Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Temporary Relaxation of Minimum Size Requirements for Texas Grapefruit

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Docket No. FV93-906-2 FR]

Oranges and Grapefruit Grown in the Lower Rio Grande Valley in

Texas; Temporary Relaxation of Minimum Size Requirements for Texas

Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: This rule finalizes without change an interim final rule that

temporarily relaxed the minimum size requirements for certain Texas

grapefruit for the entire 1993-94 season. The Texas Valley Citrus

Committee (committee) met July 15, 1993, and unanimously recommended

this action. This rule is expected to help the Texas citrus industry

successfully market the 1993-94 season grapefruit crop.

EFFECTIVE DATE: February 10, 1994.

FOR FURTHER INFORMATION CONTACT: Charles L. Rush, Marketing Specialist,

Marketing Order Administration Branch, Fruit and Vegetable Division,

AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-6456;

telephone: 202-720-2431; or Belinda G. Garza, McAllen Marketing Field

Office, USDA/AMS, 1313 East Hackberry, McAllen, Texas 78501; telephone:

210-682-2833.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing

Agreement and Marketing Order No. 906, as amended (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 is issuing this rule in conformance with Executive

Order 12866.

This final rule has been reviewed under Executive Order 12778,

Civil Justice Reform. This action 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 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 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 about 15 citrus handlers subject to regulation under the

marketing order covering oranges and grapefruit grown in Texas, and

about 750 producers of oranges and grapefruit in Texas. 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 $3,500,000. The majority of

these handlers and producers may be classified as small entities.

The committee, which administers the order locally, 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, information submitted by the committee and other

information, to determine whether modification, suspension, or

termination of the handling regulation is needed.

The interim final rule was issued on October 18, 1993, with an

effective date of October 25, 1993, and published in the Federal

Register (58 FR 54925, October 25, 1993). The interim final rule

provided a 30-day comment period ending November 24, 1993, and no

comments were received.

The interim final rule revised paragraph (a)(4) of Sec. 906.365 by

temporarily relaxing the minimum size requirement to permit shipment of

grapefruit measuring at least 3\5/16\ inches in diameter (pack size

112) for the entire 1993-94 season ending July 31, 1994, provided such

grapefruit grade at least U.S. No. 1.

This relaxation is expected to help the Texas citrus industry

successfully market its 1993-94 season grapefruit crop and have a

positive effect on producer returns. Permitting shipment of pack size

112 grapefruit grading at least U.S. No. 1 for the entire 1993-94

season will enable Texas grapefruit handlers to meet market needs and

compete with similar sized grapefruit expected to be shipped from

Florida. This action is based on the current and prospective crop and

market conditions for Texas grapefruit. Fresh Texas grapefruit

shipments began in mid-September this season.

The interim final rule also removed paragraph (c) of Sec. 906.365.

That paragraph set forth quality requirements for oranges and

grapefruit which were in effect through February 15, 1992. Thus, the

provisions in that paragraph were obsolete.

Texas grapefruit shipments to fresh markets in the United States,

Canada, and Mexico are subject to handling requirements effective under

this order. Exempt from such handling requirements are shipments made:

(1) Within the production area in Texas; (2) in individually addressed

gift packages aggregating not more than 500 pounds which are not for

resale; (3) under the 400 pound minimum quantity exemption provision;

and (4) for relief, charity, and home use. In addition, fruit shipped

to approved processors located outside of the production area may be

exempted from the handling requirements.

This final rule reflects the committee's and the Department's

appraisal of the need to finalize the relaxed requirements set forth in

the interim final rule. The Department believes that this action will

have a beneficial impact on producers and handlers because it will

permit 1993-94 season grapefruit shipments consistent with anticipated

crop and market conditions. The application of handling requirements to

Texas grapefruit over the years has been beneficial to the Texas citrus

industry in marketing its crops.

Based on the above, the Administrator of the AMS has determined

that this action will not have a significant economic impact on a

substantial number of small entities.

After consideration of all relevant matter presented, the

information and recommendations submitted by the committee, and other

information, it is found that the relaxation set forth below will tend

to effectuate the declared policy of the Act.

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

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. Accordingly, the interim final rule amending the provisions of

Sec. 906.365, which was published in the Federal Register at 58 FR

54925, October 25, 1993, is adopted as a final rule without change.

Dated: January 5, 1994.

Robert C. Keeney,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-606 Filed 1-10-94; 8:45 am]

BILLING CODE 3410-02-P