[Federal Register Volume 60, Number 122 (Monday, June 26, 1995)]
[Proposed Rules]
[Pages 32922-32923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15509]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 965
[Docket No. FV95-965-1PR]
Tomatoes Grown in the Lower Rio Grande Valley in Texas; Proposed
Termination of Marketing Order 965
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This rule proposes to terminate the Federal marketing order
for tomatoes grown in the Lower Rio Grande Valley in Texas (order) and
the rules and regulations issued thereunder. In recent years, this
industry has declined significantly in numbers of producers and
handlers. In March 1959, when the order commenced, there were 2,488
producers and 61 handlers of tomatoes. Currently, there are
approximately 10 producers, 5 of which are also handlers. The Texas
Valley Tomato Committee (committee) last met on October 1, 1991, to
conduct nominations. However, only a few of the former committee
members are currently producers or handlers in the tomato industry and
eligible to serve on the committee. Handling regulations have not been
implemented since the 1973-74 fiscal period and there is no indication
that the industry will be revived. Thus, there is no need for the
Department of Agriculture to continue operation of this order.
DATES: Comments must be received by July 26, 1995.
ADDRESSES: Interested person are invited to submit written comments
concerning this proposal. Comments must be sent in triplicate to the
Docket Clerk, Fruit and Vegetable Division, AMS USDA, P.O. Box 96456,
room 2523-S, Washington, D.C. 20090-6456; (202) 720-5698. Comments
should reference the docket 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.
FOR FURTHER INFORMATION CONTACT: James B. Wendland, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone (202) 720-
2170, or Belinda G. Garza, McAllen Marketing Field Office, Fruit and
Vegetable Division, AMS, USDA, 1313 East Hackberry, McAllen, Texas
78501, telephone (210) 682-2833.
SUPPLEMENTARY INFORMATION: This proposed rule is governed by the
provisions of Sec. 608c(16)(A) of the Agricultural Marketing Agreement
Act of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as
the Act and Sec. 965.84 of the order.
The Department of Agriculture (Department) is issuing this rule in
conformance with Executive Order 12866.
This proposed termination of the order 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 Sec. 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
[[Page 32923]] small entities acting on their own behalf. Thus, both
statutes have small entity orientation and compatibility.
There are approximately 10 producers, 5 of which are also handlers
who would be subject to seasonal handling regulations under the order,
but none have been recommended since the early 1970's. Small
agricultural producers have been defined by the Small Business
Administration (13 CFR 121.601) as those having annual receipts of less
than $500,000, and small agricultural service firms are defined as
those whose annual receipts are less than $5,000,000. The majority of
the remaining South Texas tomato producers and handlers may be
classified as small entities.
The order was initially established in March 1959, to help the
industry solve its marketing problems and maintain orderly marketing
conditions. It was the responsibility of the Texas Valley Tomato
Committee (committee), the agency established for local administration
of the marketing order, to periodically investigate and assemble data
on the growing, harvesting, shipping, and marketing conditions of
tomatoes. The committee endeavored to achieve orderly marketing and
improve acceptance of Texas tomatoes through establishment of minimum
size and quality requirements. When regulated, fresh tomato shipments
consisted only of those grades and sizes desired by consumers, thus,
tending to increase returns to producers and handlers.
During the first year the order was in effect, there were 2,488
producers and 61 handlers of South Texas tomatoes. Over the years,
commercial production and handling of tomatoes grown in South Texas
have declined significantly. As a consequence, handling requirements
have not been applied since the early 1970's and there is no indication
that the industry will be revived or that regulations will be needed.
In September 1994, the Department conducted interviews with former
and remaining industry members to determine whether they expected a
revival of South Texas tomato production in the next two years.
Industry members did not give any indication that the industry would be
revived. Former industry members that were interviewed stated that they
did not plan to resume tomato production. They reported that the
decline in the industry was caused by a lack of new tomato varieties
adaptable to South Texas, which could make it more competitive with
Mexico and Florida.
Further, as stated above, there are currently only 10 producers, 5
of which are also handlers. Without an adequate number of producers and
handlers, the Department cannot appoint the required committee of
members and alternates, or otherwise continue the operation of the
order.
The committee holds a certificate of deposit in the amount of
$3,778.16, which matures on September 23, 1995, and a savings account
that totals $514.23. At the last meeting in 1991, the committee
recommended that any funds exceeding the expense of termination should
be donated to an institution that conducts research for agriculture in
the Lower Rio Grande Valley of South Texas.
Therefore, based on the foregoing, pursuant to Sec. 608c(16)(A) of
the Act and Sec. 965.84 of the order, the Department is considering the
termination of Marketing Order No. 965, covering tomatoes grown in the
Lower Rio Grande Valley in Texas. If the Secretary decides to terminate
the order, trustees would be appointed to continue in the capacity of
concluding and liquidating the affairs of the former committee, until
discharged by the Secretary.
Section 608c(16)(A) of the Act requires the Secretary to notify
Congress 60 days in advance of the termination of a Federal marketing
order.
Based on the foregoing, the Administrator of the AMS has determined
that this action would not have a significant impact on a substantial
number of small entities.
List of Subjects in 7 CFR Part 965
Marketing agreements, Reporting and recordkeeping requirements,
Tomatoes.
For the reasons set forth in the preamble, 7 CFR part 965 is
proposed to be removed.
PART 965--[REMOVED]
1. The authority citation for 7 CFR part 965 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
2. Accordingly, 7 CFR part 965 is removed.
Dated: June 20, 1995
Lon Hatamiya,
Administrator.
[FR Doc. 95-15509 Filed 6-23-95; 8:45 am]
BILLING CODE 3410-02-P
