[Federal Register Volume 62, Number 137 (Thursday, July 17, 1997)]
[Rules and Regulations]
[Pages 38203-38204]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18820]
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Rules and Regulations
Federal Register
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Federal Register / Vol. 62, No. 137 / Thursday, July 17, 1997 / Rules
and Regulations
[[Page 38203]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[Docket No. FV97-959-1 FIR]
Onions Grown in South Texas; Amendment of Sunday Packing and
Loading Prohibitions
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (Department) is adopting as a
final rule, with change an interim final rule which removed the
restriction prohibiting handlers from packaging and loading onions on
Sunday. The order regulates the handling of onions grown in South Texas
and is administered locally by the South Texas Onion Committee
(Committee). The Committee unanimously recommended removing the
prohibition to increase supplies of South Texas onions in the
marketplace. Heavy rainfall in the production area during late March
and most of April prevented handlers from packing and loading enough
onions to meet buyer needs. Removing the prohibition provided handlers
additional time to prepare onions for market and meet buyer needs. This
rule also changes an erroneous regulatory period ending date which
appeared in the interim final rule.
EFFECTIVE DATE: August 18, 1997.
FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Regional Manager,
McAllen Marketing Field Office, Marketing Order Administration Branch,
F&V, AMS, USDA, 1313 E. Hackberry, McAllen, Texas 78501; telephone:
(210) 682-2833, Fax: (210) 682-5942; or George J. Kelhart, Technical
Advisor, Marketing Order Administration Branch, Fruit and Vegetable
Division, AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-
6456; telephone: (202) 690-3919; Fax: (202) 720-5698. Small businesses
may request information on compliance with this regulation by
contacting Jay Guerber, Marketing Order Administration Branch, Fruit
and Vegetable Division, AMS, USDA, room 2525-S, P.O. Box 96456,
Washington, DC 20090-6456; telephone: (202) 720-2491; Fax: (202) 720-
5698.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 143 and Order No. 959, both as amended (7 CFR part 959),
regulating the handling of onions grown in South Texas, hereinafter
referred to as the ``order.'' The marketing agreement and order are
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 12988, Civil
Justice Reform. This rule is not intended to have retroactive effect.
This 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 his or her
principal place of business, has jurisdiction to review the Secretary's
ruling on the petition, provided an action is filed not later than 20
days after the date of the entry of the ruling.
Due to record amounts of rainfall during late March and most of
April 1997, South Texas growers had difficulty harvesting their onions.
Normally, 1\1/2\ to 2 million 50-lb. equivalents of onions are shipped
by April 15, but this year only approximately \1/2\ million were
shipped by that date.
Section 959.322 of the order prohibits the packaging and loading of
onions on Sundays during the March 1 through May 20 period each season.
This restriction was implemented to contribute to orderly marketing
conditions. However, the industry indicated that, since the advent of
the heavy rains, all onions had to be dried in mechanical dryers prior
to packing. This disrupted the normal pattern of harvesting, packing,
and loading. Growers could not harvest more onions until the dryers
were emptied, and dryers could not be emptied until the dried onions
could be packed and shipped. Thus, the Sunday packing and loading
restrictions had placed an undue hardship on growers and handlers.
There was a need to pack and ship each day of the week.
The Committee met on April 16, 1997, and, by telephone vote,
unanimously recommended revising the current handling regulation to
remove the restriction on packing and loading onions on Sundays for the
remainder of the 1997 shipping season. That recommendation was intended
to provide handlers with greater flexibility and additional time to
prepare the onions for market.
If this recommendation had not been implemented, crop losses would
have been significant. In addition, the cessation in harvesting
activity would have resulted in increased unemployment among onion
field workers and employees at handlers' facilities. Finally, reduced
supplies would likely have resulted in consumers paying higher prices
for South Texas onions.
Thus, in the interest of growers, handlers, and consumers, the
interim final rule relaxed requirements by modifying language in the
order's handling regulation, as authorized by Sec. 959.52 of the order,
to allow Sunday packing and loading of onions during the period April
20, 1997, through May 20, 1997. This final rule finalizes that action.
