Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; Change in Size Requirements for Oranges, 53397-53400 [2017-24701]
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53397
Rules and Regulations
Federal Register
Vol. 82, No. 220
Thursday, November 16, 2017
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.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS–SC–17–0064; SC17–905–2
IR]
Oranges, Grapefruit, Tangerines, and
Pummelos Grown in Florida; Change
in Size Requirements for Oranges
Agricultural Marketing Service,
USDA.
ACTION: Interim rule with request for
comments.
AGENCY:
This rule implements a
recommendation from the Citrus
Administrative Committee (Committee)
to relax the minimum size requirements
currently prescribed under the
marketing Order for oranges, grapefruit,
tangerines, and pummelos grown in
Florida (Order). The Committee locally
administers the order and is comprised
of growers and handlers operating
within the production area and one
public member. This rule relaxes the
minimum size requirements for oranges
from 28⁄16 inches to 24⁄16 inches in
diameter. This rule will maximize
shipments by allowing more oranges to
be shipped to the fresh market and help
reduce the losses sustained by the citrus
industry during the September 2017
hurricane in Florida. This rule also
contains a formatting change to subpart
references to bring the Order language
into conformance with Office of Federal
Register’s guidelines.
DATES: Effective November 17, 2017;
comments received by January 16, 2018
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,
Specialty Crops Program, AMS, USDA,
1400 Independence Avenue SW., STOP
0237, Washington, DC 20250–0237; Fax:
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SUMMARY:
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(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:
Abigail Campos, Marketing Specialist,
or Christian D. Nissen, Regional
Director, Southeast Marketing Field
Office, Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA; Telephone: (863) 324–
3375, Fax: (863) 291–8614, or Email:
Abigail.Campos@ams.usda.gov or
Christian.Nissen@ams.usda.gov.
Small businesses may request
information on complying with this
regulation by contacting Richard Lower,
Marketing Order and Agreement
Division, Specialty Crops Program,
AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938, or Email:
Richard.Lower@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 pummelos
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 Orders
13563 and 13175. This rule falls within
a category of regulatory actions that the
Office of Management and Budget
(OMB) exempted from Executive Order
12866 review. Additionally, because
this rule does not meet the definition of
a significant regulatory action it does
not trigger the requirements contained
in Executive Order 13771. See OMB’s
Memorandum titled ‘‘Interim Guidance
Implementing Section 2 of the Executive
Order of January 30, 2017, titled
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‘Reducing Regulation and Controlling
Regulatory Costs’ ’’ (February 2, 2017).
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 relaxes the minimum size
requirements for oranges prescribed
under the Order. This rule relaxes the
minimum size requirements for oranges
from 28⁄16 inches to 24⁄16 inches in
diameter. This rule will maximize
shipments by allowing more oranges to
be shipped to the fresh market and help
reduce the losses sustained by the
orange industry during the September
2017 hurricane in Florida. This change
was unanimously recommended by the
Committee at meetings held on June 29,
2017, and September 28, 2017.
Section 905.52 of the Order provides
authority to establish minimum size
requirements for Florida citrus. Section
905.306 of the rules and regulation
issued under the Order specifies, in
part, the minimum size requirements for
oranges. Requirements for domestic
shipments are specified in § 905.306 in
Table I of paragraph (a) and export
shipments in Table II of paragraph (b).
At its June 29, 2017, meeting, the
Committee discussed the continuing
decline in production as a result of
losses from citrus greening, which is
affecting the entire production area. The
Committee also recognized that some
consumers are now showing a
preference for smaller-sized fruit. The
Committee agreed the current minimum
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size should be relaxed in order to make
additional fruit available for shipment.
The Committee met again on
September 28, 2017, to discuss the
additional damage Hurricane Irma
caused to the current crop and revisited
the discussion regarding the need to
reduce the minimum size requirements.
The major orange-growing regions in
Florida suffered significant damage and
fruit loss from the hurricane. The strong
winds from the storm blew substantial
volumes of fruit off the trees. The
impact of the storm is also expected to
produce a much higher than normal
fruit drop. The extent of the loss is
evident in the official USDA crop
estimate for this season, which reflects
a 21 percent decrease from last year’s
estimate. Further, as the industry
continues to assess the damage caused
by the storm, fruit loss estimates may go
even higher. Given the limited supply of
fruit due to greening and the impact of
Hurricane Irma, the Committee believes
relaxing the size requirements for
oranges is needed to make more fruit
available for shipment.
