Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; Procedures to Limit the Volume of Small Florida Red Seedless Grapefruit and Notice of Request for Extension and Revision of a Currently Approved Information Collection

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV-96-905-2PR]

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;

Procedures to Limit the Volume of Small Florida Red Seedless Grapefruit

and Notice of Request for Extension and Revision of a Currently

Approved Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on the addition of a section to

the rules and regulations currently prescribed under the marketing

order for oranges, grapefruit, tangerines, and tangelos grown in

Florida. This action also announces the Agricultural Marketing

Service's (AMS) intention to request an extension for and revision to

the currently approved information

[[Page 44188]]

collection requirements issued under the marketing order. The marketing

order is administered locally by the Citrus Administrative Committee

(committee). This rule would establish procedures for limiting the

volume of small red seedless grapefruit entering the fresh market

during the first 11 weeks of each season. The committee believes these

procedures could be used, when necessary, to help stabilize the market

and improve grower returns.

DATES: Comments must be received by September 27, 1996. Pursuant to the

Paperwork Reduction Act, comments on the information collection burden

must be received by October 28, 1996.

ADDRESSES: Interested persons are invited to submit written comments

concerning this proposal. Comments must be sent in triplicate to the

Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S,

P.O. Box 96456, Washington, D.C. 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. Small businesses may request information on compliance

with this regulation by contacting: Jay Guerber, Marketing Order

Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2523-S, Washington, DC 20090-6456; telephone (202) 720-

2491, Fax # (202) 720-5698.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast

Marketing Field Office, AMS, USDA, P.O. Box 2276, Winter Haven, Florida

33883-2276; telephone: (941) 299-4770, Fax # (941) 299-5169; or

Caroline Thorpe, Marketing Order Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2522-S, Washington,

D.C. 20090-6456; telephone: (202) 720-8139, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing

Agreement and Marketing Order No. 905 (7 CFR Part 905), as amended,

regulating the handling of oranges, grapefruit, tangerines, and

tangelos grown in Florida, 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 proposal has been reviewed under Executive Order 12988, Civil

Justice Reform. This rule is not intended to have retroactive effect.

This proposal 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 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 100 handlers subject to regulation under

the order and approximately 11,000 producers of citrus 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, and small

agricultural producers are defined as those having annual receipts of

less than $500,000. The majority of handlers and producers of citrus

grown in Florida may be classified as small entities.

This proposed rule would add procedures to the rules and

regulations itself. It would not establish any volume regulation. Any

implementation of these procedures concerning regulation would require

further committee action and additional public rulemaking by the

Department.

However, if the procedures in this proposal were used and volume

regulations established, all growers and handlers would be impacted

equitably. Before any implementation would occur, the committee would

meet and consider any and all economic data available. The goal of this

proposal is to provide an additional tool, if needed, to help stabilize

the price of red grapefruit. In the past three seasons, during the

period which would be covered by this proposed rule, prices of red

seedless grapefruit have fallen from an average f.o.b. of $7.80 per box

to an average f.o.b. of $5.50 per box. On tree prices for fresh red

seedless grapefruit have declined steadily from $9.60 per box during

the 1989-90 season, to $3.45 per box during the 1994-95 season. In many

cases, prices during the past two seasons have provided returns less

than production costs. This price reduction is forcing many small

producers out of business. A stabilized price that returns a fair

market value would be beneficial to both small and large producers and

handlers.

Based on this information, the AMS has determined that this action

would not have a significant economic impact on a substantial number of

small entities. Interested persons are invited to submit information on

the regulatory and informational impacts of this action on small

businesses.

The order provides for the establishment of grade and size

requirements for Florida citrus. These grade and size requirements are

designed to provide fresh markets with citrus fruit of acceptable

quality and size, thereby maintaining consumer confidence for fresh

Florida citrus. This helps create buyer confidence and contributes to

stable marketing conditions. This is in the interest of producers,

handlers, and consumers, and is designed to increase returns to Florida

citrus producers. The current minimum grade standard for red seedless

grapefruit is U.S. No. 1, and the minimum size requirement is size 56

(at least 3\5/16\ inches in diameter).

