[Federal Register Volume 59, Number 169 (Thursday, September 1, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-21634] [[Page Unknown]] [Federal Register: September 1, 1994] VOL. 59, NO. 169 Thursday, September 1, 1994 DEPARTMENT OF AGRICULTURE Agricultural Marketing Service 7 CFR Part 906 [Docket No. FV94-906-3-PR] Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Proposed Higher Quality and Reduced Size Requirements for Texas Grapefruit AGENCY: Agricultural Marketing Service, USDA. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: This proposed rule would increase the minimum quality requirements for Texas grapefruit to Texas Choice, from the current minimum grade requirement of U.S. No. 2. This proposed rule would also temporarily relax the minimum size requirements for certain Texas grapefruit for the entire 1994-95 season. This proposed rule is designed to help the Texas citrus industry successfully market the 1994-95 season grapefruit crop. DATES: Comments must be received by September 16, 1994. ADDRESSES: Interested persons are invited to submit written comments concerning this proposed rule to: Docket Clerk, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, DC 20090- 6456; FAX: 202-720-5698. Three copies of all written material shall be submitted, and they will be made available for public inspection at the office of the Docket Clerk during regular business hours. All comments should reference the docket number, date, and page number of this issue of the Federal Register. FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Order Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2523-S, Washington, DC 20090-6456; telephone: 202-720- 5127; or Belinda G. Garza, McAllen Marketing Field Office, USDA/AMS, 1313 East Hackberry, McAllen, Texas 78501; telephone: 210-682-2833. SUPPLEMENTARY INFORMATION: This proposed rule is issued under Marketing Agreement and Marketing Order No. 906 (7 CFR Part 906) regulating the handling of oranges and grapefruit grown in the Lower Rio Grande Valley in Texas, hereinafter referred to as the order. This 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 (Department) is issuing this rule in conformance with Executive Order 12866. This proposed rule has been reviewed under Executive Order 12778, Civil Justice Reform. This proposed rule is not intended to have retroactive effect. This proposed rule would not preempt any State or local laws, regulations, or policies, unless they present an irreconcilable conflict with this rule. The Act provides that administrative proceedings must be exhausted before parties may file suit in court. Under section 8c(15)(A) of the Act, any handler subject to an order may file with the Secretary 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 requesting 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, the Secretary 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 in equity to review the Secretary's ruling on the petition, provided a bill in equity is filed not later than 20 days after the date of the entry of the ruling. Pursuant to the requirements set forth in the Regulatory Flexibility Act (RFA), the Administrator of the Agricultural Marketing Service (AMS) has considered the economic impact of this action on small entities. The purpose of the RFA is to fit regulatory actions to the scale of business subject to such actions in order that small businesses will not be unduly or disproportionately burdened. Marketing orders issued pursuant to the Act, and rules issued thereunder, are unique in that they are brought about through group action of essentially small entities acting on their own behalf. Thus, both statutes have small entity orientation and compatibility. There are about 15 citrus handlers subject to regulation under the order covering oranges and grapefruit grown in Texas, and about 750 producers of these citrus fruits in Texas. Small agricultural service firms, which includes grapefruit handlers, have been defined by the Small Business Administration (13 CFR 121.601) as those having annual receipts are less than $5,000,000, and small agricultural producers are defined as those whose annual receipts are less than $500,000. A majority of these handlers and producers may be classified as small entities. The Texas Valley Citrus Committee (committee) met on June 30, 1994, and recommended the regulatory changes for Texas grapefruit. The committee meets prior to and during each season to review the handling regulations effective on a continuous basis for each citrus fruit regulated under the order. Committee meetings are