Oranges, Grapefruit, Tangerines and Tangelos Grown in Florida and Imported Grapefruit; Relaxation of Size Requirements for Grapefruit, 15641-15644 [E9-7822]
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Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations
§ 318.60(c). Therefore, in the final rule,
we should have also included an
exception for ‘‘Subpart—Sand, Soil, or
Earth, with Plants from Territories and
Districts’’ in § 318.13–1(b). We are
correcting that error in this technical
amendment.
List of Subjects in 7 CFR Part 318
Cotton, Cottonseeds, Fruits, Guam,
Hawaii, Plant diseases and pests, Puerto
Rico, Quarantine, Transportation,
Vegetables, Virgin Islands.
Accordingly, we are amending 7 CFR
part 318 as follows:
■
PART 318—STATE OF HAWAII AND
TERRITORIES QUARANTINE NOTICES
1. The authority citation for part 318
continues to read as follows:
■
Authority: 7 U.S.C. 7701–7772 and 7781–
7786; 7 CFR 2.22, 2.80, and 371.3.
2. In § 318.13–1, paragraph (b) is
amended by adding the words ‘‘and
‘‘Subpart—Sand, Soil, or Earth, with
Plants from Territories and Districts’’’’
after the word ‘‘Products’’’’.
■
Done in Washington, DC, this 1st day of
April 2009.
Kevin Shea,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. E9–7845 Filed 4–6–09; 8:45 am]
BILLING CODE 3410–34–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 905 and 944
[Doc. No. AMS–FV–09–0002; FV09–905–1
IFR]
Oranges, Grapefruit, Tangerines and
Tangelos Grown in Florida and
Imported Grapefruit; Relaxation of Size
Requirements for Grapefruit
AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Interim final rule with request
for comments.
SUMMARY: This rule relaxes the
minimum size requirement for white
seedless grapefruit grown in Florida and
for white seedless grapefruit imported
into the United States for the fresh
market. The Citrus Administrative
Committee (Committee) which locally
administers the marketing order for
oranges, grapefruit, tangerines, and
tangelos grown in Florida (order)
recommended this change for Florida
grapefruit. The corresponding change in
the import regulation is required under
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14:33 Apr 06, 2009
Jkt 217001
section 8e of the Agricultural Marketing
Agreement Act of 1937. This rule
relaxes the minimum size requirement
for domestic shipments, making it the
same as required for export shipments.
This change is expected to maximize
fresh white seedless grapefruit
shipments and provide greater
flexibility to handlers.
DATES: Effective April 8, 2009;
comments received by June 8, 2009 will
be considered prior to issuance of a final
rule.
ADDRESSES: Interested persons are
invited to submit written comments
concerning this rule. 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; or Internet: https://
www.regulations.gov. All comments
should reference the document 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.regulations.gov. All
comments submitted in response to this
rule will be included in the record and
will be made available to the public.
Please be advised that the identity of the
individuals or entities submitting the
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Doris Jamieson, Marketing Specialist, or
Christian D. 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:
Doris.Jamieson@ams.usda.gov or
Christian.Nissen@ams.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@ams.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,
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
SUPPLEMENTARY INFORMATION:
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15641
(7 U.S.C. 601–674), hereinafter referred
to as the ‘‘Act.’’
This rule is also issued under section
8e of the Act, which provides that
whenever certain specified
commodities, including grapefruit, are
regulated under a Federal marketing
order, imports of these commodities
into the United States are prohibited
unless they meet the same or
comparable grade, size, quality, or
maturity requirements as those in effect
for the domestically produced
commodities.
The Department of Agriculture
(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.
There are no administrative
procedures which must be exhausted
prior to any judicial challenge to the
provisions of import regulations issued
under section 8e of the Act.
This rule relaxes the minimum size
requirement for white seedless
grapefruit grown in Florida and for
white seedless grapefruit imported into
the United States for the fresh market.
This rule relaxes the minimum size
requirement for shipments to the 48
contiguous States and the District of
Columbia so the minimum size
requirement is the same for both the
domestic and export markets. This
change is expected to maximize fresh
white seedless grapefruit shipments and
provide greater flexibility to handlers.