Committee members recognized that
with the special circumstances
surrounding this season, and with the
ongoing impacts of citrus greening,
some allowances should be made to
assist growers and handlers and provide
additional volume to the market. The
Committee believes relaxing the size
requirements will make more fruit
available to meet market demand, help
maximize fresh shipments, increase
returns to growers and handlers, and
help address the losses stemming from
the hurricane. Consequently, the
Committee recommended changing the
minimum size requirements for oranges
from 28⁄16 inches to 24⁄16 inches in
diameter.
The Committee also recommended a
relaxation in the minimum size
requirements for grapefruit covered
under the Order. That change is being
considered under a separate action.
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
businesses 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
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through group action of essentially
small entities acting on their own
behalf.
There are approximately 20 handlers
of Florida citrus who are subject to
regulation under the Order and
approximately 500 citrus producers in
the regulated area. Small agricultural
service firms are defined by the Small
Business Administration (SBA) as those
having annual receipts of less than
$7,500,000, and small agricultural
producers are defined as those having
annual receipts of less than $750,000
(13 CFR 121.201).
According to data from the National
Agricultural Statistics Service (NASS),
the industry, and the Committee, the
average f.o.b. price for Florida oranges
during the 2016–17 season was $31.90
per box, and total fresh orange
shipments were approximately 2.1
million boxes. Using the average f.o.b.
price and shipment data, the majority of
Florida orange handlers could be
considered small businesses under
SBA’s definition ($31.90 times 2.1
million boxes equals $66.99 million
divided by 20 handlers equals
$3,349,500 per handler). In addition,
based on the NASS data, the average
grower price for the 2016–2017 season
was $17.51 per box. Based on grower
price, shipment data, and the total
number of Florida citrus growers, the
average annual grower revenue is below
$750,000 ($17.51 times 2.1 million
boxes equals $36,771,000 divided by
500 growers equals $73,542 per grower).
Thus, the majority of handlers and
producers of oranges may be classified
as small entities.
This rule relaxes the minimum size
requirements for oranges covered under
the Order from 28⁄16 inches to 24⁄16
inches in diameter. This change is
expected to maximize shipments by
allowing more oranges to be shipped to
the fresh market and will help reduce
the losses sustained by the grapefruit
industry as a result of citrus greening
and the September 2017 hurricane in
Florida. Authority for this change is
provided in § 905.52. This rule amends
§ 905.306. The Committee unanimously
recommended this change at its June 29,
2017, and September 28, 2017,
meetings.
This action is not expected to increase
the costs associated with the Order’s
requirements. Rather, it is anticipated
this action will have a beneficial impact.
Reducing the size requirements will
make additional fruit available for
shipment to the fresh market, provide
an outlet for fruit that may otherwise go
unharvested, and afford more
opportunity to meet consumer demand.
This change will provide additional
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fruit to fill the shortage caused by citrus
greening and by Hurricane Irma.
Further, by maximizing shipments, this
action will help provide additional
returns to growers and handlers as they
work to recover from the losses
stemming from the hurricane.
This action may also help reduce
harvesting costs. By reducing the
minimum size, more fruit will be able
to be harvested immediately. This may
eliminate the need to leave fruit on the
tree to increase in size, which requires
follow-up picking later in the season.
Given the amount of fruit loss, this
could help reduce picking costs
substantially. The benefits of this rule
are expected to be equally available to
all fresh orange growers and handlers,
regardless of their size.
An alternative to this action would be
to maintain the current minimum
requirements for domestic shipments of
oranges. However, leaving the
requirements unchanged would not
make additional of fruit available for
shipment. Following the significant
damage experienced by the industry
from the September 2017 hurricane,
maximizing shipments will help
provide additional returns to growers
and handlers as they recover from the
loss. Another alternative considered was
to reduce the minimum maturity
requirements. However, Committee
members thought it was important to
maintain the maturity requirements to
ensure overall quality. Therefore, this
alternative was rejected.