This proposal invites comments on the addition of a section to the

rules and regulations under the order. This rule would establish

procedures for limiting the volume of small red seedless grapefruit

entering the fresh market during the first 11 weeks of each season. The

red seedless grapefruit season runs from mid-September to May. This

rule would provide an additional tool under the order to help stabilize

the market and improve returns to growers. These changes were

recommended by the committee at its meeting on May 24, 1996, by a 10 to

4 vote.

Section 905.52 of the Florida citrus marketing order provides

authority to

[[Page 44189]]

limit shipments of any grade or size, or both, of any variety of

Florida citrus. Such limitations may restrict the shipment of a portion

of a specified grade or size of a variety. Under such a limitation, the

quantity of such grade or size that may be shipped by a handler during

a particular week shall be established as a percentage of the total

shipments of such variety by such handler in a prior period,

established by the committee and approved by the Secretary, in which

the handler shipped such variety. This proposed rule would add

Sec. 905.153 to the rules and regulations to establish a specified

prior period and other procedures necessary to limit the volume of

small red seedless grapefruit, sizes 48 and 56, entering the fresh

market during the first 11 weeks of the season.

Currently, there are no limitations on the amount of size 48 and

size 56 red seedless grapefruit that can be shipped to market. This

rule in itself would not limit shipments, but would outline procedures

to do so if needed. Implementation of these procedures to limit

shipments would require further rulemaking.

The committee recommended this rule to address problems currently

facing the industry. For the past few seasons, returns on red seedless

grapefruit have been at all time lows, often not returning the cost of

production. Fifty-nine percent of red seedless grapefruit is shipped to

fresh market channels. There is a processing outlet for grapefruit not

sold into the fresh market. The vast majority of processing is

squeezing the grapefruit for juice. Because of the properties of the

juice of red seedless grapefruit, including problems with color, the

processing outlet is limited, and not currently profitable.

Several areas of new plantings in the southern growing region are

just beginning to bear fruit. Young trees normally produce mostly small

fruit when they first come into production. Florida producers and

handlers realize that these new acres will add to the abundance of

small sizes of red seedless grapefruit.

The committee believes that to stabilize the market and improve

returns to producers, demand for fresh red seedless grapefruit must be

stabilized and increased. One problem contributing to the current state

of the market is the excessive number of small sized grapefruit shipped

early in the marketing season. While there is a market for early

grapefruit, the shipment of large quantities of small red seedless

grapefruit in a short period oversupplies the fresh market for these

sizes and negatively impacts the market for all sizes.

The committee believes that the overshipment of smaller sized red

seedless grapefruit early in the season has contributed to below

production cost returns for producers. Based on statistical information

from past seasons, there is an indication that once shipments of sizes

48 and 56 reach levels above 250,000 cartons a week, prices decline on

those and most other sizes of red seedless grapefruit. Thus, even

though later in the season the crop has sized to naturally limit the

amount of smaller sizes available for shipment, the price structure in

the market has already been negatively affected.

For the majority of the season, larger sizes return better prices

than smaller sizes. If these small grapefruit were allowed to remain on

the tree to increase in size and maturity, they could provide greater

returns to producers. Delaying the harvest of small sizes may also

extend the season, thereby increasing the total volume of fresh

shipments and improving producer returns. Without volume regulation,

the industry has been unable to limit the shipments of small sizes. The

committee believes that if shipments of small sizes could be maintained

at around 250,000 cartons a week, prices should stabilize and demand

for larger, more profitable sizes should increase.

Similar procedures to those considered in this rule are already in

place for Dancy tangerines under Sec. 905.152. While the committee has

not utilized these procedures for several years, they were successfully

implemented for several seasons.

Under the proposed procedures, the authority to limit the shipment

of sizes 48 and 56 red seedless grapefruit would only be available for

the 11-week period from the third Monday in September (week #1) through

the first Sunday in December (week #11), hereinafter called the

regulatory period. The committee recommended these weeks for regulation

because the majority of small sizes are shipped during this period. By

the end of the regulatory period, fruit has begun to size naturally,

and there are fewer small sizes available.