The Committee met on December 16,
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Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations
2008, and unanimously recommended
this change.
Section 905.52 of the order provides
authority to establish grade and size
requirements for Florida citrus. Section
905.306 of the order specifies, in part,
the minimum size requirements for
Florida citrus. Such requirements for
domestic shipments are specified in
§ 905.306 in Table I of paragraph (a).
Minimum grade and size requirements
for white seedless grapefruit imported
into the United States are currently in
effect under § 944.106.
The current minimum size
requirement for domestic shipments of
white seedless grapefruit is 39⁄16 inches.
This rule relaxes the minimum size
requirement from 39⁄16 inches (size 48)
to 35⁄16 inches (size 56).
Currently, white seedless grapefruit
shipped to the domestic market must
meet a more restrictive minimum size
requirement than fruit shipped to the
export market. The more restrictive size
requirement for domestic shipments
was established in response to market
preference for larger sized fruit and to
help maintain better grower prices for
the larger sizes. The industry believed
that absent the larger minimum size
requirement the domestic market would
be oversupplied with small sized,
lower-priced fruit, which would reduce
the price for the larger sizes. Conversely,
the export market favored the smaller
sized fruit. Therefore, establishing the
different minimum size requirements
satisfied both markets.
However, over the last decade, the
total supply of white seedless grapefruit
has declined. Total production of white
seedless grapefruit grown in Florida
during the 1999–2000 season was
approximately 20,510,000 13⁄5 bushel
boxes compared to 8,539,000 boxes
produced during the 2007–08 season.
This represents a 58 percent decrease in
Florida white seedless grapefruit
production from 1999 to 2008.
Shipments of fresh white seedless
grapefruit have also been declining.
Since the 1999–2000 season, fresh
shipments have declined by more than
70 percent. During the 2007–08 season,
domestic shipments of white seedless
grapefruit accounted for only one
percent of total fresh grapefruit
shipments. The export markets have
traditionally been good markets for size
56 white seedless grapefruit. However,
fresh shipments of white seedless
grapefruit to export markets have also
declined.
With the changes in supply and
demand, the Committee believes the
larger minimum size requirement for
domestic shipments is no longer
needed. Further, Committee members
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Jkt 217001
agreed that with the demand for white
seedless grapefruit declining, handlers
need to be able to ship fruit to
whichever markets become available.
However, the different minimum size
requirements for domestic and export
markets have presented problems for
handlers trying to take advantage of
available markets. Fruit packed for the
export market cannot be shipped to the
domestic market without first being
repacked to ensure it meets the more
restrictive size requirements. Repacking
the fruit is a cost burden on handlers
and reduces returns to growers.
Consequently, the Committee
recommended that the minimum size
requirement for domestic shipments of
white seedless grapefruit be relaxed
from size 48 to size 56. This change
makes the minimum size requirement
the same for both the domestic and
export markets. Having the same
minimum size requirement for both
domestic and export shipments will
make it easier to move fruit to available
markets without having to repack fruit
to meet the differing size requirements.
This reduces costs and provides greater
flexibility for handlers. In addition, this
change makes more fruit available for
shipment to the domestic market
helping to maximize fresh shipments,
which may increase grower returns.
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
met the same or comparable grade, size,
quality, and maturity requirements.
Since this rule changes the minimum
size requirement under the domestic
handling regulations, a corresponding
change to the import regulations must
also be made.
Minimum grade and size
requirements for grapefruit imported
into the United States are currently in
effect under § 944.106. This change
relaxes the minimum size requirement
for imported white seedless grapefruit
from 39⁄16 inches (size 48) to 35⁄16 inches
(size 56). The relaxation in the
minimum size requirement also has a
beneficial impact for importers of white
seedless grapefruit. This change allows
size 56 white seedless grapefruit to be
shipped to the United States increasing
the amount of fruit available for
shipment to the fresh market, thus
benefiting importers.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA) (5
U.S.C. 601–612), the Agricultural
Marketing Service (AMS) has
considered the economic impact of this
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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 the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf.
