Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; Relaxing Size and Grade Requirements on Valencia and Other Late Type Oranges, 28115-28118 [2013-11389]
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28115
Rules and Regulations
Federal Register
Vol. 78, No. 93
Tuesday, May 14, 2013
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS–FV–13–0009; FV13–905–2
IR]
Oranges, Grapefruit, Tangerines, and
Tangelos Grown in Florida; Relaxing
Size and Grade Requirements on
Valencia and Other Late Type Oranges
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule changes the size and
grade requirements currently prescribed
under the marketing order for oranges,
grapefruit, tangerines, and tangelos
grown in Florida (order). The order is
administered locally by the Citrus
Administrative Committee (Committee).
This rule reduces the minimum size
requirement for Valencia and other late
type oranges shipped to interstate
markets from 28⁄16 inches to 24⁄16 inches
from May 15 through August 31 each
season. This rule also reduces the
minimum grade requirement for
Valencia and other late type oranges
shipped to interstate markets from a
U.S. No. 1 to a U.S. No. 1 Golden from
May 15, 2013, to June 14, 2013, and to
a U.S. No. 2 external/U.S. No. 1 internal
from June 15, 2013, to August 31, 2013.
This rule will provide additional
Valencia and other late type oranges for
late season markets, helping to
maximize fresh shipments.
DATES: Effective May 15, 2013;
comments received by July 15, 2013 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 and Agreement Division, Fruit
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SUMMARY:
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and Vegetable Program, 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
comments will be made public on the
Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT:
Corey E. Elliott, Marketing Specialist, or
Christian D. Nissen, Regional Director,
Southeast Marketing Field Office,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 325–8793, or Email:
Corey.Elliott@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jeffrey Smutny,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Jeffrey.Smutny@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Order No.
905, 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.’’
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.
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
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Sfmt 4700
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 changes the minimum size
requirement on Valencia and other late
type oranges shipped to interstate
markets from 28⁄16 inches to 24⁄16 inches
from May 15 through August 31 each
season. It also reduces the minimum
grade requirement on Valencia and
other late type oranges shipped to
interstate markets from a U.S. No. 1 to
a U.S. No. 1 Golden from May 15, 2013,
to June 14, 2013, and to a U.S. No. 2
external/U.S. No. 1 internal from June
15, 2013, to August 31, 2013. This rule
will provide additional Valencia and
other late type oranges for late season
markets and will help maximize fresh
shipments. The Committee
unanimously recommended these
changes at a meeting on January 8, 2013.
Section 905.52 of the order provides,
in part, authority to establish minimum
grade and size requirements for Florida
citrus. Section 905.306 of the order’s
rules and regulations specifies the
minimum grade and size requirements
for different varieties of fresh Florida
citrus. Such requirements for domestic
shipments are specified in Table I of
§ 905.306(a). Currently, the minimum
size for Valencia and other late type
oranges is 28⁄16 inches in diameter. The
minimum grade for Valencia and other
late type oranges is a U.S. No. 1 from
August 1 to June 14 and a U.S. No. 2
external/U.S. No. 1 internal from June
15 to July 31. The characteristics of
these grades are specified in the U.S.
Standard for Grades of Florida Oranges
and Tangelos (7 CFR 51.1140 through
51.1179).
At its meeting, the Committee
discussed that there may be a late
season market for Florida Valencia and
other late type oranges in the food
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Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules and Regulations
service industry. One member stated
that this market prefers a smaller-size
orange and may be undersupplied
during the last few months of the
Florida citrus season, as supplies from
other states have been declining. At the
end of the season, growers still have
Valencia and other late type oranges left
on the tree to supply this market.
However, with current size and grade
regulations, it is difficult to supply this
market.
During the last few seasons,
approximately 97.5 percent of Valencia
and other late type oranges were
utilized in the production of orange
juice, while approximately 2.5 percent,
or about 3.1 million cartons, were
utilized as shipments to the fresh
market. Of the fresh shipments, 85
percent were shipped between March
and May. With the current size and
grade requirements, the Committee
estimates that fewer than 465,000
cartons would be available after May 15
for shipment to the food service market.
According to the National
Agricultural Statistics Service (NASS),
approximately 10 percent of Valencia
oranges measured at the end of April are
24⁄16 inches. From this forecast, the
Committee estimates an additional
200,000 cartons of Valencia and other
late type oranges, between 24⁄16 and
28⁄16 inches in size, still remain on the
tree.