The committee may recommend that only a certain percentage of size

48 (3\9/16\ minimum diameter in inches) and size 56 (3\5/16\ minimum

diameter in inches) red seedless grapefruit be made available for

shipment into fresh market channels for any week or weeks during the

regulatory period. Should the committee decide to recommend the

limitation of shipments of sizes 48 and 56 red seedless grapefruit,

they would meet and recommend to the Secretary a percentage on which to

base the amount of sizes 48 and 56 that could be shipped during a

particular week or weeks during the regulatory period. The committee

realizes that markets for these sizes do exist. Therefore, the

percentage set could not be less than 25 percent of the calculated

shipment base. These procedures are designed not to eliminate shipments

of sizes 48 and 56, but to keep them from saturating the entire market.

Section 905.52 provides that whenever any size limitation restricts

the shipment of a portion of a specified size, the quantity of such

size that may be shipped by a handler during a particular week shall be

established as a percentage of the total shipments of such variety by

such handler in such prior period as established by the committee and

approved by the Secretary.

This proposed rule would establish the prior period as an average

week within the immediately preceding five seasons. An average week

would be calculated as follows. The total red seedless grapefruit

shipments by a handler during the 33-week period beginning the third

Monday in September and ending the first Sunday in May during the past

five seasons would be added and divided by five to establish an average

season. This average season would then be divided by the 33 weeks in a

season to derive the average week. This week would be the basis for

each shipper for each of the 11 weeks contained in the regulation

period.

To illustrate, suppose Handler A shipped a total of 50,000 cartons,

65,000 cartons, 45,000 cartons, 80,000 cartons, and 25,000 cartons of

red seedless grapefruit in the last five seasons, respectively. Adding

these season totals and dividing by five yields an average season of

53,000 cartons. The average season would then be divided by 33 weeks to

yield an average week, in this case, 1,606 cartons. This would be

Handler A's base.

The committee chose to use the past five seasons for the average

season to provide the most accurate picture of an average season. The

use of an average week helps adjust for variations in growing

conditions that may affect when fruit matures in different seasons and

growing areas. The committee believes that this definition of prior

period would provide each handler with an equitable base from which to

establish shipments.

The average week for handlers with less than five previous seasons

of shipments would be calculated by

[[Page 44190]]

averaging the total shipments for the seasons they did ship red

seedless grapefruit during the immediately preceding five years and

dividing that average by 33. New handlers with no record of shipments

would have no prior period on which to base their average week.

Therefore, if a volume regulation was established before such handlers

have shipped any red seedless grapefruit, the new handlers could ship

small sizes as a percentage of their total shipments equal to the

percentage applied to other handlers' base. Once new handlers have

established shipments, the average week would be calculated as an

average of the weeks they have shipped during the current season.

To use these new procedures, the committee would meet and recommend

a base percentage of sizes 48 and 56 that could enter the fresh market

in any week or weeks from the first Monday in September through the

first Sunday in December. If approved by the Secretary, this percentage

would be applied to each handler's average week of fresh shipments to

determine the amount (allocation) of sizes 48 and 56 red grapefruit

each handler could ship. Each regulation period would begin Monday at

12:00 a.m. and end at 11:59 p.m. the following Sunday, since most

handlers keep records based on Monday being the beginning of the work

week.

When a size limitation is recommended to restrict the shipment

during a particular week, the committee would compute each handler's

allotment by multiplying the handler's average week by the percentage

established by regulation for that week. Such set percentage could vary

from week to week, but could not be less than 25 percent. The committee

would notify each handler prior to the particular week of the quantity

of sizes 48 and 56 red seedless grapefruit such handler could handle

during a particular week.

To provide handlers with some flexibility, these procedures would

provide allowances for overshipments, loans, and transfers of

allotment. These allowances should allow handlers the opportunity each

week to supply their markets while limiting the impact of small sizes.