There are approximately 40 Florida
grapefruit handlers subject to regulation
under the marketing order and about
8,000 citrus producers in the production
area. There are approximately 10
grapefruit importers. Small agricultural
service firms, which include grapefruit
handlers and importers, are defined by
the Small Business Administration
(SBA) as those having annual receipts of
less than $7,000,000, and small
agricultural producers are defined as
those whose annual receipts are less
than $750,000 (13 CFR 121.201).
According to industry and Committee
data, the average annual f.o.b. price for
fresh Florida white seedless grapefruit
during the 2007–08 season was $10.30
per 4⁄5-bushel carton, and total fresh
shipments were around 3.3 million
cartons. Based on the average f.o.b.
price, a majority of Florida white
seedless 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 Florida
citrus producers, the average annual
producer revenue is less than $750,000.
Information from the Foreign
Agricultural Service, USDA, indicates
that the dollar value of imported fresh
grapefruit ranged from approximately
$2.14 million in 2006 to $2.06 million
in 2008. Using these values, all
importers would have annual receipts of
less than $7 million for grapefruit.
Therefore, the majority of handlers,
producers and importers of white
seedless grapefruit may be classified as
small entities.
The Bahamas, Mexico, and Israel are
the major grapefruit producing countries
exporting grapefruit to the United
States. In 2008, shipments of grapefruit
imported into the United States totaled
14,257 metric tons. The Bahamas
accounted for 10,362 metric tons, 2,741
metric tons were imported from Mexico,
and 104 metric tons arrived from Israel.
This rule relaxes the minimum size
requirement for white seedless
grapefruit grown in Florida and for
white seedless grapefruit imported into
E:\FR\FM\07APR1.SGM
07APR1
Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations
the United States for the fresh market.
This rule relaxes the minimum size
requirement for domestic shipments to
the 48 contiguous States and the District
of Columbia from 39⁄16 inches (size 48)
to 35⁄16 inches (size 56) making the
minimum size requirement the same for
both the domestic and export markets.
This rule also relaxes the minimum size
requirement for imports of fresh white
seedless grapefruit from 39⁄16 inches
(size 48) to 35⁄16 inches (size 56). This
change is expected to maximize fresh
white seedless grapefruit shipments and
provide greater flexibility to handlers.
Authority for this action is provided in
§ 905.52. This rule amends the
provisions of §§ 905.306 and 944.106.
The Committee unanimously
recommended this change at its
December 16, 2008, meeting. The
change in the import regulation is
required under section 8e of the Act.
This action is not expected to increase
costs associated with the order
requirements or the grapefruit import
regulation. Rather, this action represents
a cost savings for handlers and has the
potential to increase industry returns.
This change makes the minimum size
requirement the same for both the
domestic and export markets. Having
the same minimum size requirement for
both domestic and export shipments
will make it easier to move fruit to
available markets without having to
repack fruit to meet the differing size
requirements. This reduces costs and
provides greater flexibility for handlers.
The Committee believes this change will
help improve the marketing of white
seedless grapefruit and maximize
shipments to fresh market channels.
The on-tree price for processed white
seedless grapefruit for the 2007–08
season was $0.33 per box compared to
$10.05 per box for fruit sold to the fresh
market. With limited returns for
processed grapefruit, reducing the
minimum size requirement for the
domestic market could shift an
additional volume of small sizes to the
fresh market. This will help maximize
fresh shipments and should increase
industry returns. Importers will also
benefit from this change, as a greater
volume of fruit will be available for
shipment to the United States. The
opportunities and benefits of this rule
are expected to be equally available to
all grapefruit handlers, growers, and
importers, regardless of their size.
The only alternative to this action
discussed by the Committee was to
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Jkt 217001
maintain the current minimum size
requirement for domestic shipments.
However, the Committee agreed that
relaxing the minimum size would make
additional white seedless grapefruit
available for the fresh market, would
provide more flexibility to handlers, and
could result in better returns. Therefore,
the alternative was rejected.
