[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.
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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
