Oranges and Grapefruit Grown in the Lower Rio Grande Valley in Texas; Interim Final Rule to Temporarily Relax Size Requirements for Texas Grapefruit

SUMMARY: This interim final rule temporarily relaxes the minimum size

requirements for Texas grapefruit for the entire 1995-96 season. This

interim final rule is designed to help the Texas citrus industry

successfully market the 1995-96 season grapefruit crop.

EFFECTIVE DATE: October 23, 1995. Comments received by November 22,

1995, will be considered prior to issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments

concerning this interim final 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: 202-690-

3670; or Belinda G. Garza, McAllen Marketing Field Office, USDA/AMS,

1313 East Hackberry, McAllen, Texas 78501; telephone: 210-682-2833.

SUPPLEMENTARY INFORMATION: This interim final 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 interim final rule has been reviewed under Executive Order

12778, Civil Justice Reform. This interim final 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 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 of 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 August 15,

1995, and recommended relaxing the size requirements 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

amends Sec. 906.365 by revising paragraph (a)(4) to permit shipment of

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

112) and grading at least U.S. No. 1 for the entire 1995-96 season

ending June 30, 1996.

Section 906.365 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, that is 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. The minimum grade requirement for

[[Page 54292]]

grapefruit is U.S. No. 2. This interim final rule provides that pack

size 112 grapefruit may be shipped throughout the entire 1995-96 season

if such grapefruit grade at least U.S. No. 1. This relaxation is

similar to the relaxations which were issued for the 1993-94 and 1994-

95 seasons.

Permitting shipments of pack size 112 grapefruit grading at least

U.S. No. 1 for the remainder of the 1995-96 season will enable Texas

grapefruit handlers to meet market needs and compete with similar sized

grapefruit expected to be shipped from Florida.

This relaxation is expected to help the Texas citrus industry

successfully market its 1995-96 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 1995-96

season will enable Texas grapefruit handlers to meet market needs. This

interim final rule is based on the current and prospective crop and

market conditions for Texas grapefruit. Fresh Texas grapefruit

shipments are expected to begin in late September this season.

This interim final rule reflects the committee's and the

Department's appraisal of the need to temporarily relax minimum size

requirements for fresh Texas-grown grapefruit, as specified. The

Department's view is that this interim final rule will have a

beneficial impact on Texas producers and handlers of fresh grapefruit,

since it enables such producers and handlers to make available the

quality and sizes of grapefruit needed to meet consumer needs

consistent with 1995-96 season crop and market conditions.

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

that this interim final rule will not have a significant economic

impact on a substantial number of small entities.

After consideration of all relevant matter presented, including the

information and recommendations submitted by the TVCC and other

available information, it is hereby found that this rule as hereinafter

set forth will tend to effectuate the declared policy of the Act.

Pursuant to 5 U.S.C. 553, it is also found and determined upon good

cause that it is impracticable, unnecessary, and contrary to the public

interest to give preliminary notice prior to putting this rule into

effect and that good cause exists for not postponing the effective date

of this action until 30 days after publication in the Federal Register

because: (1) The 1995-96 season began September 13; (2) Texas citrus

handlers are aware of this relaxation which was recommended by the TVCC

at a public meeting, and they will need no additonal time to comply

with such requirements; and (3) this interim final rule provides a 30-

day comment period, and all comments timely received will be considered

prior to finalization of this rule.

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 THE 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 paragraph (a)(4) to read

as follows:

Sec. 906.365 Texas Orange and Grapefruit Regulation 34.

(a) * * *

(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 23,

1995, and ending June 30, 1996, 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: October 17, 1995.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 95-26205 Filed 10-20-95; 8:45 am]

BILLING CODE 3410-02-P