open to the public, and interested persons may express their views at these meetings. The Department reviews committee recommendations and information, as well as information from other sources, and determines whether modification, suspension, or termination of the handling regulations would tend to effectuate the declared policy of the Act. Minimum grade and size requirements for fresh grapefruit grown in Texas are in effect under Sec. 906.365 (7 CFR 906.365). This rule would amend Sec. 906.365 by revising paragraph (a)(3) to delete authority for shipping U.S. No. 2 grade grapefruit and by revising paragraph (a)(4) to permit shipment of grapefruit measuring at least 3\5/16\ inches in diameter (pack size 112) for the entire 1994-95 season ending July 31, 1995, provided such grapefruit grade at least U.S. No. 1. Revision of Minimum Quality Requirements Section 906.365 of the order's rules and regulations currently provide that fresh shipments of grapefruit must grade, in descending order of quality, U.S. Fancy, U.S. No. 1, U.S. No. 1 Bright, U.S. No. 1 Bronze, or U.S. No. 2. The requirements for these grades are set forth in the U.S. Standards for Grades of Grapefruit (Texas and States other than Florida, California and Arizona) (7 CFR 51.620 through 51.653). In addition, there are other qualities of grapefruit packed by the Texas citrus industry defined in section 906.137, pertaining to handlers' use of identifying marks utilized by the committee in promotional and advertising projects. Section 906.137 provides that handlers may use the identifying mark ``Texas Fancy'' only with respect to grapefruit grading at least U.S. No. 1, but with no more than 40 percent of the surface of the fruit, in aggregate, affected by discoloration. This quality of fruit is slightly better than that grading U.S. No. 1, but slightly less than that grading U.S. Fancy. Section 906.137 further provides that handlers may use the identifying mark ``Texas Choice'' only with respect to fruit grading at least U.S. No. 2, except that no more than 60 percent of the surface of the fruit, in aggregate, may be affected by discoloration. ``Texas Choice'' fruit is of a quality slightly better than that of a U.S. No. 2 grade, which provides that up to two-thirds of the fruit surface may be affected by discoloration. This proposed rule would amend section 906.365 to provide that the minimum quality of grapefruit shipped to fresh market outlets would be ``Texas Choice'', thereby eliminating the authority to ship U.S. No. 2 grade fruit beginning with 1994-95 season shipments. The committee recommended that the minimum quality requirements for fresh market shipments of Texas-grown grapefruit be increased, as specified. The committee reports that it expects that the proposed higher minimum quality requirements will result in better grapefruit being shipped to the fresh market, and that such fruit should receive greater consumer support, increase consumer demand, and improve grower returns. The consumer demand for such grapefruit should be strengthened, because consumers prefer the higher quality grapefruit which this proposed rule would require be shipped. Minimum grade requirements under the order are designed to provide fresh markets with fruit of acceptable grade and maturity, thereby maintaining consumer confidence in fresh Texas-grown grapefruit. This helps create buyer confidence and contributes to stable marketing conditions. The committee believes elimination of the U.S. No. 2 grade would have other benefits as well. First, it would reduce the number of different packs of grapefruit currently being offered by the Texas citrus industry from seven to six. This reduction would enhance standardization and reduce buyer confusion, which should benefit Texas growers and shippers. Second, this action would make the Texas grapefruit industry more competitive with other growing areas. The Citrus Administrative Committee which administers Federal Marketing Order No. 905, covering citrus grown in Florida, recently made a similar recommendation to eliminate the shipment of U.S. No. 2 grade grapefruit. The Texas industry believes it should do the same to remain viable in this highly competitive business. Finally, the committee believes that increasing the quality of grapefruit offerings from Texas would complement its promotion and advertising activities undertaken under authority of the order. These activities are designed to create buyer preference for Texas-grown grapefruit, and increasing the quality offered for shipment would enhance these efforts. This proposed