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, USDA has
not identified any relevant Federal rules
that duplicate, overlap or conflict with
this rule.
AMS is committed to complying with
the E–Government Act, to promote the
use of the Internet and other
information technologies to provide
increased opportunities for citizen
access to Government information and
services, and for other purposes.
Further, the Committee’s meeting was
widely publicized throughout the
Florida citrus industry and all interested
persons were invited to attend the
meeting and participate in Committee
deliberations. Like all Committee
meetings, the December 16, 2008,
meeting was a public meeting and all
entities, both large and small, were able
to express their views on this issue.
Finally, interested persons are invited to
submit comments on this interim final
rule, including 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/
AMSv1.0/ams.fetchTemplateData.do?
template=TemplateN&page=Marketing
OrdersSmallBusinessGuide. 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
change to the minimum size
requirements currently prescribed under
the Florida citrus marketing order and
the import requirements for grapefruit.
Any comments received will be
considered prior to finalization of this
rule.
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15643
After consideration of all relevant
material presented, including the
Committee’s recommendation, and
other information, it is found that this
interim final rule, as hereinafter set
forth, will tend to effectuate the
declared policy of the Act.
In accordance with section 8e of the
Act, the United States Trade
Representative has concurred with the
issuance of this interim final rule.
Pursuant to 5 U.S.C. 553, it is also
found and determined upon good cause
that it is impracticable, unnecessary,
and contrary to the public interest to
give preliminary notice prior to putting
this rule into effect and that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The shipping season for
white seedless grapefruit has already
started; (2) this rule represents a
relaxation of the minimum size
requirements; (3) the Committee
unanimously recommended this change
at a public meeting and interested
parties had an opportunity to provide
input; and (4) this rule provides a 60day comment period and any comments
received will be considered prior to
finalization of this rule.
List of Subjects
7 CFR Part 905
Grapefruit, Marketing agreements,
Oranges, Reporting and recordkeeping
requirements, Tangelos, Tangerines.
7 CFR Part 944
Avocados, Food grades and standards,
Grapefruit, Grapes, Imports, Kiwifruit,
Limes, Olives, Oranges.
For the reasons set forth in the
preamble, 7 CFR parts 905 and 944 are
amended as follows:
■ 1. The authority citation for 7 CFR
parts 905 and 944 continues to read as
follows:
■
Authority: 7 U.S.C. 601–674.
PART 905—ORANGES, GRAPEFRUIT,
TANGERINES, AND TANGELOS
GROWN IN FLORIDA
2. In § 905.306, Table I in paragraph
(a) is amended by revising the entry for
‘‘Seedless, except red’’ under
‘‘Grapefruit,’’ to read as follows:
■
§ 905.306 Orange, Grapefruit, Tangerine
and Tangelo Regulation.
(a) * * *
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Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations
TABLE I
Variety
Regulation period
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
(4)
*
Grapefruit.
*
*
*
*
Seedless, except red ...............................
*
*
*
*
*
*
*
On and after 9/01/94 ...............................
*
*
*
*
*
*
*
*
U.S. No. 1 ...............................................
*
*
*
*
*
35⁄16
*
PART 944—FRUITS; IMPORT
REGULATIONS
‘‘Seedless, except red’’ to read as
follows:
3. In § 944.106, the table in paragraph
(a) is amended by revising the entry for
§ 944.106
■
Grapefruit import regulation.
(a) * * *
Grapefruit classification
Regulation period
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
(4)
*
*
Seedless, except red ...............................
*
*
On and after 9/01/94 ...............................
*
*
U.S. No. 1 ...............................................
*
*
*
*
*
Dated: April 1, 2009.
Robert C. Keeney,
Acting Associate Administrator, Agricultural
Marketing Service.
[FR Doc. E9–7822 Filed 4–6–09; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
7 CFR Parts 1421 and 1434
RIN 0560–AH87
Marketing Assistance Loans and Loan
Deficiency Payments
AGENCY: Commodity Credit Corporation,
USDA.
ACTION: Final rule.