In 1998, Sunday packing and loading prohibitions will again apply to
handlers marketing South Texas onions during the period March 1, 1998,
through May 20, 1998.
This final rule also corrects the June 15 ending date in the first
sentence of
[[Page 38204]]
Sec. 959.322. The correct date is ``June 4'', and the first sentence of
Sec. 959.322 is changed accordingly.
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), the Agricultural Marketing Service (AMS) has considered the
economic impact of this action on small entities. Accordingly, AMS has
prepared this final 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 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 36 handlers of South Texas onions who are subject to
regulation under the order and approximately 60 producers in the
regulated area. Small agricultural service firms, which includes
handlers, have been defined by the Small Business Administration (13
CFR 121.601) as those having annual receipts of less than $5,000,000.
Small agricultural producers are defined as those having annual
receipts of less than $500,000. The majority of handlers and producers
of South Texas onions may be classified as small entities.
Committee meetings are widely publicized in advance and are held in
a location central to the production area. The meetings are open to all
industry members (including small business entities) and other
interested persons--who are encouraged to participate in the
deliberations and voice their opinions on topics under discussion.
Thus, Committee recommendations can be considered to represent the
interests of small business entities in the industry.
Many years of marketing experience led to the development of the
current shipping and packing procedures. These procedures have helped
the industry address marketing problems by keeping supplies and
movement of packed onions in balance with market needs, and
strengthening market conditions. However, the heavy rains in late March
and most of April 1997, disrupted the normal pattern of harvesting,
packing, and loading. All onions had to be dried in mechanical dryers
prior to packing. Growers could not harvest more onions until the
dryers had been emptied, and the dryers could not be emptied until the
dried onions could be packed and shipped. Thus, the Sunday packing and
loading prohibition placed an undue burden on South Texas onion growers
and packers.
The Committee considered not relaxing the regulation for the
remainder of the season, but felt that would result in significant crop
losses. The Committee also felt that a cessation in harvesting activity
would result in increased unemployment among onion field workers and
employees at handlers' facilities. In addition, the Committee believed
that reduced supplies would likely have resulted in consumers paying
higher prices for these onions.
While the level of benefits of the interim final rule are difficult
to quantify, the stabilizing effects of the relaxation in the packing
and loading regulation impacted both small and large onion handlers
positively by helping them maintain markets in the phase of adverse
harvesting and packing conditions in 1997.
There are some reporting, recordkeeping, and other compliance
requirements under the marketing order. The reporting and recordkeeping
burdens are necessary for compliance purposes and for developing
statistical data for maintenance of the program. The forms require
information which is readily available from handler records and which
can be provided without data processing equipment or trained
statistical staff. As with other similar marketing order programs,
reports and forms are periodically reviewed to reduce or eliminate
duplicate information collection burdens by industry and public sector
agencies. This final rule does not change those requirements.
The Department has not identified any relevant Federal rules that
duplicate, overlap, or conflict with this regulation.
An interim final rule regarding this action was issued by the
Department on April 18, 1997, and published in the Federal Register (62
FR 19667, April 23, 1997), with an effective date of April 19, 1997.
That rule provided a 30-day comment period which ended May 23, 1997. No
comments were received. However, as stated earlier, the interim final
rule, contained an erroneous regulatory period ending date and this
document changes it.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
finalizing the interim final rule, with change, will tend to effectuate
the declared policy of the Act.
List of Subjects in 7 CFR Part 959
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
Accordingly, the interim final rule amending 7 CFR part 959 which
was published at 62 FR 19667 on April 23, 1997, is adopted as a final
rule with the following change:
PART 959--ONIONS GROWN IN SOUTH TEXAS
1. The authority citation for 7 CFR part 959 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Sec. 959.322 [Amended]
2. Section 959.322, introductory text, is amended by removing the
date ``June 15,'' in the first sentence and adding the date ``June 4,''
in its place.
* * * * *
Dated: July 11, 1997.
Sharon Bomer Lauritsen,
Acting Director, Fruit and Vegetable Division.
[FR Doc. 97-18820 Filed 7-16-97; 8:45 am]
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