred to as the ``Act.''
The Department of Agriculture (USDA) is issuing this rule in
conformance with Executive Order 12866.
This proposal has been reviewed under Executive Order 12988, Civil
[[Page 37015]]
Justice Reform. This rule is not intended to have retroactive effect.
This proposal 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 invites comments on a proposed partial exemption to the
minimum grade requirements prescribed under the order. The order's
rules and regulations specify that Florida tomatoes must meet at least
a U.S. No. 2 grade before they can be shipped and sold outside the
regulated area. This rule would exempt UglyRipe tomatoes from the shape
requirements associated with the U.S. No. 2 grade. This change would
increase the volume of UglyRipe tomatoes that would meet the order
requirements, and would help increase shipments and availability of
these tomatoes. In addition, it is anticipated that this change would
help promote continued innovation within the industry.
Section 966.52 of the order provides the authority for the
establishment of grade and size requirements for Florida tomatoes. Form
and shape represent part of the factors of grade. Section 966.323 of
the order's rules and regulations specifies, in part, the minimum grade
requirements for Florida tomatoes. The current minimum grade
requirement for Florida tomatoes is a U.S. No. 2. The specifics of this
grade requirement are listed under the U.S. Standards for Grades of
Fresh Tomatoes (7 CFR 51.1855-51.1877).
The U.S. Standards for Grades of Fresh Tomatoes (Standards) specify
the criteria tomatoes must meet to grade a U.S. No. 2, including that
they must be reasonably well formed, and not more than slightly rough.
These two factors relate specifically to the shape of the tomato. The
definitions section of the Standards defines reasonably well formed as
not decidedly kidney shaped, lopsided, elongated, angular, or otherwise
decidedly deformed. The term slightly rough means that the tomato is
not decidedly ridged or grooved. This rule would amend Sec. 966.323 to
exempt UglyRipe tomatoes from these shape requirements as specified
under the grade for a U.S. No. 2.
UglyRipe tomatoes are a trademarked tomato variety bred to look and
taste like an heirloom-type tomato. One of the characteristics of this
variety is its appearance. UglyRipe tomatoes are often shaped
differently from other round tomatoes. Depending on the time of year
and the weather, UglyRipe tomatoes are concave on the stem end with
deep, ridged shoulders. They can also appear kidney shaped and
lopsided. Because of this variance in shape and appearance, UglyRipe
tomatoes can have difficulty meeting the shape requirements of the U.S.
No. 2 grade.
This rule would provide UglyRipe tomatoes with a partial exemption
from the grade requirements under the order. UglyRipe tomatoes would
only be exempt from the shape requirements of the grade and would still
be required to meet all other aspects of the U.S. No. 2 grade. The
UglyRipe tomato continues to be required to meet all other requirements
under the marketing order, such as size, pack and container, and
inspection.
Prior to the 1998-99 season, the Committee recommended that the
minimum grade be increased from a U.S. No. 3 to a U.S. No. 2. Committee
members agree that increasing the grade requirement has been very
beneficial to the industry and in the marketing of Florida tomatoes.
Further, some Committee members have stated that a large part of the
volume of the standard commercial varieties of tomatoes which fail to
make the grade are rejected because of their shape and appearance.
Consequently, there was some industry concern that providing an
exemption for the UglyRipe tomato could result in the shipment of U.S.
No. 3 grade tomatoes of other varieties, contrary to the objectives of
the exemption and the order.
To address this concern, the producers of UglyRipe tomatoes pursued
entry into USDA's Identity Preservation (IP) program. This program was
developed by the Agricultural Marketing Service to assist companies in
marketing products having unique traits. The program provides
independent, third-party verification of the segregation of a company's
unique product at every stage, from seed, production and processing, to
distribution. The UglyRipe tomato was granted positive program status
in early 2006.
This partial exemption would only extend to UglyRipe tomatoes
covered under the IP program. As such, this should help ensure that
only UglyRipe tomatoes would be shipped under the proposed exemption.
In addition, this exemption would be contingent upon the UglyRipe
tomatoes continuing to meet the requirements of the IP program.
This rule would exempt UglyRipe tomatoes from the shape
requirements associated with the U.S. No. 2 grade. This change would
increase the volume of UglyRipe tomatoes that would meet order
requirements, and would help increase shipments and availability of
these tomatoes.
Section 8e of the Act provides that when certain domestically
produced commodities, including tomatoes, are regulated under a Federal
marketing order, imports of that commodity must meet the same or
comparable grade, size, quality, and maturity requirements. Since this
rule would provide a partial exemption to the minimum grade
requirements under the domestic handling regulations, a corresponding
change to the import regulations would also need to be accomplished. A
proposed rule that would provide a similar partial exemption to the
minimum grade requirements under the import regulations will be issued
as a separate action.