The Commodity Credit
Corporation (CCC) is revising
regulations as required by the Food,
Conservation, and Energy Act of 2008
(the 2008 Farm Bill) to administer the
Marketing Assistance Loans (MAL) and
Loan Deficiency Payments (LDP)
programs for wheat, feed grains,
soybeans, other oilseeds, peanuts, pulse
crops, honey, wool and mohair. The
2008 Farm Bill generally extends the
SUMMARY:
VerDate Nov<24>2008
14:33 Apr 06, 2009
Jkt 217001
existing programs with some changes
that are implemented in this rule. The
amendments in this rule will add large
chickpeas, beginning with the 2009 crop
year, to the list of pulse crops eligible
for assistance and provide separate rates
for long and medium grain rice
beginning with the 2008 crop year. The
addition of large chickpeas may increase
the number of farmers and ranchers who
may receive FSA and CCC program
benefits. The amendments will also, in
addition, to other amendments to the
old rule and clarifications, allow
producers to store collateral in Federally
and State-licensed warehouses that do
not have a CCC storage agreement,
which may reduce redundant licensing
costs for warehouse operators while
allowing producers a greater choice of
warehouses.
DATES:
Effective Date: April 6, 2009.
Jose
R. Gonzalez, Program Manager,
Marketing Assistance Loans and Loan
Deficiency Payment Programs or Tonye
B. Gross, Program Manager, Peanut
Program, Price Support Division, FSA/
USDA, STOP 0512, 1400 Independence
Ave. SW., Washington, DC 20250–0512;
telephone (202) 690–2534; or (202) 720–
4319, facsimile (202) 690–3307; e-mails:
Jose.Gonzalez@wdc.usda.gov or
FOR FURTHER INFORMATION CONTACT:
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*
35⁄16
Tonye.Gross@wdc.usda.gov. Persons
with disabilities who require alternative
means of communication (Braille, large
print, audio tape, etc.) should contact
the USDA Target Center at (202) 720–
2600 (voice and TDD).
SUPPLEMENTARY INFORMATION:
Background
The 2008 Farm Bill extends MAL and
LDP programs for the 2008 through 2012
crop years. The 2008 Farm Bill generally
extends the existing programs, with
some minor changes that are
implemented in this rule. In some cases,
the 2008 Farm Bill gives the Secretary
discretion to select among different
policy options; this rule implements
such discretionary changes. This rule
also makes numerous housekeeping
changes to make administrative
improvements, correct typographical
errors, remove expired regulations, and
improve organization.
Producers of eligible commodities
that are eligible for loans can request
MALs or LDPs on their commodities.
MALs and LDPs are available to eligible
producers beginning with harvest or
shearing season and extending through
the marketing year. MALs are 9-month
loans with the commodity pledged as
collateral for the loan. MALs and LDPs
must be requested on or before the final
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]]>Agencies
[Federal Register Volume 74, Number 65 (Tuesday, April 7, 2009)]
[Rules and Regulations]
[Pages 15641-15644]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7822]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Parts 905 and 944
[Doc. No. AMS-FV-09-0002; FV09-905-1 IFR]
Oranges, Grapefruit, Tangerines and Tangelos Grown in Florida and
Imported Grapefruit; Relaxation of Size Requirements for Grapefruit
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule relaxes the minimum size requirement for white
seedless grapefruit grown in Florida and for white seedless grapefruit
imported into the United States for the fresh market. The Citrus
Administrative Committee (Committee) which locally administers the
marketing order for oranges, grapefruit, tangerines, and tangelos grown
in Florida (order) recommended this change for Florida grapefruit. The
corresponding change in the import regulation is required under section
8e of the Agricultural Marketing Agreement Act of 1937. This rule
relaxes the minimum size requirement for domestic shipments, making it
the same as required for export shipments. This change is expected to
maximize fresh white seedless grapefruit shipments and provide greater
flexibility to handlers.
