[Federal Register Volume 60, Number 218 (Monday, November 13, 1995)]
[Rules and Regulations]
[Pages 56935-56936]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-27813]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 915
[Docket No. FV95-915-1FIR]
Avocados Grown in South Florida; Revision of Grade Requirements
for Certain Florida Avocados
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule without change, the provisions of an interim final rule
which revised grade requirements for fresh Florida avocados shipped in
certain containers to destinations within the production area in
Florida. The marketing order regulates the handling of avocados grown
in South Florida and is administered locally by the Florida Avocado
Administrative Committee (committee). This rule enables Florida growers
and handlers to market a larger percentage of their crop in the
production area, in response to demand.
EFFECTIVE DATE: December 13, 1995.
FOR FURTHER INFORMATION CONTACT: Aleck Jonas, Marketing Specialist,
Southeast Marketing Field Office, Fruit and Vegetable Division, AMS,
USDA, P.O. Box 2276, Winter Haven, Florida 33883-2276; telephone: 813-
299-4770; or Caroline C. Thorpe, Marketing Specialist, Marketing Order
Administration Branch, F&V, AMS, USDA, room 2522-S, P.O. Box 96456,
Washington, DC 20090-6456; telephone: (202) 720-8139.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order
No. 915 (7 CFR Part 915), regulating the handling of avocados grown in
South 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 is issuing this rule in conformance with Executive
Order 12866.
This rule has been reviewed under Executive Order 12778, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This final rule will not preempt any State or local laws, regulations,
or policies, unless they present an irreconcilable conflict with this
rule.
The Act provides that administrative proceedings must be exhausted
before parties may file suit in court. Under section 608c(15)(A) of the
Act, any handler subject to an order may file with 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 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, 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 a 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 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 approximately 65 handlers of avocados who are subject to
regulation under the marketing order and approximately 95 producers of
avocados in the regulated area. Small agricultural service firms are
defined by the Small Business Administration (13 CFR 121.601) as those
having annual receipts of less than $5,000,000, and small agricultural
producers are defined as those whose annual receipts are less than
$500,000. The majority of handlers and producers of South Florida
avocados may be classified as small entities.
An interim final rule was issued on August 11, 1995, and published
in the Federal Register (60 FR 42770, August 17, 1995), with an
effective date of August 17, 1995. That rule provided a 30-day comment
period which ended September 18, 1995. No comments were received.
This rule finalizes an interim final rule which revised the order's
rules and regulations by removing all grade requirements for fresh
avocados shipped to destinations within the production area in Florida
packed in containers other than those authorized under Sec. 915.305.
The committee met July 12, 1995, and unanimously recommended this
action.
Sections 915.50 and 915.52 provide the authority for the committee
to recommend various regulations and modifications, suspension, or
termination of regulations to the Secretary. Section 915.306 of the
regulations specifies grade, pack, and container marking regulations
for fresh shipments of avocados grown in Florida. Currently
Sec. 915.306 of the order specifies that all fresh Florida avocados
must grade at least U.S. No. 2, when shipped in any container.
This rule revises Sec. 915.306 by removing all grade requirements
for fresh avocados shipped to destinations within the Florida
production area packed in containers other than those authorized under
Sec. 915.305. Section 915.306 was amended through a proposed rule
published at 56 FR 4953 on February 7, 1991, and finalized at 56 FR
36079 on July 31, 1991. That amendment established a minimum grade
requirement of U.S. No. 2 and container marking and sealing
requirements for Florida avocados handled to points within the
production area (South Florida). This rule was established prior to
Hurricane Andrew when avocados were plentiful. Shipments of poorer
quality avocados to the markets within the production area
[[Page 56936]]
depressed prices for better quality avocados and resulted in lower
overall returns to producers. Plentiful supplies of avocados had
allowed for higher quality avocados to be offered at a relatively lower
cost, encouraging consumption by presenting a higher quality product.