However, most of the remaining fruit
wouldn’t meet grade requirements due
to discoloration and scarring. As fruit
continues to mature on the tree,
physiological changes occur that affect
the color of the fruit. Also, over time,
the fruit gets more blemishes due to
wind scarring. Therefore, only changing
the minimum size may not be sufficient
to make additional fruit available late in
the season.
Consequently, to provide additional
Valencia and other late type oranges to
supply the food service market, the
Committee recommended a relaxation
in size and grade. This rule changes the
minimum size requirement for Valencia
and other late type oranges shipped to
interstate markets from 28⁄16 inches to
24⁄16 inches from May 15 through
August 31 each season. It also reduces
the minimum grade requirement for
Valencia and other late type oranges
shipped to interstate markets from a
U.S. No. 1 to a U.S. No. 1 Golden from
May 15, 2013, to June 14, 2013, and to
a U.S. No. 2 external/U.S. No. 1 internal
from June 15, 2013, to August 31, 2013.
The Committee believes that relaxing
the size and grade requirements will
provide an outlet for fruit that may
otherwise go un-harvested. This will
maximize fresh shipments, allowing
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more fruit to be shipped to the fresh
market, and increasing returns to both
handlers and growers.
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 29 Valencia
and other late type orange handlers
subject to regulation under the
marketing order and approximately
8,000 producers of citrus in the
production area. Small agricultural
service firms are defined by the Small
Business Administration (SBA) as those
whose annual receipts are less than
$7,000,000, and small agricultural
producers are defined as those having
annual receipts less than $750,000 (13
CFR 121.201).
Based on industry and Committee
data, the average f.o.b. price for fresh
Valencia and other late type oranges
during the 2011–12 season was
approximately $12.42 per 4⁄5 bushel
carton, and total fresh shipments were
approximately 3.2 million cartons.
Using the average f.o.b. price and
shipment data, the majority of Florida
Valencia and other late type orange
handlers could be considered small
businesses under SBA’s definition. In
addition, the average annual grower
revenue is below $750,000 based on
production data, grower prices as
reported by NASS, and the total number
of Florida citrus growers. Thus,
assuming a normal distribution, the
majority of Valencia and other late type
orange handlers and producers may be
classified as small entities.
This rule relaxes the size and grade
requirements prescribed under the
order. These changes will allow
additional late season fruit to be
shipped to the fresh market, maximizing
shipments and providing additional
returns to both handlers and growers.
This rule revises § 905.306 by reducing
the minimum size requirements for
interstate shipments of fresh Valencia
and other late type oranges from 28⁄16
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inches to 24⁄16 inches from May 15 to
August 31 each season. This rule further
revises § 905.306 by reducing the
minimum grade requirements for
interstate shipments of Valencia and
other late type oranges from a U.S. No.
1 to a U.S. No. 1 Golden from May 15,
2013, to June 14, 2013, and to a U.S. No.
2 external/U.S. No. 1 internal from June
15, 2013, to August 31, 2013. Authority
for these changes is provided for in
§ 905.52. These changes were
unanimously recommended by the
Committee at a January 8, 2013,
meeting.
This action does not impose any
additional costs on the industry.
However, it is anticipated that this
action will have a beneficial impact.
Reducing size and grade requirements
for Valencia and other late type oranges
from May 15 to August 31 will make
additional fruit available for shipment
to the fresh market, providing the
opportunity to supply the potential food
service industry market. The Committee
believes that relaxing the size and grade
requirements will provide an outlet for
fruit that may otherwise go unharvested. This will allow more fruit to
be shipped to the fresh market and
increase returns to both handlers and
growers. The benefits of this rule are
expected to be equally available to all
fresh citrus growers and handlers,
regardless of their size.
Regarding alternatives to this action,
the Committee considered two different
approaches to providing additional fruit
to the market. They considered
changing the minimum size and leaving
the current grade standard in place.
However, the consensus of the
Committee was that late in the season
the additional quantity demanded could
not be met through a size change alone.
The Committee also considered
changing the minimum size and
establishing U.S. No. 1 Golden as the
grade from May 15 to August 31.
However, this option would effectively
increase the grade from June 15 to July
31, which was not the Committee’s
intention for the 2013 season. Therefore,
the Committee rejected both of these
alternatives.