DATES: Effective April 8, 2009; comments received by June 8, 2009 will
be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. 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; or Internet: https://www.regulations.gov. All comments should reference the document 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.regulations.gov. All comments submitted in response to this rule
will be included in the record and will be made available to the
public. Please be advised that the identity of the individuals or
entities submitting the comments will be made public on the Internet at
the address provided above.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist,
or Christian D. 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: Doris.Jamieson@ams.usda.gov or Christian.Nissen@ams.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@ams.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.''
This rule is also issued under section 8e of the Act, which
provides that whenever certain specified commodities, including
grapefruit, are regulated under a Federal marketing order, imports of
these commodities into the United States are prohibited unless they
meet the same or comparable grade, size, quality, or maturity
requirements as those in effect for the domestically produced
commodities.
The Department of Agriculture (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.
There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
This rule relaxes the minimum size requirement for white seedless
grapefruit grown in Florida and for white seedless grapefruit imported
into the United States for the fresh market. This rule relaxes the
minimum size requirement for shipments to the 48 contiguous States and
the District of Columbia so the minimum size requirement is the same
for both the domestic and export markets. This change is expected to
maximize fresh white seedless grapefruit shipments and provide greater
flexibility to handlers. The Committee met on December 16,
[[Page 15642]]
2008, and unanimously recommended this change.
Section 905.52 of the order provides authority to establish grade
and size requirements for Florida citrus. Section 905.306 of the order
specifies, in part, the minimum size requirements for Florida citrus.
Such requirements for domestic shipments are specified in Sec. 905.306
in Table I of paragraph (a). Minimum grade and size requirements for
white seedless grapefruit imported into the United States are currently
in effect under Sec. 944.106.
The current minimum size requirement for domestic shipments of
white seedless grapefruit is 3\9/16\ inches. This rule relaxes the
minimum size requirement from 3\9/16\ inches (size 48) to 3\5/16\
inches (size 56).
Currently, white seedless grapefruit shipped to the domestic market
must meet a more restrictive minimum size requirement than fruit
shipped to the export market. The more restrictive size requirement for
domestic shipments was established in response to market preference for
larger sized fruit and to help maintain better grower prices for the
larger sizes. The industry believed that absent the larger minimum size
requirement the domestic market would be oversupplied with small sized,
lower-priced fruit, which would reduce the price for the larger sizes.
Conversely, the export market favored the smaller sized fruit.
Therefore, establishing the different minimum size requirements
satisfied both markets.
However, over the last decade, the total supply of white seedless
grapefruit has declined. Total production of white seedless grapefruit
grown in Florida during the 1999-2000 season was approximately
20,510,000 1\3/5\ bushel boxes compared to 8,539,000 boxes produced
during the 2007-08 season. This represents a 58 percent decrease in
Florida white seedless grapefruit production from 1999 to 2008.
Shipments of fresh white seedless grapefruit have also been
declining. Since the 1999-2000 season, fresh shipments have declined by
more than 70 percent. During the 2007-08 season, domestic shipments of
white seedless grapefruit accounted for only one percent of total fresh
grapefruit shipments. The export markets have traditionally been good
markets for size 56 white seedless grapefruit. However, fresh shipments
of white seedless grapefruit to export markets have also declined.
With the changes in supply and demand, the Committee believes the
larger minimum size requirement for domestic shipments is no longer
needed. Further, Committee members agreed that with the demand for
white seedless grapefruit declining, handlers need to be able to ship
fruit to whichever markets become available. However, the different
minimum size requirements for domestic and export markets have
presented problems for handlers trying to take advantage of available
markets. Fruit packed for the export market cannot be shipped to the
domestic market without first being repacked to ensure it meets the
more restrictive size requirements. Repacking the fruit is a cost
burden on handlers and reduces returns to growers.
Consequently, the Committee recommended that the minimum size
requirement for domestic shipments of white seedless grapefruit be
relaxed from size 48 to size 56. This change makes the minimum size
requirement the same for both the domestic and export markets. Having
the same minimum size requirement for both domestic and export
shipments will make it easier to move fruit to available markets
without having to repack fruit to meet the differing size requirements.
This reduces costs and provides greater flexibility for handlers. In
addition, this change makes more fruit available for shipment to the
domestic market helping to maximize fresh shipments, which may increase
grower returns.
