[Federal Register: May 6, 2005 (Volume 70, Number 87)]
[Rules and Regulations]
[Page 23928-23930]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06my05-2]
[[Page 23928]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 905
[Docket No. FV05-905-1 FIR]
Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida;
Change in the Minimum Maturity Requirements for Fresh Grapefruit
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule reducing the minimum
maturity requirements for fresh grapefruit under the marketing order
for Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida
(order). The Citrus Administrative Committee (Committee), which locally
administers the order, recommended this change. This rule continues in
effect the action that reduced the minimum maturity requirement for
soluble solids (sugars) from 8.0 percent to 7.5 percent until July 31,
2005. This action makes additional quantities of grapefruit available
for the fresh market and will help reduce the losses sustained by the
grapefruit industry during the recent hurricanes in Florida.
DATES: Effective Date: June 6, 2005.
FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Southeast Marketing
Field Office, Marketing Order Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 799 Overlook Drive, Suite A, Winter
Haven, Florida 33884-1671; Telephone: (863) 324-3375, Fax: (863) 325-
8793; or George Kelhart, Technical Advisor, Marketing Order
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400
Independence Avenue SE., STOP 0237, Washington, DC 20250-0237;
Telephone: (202) 720-2491, Fax: (202) 720-8938.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR
part 905), regulating the handling of oranges, grapefruit, tangerines,
and tangelos grown in Florida, hereinafter referred to as the
``order.'' The 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.''
USDA is issuing this rule in conformance with Executive Order
12866.
This rule has been reviewed under Executive Order 12988, 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 USDA 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 USDA 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 USDA's ruling on the petition,
provided an action is filed not later than 20 days after the date of
the entry of the ruling.
This rule continues in effect the action that reduced the minimum
maturity requirement for soluble solids (sugars) of fresh grapefruit
from 8.0 percent to 7.5 percent until July 31, 2005. This action makes
additional quantities of grapefruit available for the fresh market and
will help reduce the losses sustained by the grapefruit industry during
the recent hurricanes in Florida. This action was unanimously
recommended by the Committee at its meeting on November 16, 2004.
Section 905.52 of the order provides authority for establishment of
grade and size requirements for Florida citrus. One element of grade is
maturity. Section 905.306 of the order specifies, in part, the minimum
maturity requirements for grapefruit. Prior to this change, the minimum
maturity requirements for Florida grapefruit were 8.0 percent soluble
solids (sugars) and 7.5 to 1 solids to acid ratio with a sliding scale
minimum ratio of 7.2 to 1.
This rule reduces the minimum maturity requirement for soluble
solids (sugars) from 8.0 percent to 7.5 percent soluble solids for the
remainder of the 2004-05 season which ends July 31, 2005. On August 1,
2005, the requirement returns to 8.0 percent soluble solids. The 7.5 to
1 solids to acid ratio with a sliding scale minimum of 7.2 to 1 remains
unchanged by this action.
During the months of August and September, the major grapefruit
growing regions in Florida suffered significant damage and fruit loss
from multiple hurricanes. The strong winds from the storms blew
substantial volumes of the setting fruit off the trees. The impact of
the storms also produced a much higher than normal fruit drop. The
extent of the loss is evident in the official USDA crop estimate for
this season which reflects a 69 percent decrease from last year's
estimate.
In inspecting groves following the storms, growers found that the
younger trees retained their fruit better compared to trees in
established groves. However, based on Committee discussion, the fruit
from younger trees has more difficulty meeting the current maturity
requirement. To address the situation, the Committee considered how the
maturity requirements might be adjusted so that more fruit from the
younger trees would be available for the fresh market.
The Committee considered several options to address this issue
including a one-point reduction in the soluble solids and a reduction
in the minimum ratio. Several members were concerned about reducing
requirements too much and believed that reducing maturity requirements
by a full point would impact the quality of the fruit. It was also
stated that the industry should not pack inferior fruit just because
there is a shortage of volume. The Committee agreed that the current
maturity standards have been well received by the market. However,
Committee members also recognized that the special circumstances
surrounding this season were unprecedented in the history of the
grapefruit industry, and based on that, if it was possible, some
allowances should be made to assist growers and provide some additional
volume to the market.
The Committee reached a compromise position where the soluble solid
requirement was reduced by a half a point and the ratios were
maintained at current levels. The Committee stressed that this change
be made for the remainder of the current season only, and starting
August 1, 2005, the maturity requirements return to their previous
level. The Committee believes by reducing the soluble solids level and
maintaining the minimum ratio combinations at the current levels for
[[Page 23929]]
the remainder of the season, additional quantities of grapefruit can be
made available for the fresh market without a significant reduction in
quality. Therefore, the Committee voted unanimously to reduce the
minimum soluble solid level from 8.0 to 7.5 until July 31, 2005. This
change benefits both growers and consumers by increasing the available
supply of fresh grapefruit.
Section 8e of the Act provides that when certain domestically
produced commodities, including grapefruit, are regulated under a
Federal marketing order, imports of that commodity must meet the same
or comparable grade, size, quality, and maturity requirements. As this
rule changes the minimum maturity requirements under the domestic
handling regulations, a corresponding change to the import regulations
must be considered. Such change to the import regulations would be made
under a separate action.
Final Regulatory Flexibility Analysis
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. Accordingly, AMS has
prepared this final regulatory flexibility analysis.