increase in quality requirements should not have a significant impact on available supplies of fresh Texas grapefruit. The committee reports that in recent seasons, grapefruit grading U.S. No. 2 have comprised less than 1 percent of total fresh shipments. The benefits of this proposed rule should therefore outweigh any costs related to increasing the minimum quality requirements. Grapefruit not meeting ``Texas Choice'' quality requirements could be utilized in exempt outlets, such as processing, relief, charity, or home use. Temporary Relaxation of Minimum Size Requirements Section 906.365 also establishes minimum size requirements for Texas grapefruit. During the period November 16 through January 31 each season, grapefruit must be at least pack size 96, except that the minimum diameter for the grapefruit in any lot is 3\9/16\ inches. At other times, grapefruit that is pack size 112, except that the minimum diameter for grapefruit in any lot is 3\5/16\ inches, may be shipped if it grades at least U.S. No. 1. This proposed rule would provide that pack size 112 grapefruit may be shipped throughout the entire 1994-95 season if such grapefruit grade at least U.S. No. 1. This relaxation is the same as the relaxation which previously was issued for the period beginning October 25, 1993, and ending July 31, 1994. This relaxation is expected to help the Texas citrus industry successfully market its 1994-95 season grapefruit crop and have a positive effect on producer returns. Permitting shipments of pack size 112 grapefruit grading at least U.S. No. 1 for the entire 1994-95 season will enable Texas grapefruit handlers to meet market needs and compete with similar sized grapefruit expected to be shipped from Florida. This proposal is based on the current and prospective crop and market conditions for Texas grapefruit. Fresh Texas grapefruit shipments are expected to begin in October of this season. This proposed rule reflects the committee's and the Department's appraisal of the need to increase minimum quality and temporarily relax minimum size requirements for fresh Texas-grown grapefruit, as specified. The Department's view is that this proposed rule would have a beneficial impact on Texas producers and handlers of fresh grapefruit, since it would enable such producers and handlers to make available the quality and sizes of grapefruit needed to meet consumer needs consistent with 1994-95 season crop and market conditions. Based on the above, the Administrator of the AMS has determined that this proposed rule would not have a significant economic impact on a substantial number of small entities. A comment period of 15 days is deemed appropriate because the higher quality and relaxed size requirements for Texas grapefruit need to be in effect when shipment of Texas' 1994-95 season fresh grapefruit crop is expected to begin on or about October 15, 1994. List of Subjects in 7 CFR Part 906 Grapefruit, Marketing agreements, Oranges, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 7 CFR Part 906 is proposed to be amended as follows: PART 906--ORANGES AND GRAPEFRUIT GROWN IN LOWER RIO GRANDE VALLEY IN TEXAS 1. The authority citation for 7 CFR part 906 continues to read as follows: Authority: 7 U.S.C. 601-674. 2. Section 906.365 is amended by revising paragraphs (a)(3) and (a)(4) to read as follows: Sec. 906.365 Texas Orange and Grapefruit Regulation 34. (a) * * * (3) Such grapefruit grade U.S. Fancy, U.S. No. 1, U.S. No. 1 Bright, or U.S. No. 1 Bronze, or meet the quality requirements of ``Texas Fancy'' or ``Texas Choice'' as defined in section 906.137 of this part; (4) Such grapefruit are at least pack size 96, except that the minimum diameter limit for pack size 96 grapefruit in any lot shall be 3\9/16\ inches: Provided, That any handler may handle grapefruit, except during the period November 16 through January 31 each season, which are smaller than pack size 96, if such grapefruit grade at least U.S. No. 1 and they are at least pack size 112, except that the minimum diameter limit for pack size 112 grapefruit in any lot shall be 3\5/16\ inches: Provided further, That for the period beginning October 15, 1994, and ending July 31, 1995, any handler may handle grapefruit if such grapefruit grade at least U.S. No. 1 and they are at least pack size 112, except that the minimum diameter limit for pack size 112 grapefruit in any lot shall be 3\5/16\ inches in diameter. * * * * * Dated: August 25, 1994. Martha B. Ransom, Acting Deputy Director, Fruit and Vegetable Division. [FR Doc. 94-21634 Filed 8-31-94; 8:45 am] BILLING CODE 3410-02-P