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 met the same or
comparable grade, size, quality, and maturity requirements. Since this
rule changes the minimum size requirement under the domestic handling
regulations, a corresponding change to the import regulations must also
be made.
Minimum grade and size requirements for grapefruit imported into
the United States are currently in effect under Sec. 944.106. This
change relaxes the minimum size requirement for imported white seedless
grapefruit from 3\9/16\ inches (size 48) to 3\5/16\ inches (size 56).
The relaxation in the minimum size requirement also has a beneficial
impact for importers of white seedless grapefruit. This change allows
size 56 white seedless grapefruit to be shipped to the United States
increasing the amount of fruit available for shipment to the fresh
market, thus benefiting importers.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), 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 the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf.
There are approximately 40 Florida grapefruit handlers subject to
regulation under the marketing order and about 8,000 citrus producers
in the production area. There are approximately 10 grapefruit
importers. Small agricultural service firms, which include grapefruit
handlers and importers, are defined by the Small Business
Administration (SBA) as those having annual receipts of less than
$7,000,000, and small agricultural producers are defined as those whose
annual receipts are less than $750,000 (13 CFR 121.201).
According to industry and Committee data, the average annual f.o.b.
price for fresh Florida white seedless grapefruit during the 2007-08
season was $10.30 per \4/5\-bushel carton, and total fresh shipments
were around 3.3 million cartons. Based on the average f.o.b. price, a
majority of Florida white seedless 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 Florida citrus producers,
the average annual producer revenue is less than $750,000. Information
from the Foreign Agricultural Service, USDA, indicates that the dollar
value of imported fresh grapefruit ranged from approximately $2.14
million in 2006 to $2.06 million in 2008. Using these values, all
importers would have annual receipts of less than $7 million for
grapefruit. Therefore, the majority of handlers, producers and
importers of white seedless grapefruit may be classified as small
entities.
The Bahamas, Mexico, and Israel are the major grapefruit producing
countries exporting grapefruit to the United States. In 2008, shipments
of grapefruit imported into the United States totaled 14,257 metric
tons. The Bahamas accounted for 10,362 metric tons, 2,741 metric tons
were imported from Mexico, and 104 metric tons arrived from Israel.
This rule relaxes the minimum size requirement for white seedless
grapefruit grown in Florida and for white seedless grapefruit imported
into
[[Page 15643]]
the United States for the fresh market. This rule relaxes the minimum
size requirement for domestic shipments to the 48 contiguous States and
the District of Columbia from 3\9/16\ inches (size 48) to 3\5/16\
inches (size 56) making the minimum size requirement the same for both
the domestic and export markets. This rule also relaxes the minimum
size requirement for imports of fresh white seedless grapefruit from
3\9/16\ inches (size 48) to 3\5/16\ inches (size 56). This change is
expected to maximize fresh white seedless grapefruit shipments and
provide greater flexibility to handlers. Authority for this action is
provided in Sec. 905.52. This rule amends the provisions of Sec. Sec.
905.306 and 944.106. The Committee unanimously recommended this change
at its December 16, 2008, meeting. The change in the import regulation
is required under section 8e of the Act.
This action is not expected to increase costs associated with the
order requirements or the grapefruit import regulation. Rather, this
action represents a cost savings for handlers and has the potential to
increase industry returns. This change makes the minimum size
requirement the same for both the domestic and export markets. Having
the same minimum size requirement for both domestic and export
shipments will make it easier to move fruit to available markets
without having to repack fruit to meet the differing size requirements.
This reduces costs and provides greater flexibility for handlers. The
Committee believes this change will help improve the marketing of white
seedless grapefruit and maximize shipments to fresh market channels.
The on-tree price for processed white seedless grapefruit for the
2007-08 season was $0.33 per box compared to $10.05 per box for fruit
sold to the fresh market. With limited returns for processed
grapefruit, reducing the minimum size requirement for the domestic
market could shift an additional volume of small sizes to the fresh
market. This will help maximize fresh shipments and should increase
industry returns. Importers will also benefit from this change, as a
greater volume of fruit will be available for shipment to the United
States. The opportunities and benefits of this rule are expected to be
equally available to all grapefruit handlers, growers, and importers,
regardless of their size.