In accordance with the Paperwork
Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order’s information
collection requirements have been
previously approved by the Office of
Management and Budget (OMB) and
assigned OMB No. 0581–0189, Generic
Fruit Crops. No changes in those
requirements as a result of this action
are necessary. Should any changes
become necessary, they would be
submitted to OMB for approval.
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Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules and Regulations
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
Florida citrus 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 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.
In addition, USDA has not identified
any relevant Federal rules that
duplicate, overlap, or conflict with this
rule.
Further, the Committee meeting was
widely publicized throughout the
Florida citrus industry. All interested
persons were invited to attend the
meeting and participate in Committee
deliberations. Like all Committee
meetings, the January 8, 2013, meeting
was a public meeting. 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 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: www.ams.usda.gov/
MarketingOrdersSmallBusinessGuide.
Any questions about the compliance
guide should be sent to Jeffrey Smutny
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on
changes to the size and grade
requirements currently prescribed under
the Florida citrus marketing order. 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 rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
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) This action relaxes the
current size and grade requirements
under the order; (2) these changes need
to be in effect by May 15, 2013; (3) the
Committee recommended these changes
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 in 7 CFR Part 905
Grapefruit, Marketing agreements,
Oranges, Reporting and recordkeeping
requirements, Tangelos, Tangerines.
For the reasons set forth in the
preamble, 7 CFR part 905 is amended as
follows:
PART 905—ORANGES, GRAPEFRUIT,
TANGERINES, AND TANGELOS
GROWN IN FLORIDA
1. The authority citation for 7 CFR
parts 905 continues to read as follows:
■
Authority: 7 U.S.C. 601–674.
2. In § 905.306, Table I in paragraph
(a) is amended by revising the entry for
‘‘Valencia and other late type’’ under
‘‘Oranges’’ to read as follows:
■
§ 905.306 Orange, Grapefruit, Tangerine,
and Tangelo Regulation.
(a) * * *
TABLE I
Variety
Regulation period
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
(4)
*
*
Valencia and other late type ....................
*
*
08/01/2012–05/14/2013 ..........................
05/15/2013–06/14/2013 ..........................
06/15/2013–08/31/2013 ..........................
On or after 09/01/13 ................................
September 1–May 14 ..............................
May 15–June 14 .....................................
June 15–July 31 ......................................
August 1–August 31 ................................
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*
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*
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U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
*
No.
No.
No.
No.
No.
No.
No.
No.
No.
*
1 ...............................................
1 Golden ...................................
2, External ................................
1, Internal.
1 ...............................................
1 ...............................................
2, External ................................
1, Internal.
1 ...............................................
*
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*
14MYR1
*
28⁄16
24⁄16
24⁄16
28⁄16
24⁄16
24⁄16
24⁄16
*
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*
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Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules and Regulations
*
*
*
Dated: May 8, 2013.
David R. Shipman,
Administrator, Agricultural Marketing
Service.
[FR Doc. 2013–11389 Filed 5–13–13; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 955
[Doc. No. AMS–FV–12–0071; FV13–955–1
IR]
Vidalia Onions Grown in Georgia;
Change in Reporting and Assessment
Requirements
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule changes the
reporting and assessment requirements
currently prescribed under the
marketing order for Vidalia onions
grown in Georgia (order). The order
regulates the handling of Vidalia onions
grown in Georgia and is administered
locally by the Vidalia Onion Committee
(Committee). This rule changes the date
by which handlers are required to
submit monthly shipping reports and
their corresponding assessments to the
Committee from the fifth day of the
month to the tenth day of the month. In
addition, this rule also changes the due
date to the first business day after the
tenth of the month should the tenth fall
on a weekend or a holiday. These
changes are expected to benefit handlers
without negatively affecting program
compliance.
DATES: Effective May 15, 2013;
comments received by July 15, 2013 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 and Agreement Division, Fruit
and Vegetable Program, 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
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SUMMARY:
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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:
Corey Elliott, Marketing Specialist, or
Christian Nissen, Regional Director,
Southeast Marketing Field Office,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA; Telephone: (863) 324–
3378, Fax: (863) 325–8793, or Email:
Corey.Elliott@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Jeffrey Smutny,
Marketing Order and Agreement
Division, Fruit and Vegetable Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Jeffrey.Smutny@ams.usda.gov.
This rule
is issued under Marketing Agreement
and Order No. 955, as amended (7 CFR
part 955), regulating the handling of
Vidalia onions grown in Georgia,
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.’’