Initial 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 initial 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 rules issued there under, 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 100 producers of tomatoes in the production
area and approximately 70 handlers subject to regulation under the
marketing order. Small agricultural producers are defined by the Small
Business Administration (SBA) as those
[[Page 37016]]
having annual receipts less than $750,000, and small agricultural
service firms are defined as those whose annual receipts are less than
$6,500,000 (13 CFR 121.201).
Based on industry and Committee data, the average annual price for
fresh Florida tomatoes during the 2004-05 season was approximately
$12.50 per 25-pound container, and fresh shipments totaled 53,025,915
25-pound cartons of tomatoes. Committee data indicates approximately 27
percent of the handlers handle 95 percent of the total volume shipped
outside the regulated area. Based on the average price, about 75
percent of handlers could be considered small businesses under SBA's
definition. In addition, based on production, grower prices as reported
by the National Agricultural Statistics Service, and the total number
of Florida tomato growers, the average annual grower revenue is below
$750,000. Thus, the majority of handlers and producers of Florida
tomatoes may be classified as small entities.
This rule would provide a partial exemption to the minimum grade
requirements for tomatoes grown in Florida. Under the order, Florida
tomatoes must meet at least a U.S. No. 2 grade before they can be
shipped and sold outside the regulated area. This rule would exempt
UglyRipe tomatoes from the shape requirements specified under the
Standards for a U.S. No. 2 grade. This change would increase the volume
of UglyRipe tomatoes that would meet the order requirements, and would
help increase shipments and availability of these tomatoes for
consumers. This rule would amend the provisions of Sec. 966.323.
Authority for this action is provided in Sec. 966.52 of the order.
This change would represent a small increase in costs for producers
and handlers of UglyRipe tomatoes, primarily from costs associated with
developing and maintaining the IP program. However, the majority of
facilities associated with UglyRipe tomatoes were involved with the IP
program prior to this proposed rule and have already received a
successful audit. Therefore, the additional costs associated with this
action would be those costs related to maintaining and complying with
the IP program. It is anticipated that these costs would be minimal.
In addition, this rule would make additional volumes of UglyRipe
tomatoes available for shipment. This should result in increased sales
of UglyRipe tomatoes. Consequently, the benefits of this action should
more than offset the associated costs.
One alternative to this action that was considered was to not
provide an exemption from shape requirements for UglyRipe tomatoes.
However, providing the exemption would increase the volume of UglyRipe
tomatoes that would meet the order requirements, and would help
increase shipments and availability of these tomatoes. Therefore, this
alternative was rejected.
This rule would not impose any additional reporting or
recordkeeping requirements beyond the IP program on either small or
large tomato 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.
AMS is committed to compliance with the Government Paperwork
Elimination Act (GPEA), which requires Government agencies in general
to provide the public the option of submitting information or
transacting business electronically to the maximum extent possible.
USDA has not identified any relevant Federal rules that duplicate,
overlap or conflict with this proposed rule.
Interested persons are invited to submit information on the
regulatory and informational impacts of this action on small
businesses.
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.
This rule invites comments on a proposed partial exemption to the
minimum grade requirements prescribed under the order. A 60-day comment
period is provided to allow interested persons to respond to this
proposal. All written comments timely received will be considered
before a final determination is made on this matter.
List of Subjects in 7 CFR Part 966
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
For the reasons set forth in the preamble, 7 CFR part 966 is
proposed to be amended as follows:
PART 966--TOMATOES GROWN IN FLORIDA
1. The authority citation for 7 CFR part 966 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Amend Sec. 966.323, by adding a new paragraph (d)(5) to read as
follows:
Sec. 966.323 Handling regulation.
* * * * *
(d) * * *
(5) For UglyRipeTM tomatoes. UglyRipe TM
tomatoes must meet all the requirements of this section: Provided, That
UglyRipeTM tomatoes shall be graded and at least meet the
requirements specified for U.S. No. 2 under the U.S. Standards for
Grades of Fresh Tomatoes, except they are exempt from the requirements
that they be reasonably well formed and not more than slightly rough,
and Provided, Further that the UglyRipeTM tomatoes meet the
requirements of the Identity Preservation program, Fresh Products
Branch, Fruit and Vegetable Programs, AMS, USDA.
* * * * *
Dated: June 26, 2006.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 06-5833 Filed 6-27-06; 12:01 pm]
BILLING CODE 3410-02-P