The only alternative to this action discussed by the Committee was
to maintain the current minimum size requirement for domestic
shipments. However, the Committee agreed that relaxing the minimum size
would make additional white seedless grapefruit available for the fresh
market, would provide more flexibility to handlers, and could result in
better returns. Therefore, the alternative was rejected.
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, USDA has not identified any
relevant Federal rules that duplicate, overlap or conflict with this
rule.
AMS is committed to complying with the E-Government Act, to promote
the use of the Internet and other information technologies to provide
increased opportunities for citizen access to Government information
and services, and for other purposes.
Further, the Committee's meeting was widely publicized throughout
the Florida citrus industry and all interested persons were invited to
attend the meeting and participate in Committee deliberations. Like all
Committee meetings, the December 16, 2008, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue. Finally, interested persons are invited to submit
comments on this interim final rule, including 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/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide. 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 change to the minimum size
requirements currently prescribed under the Florida citrus marketing
order and the import requirements for grapefruit. Any comments received
will be considered prior to finalization of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
this interim final rule, as hereinafter set forth, will tend to
effectuate the declared policy of the Act.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this interim final
rule.
Pursuant to 5 U.S.C. 553, it is also found and determined upon good
cause that it is impracticable, unnecessary, and contrary to the public
interest to give preliminary notice prior to putting this rule into
effect and that good cause exists for not postponing the effective date
of this rule until 30 days after publication in the Federal Register
because: (1) The shipping season for white seedless grapefruit has
already started; (2) this rule represents a relaxation of the minimum
size requirements; (3) the Committee unanimously recommended this
change at a public meeting and interested parties had an opportunity to
provide input; and (4) this rule provides a 60-day comment period and
any comments received will be considered prior to finalization of this
rule.
List of Subjects
7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
7 CFR Part 944
Avocados, Food grades and standards, Grapefruit, Grapes, Imports,
Kiwifruit, Limes, Olives, Oranges.
0
For the reasons set forth in the preamble, 7 CFR parts 905 and 944 are
amended as follows:
0
1. The authority citation for 7 CFR parts 905 and 944 continues to read
as follows:
Authority: 7 U.S.C. 601-674.
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
0
2. In Sec. 905.306, Table I in paragraph (a) is amended by revising
the entry for ``Seedless, except red'' under ``Grapefruit,'' to read as
follows:
Sec. 905.306 Orange, Grapefruit, Tangerine and Tangelo Regulation.
(a) * * *
[[Page 15644]]
Table I
----------------------------------------------------------------------------------------------------------------
Minimum
Variety Regulation period Minimum grade diameter
(inches)
(1) (2)....................... (3)....................... (4)
----------------------------------------------------------------------------------------------------------------
* * * * * * *
Grapefruit..............................
* * * * * * *
Seedless, except red.................... On and after 9/01/94...... U.S. No. 1................ 3\5/16\
* * * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * *
PART 944--FRUITS; IMPORT REGULATIONS
0
3. In Sec. 944.106, the table in paragraph (a) is amended by revising
the entry for ``Seedless, except red'' to read as follows:
Sec. 944.106 Grapefruit import regulation.
(a) * * *
----------------------------------------------------------------------------------------------------------------
Minimum
Grapefruit classification Regulation period Minimum grade diameter
(inches)
(1) (2)....................... (3)....................... (4)
----------------------------------------------------------------------------------------------------------------
* * * * * * *
Seedless, except red.................... On and after 9/01/94...... U.S. No. 1................ 3\5/16\
----------------------------------------------------------------------------------------------------------------
* * * * *
Dated: April 1, 2009.
Robert C. Keeney,
Acting Associate Administrator, Agricultural Marketing Service.
[FR Doc. E9-7822 Filed 4-6-09; 8:45 am]
BILLING CODE 3410-02-P