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 the 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 grapefruit 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, are defined by the Small Business Administration (SBA) as
those having annual receipts of less than $6,000,000, and small
agricultural producers are defined as those having annual receipts of
less than $750,000 (13 CFR 121.201).
Based on industry and Committee data, the average annual f.o.b.
price for fresh Florida grapefruit during the 2003-04 season was
approximately $8.00 per \4/5\-bushel carton, and total fresh shipments
for the 2003-04 season are estimated at 26 million cartons of
grapefruit.
Approximately 25 percent of all handlers handled 75 percent of
Florida's grapefruit shipments. Using the average f.o.b. price, at
least 69 percent of the grapefruit handlers could be considered small
businesses under SBA's definition. In addition, based on production and
grower prices reported by the National Agricultural Statistics Service,
and the total number of grapefruit growers, the average annual grower
revenue is approximately $20,600. In view of the foregoing, it can be
concluded that the majority of handlers and producers of Florida
grapefruit may be classified as small entities.
This rule continues in effect the action that reduced the minimum
maturity requirement for soluble solids (sugars) from 8.0 percent to
7.5 percent for fresh grapefruit until July 31, 2005. This action makes
additional quantities of grapefruit available for the fresh market and
will help reduce the losses sustained by the grapefruit industry during
the recent hurricanes in Florida. This action was unanimously
recommended by the Committee at its meeting on November 16, 2004. This
rule modifies the maturity requirements specified in Sec. 905.306.
Authority for this action is provided for in Sec. 905.52 of the order.
With respect to the impact of this action, it is anticipated that
this temporary change will not result in any increase in grower or
handler costs. However, it makes some additional quantities of
grapefruit available for the fresh market. This will help growers
maximize their fresh shipments in a year where there may be potential
shortages of grapefruit. This will help increase grower returns and
address some of the losses sustained from the storms.
The Committee believes by reducing the soluble solids level and
maintaining the minimum ratio combinations at the current levels for
the remainder of the 2004-05 season, additional quantities of
grapefruit will be made available for the fresh market without a
significant reduction in quality. This change benefits both growers and
consumers by increasing the available supply of fresh grapefruit.
The purpose of this rule is to help improve producer returns and
provide some additional volume of grapefruit to the market. The
opportunities and benefits of this rule are expected to be available to
all grapefruit handlers and producers regardless of their size of
operation.
The Committee considered several alternatives to taking this
action. One alternative considered was a reduction in maturity
requirements to 7.0 percent soluble solids with 7.0 to 1 solids to acid
ratio. Committee members believed that this was too much of a change
and that it would negatively impact the quality of the fruit.
Therefore, this option was rejected. Another alternative considered was
making no change to the maturity requirement. However, the Committee
believed that some adjustment should be made to accommodate fruit from
young trees. The Committee also recognized the special circumstances
surrounding this season as a result of the hurricanes. Consequently,
the Committee unanimously supported the action taken by this rule.
This rule will not impose any additional reporting or recordkeeping
requirements on either small or large grapefruit handlers. As with all
Federal marketing order programs, reports and forms are periodically
reviewed to reduce information requirements and duplication by industry
and public sector agencies. In addition, as noted in the initial
regulatory flexibility analysis, USDA has not identified any relevant
Federal rules that duplicate, overlap or conflict with this rule.
However, grapefruit must meet the requirements as specified in the U.S.
Standards for Grades of Florida Grapefruit (7 CFR 51.760 through
51.784) issued under the Agricultural Marketing Act of 1946 (7 U.S.C.
1621 through 1627).
The Committee's meeting was widely publicized throughout the citrus
industry and all interested persons were invited to attend the meeting
and participate in Committee deliberations on all issues. Like all
Committee meetings, the November 16, 2004, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue.
An interim final rule concerning this action was published in the
Federal Register on December 22, 2004 (69 FR 76597). Copies of the rule
were mailed by the Committee's staff to all Committee members and
Florida citrus handlers. In addition, the rule was made available
through the Internet by USDA and the Office of the Federal Register.
That rule provided for a 60-day comment period which ended February 22,
2005. Two comments were received.
One commenter supported in principle the relaxation. The second
commenter stated that the order should be eliminated and the Committee
be disbanded. USDA disagrees with these suggestions.
The marketing order was implemented and is being administered
consistent with the authority in the Agricultural Marketing Agreement
Act of 1937, and was favored by citrus growers in a recent continuance
referendum. In addition, actions taken by the Committee under the order
have
[[Page 23930]]
helped increase grower returns to levels above the cost of production,
which may contribute to more growers maintaining their groves. This
rule is making more fruit available at a time when much of the crop was
destroyed by last year's hurricanes without sacrificing fruit quality.
This change benefits both growers and consumers by increasing the
available supply of fresh grapefruit.
Therefore, no changees will be made as a result of these comments.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html.
Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR FURTHER INFORMATION CONTACT section.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
finalizing the interim final rule, without change, as published in the
Federal Register (69 FR 76597, December 22, 2004) will tend to
effectuate the declared policy of the Act.
List of Subjects in 7 CFR Part 905
Grapefruit, Marketing agreements, Oranges, Reporting and
recordkeeping requirements, Tangelos, Tangerines.
PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN
FLORIDA
0
Accordingly, the interim final rule amending 7 CFR part 905 which was
published at 69 FR 76597 on December 22, 2004, is adopted as a final
rule without change.
Dated: May 3, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-9109 Filed 5-5-05; 8:45 am]
BILLING CODE 3410-02-P