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.
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.
SUPPLEMENTARY INFORMATION:
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This rule changes the reporting and
assessment requirements currently
prescribed under the order. This rule
changes the date by which handlers are
required to submit monthly shipping
reports and their corresponding
assessments to the Committee from the
fifth day of the month to the tenth day
of the month. In addition, this rule also
changes the due date to the first
business day after the tenth of the
month should the tenth fall on a
weekend or a holiday. These changes
are expected to benefit handlers without
negatively affecting program
compliance. The Committee
unanimously recommended these
changes at a meeting on August 9, 2012.
Section 955.60 of the order provides
authority for the Committee to require
handlers to file reports and provide
information as may be necessary for the
Committee to perform its duties. Section
955.101 of the regulations provides the
requisite reporting requirements.
Currently this section provides, in part,
that handlers are required to file with
the Committee a monthly shipping
report on the fifth day of each month
following the month in which
shipments were made.
Section 955.42 provides the authority
for the collection of assessments from
handlers to administer the order and the
authority to establish the time and rate
of assessments. Section 955.142
specifies that handler assessments are
required to be paid on a monthly basis
corresponding with the due date of the
monthly shipping reports. In addition,
§§ 955.101 and 955.142 specify that
should the fifth day of the month fall on
a weekend or holiday, both reports and
assessments are due on the first
business day prior to the fifth.
This rule revises §§ 955.101 and
955.142 to require that handlers submit
monthly shipping reports and
assessments to the Committee by the
tenth day of the month following the
month in which shipments were made.
This rule also changes the reporting and
assessment requirements to state that if
the tenth falls on a weekend or holiday,
the monthly reports and assessments are
due on the first business day after the
tenth day of the month.
At the August meeting, the Committee
discussed that the industry has
expressed concern regarding the
difficulties some handlers were having
in submitting their reports and
assessments by the fifth of the month.
Some handlers have reported that the
current due date of the fifth of the
month has created a hardship for them
because of the short turnaround time for
preparing the monthly shipping report
and getting it submitted to the
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]]>Agencies
[Federal Register Volume 78, Number 93 (Tuesday, May 14, 2013)]
[Rules and Regulations]
[Pages 28115-28118]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-11389]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules
and Regulations
[[Page 28115]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS-FV-13-0009; FV13-905-2 IR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Relaxing Size and Grade Requirements on Valencia and Other Late Type
Oranges
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule changes the size and grade requirements currently
prescribed under the marketing order for oranges, grapefruit,
tangerines, and tangelos grown in Florida (order). The order is
administered locally by the Citrus Administrative Committee
(Committee). This rule reduces the minimum size requirement for
Valencia and other late type oranges shipped to interstate markets from
2\8/16\ inches to 2\4/16\ inches from May 15 through August 31 each
season. This rule also reduces the minimum grade requirement for
Valencia and other late type oranges shipped to interstate markets from
a U.S. No. 1 to a U.S. No. 1 Golden from May 15, 2013, to June 14,
2013, and to a U.S. No. 2 external/U.S. No. 1 internal from June 15,
2013, to August 31, 2013. This rule will provide additional Valencia
and other late type oranges for late season markets, helping to
maximize fresh shipments.
DATES: Effective May 15, 2013; comments received by July 15, 2013 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 and Agreement Division, Fruit and Vegetable Program,
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 comments will be made public on the Internet at the
address provided above.
FOR FURTHER INFORMATION CONTACT: Corey E. Elliott, Marketing
Specialist, or Christian D. Nissen, Regional Director, Southeast
Marketing Field Office, Marketing Order and Agreement Division, Fruit
and Vegetable Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863)
325-8793, or Email: Corey.Elliott@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: Jeffrey.Smutny@ams.usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 905, 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.''
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.
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 changes the minimum size requirement on Valencia and
other late type oranges shipped to interstate markets from 2\8/16\
inches to 2\4/16\ inches from May 15 through August 31 each season. It
also reduces the minimum grade requirement on Valencia and other late
type oranges shipped to interstate markets from a U.S. No. 1 to a U.S.
No. 1 Golden from May 15, 2013, to June 14, 2013, and to a U.S. No. 2
external/U.S. No. 1 internal from June 15, 2013, to August 31, 2013.
This rule will provide additional Valencia and other late type oranges
for late season markets and will help maximize fresh shipments. The
Committee unanimously recommended these changes at a meeting on January
8, 2013.