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 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.
This rule will not impose any
additional reporting or recordkeeping
requirements on either small or large
orange 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
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duplicate, overlap or conflict with this
rule.
Further, the Committee’s meetings
were widely publicized throughout the
Florida citrus industry and all interested
persons were invited to attend the
meetings and participate in Committee
deliberations. Like all Committee
meetings, the June 29, 2017, and
September 28, 2017, meetings were
public meetings 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 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/
rules-regulations/moa/small-businesses.
Any questions about the compliance
guide should be sent to Richard Lower
at the previously mentioned address in
the FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on the
change to the size requirements for
oranges currently prescribed under the
Marketing Order for oranges, grapefruit,
tangerines, and pummelos grown in
Florida. 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. The
Florida citrus industry has been dealing
with the devastating effects of citrus
greening for more than 10 years,
resulting in ever smaller harvests, and
escalating production costs. The
September 2017 hurricane caused
significant additional damage and crop
loss to the industry, with losses running
into the millions of dollars. This rule, in
conjunction with a companion rule for
grapefruit, will bring some muchneeded relief by providing additional
fruit for shipment to the fresh market
and to increase returns to growers and
handlers. Based on the size frequency
measurements provided by NASS as
part of grapefruit and orange crop
estimates, the recommended relaxation
in size for both grapefruit and oranges
could make an additional 20 to 25
percent of the crop available for
shipment to the fresh market. Based on
estimates, this could mean an additional
volume of about 700,000 boxes of citrus
available for shipment. Using an average
fresh price per box of around $30, this
could provide the industry with an
additional $20 million in returns for the
2017–18 season. This rule relieves a
restriction on the size of oranges that
can be shipped to the fresh market.
Therefore, good cause exists for this rule
becoming effective one day after
publication in the Federal Register. In
addition, the Committee unanimously
recommended these changes at public
meetings, and interested parties had an
opportunity to provide input. Further,
this rule provides a 60-day comment
period and any comments received will
be considered prior to finalization of
this rule. This rule also contains a
formatting change to subpart references
to bring the Order language into
conformance with Office of Federal
Register’s guidelines.
53399
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 PUMMELOS
GROWN IN FLORIDA
1. The authority citation for 7 CFR
part 905 continues to read as follows:
■
Authority: 7 U.S.C. 601–604.
[Subpart Redesignated as Subpart A]
2. Redesignate ‘‘Subpart—Order
Regulating Handling’’ as ‘‘Subpart A—
Order Regulating Handling’’.
■
[Subpart Redesignated as Subpart B
and Amended]
3. Redesignate ‘‘Subpart—Rules and
Regulations’’ as subpart B and revise the
heading to read as follows:
■
Subpart B—Administrative
Requirements
[Subpart Redesignated as Subpart C]
4. Redesignate ‘‘Subpart—Assessment
Rates’’ as ‘‘Subpart C—Assessment
Rate’’.
■
[Subpart Redesignated as Subpart D]
5. Redesignate ‘‘Subpart—Grade and
Size Requirements’’ as ‘‘Subpart D—
Grade and Size Requirements’’.
■ 6. In § 905.306, Table I in paragraph
(a) and Table II in paragraph (b) are
amended by revising the entries for
‘‘Early and midseason,’’ ‘‘Navel,’’
‘‘Temple,’’ and ‘‘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)
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Oranges
Early and midseason ...............................
Navel .................................................
Temple ..............................................
Valencia and other late type .............
01/29/90–08/19/90 ..................................
On and after 08/20/90 .............................
On and after 12/7/81 ...............................
On and after 12/7/81 ...............................
September 1–May 14, May 15–June 14
June 15–August 31 .................................
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U.S.
U.S.
U.S.
U.S.
U.S.
U.S.
No.
No.
No.
No.
No.
No.
No.
1 Golden ...................................
1 ...............................................
1 ...............................................
1 ...............................................
1 ...............................................
1 Golden ...................................
2, External/U.S. No. 1, Internal
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Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 / Rules and Regulations
TABLE I—Continued
Variety
Regulation period
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
(4)
*
*
*
*
*
*
*
(b) * * *
TABLE II
Variety
Regulation period
Minimum grade
Minimum
diameter
(inches)
(1)
(2)
(3)
(4)
Oranges
Early and midseason ...............................
