Apricots Grown in Designated Counties in Washington; Temporary Suspension of Grade Requirements

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 922

[Docket No. FV96-922-1IFR]

Apricots Grown in Designated Counties in Washington; Temporary

Suspension of Grade Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule suspends, for the 1996 season only,

the minimum grade requirements (Washington No. 1) currently in effect

for fresh shipments of apricots grown in Washington. This change was

recommended by the Washington Apricot Marketing Committee (committee),

which works with the Department of Agriculture (Department) in

administering the marketing order covering apricots grown in designated

counties in Washington. This rule will enable handlers to ship more

fruit in fresh market channels, taking into consideration the damage

caused to Washington apricots by freezing temperatures during the

growing season. This change is expected to increase returns to

producers and to make more fresh apricots available to consumers.

DATES: This interim final rule is effective June 15, 1996. Comments

which are received by July 17, 1996, will be considered prior to the

issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments

concerning this interim final rule. Comments must be sent in triplicate

to the Docket Clerk, Fruit and Vegetable Division, AMS, USDA, Room

2525, South Building, P.O. Box 96456, Washington, DC 20090-6456, Fax:

(202) 720-5698. All 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: Teresa L. Hutchinson, Northwest

Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 1220

SW Third Avenue, Room 369, Portland, OR 97204; telephone: (503) 326-

2724; or Britthany E. Beadle, Marketing Order Administration Branch,

Fruit and Vegetable Division, Agricultural Marketing Service, U.S.

Department of Agriculture, Room 2523-S, P.O. Box 96456, Washington, DC

20090-6456; telephone: (202) 720-5331.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing

Agreement No. 132 and Marketing Order No. 922 [7 CFR Part 922], both as

amended, regulating the handling of apricots grown in designated

counties in Washington, hereinafter referred to as the ``order.'' The

order is authorized by 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 12778, 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

[[Page 30496]]

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.

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.

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 approximately 75 handlers of Washington apricots who are

subject to regulation under the order and approximately 400 producers

in the regulated area. Small agricultural service firms, which includes

handlers of Washington apricots, 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. The

majority of Washington apricot handlers and producers may be classified

as small entities.

Section 922.52 of the order authorizes the issuance of grade, size,

quality, maturity, container markings, pack, and container regulations

for any variety or varieties of apricots grown in any district or

districts of the production area. Section 922.53 further authorizes the

modification, suspension, or termination of regulations issued under

Sec. 922.52. Section 922.55 provides that whenever apricots are

regulated pursuant to Secs. 922.52 or 922.53, such apricots must be

inspected by the Federal-State Inspection Service, and certified as

meeting the applicable requirements of such regulations.

Minimum grade, maturity, color, and size requirements for

Washington apricots regulated under the order are specified in

Sec. 922.321 Apricot Regulation 21 [7 CFR 922.321]. Section 922.321

provides that no handler shall handle any container of apricots unless

such apricots grade not less than Washington No. 1, except for

shipments subject to exemption under the regulation. In addition, the

section provides that the Moorpark variety in open containers must be

generally well matured. Also, that section provides that, with the

exception of exempt shipments, apricots must be at least reasonably

uniform in color, and be at least 1\5/8\ inches in diameter, except for

the Blenheim, Blenril, and Tilton varieties which must be at least 1\1/

4\ inches in diameter. Individual shipments of apricots are exempt from

these requirements if sold for home use only, do not exceed 500 pounds

net weight, and containers are stamped or marked with the words ``not

for resale.''

This rule amends paragraph (a)(1) of Sec. 922.321 by temporarily

suspending the minimum grade requirements for fresh shipments of

apricots for the 1996 season only. The grade requirements currently

specified in Sec. 922.321 will resume April 1, 1997, for 1997 and

future seasons.

At its May 16, 1996, meeting, the committee unanimously recommended

suspending the grade requirements for the 1996 season. The committee

requested that this suspension be effective by June 15, the date

shipments of the 1996 Washington apricot crop are expected to begin.

The committee meets prior to and during each season to consider

recommendations for modification, suspension, or termination of the

regulatory requirements for Washington apricots which have been issued

on a continuing basis. Committee meetings are open to the public and

interested persons may express their views at these meetings. The

Department reviews committee recommendations and information submitted

by the committee and other available information, and determines

whether modification, suspension, or termination of the regulatory

requirements would tend to effectuate the declared policy of the act.

The committee reports that the apricot crop was severely damaged by

several freezes last winter and early this spring. The severe weather

conditions resulted in a high percentage of damage from russeting, scab

spots, and other grade defects making it difficult for apricots to meet

the minimum grade requirements of Washington No. 1. The committee

estimates that only 2,300 tons of apricots will be shipped fresh during

the 1996 season, even with the grade requirements suspended as

requested. This amount is 52 percent of last season's fresh shipments

of 4,452 tons and 46 percent of the five-year average of 4,965 tons.

This rule suspends only the grade requirements specified in

Sec. 922.321. Thus, the color and minimum size requirements for all

varieties and the well matured requirements for the Moorpark variety

will remain unchanged.

This rule will enable handlers to ship a larger portion of their

crop to the fresh market this season, taking into account the abnormal

growing conditions, than they would be allowed if the minimum grade

requirements were not suspended. Suspension of the grade requirements

for Washington apricots is intended to increase fresh shipments to meet

consumer needs and improve returns to producers. It is the Department's

view that the impact of this action upon producers and handlers, both

large and small, will be beneficial because it will enable handlers to

provide apricots consistent with 1996 season growing conditions.

Therefore, 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 relevent material presented, the

information and recommendation submitted by the committee, and other

available information, it is found that suspending the minimum grade

requirements, as set forth in this rule, 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 rule until 30 days after publication in the Federal Register

because: (1) This rule suspends the current grade requirements for

Washington apricots; (2) this rule was unanimously recommended by the

committee at an open public meeting and all interested persons had an

opportunity to express their views and provide input; (3) Washington

apricot handlers are aware of this rule and need no additional time to

comply with the relaxed requirements; (4) this rule should be in effect

by June 15, 1996, the date 1996 season shipments of the Washington

apricot crop are expected to begin, and this action should apply to the

entire season's shipments; and (5) this rule provides a 30-day comment

period, and any comments received will be considered prior to

finalization of this rule.

List of Subjects in 7 CFR Part 922

Marketing agreements, Apricots, Reporting and recordkeeping

requirements.

[[Page 30497]]

For the reasons set forth in the preamble, 7 CFR Part 922 is

amended as follows:

PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON

1. The authority citation for 7 CFR Part 922 continues to read as

follows:

Authority: 7 U.S.C. 601-674.

2. Section 922.321 is amended by revising paragraph (a)(1) to read

as follows:

Sec. 922.321 Apricot Regulation 21.

(a) * * *

(1) Minimum grade and maturity requirements. Such apricots that

grade not less than Washington No. 1 and are at least reasonably

uniform in color: Provided, That the grade requirement shall not apply

to apricots handled from June 15, 1996, through March 31, 1997;

Provided further, That such apricots of the Moorpark variety in open

containers shall be generally well matured; and

* * * * *

Dated: June 12, 1996.

Sharon Bomer Lauritsen,

Deputy Director, Fruit and Vegetable Division.

[FR Doc. 96-15350 Filed 6-14-96; 8:45 am]

BILLING CODE 3410-02-P