However, Hurricane Andrew, in August of 1992, reduced production
acreage from approximately 9,000 acres to less than 6,000 acres with
many non-producing trees in the remaining acreage. Production in the
1991-92 season was 1,110,105 bushels. In the 1992-93 season, production
fell to 283,666 bushels and in the 1993-94 season it was at 174,712
bushels. In response to this reduced production the committee requested
and was granted a temporary suspension of grade requirements for fresh
avocados shipped in certain containers to destinations within the
production area in Florida. The relaxation for the 1993-94 season was
published as a final rule at 58 FR 34684, on June 29, 1993, and for the
1994-95 season by a final rule published at 59 FR 33417 on June 29,
1994. These temporary relaxations were requested and granted under the
assumption that production would return to pre-Hurricane Andrew levels.
Although the 1994-95 season recovered to 778,951 bushels, it is
still well below the levels reached prior to the hurricane. Also,
changing economic and environmental priorities of the South Florida
area are capping the growth on Florida avocado production. Future
production is expected to remain flat at approximately 700,000 bushels
annually, or to increase only slightly. The committee considers
production levels set prior to Hurricane Andrew as unattainable.
The temporary grade relaxations of the last two seasons were
successful in making additional supplies of fruit available to meet
consumer needs consistent with crop and market conditions. The
relaxations demonstrated that there is a market for lower quality
avocados in the production area. Also, better quality avocados did not
suffer depressed prices due to the availability of the lower quality
fruit.
The container and marking requirements clearly identify graded
avocados from non-graded avocados. Those avocados sold in the
production area which are not subject to grade cannot be packed in
regulated containers. This allows customers to readily identify graded
versus those not meeting grade.
This continued relaxation provides Florida avocado growers and
handlers with an opportunity to sell, in the production area, fresh
avocados which would otherwise be culled during the packing process,
thus making additional avocados available to consumers. This rule is
expected to facilitate the movement of fresh market avocados sold
within the production area.
This relaxation only applies to Florida avocados shipped to
destinations within the production area. Thus, the U.S. No 2 grade
requirement will continue to apply unchanged to avocados shipped to
destinations outside the production area, as well as to all avocados
shipped to any destination in those containers whose size and type are
specified in Sec. 915.305. Also unchanged by this action are current
maturity, container, pack, and inspection requirements for all fresh
Florida avocado shipments under the avocado marketing order.
Avocados imported into the United States must grade at least U.S.
No. 2, as provided in Sec. 944.28 (7 CFR 944.28). Since this rule does
not change the minimum grade requirement of U.S. No. 2 specified in
Sec. 915.306 for avocados handled to points outside the production
area, there is no need to change the avocado import regulation. Section
8e of the Act (7 U.S.C. 608e-1) requires that whenever specified
commodities, including avocados, are regulated under a Federal
marketing order, imports of that commodity into the United States must
meet the same or comparable grade, size, quality, or maturity
requirements as those in effect for the domestically produced
commodity.
This rule reflects the committee's and the Department's appraisal
of the need to relax the grade requirements for certain avocados grown
in Florida. The Department's view is that this action will have a
beneficial impact on producers and handlers since it will permit
avocado handlers to make additional supplies of fruit available to meet
consumer needs consistent with crop and market conditions.
Based on these considerations, the Administrator of the AMS has
determined that this rule will not have a significant economic impact
on a substantial number of small entities.
After consideration of all relevant material presented, including
the Committee's recommendation, and other available information, it is
found that finalizing the interim final rule, without change, as
published in the Federal Register (60 FR 42769, August 17, 1995), will
tend to effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 915
Avocados, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, 7 CFR part 915 is
amended as follows:
PART 915--AVOCADOS GROWN IN SOUTH FLORIDA
Accordingly, the interim final rule amending 7 CFR part 915 which
was published at 60 FR 42769 on August 17, 1995, is adopted as a final
rule without change.
Dated: November 3, 1995.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 95-27813 Filed 11-9-95; 8:45 am]
BILLING CODE 3410-02-P