Navel .................................................
Temple ..............................................
Valencia and other late type .............
*
*
*
01/29/90–08/19/90 ..................................
On and after 08/20/90 .............................
On and after 11/24/89 .............................
On and after 11/24/89 .............................
March 23, 1992–9/27/92 .........................
On and after 9/28/92 ...............................
*
*
*
*
*
[Subpart Redesignated as Subpart E
and Amended]
7. Redesignate ‘‘Subpart—Interpretive
Rule’’ as subpart E and revise the
heading to read as follows:
■
Subpart E—Interpretations
Dated: November 9, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 2017–24701 Filed 11–15–17; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 33
[Docket No. FAA–2017–0537; Notice No. 33–
17–02–SC]
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Special Conditions: General Electric
Company, GE9X Engine Models;
Endurance Test Special Conditions
Federal Aviation
Administration (FAA), DOT.
ACTION: Final special conditions.
These special conditions are
issued for the General Electric Company
turbofan engine models GE9X–105B1A,
–105B1A1, –105B1A2, –105B1A3,
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No.
No.
No.
No.
No.
No.
–102B1A, –102B1A1, –102B1A2,
–102B1A3, and –93B1A. In these special
conditions, the engine models will be
referred to as ‘‘GE9X.’’ The engines will
have novel or unusual design features
associated with the engine design. The
applicable airworthiness regulations do
not contain adequate or appropriate
safety standards for these design
features. These special conditions
contain the additional safety standards
that the Administrator considers
necessary to establish a level of safety
equivalent to that established by the
existing airworthiness standards.
DATES: Effective December 18, 2017.
FOR FURTHER INFORMATION CONTACT:
Diane Cook, AIR–6A1, Engine and
Propeller Standards Branch, Aircraft
Certification Service, 1200 District
Avenue, Burlington, Massachusetts
01803–5213; telephone (781) 238–7111;
facsimile (781) 238–7199; email
diane.cook@faa.gov.
SUPPLEMENTARY INFORMATION:
On January 29, 2016, General Electric
Company (GE) applied for a type
certificate for their new GE9X turbofan
engine models. The GE9X engine
models are high-bypass-ratio engines
that incorporate novel or unusual design
features. The GE9X engine models
incorporate new technologies such that
the company cannot run the endurance
test conditions prescribed in § 33.87
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1
1
1
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Golden ...................................
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Golden ...................................
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*
Background
AGENCY:
SUMMARY:
*
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without significant modifications
making the test vehicle nonrepresentative of the type design.
Discussion
An alternative endurance test cycle
has been developed that provides a level
of safety equivalent with that intended
by § 33.87. The alternate endurance test
provides the test conditions that allow
the engine to be run in type design
configuration and demonstrate engine
operability and durability as well as
systems functionality to a level intended
by the current § 33.87 rule.
These special conditions provide the
necessary conditions for verification of
engine-level and component-level
effects as intended by the current
§ 33.87 Endurance test. The test is run
in engine type design configuration,
with only limited test enabling
modifications as needed. The special
conditions include a demonstration for
the oil, fuel, air bleed, and accessory
drive systems as required in the current
§ 33.87 Endurance test.
The equivalent level of severity
intended by the § 33.87 Endurance test
is provided by an engine test
demonstration at the gas path limiting
temperature and at shaft speed redlines
and at the most extreme shaft speeds as
determined through a critical point
analysis (CPA). In addition, times on
condition and cycle counts were
developed to allow additional
challenges to the novel or unusual
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]]>Agencies
[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Rules and Regulations]
[Pages 53397-53400]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24701]
========================================================================
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.
========================================================================
Federal Register / Vol. 82, No. 220 / Thursday, November 16, 2017 /
Rules and Regulations
[[Page 53397]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Doc. No. AMS-SC-17-0064; SC17-905-2 IR]
Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida;
Change in Size Requirements for Oranges
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule implements a recommendation from the Citrus
Administrative Committee (Committee) to relax the minimum size
requirements currently prescribed under the marketing Order for
oranges, grapefruit, tangerines, and pummelos grown in Florida (Order).