During any regulation week for which the Secretary has fixed the

percentage of sizes 48 and 56 red seedless grapefruit, any person who

has received an allotment could handle, in addition to their weekly

allotment, an amount of size 48 and 56 red seedless grapefruit not to

exceed 10 percent of that week's allotment. The quantity of

overshipments would be deducted from the handler's allotment for the

following week. Overshipments would not be allowed during week 11

because there would be no allotments the following week from which to

deduct the overshipments.

If handlers fail to use their entire allotments in a given week,

the amounts undershipped would not be carried forward to the following

week. However, a handler to whom an allotment has been issued could

lend or transfer all or part of such allotment (excluding the

overshipment allowance) to another handler. In the event of a loan of

allotment, each party would, prior to the completion of the loan

agreement, notify the committee of the proposed loan and date of

repayment. If a transfer of allotment is desired, each party would

promptly notify the committee so that proper adjustments of the records

could be made. In each case, the committee would confirm in writing all

such transactions prior to the following week. The committee could also

act on behalf of handlers wanting to arrange allotment loans or

participate in the transfer of allotment. Repayment of an allotment

loan would be at the discretion of the handlers party to the loan.

In considering these procedures, the committee discussed several

possible alternatives. One alternative considered was an amendment to

the marketing order. The amendment would have changed the language

regarding the ``prior period'' in section 905.52. However, this

alternative was rejected because of the time required to amend the

order.

The committee also discussed limiting or eliminating only shipments

of size 56 grapefruit. However, the committee found that it is

important to include both sizes 48 and 56 for this regulation to be

effective. Also, the committee did not want to eliminate a size

entirely. They realize there is a market for small sizes and wish to

allow handlers to take advantage of this market without negatively

affecting the market for other sizes.

Other concerns were raised during discussion of these procedures.

One committee member questioned whether these procedures would allow

him to continue to increase his business. It was explained that this

action would only put tools in place to allow the limitation of just a

certain percentage of the smaller sized red seedless grapefruit. A

handler would not in any way be limited from shipping any amount of

larger sizes. Another concern raised was the impact these procedures

would have on harvesting. It was explained again that this rule would

just establish procedures. However, if implemented, it would require

more selective picking of only the sizes desired, something that many

are doing already.

After a lengthy discussion, the committee decided that it needs to

have available a tool to regulate shipments of small sized red seedless

grapefruit early in each marketing season. The committee voted to

recommend the establishment of these procedures to provide them with

that tool.

The committee reports that it expects that more red seedless

grapefruit will be produced in Florida during the 1996-97 season than

last season. The committee also expects that supplies of fresh Florida

red seedless grapefruit will be adequate to meet consumer demand during

the entire 1996-97 season.

This rule does not affect the order provision that handlers may

ship up to 15 standard packed cartons (12 bushels) of fruit per day

exempt from grade and size requirements. Fruit shipped in gift packages

that are individually addressed and not for resale, and fruit shipped

for animal feed are also exempt from grade and size requirements under

specific conditions. Also, fruit shipped to commercial processors for

conversion into canned or frozen products or into a beverage base are

not subject to the handling requirements under the order.

Section 8(e) of the Act requires that whenever grade, size, quality

or maturity requirements are in effect for certain commodities under a

domestic marketing order, including grapefruit, imports of that

commodity must meet the same or comparable requirements. This rule does

not change the minimum grade and size requirements under the order.

Therefore, no change is necessary in the grapefruit import regulations

as a result of this action.

The information collection requirements contained in this section

must be approved by the Office of Management and Budget (OMB) under the

provisions of the Paperwork Reduction Act of 1995 (Pub. L. 104-13) and

assigned OMB number 0581-0094 for Florida citrus.

This rule would increase the reporting burden on an estimated 10

handlers of red seedless grapefruit who would be taking about 0.083

hour to complete a report regarding allotment loans or transfers an

average of 11 times per year. The total annual increase in burden would

be about 9 hours.

A 30-day comment period is provided to allow interested persons to

respond to this proposal. All written comments received within the

comment period will be considered before a final determination is made

on this matter.