Section 905.52 of the order provides, in part, authority to
establish minimum grade and size requirements for Florida citrus.
Section 905.306 of the order's rules and regulations specifies the
minimum grade and size requirements for different varieties of fresh
Florida citrus. Such requirements for domestic shipments are specified
in Table I of Sec. 905.306(a). Currently, the minimum size for
Valencia and other late type oranges is 2\8/16\ inches in diameter. The
minimum grade for Valencia and other late type oranges is a U.S. No. 1
from August 1 to June 14 and a U.S. No. 2 external/U.S. No. 1 internal
from June 15 to July 31. The characteristics of these grades are
specified in the U.S. Standard for Grades of Florida Oranges and
Tangelos (7 CFR 51.1140 through 51.1179).
At its meeting, the Committee discussed that there may be a late
season market for Florida Valencia and other late type oranges in the
food
[[Page 28116]]
service industry. One member stated that this market prefers a smaller-
size orange and may be undersupplied during the last few months of the
Florida citrus season, as supplies from other states have been
declining. At the end of the season, growers still have Valencia and
other late type oranges left on the tree to supply this market.
However, with current size and grade regulations, it is difficult to
supply this market.
During the last few seasons, approximately 97.5 percent of Valencia
and other late type oranges were utilized in the production of orange
juice, while approximately 2.5 percent, or about 3.1 million cartons,
were utilized as shipments to the fresh market. Of the fresh shipments,
85 percent were shipped between March and May. With the current size
and grade requirements, the Committee estimates that fewer than 465,000
cartons would be available after May 15 for shipment to the food
service market.
According to the National Agricultural Statistics Service (NASS),
approximately 10 percent of Valencia oranges measured at the end of
April are 2\4/16\ inches. From this forecast, the Committee estimates
an additional 200,000 cartons of Valencia and other late type oranges,
between 2\4/16\ and 2\8/16\ inches in size, still remain on the tree.
However, most of the remaining fruit wouldn't meet grade
requirements due to discoloration and scarring. As fruit continues to
mature on the tree, physiological changes occur that affect the color
of the fruit. Also, over time, the fruit gets more blemishes due to
wind scarring. Therefore, only changing the minimum size may not be
sufficient to make additional fruit available late in the season.
Consequently, to provide additional Valencia and other late type
oranges to supply the food service market, the Committee recommended a
relaxation in size and grade. This rule changes the minimum size
requirement for Valencia and other late type oranges shipped to
interstate markets from 2\8/16\ inches to 2\4/16\ inches from May 15
through August 31 each season. It also reduces the minimum grade
requirement for Valencia and other late type oranges shipped to
interstate markets from a U.S. No. 1 to a U.S. No. 1 Golden from May
15, 2013, to June 14, 2013, and to a U.S. No. 2 external/U.S. No. 1
internal from June 15, 2013, to August 31, 2013. The Committee believes
that relaxing the size and grade requirements will provide an outlet
for fruit that may otherwise go un-harvested. This will maximize fresh
shipments, allowing more fruit to be shipped to the fresh market, and
increasing returns to both handlers and growers.
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 29 Valencia and other late type orange
handlers subject to regulation under the marketing order and
approximately 8,000 producers of citrus in the production area. Small
agricultural service firms are defined by the Small Business
Administration (SBA) as those whose annual receipts are less than
$7,000,000, and small agricultural producers are defined as those
having annual receipts less than $750,000 (13 CFR 121.201).
Based on industry and Committee data, the average f.o.b. price for
fresh Valencia and other late type oranges during the 2011-12 season
was approximately $12.42 per \4/5\ bushel carton, and total fresh
shipments were approximately 3.2 million cartons. Using the average
f.o.b. price and shipment data, the majority of Florida Valencia and
other late type orange handlers could be considered small businesses
under SBA's definition. In addition, the average annual grower revenue
is below $750,000 based on production data, grower prices as reported
by NASS, and the total number of Florida citrus growers. Thus, assuming
a normal distribution, the majority of Valencia and other late type
orange handlers and producers may be classified as small entities.