The Committee locally administers the order and is comprised of growers
and handlers operating within the production area and one public
member. This rule relaxes the minimum size requirements for oranges
from 2\8/16\ inches to 2\4/16\ inches in diameter. This rule will
maximize shipments by allowing more oranges to be shipped to the fresh
market and help reduce the losses sustained by the citrus industry
during the September 2017 hurricane in Florida. This rule also contains
a formatting change to subpart references to bring the Order language
into conformance with Office of Federal Register's guidelines.
DATES: Effective November 17, 2017; comments received by January 16,
2018 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, Specialty Crops 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 the comments
will be made public on the Internet at the address provided above.
FOR FURTHER INFORMATION CONTACT: Abigail Campos, Marketing Specialist,
or Christian D. Nissen, Regional Director, Southeast Marketing Field
Office, Marketing Order and Agreement Division, Specialty Crops
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or
Email: Abigail.Campos@ams.usda.gov or Christian.Nissen@ams.usda.gov.
Small businesses may request information on complying with this
regulation by contacting Richard Lower, Marketing Order and Agreement
Division, Specialty Crops Program, AMS, USDA, 1400 Independence Avenue
SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-2491,
Fax: (202) 720-8938, or Email: Richard.Lower@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 pummelos 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 Orders 13563 and 13175. This rule falls
within a category of regulatory actions that the Office of Management
and Budget (OMB) exempted from Executive Order 12866 review.
Additionally, because this rule does not meet the definition of a
significant regulatory action it does not trigger the requirements
contained in Executive Order 13771. See OMB's Memorandum titled
``Interim Guidance Implementing Section 2 of the Executive Order of
January 30, 2017, titled `Reducing Regulation and Controlling
Regulatory Costs'[thinsp]'' (February 2, 2017).
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 relaxes the minimum size requirements for oranges
prescribed under the Order. This rule relaxes the minimum size
requirements for oranges from 2\8/16\ inches to 2\4/16\ inches in
diameter. This rule will maximize shipments by allowing more oranges to
be shipped to the fresh market and help reduce the losses sustained by
the orange industry during the September 2017 hurricane in Florida.
This change was unanimously recommended by the Committee at meetings
held on June 29, 2017, and September 28, 2017.
Section 905.52 of the Order provides authority to establish minimum
size requirements for Florida citrus. Section 905.306 of the rules and
regulation issued under the Order specifies, in part, the minimum size
requirements for oranges. Requirements for domestic shipments are
specified in Sec. 905.306 in Table I of paragraph (a) and export
shipments in Table II of paragraph (b).
At its June 29, 2017, meeting, the Committee discussed the
continuing decline in production as a result of losses from citrus
greening, which is affecting the entire production area. The Committee
also recognized that some consumers are now showing a preference for
smaller-sized fruit. The Committee agreed the current minimum
[[Page 53398]]
size should be relaxed in order to make additional fruit available for
shipment.
The Committee met again on September 28, 2017, to discuss the
additional damage Hurricane Irma caused to the current crop and
revisited the discussion regarding the need to reduce the minimum size
requirements. The major orange-growing regions in Florida suffered
significant damage and fruit loss from the hurricane. The strong winds
from the storm blew substantial volumes of fruit off the trees. The
impact of the storm is also expected to produce a much higher than
normal fruit drop. The extent of the loss is evident in the official
USDA crop estimate for this season, which reflects a 21 percent
decrease from last year's estimate. Further, as the industry continues
to assess the damage caused by the storm, fruit loss estimates may go
even higher. Given the limited supply of fruit due to greening and the
impact of Hurricane Irma, the Committee believes relaxing the size
requirements for oranges is needed to make more fruit available for
shipment.
Committee members recognized that with the special circumstances
surrounding this season, and with the ongoing impacts of citrus
greening, some allowances should be made to assist growers and handlers
and provide additional volume to the market. The Committee believes
relaxing the size requirements will make more fruit available to meet
market demand, help maximize fresh shipments, increase returns to
growers and handlers, and help address the losses stemming from the
hurricane. Consequently, the Committee recommended changing the minimum
size requirements for oranges from 2\8/16\ inches to 2\4/16\ inches in
diameter.