[[Page 44191]]

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

Chapter 35), the AMS announces its intention to request an extension

for and revision to a currently approved information collection for

Florida oranges, grapefruit, tangerines, and tangelos.

Title: Oranges, Grapefruit, Tangerines, and Tangelos Grown in

Florida, Marketing Order No. 905.

OMB Number: 0581-0094.

Expiration Date of Approval: August 31, 1998.

Type of Request: Extension and revision of a currently approved

information collection.

Abstract: Marketing order programs provide an opportunity for

producers of fresh fruits, vegetables and specialty crops, in a

specified production area, to work together to solve marketing problems

that cannot be solved individually. Order regulations help ensure

adequate supplies of high quality product and adequate returns to

producers. Under the Act, industries enter into marketing order

programs. The Secretary of Agriculture is authorized to oversee the

order operations and issue regulations recommended by a committee of

representatives from each commodity industry.

The information collection requirements in this request are

essential to carry out the intent of the Act, to provide the

respondents the type of service they request, and to administer the

Florida citrus marketing order program, which has been operating since

1939.

The Florida citrus marketing order authorizes the issuance of

grade, size, container, and pack regulations. It also authorizes the

limitation of shipments of certain grades or sizes. Regulatory

provisions apply to oranges, grapefruit, tangerines and tangelos

shipped outside of the production area, except for those shipments

specifically exempt.

The order, and rules and regulations issued thereunder, authorize

the committee to require handlers and producers to submit certain

information. Much of this information is compiled in aggregate and

provided to the industry to assist in marketing decisions.

The committee has developed forms as a means for persons to file

required information with the committee relating to citrus supplies,

shipments, dispositions, and other information needed to effectively

carry out the purpose of the Act and order. As shipments occur

throughout the year, these forms are utilized accordingly. A USDA form

is used to allow producers to vote on amendments to the order and

whether the order should be continued. In addition, producers and

handlers who are nominated by their peers to serve as representatives

on the committee must file nomination forms with the Secretary.

This proposed collection includes a new requirement for handlers to

report to the committee any allotment loans or transfers during volume

regulation of smaller size 48 (at least 3\9/16\ inches) or 56 (at least

3\5/16\ inches) red seedless grapefruit. Allowing transfers and loans

would provide flexibility during such regulation, by allowing handlers

to loan or transfer their individual allotments of smaller sized red

seedless grapefruit. Requiring such transactions to be reported to the

committee would ensure compliance with volume regulations and assist

the committee and the Department with oversight and planning of volume

regulation of red seedless grapefruit. This new requirement would

increase the reporting burden on an estimated 10 handlers of red

seedless grapefruit who would be taking about 0.083 hour to complete a

report regarding allotment loans or transfers an average of 11 times

per year. The total annual increase in burden would be about 9 hours.

These forms require the minimum information necessary to

effectively carry out the requirements of the order, and their use is

necessary to fulfill the intent of the Act as expressed in the order.

The information collected is used only by authorized

representatives of the USDA, including AMS, Fruit and Vegetable

Division regional and headquarter's staff, and authorized employees of

the committee. Authorized committee employees are the primary users and

AMS employees are the secondary users of the information.

Estimate of Burden: Public reporting burden for this proposed

collection of information is estimated to average 0.089 hours per

response.

Respondents: Florida citrus producers and for-profit businesses

handling fresh citrus.

Estimated Number of Respondents: 1,176.

Estimated Number of Responses per Respondent: 1

Estimated Total Annual Burden on Respondents: 204 hours.

Comments are invited on: (a) Whether the proposed collection of

information is necessary for the proper performance of the functions of

the Florida citrus marketing order program and the Department's

oversight of that program, including whether the information will have

practical utility; (b) the accuracy of AMS's burden estimate of the

proposed collection of information including the validity of

methodology and assumptions used; (c) ways to enhance the quality,

utility, and clarity of the information collected; and (d) ways to

minimize the burden of the collection of appropriate information on

those who are to respond, including through the use of appropriate,

automated, electronic, mechanical, or other technological collection

techniques or other forms of information technology.