This rule relaxes the size and grade requirements prescribed under
the order. These changes will allow additional late season fruit to be
shipped to the fresh market, maximizing shipments and providing
additional returns to both handlers and growers. This rule revises
Sec. 905.306 by reducing the minimum size requirements for interstate
shipments of fresh Valencia and other late type oranges from 2\8/16\
inches to 2\4/16\ inches from May 15 to August 31 each season. This
rule further revises Sec. 905.306 by reducing the minimum grade
requirements for interstate shipments of Valencia and other late type
oranges from a U.S. No. 1 to a U.S. No. 1 Golden from May 15, 2013, to
June 14, 2013, and to a U.S. No. 2 external/U.S. No. 1 internal from
June 15, 2013, to August 31, 2013. Authority for these changes is
provided for in Sec. 905.52. These changes were unanimously
recommended by the Committee at a January 8, 2013, meeting.
This action does not impose any additional costs on the industry.
However, it is anticipated that this action will have a beneficial
impact. Reducing size and grade requirements for Valencia and other
late type oranges from May 15 to August 31 will make additional fruit
available for shipment to the fresh market, providing the opportunity
to supply the potential food service industry market. The Committee
believes that relaxing the size and grade requirements will provide an
outlet for fruit that may otherwise go un-harvested. This will allow
more fruit to be shipped to the fresh market and increase returns to
both handlers and growers. The benefits of this rule are expected to be
equally available to all fresh citrus growers and handlers, regardless
of their size.
Regarding alternatives to this action, the Committee considered two
different approaches to providing additional fruit to the market. They
considered changing the minimum size and leaving the current grade
standard in place. However, the consensus of the Committee was that
late in the season the additional quantity demanded could not be met
through a size change alone. The Committee also considered changing the
minimum size and establishing U.S. No. 1 Golden as the grade from May
15 to August 31. However, this option would effectively increase the
grade from June 15 to July 31, which was not the Committee's intention
for the 2013 season. Therefore, the Committee rejected both of these
alternatives.
In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C.
Chapter 35), the order's information collection requirements have been
previously approved by the Office of Management and Budget (OMB) and
assigned OMB No. 0581-0189, Generic Fruit Crops. No changes in those
requirements as a result of this action are necessary. Should any
changes become necessary, they would be submitted to OMB for approval.
[[Page 28117]]
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large Florida citrus 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 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.
In addition, USDA has not identified any relevant Federal rules
that duplicate, overlap, or conflict with this rule.
Further, the Committee meeting was widely publicized throughout the
Florida citrus industry. All interested persons were invited to attend
the meeting and participate in Committee deliberations. Like all
Committee meetings, the January 8, 2013, meeting was a public meeting.
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 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:
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about
the compliance guide should be sent to Jeffrey Smutny at the previously
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
This rule invites comments on changes to the size and grade
requirements currently prescribed under the Florida citrus marketing
order. 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 rule, as hereinafter set forth, will tend to effectuate
the declared policy of the Act.
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) This action relaxes the current size and grade
requirements under the order; (2) these changes need to be in effect by
May 15, 2013; (3) the Committee recommended these changes 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 in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
For the reasons set forth in the preamble, 7 CFR part 905 is
amended as follows:
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
0
1. The authority citation for 7 CFR parts 905 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. In Sec. 905.306, Table I in paragraph (a) is amended by revising
the entry for ``Valencia and other late type'' under ``Oranges'' to
read as follows:
Sec. 905.306 Orange, Grapefruit, Tangerine, and Tangelo Regulation.
(a) * * *
Table I
----------------------------------------------------------------------------------------------------------------
Minimum
Variety Regulation period Minimum grade diameter
(inches)
(1) (2)....................... (3)....................... (4)
----------------------------------------------------------------------------------------------------------------
* * * * * * *
Valencia and other late type............ 08/01/2012-05/14/2013..... U.S. No. 1................ 2\8/16\
05/15/2013-06/14/2013..... U.S. No. 1 Golden......... 2\4/16\
06/15/2013-08/31/2013..... U.S. No. 2, External...... 2\4/16\
U.S. No. 1, Internal......
On or after 09/01/13...... U.S. No. 1................ 2\8/16\
September 1-May 14........ U.S. No. 1................ 2\4/16\
May 15-June 14............ U.S. No. 2, External...... 2\4/16\
June 15-July 31........... U.S. No. 1, Internal......
August 1-August 31........ U.S. No. 1................ 2\4/16\
* * * * * * *
----------------------------------------------------------------------------------------------------------------
[[Page 28118]]
* * * * *
Dated: May 8, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-11389 Filed 5-13-13; 8:45 am]
BILLING CODE 3410-02-P