The Committee also recommended a relaxation in the minimum size
requirements for grapefruit covered under the Order. That change is
being considered under a separate action.
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
businesses 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 20 handlers of Florida citrus who are
subject to regulation under the Order and approximately 500 citrus
producers in the regulated area. Small agricultural service firms are
defined by the Small Business Administration (SBA) as those having
annual receipts of less than $7,500,000, and small agricultural
producers are defined as those having annual receipts of less than
$750,000 (13 CFR 121.201).
According to data from the National Agricultural Statistics Service
(NASS), the industry, and the Committee, the average f.o.b. price for
Florida oranges during the 2016-17 season was $31.90 per box, and total
fresh orange shipments were approximately 2.1 million boxes. Using the
average f.o.b. price and shipment data, the majority of Florida orange
handlers could be considered small businesses under SBA's definition
($31.90 times 2.1 million boxes equals $66.99 million divided by 20
handlers equals $3,349,500 per handler). In addition, based on the NASS
data, the average grower price for the 2016-2017 season was $17.51 per
box. Based on grower price, shipment data, and the total number of
Florida citrus growers, the average annual grower revenue is below
$750,000 ($17.51 times 2.1 million boxes equals $36,771,000 divided by
500 growers equals $73,542 per grower). Thus, the majority of handlers
and producers of oranges may be classified as small entities.
This rule relaxes the minimum size requirements for oranges covered
under the Order from 2\8/16\ inches to 2\4/16\ inches in diameter. This
change is expected to maximize shipments by allowing more oranges to be
shipped to the fresh market and will help reduce the losses sustained
by the grapefruit industry as a result of citrus greening and the
September 2017 hurricane in Florida. Authority for this change is
provided in Sec. 905.52. This rule amends Sec. 905.306. The Committee
unanimously recommended this change at its June 29, 2017, and September
28, 2017, meetings.
This action is not expected to increase the costs associated with
the Order's requirements. Rather, it is anticipated this action will
have a beneficial impact. Reducing the size requirements will make
additional fruit available for shipment to the fresh market, provide an
outlet for fruit that may otherwise go unharvested, and afford more
opportunity to meet consumer demand. This change will provide
additional fruit to fill the shortage caused by citrus greening and by
Hurricane Irma. Further, by maximizing shipments, this action will help
provide additional returns to growers and handlers as they work to
recover from the losses stemming from the hurricane.
This action may also help reduce harvesting costs. By reducing the
minimum size, more fruit will be able to be harvested immediately. This
may eliminate the need to leave fruit on the tree to increase in size,
which requires follow-up picking later in the season. Given the amount
of fruit loss, this could help reduce picking costs substantially. The
benefits of this rule are expected to be equally available to all fresh
orange growers and handlers, regardless of their size.
An alternative to this action would be to maintain the current
minimum requirements for domestic shipments of oranges. However,
leaving the requirements unchanged would not make additional of fruit
available for shipment. Following the significant damage experienced by
the industry from the September 2017 hurricane, maximizing shipments
will help provide additional returns to growers and handlers as they
recover from the loss. Another alternative considered was to reduce the
minimum maturity requirements. However, Committee members thought it
was important to maintain the maturity requirements to ensure overall
quality. Therefore, this alternative was rejected.
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 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.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large orange 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
[[Page 53399]]
duplicate, overlap or conflict with this rule.
Further, the Committee's meetings were widely publicized throughout
the Florida citrus industry and all interested persons were invited to
attend the meetings and participate in Committee deliberations. Like
all Committee meetings, the June 29, 2017, and September 28, 2017,
meetings were public meetings 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 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/rules-regulations/moa/small-businesses. Any questions
about the compliance guide should be sent to Richard Lower at the
previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
This rule invites comments on the change to the size requirements
for oranges currently prescribed under the Marketing Order for oranges,
grapefruit, tangerines, and pummelos grown in Florida. 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.