Comments should reference OMB No. 0581-0094 and the Florida citrus

Marketing Order No. 905, and be sent to USDA in care of Caroline C.

Thorpe, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, PO Box 96456, room 2522-S, Washington, DC 20090-

6456; telephone: 202-720-5127 or Fax: 202-720-5698.

All comments received will be available for public inspection

during regular business hours at the same address.

All responses to this notice will be summarized and included in the

request for OMB approval. All comments will become a matter of public

record.

Because there is insufficient time for a normal clearance

procedure, AMS is seeking temporary approval from OMB for the use of a

new form for this upcoming season. The form would be added to the forms

which are currently approved for use under OMB Number 0581-0094.

List of Subjects in 7 CFR Part 905

Grapefruit, Marketing agreements, Oranges, Reporting and

recordkeeping requirements, Tangelos, Tangerines.

For the reasons set forth in the preamble, 7 CFR part 905 is

proposed to be amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN

FLORIDA

1. The authority citation for 7 CFR Part 905 continues to read as

follows:

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

2. A new Sec. 905.153 is added to read as follows:

Sec. 905.153 Procedure for determining handlers' permitted quantities

of red seedless grapefruit when a portion of sizes 48 and 56 of such

variety is restricted.

(a) For the purposes of this section, the prior period specified in

Sec. 905.52 is hereby established as an average week within the

immediately preceding five seasons. Each handler's average week shall

be computed by adding the total volume of red seedless grapefruit

handled in the immediately preceding five seasons and dividing the

total by

[[Page 44192]]

165. The average week for handler with less than five previous seasons

of shipments shall be calculated by adding the total volume of

shipments for the seasons they did ship red seedless grapefruit,

divided by the number of seasons, divided further by 33. New handlers

with no record of shipments could ship size 48 and 56 red seedless

grapefruit as a percentage of total shipments equal to the percentage

applied to other handlers' average week; once such handlers have

recorded shipments, their average week shall be calculated as an

average of total shipments for the weeks they have shipped red seedless

grapefruit during the current season. When used in the regulation of

red seedless grapefruit the term season means the weeks beginning the

third Monday in September and ending the first Sunday in the following

May. The term regulation period means the 11 weeks beginning the third

Monday in September and ending the first Sunday in December of the

current season.

(b) When a size limitation restricts the shipment of a portion of

sizes 48 and 56 red seedless grapefruit during a particular week as

provided in Sec. 905.52, the committee shall compute the quantity of

sizes 48 and 56 red seedless grapefruit that may be shipped by each

handler by multiplying the handler's calculated average week shipments

of such grapefruit by the percentage established by regulation for red

seedless grapefruit for that week.

(c) The committee shall notify each handler of the quantity of size

48 and 56 red seedless grapefruit such handler may handle during a

particular week.

(d) During any regulation week for which the Secretary has fixed

the percentage of sizes 48 and 56 red seedless grapefruit, any person

who has received an allotment may handle, in addition to their total

allotment available, an amount of size 48 and 56 red seedless

grapefruit up to 10 percent greater than their allotment. The quantity

of the overshipment shall be deducted from the handler's allotment for

the following week. Overshipments will not be allowed during week 11.

If the handler fails to use his or her entire allotment, the

undershipment is not carried forward to the following week.

(e) Any handler may transfer or loan any or all of their shipping

allotment (excluding the overshipment allowance) of size 48 and 56 red

seedless grapefruit to any other handler. Each handler party to such

transfer or loan shall promptly notify the committee so the proper

adjustment of records may be made. In each case, the committee shall

confirm in writing all such transactions, prior to the following week,

to the handlers involved. The committee may act on behalf of handlers

wanting to arrange allotment loans or participate in the transfer of

allotments.

Dated: August 22, 1996.

Robert C. Keeney,

Director, Fruit and Vegetable Division.

[FR Doc. 96-21960 Filed 8-27-96; 8:45 am]

BILLING CODE 3410-02-P