The Florida citrus industry has been dealing with the devastating
effects of citrus greening for more than 10 years, resulting in ever
smaller harvests, and escalating production costs. The September 2017
hurricane caused significant additional damage and crop loss to the
industry, with losses running into the millions of dollars. This rule,
in conjunction with a companion rule for grapefruit, will bring some
much-needed relief by providing additional fruit for shipment to the
fresh market and to increase returns to growers and handlers. Based on
the size frequency measurements provided by NASS as part of grapefruit
and orange crop estimates, the recommended relaxation in size for both
grapefruit and oranges could make an additional 20 to 25 percent of the
crop available for shipment to the fresh market. Based on estimates,
this could mean an additional volume of about 700,000 boxes of citrus
available for shipment. Using an average fresh price per box of around
$30, this could provide the industry with an additional $20 million in
returns for the 2017-18 season. This rule relieves a restriction on the
size of oranges that can be shipped to the fresh market. Therefore,
good cause exists for this rule becoming effective one day after
publication in the Federal Register. In addition, the Committee
unanimously recommended these changes at public meetings, and
interested parties had an opportunity to provide input. Further, this
rule provides a 60-day comment period and any comments received will be
considered prior to finalization of this rule. This rule also contains
a formatting change to subpart references to bring the Order language
into conformance with Office of Federal Register's guidelines.
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 PUMMELOS GROWN IN
FLORIDA
0
1. The authority citation for 7 CFR part 905 continues to read as
follows:
Authority: 7 U.S.C. 601-604.
[Subpart Redesignated as Subpart A]
0
2. Redesignate ``Subpart--Order Regulating Handling'' as ``Subpart A--
Order Regulating Handling''.
[Subpart Redesignated as Subpart B and Amended]
0
3. Redesignate ``Subpart--Rules and Regulations'' as subpart B and
revise the heading to read as follows:
Subpart B--Administrative Requirements
[Subpart Redesignated as Subpart C]
0
4. Redesignate ``Subpart--Assessment Rates'' as ``Subpart C--Assessment
Rate''.
[Subpart Redesignated as Subpart D]
0
5. Redesignate ``Subpart--Grade and Size Requirements'' as ``Subpart
D--Grade and Size Requirements''.
0
6. In Sec. 905.306, Table I in paragraph (a) and Table II in paragraph
(b) are amended by revising the entries for ``Early and midseason,''
``Navel,'' ``Temple,'' and ``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)
----------------------------------------------------------------------------------------------------------------
Oranges
----------------------------------------------------------------------------------------------------------------
Early and midseason..................... 01/29/90-08/19/90......... U.S. No. 1 Golden......... 2\4/16\
On and after 08/20/90..... U.S. No. 1................ 2\4/16\
Navel............................... On and after 12/7/81...... U.S. No. 1................ 2\4/16\
Temple.............................. On and after 12/7/81...... U.S. No. 1................ 2\4/16\
Valencia and other late type........ September 1-May 14, May 15- U.S. No. 1................ 2\4/16\
June 14. U.S. No. 1 Golden......... 2\4/16\
June 15-August 31......... U.S. No. 2, External/U.S. 2\4/16\
No. 1, Internal.
[[Page 53400]]
* * * * * * *
----------------------------------------------------------------------------------------------------------------
(b) * * *
Table II
----------------------------------------------------------------------------------------------------------------
Minimum
Variety Regulation period Minimum grade diameter
(inches)
(1) (2)....................... (3)....................... (4)
----------------------------------------------------------------------------------------------------------------
Oranges
----------------------------------------------------------------------------------------------------------------
Early and midseason..................... 01/29/90-08/19/90......... U.S. No. 1 Golden......... 2\4/16\
On and after 08/20/90..... U.S. No. 1................ 2\4/16\
Navel............................... On and after 11/24/89..... U.S. No. 1 Golden......... 2\4/16\
Temple.............................. On and after 11/24/89..... U.S. No. 1................ 2\4/16\
Valencia and other late type........ March 23, 1992-9/27/92.... U.S. No. 1................ 2\4/16\
On and after 9/28/92...... U.S. No. 1................ 2\4/16\
* * * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * *
[Subpart Redesignated as Subpart E and Amended]
0
7. Redesignate ``Subpart--Interpretive Rule'' as subpart E and revise
the heading to read as follows:
Subpart E--Interpretations
Dated: November 9, 2017.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2017-24701 Filed 11-15-17; 8:45 am]
BILLING CODE 3410-02-P
