[Federal Register: April 9, 2007 (Volume 72, Number 67)]
[Rules and Regulations]
[Page 17360-17362]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ap07-2]
[[Page 17360]]
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[Docket No. AMS-FV-07-0043; FV07-959-2 IFR]
Onions Grown in South Texas; Exemption of Onions for Export
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This rule exempts onions being shipped to export markets from
regulations prescribed under the South Texas onion marketing order. The
marketing order regulates the handling of onions grown in South Texas,
and is administered locally by the South Texas Onion Committee
(Committee). This rule provides a special purpose shipment exemption
for onions being shipped to export markets. Under this change, onion
shipments for export will be exempt from the grade, size, quality, and
inspection requirements of the marketing order. This rule will provide
handlers additional flexibility in marketing onions of different grades
and quality in various markets outside of the U.S. This change is
expected to help the South Texas onion industry develop additional
markets for its onions, while increasing returns to producers and
providing an increased supply of onions to help satisfy a rapidly
developing export market.
DATES: Effective April 10, 2007. Comments received by June 8, 2007 will
be considered prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence Avenue, SW., STOP 0237, Washington, DC
20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov.
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 or can be viewed at: http://www.regulations.gov
.
FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Regional Manager,
Texas Marketing Field Office, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA; Telephone: (956) 682-2833,
Fax: (956) 682-5942, or E-mail: Belinda.Garza@usda.gov.
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. 143 and Order No. 959, both as amended (7 CFR part 959),
regulating the handling of onions grown in South Texas, 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.''
The Department of Agriculture (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. Such
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 action, unanimously recommended by the Committee at its March
16, 2007, meeting, exempts onion export shipments from the grade, size,
quality and inspection requirements prescribed under the South Texas
onion marketing order. To effectuate the exemption, paragraphs (e)(1)
and (f) of Sec. 959.322 are modified by adding the term ``export'' to
the list of authorized special purpose shipment categories.
Section 959.52 of the order authorizes the issuance, amendment,
modification, suspension, or termination of regulations for grade,
size, quality, maturity, pack, and container for any variety of onions
grown in the production area. Section 959.53 provides that regulations
in effect pursuant to Sec. Sec. 959.42, 959.52, or 959.60 may be
modified, suspended or terminated to facilitate the handling of onions
for specified special purpose shipments, including export. Section
959.60 provides that whenever onions are regulated pursuant to Sec.
959.52, such onions must be inspected by the Federal-State Inspection
Service, and certified as meeting the applicable requirements of such
regulations.
Section 959.322 contains the order's handling regulations and
includes provisions for grade, size, and inspection requirements, as
well as a minimum quantity exemption, certain special purpose shipment
exemptions, and experimental shipments. The handling regulations also
provide safeguards to ensure that onions being shipped for special
purposes are handled in accordance with order provisions.
The Committee meets prior to and during each season to consider
recommendations for modification, suspension, or termination of the
regulatory requirements for South Texas onions 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 USDA
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.
Based on discussion at the March 16, 2007, meeting, the Committee
has conveyed to USDA that there currently exists an extremely short
supply of onions in Mexico and other countries. This shortage has
fueled a greater demand for all grades of onions. The Committee
indicated that there is a great deal of interest in various foreign
markets for onions of varying grade, size, and quality. Texas producers
and handlers are characterized by the Committee as being eager to
supply this demand and are thus fully in support of relaxing the
handling regulations in an effort to provide onions for the developing
export markets.
The Committee also reports that the onion supply situation in Texas
is hampered by a very short onion crop--
[[Page 17361]]
approximately 12,500 acres this year compared with approximately 18,000
acres in past seasons--and recent cold weather that has caused some
quality issues in certain areas of the South Texas onion production
area.
By exempting onions for export from the handling regulations, this
rule will provide handlers additional flexibility in marketing onions
of different grades and quality in various markets outside of the U.S.
This change is expected to help the South Texas onion industry develop
additional markets for its onions, while increasing returns to
producers and providing an increased supply of onions to help satisfy a
rapidly developing export market.
Currently, all handlers making onion shipments for relief, charity,
processing, or experimental purposes are required to apply for and
obtain a Certificate of Privilege from the Committee to make such
shipments. Once handlers are approved for such shipments, a Report of
Special Purpose Onion Shipment form must be submitted to the Committee
for each such onion shipment in order to ensure that the shipments are
in accordance with Committee requirements. This action will allow all
shipments to export markets to also be exempt from grade, size,
quality, and inspection requirements and will be tracked through the
use of the Report of Special Purpose Onion Shipment form.
Initial Regulatory Flexibility Analysis
Pursuant to the 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 initial regulatory flexibility
analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions so 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. Small agricultural producers are defined
by the Small Business Administration (SBA) (13 CFR 121.201) as those
having annual receipts of less than $750,000. Small agricultural
service firms are defined as those with annual receipts of less than
$6,500,000.
There are approximately 114 producers of onions in the production
area and approximately 38 handlers subject to regulation under the
order. Most of the handlers are vertically integrated corporations
involved in producing, shipping, and marketing onions. For the 2005-06
marketing year, the industry's 38 handlers shipped onions produced on
17,694 acres with the average and median volume handled being 182,148
and 174,437 fifty-pound equivalents, respectively. In terms of
production value, total revenues for the 38 handlers were estimated to
be $44.2 million, with average and median revenues being $1.6 million
and $1.12 million, respectively.
The South Texas onion industry is characterized by producers and
handlers whose farming operations generally involve more than one
commodity, and whose income from farming operations is not exclusively
dependent on the production of onions. Alternative crops provide an
opportunity to utilize many of the same facilities and equipment not in
use when the onion production season is complete. For this reason,
typical onion producers and handlers either produce multiple crops or
alternate crops within a single year.
Based on the SBA's definition of small entities, the Committee
estimates that all of the 38 handlers regulated by the order would be
considered small entities if only their onion revenues are considered.
However, revenues from other farming enterprises could result in a
number of these handlers being above the $6,500,000 annual receipt
threshold. All of the 114 producers may be classified as small entities
based on the SBA definition if only their revenue from onions is
considered.
This rule exempts onion export shipments from the grade, size,
quality and inspection requirements prescribed under the South Texas
onion marketing order. To realize the exemption, paragraphs (e) and (f)
of Sec. 959.322 are modified by adding the term ``export'' to the list
of authorized special purpose shipment categories.
Section 959.52 of the order authorizes the issuance of regulations
for grade, size, quality, maturity, pack, and container for any variety
of onions grown in the production area. Section 959.53 provides for the
exemption from the handling regulations certain kinds of onion
shipments, including export.
The Committee anticipates that this rule will not negatively impact
small businesses. This rule exempts onions being shipped to export
markets from the order's handling regulations, and thus should provide
enhanced marketing opportunities for all handlers, increased income for
South Texas onion producers, and increased purchasing flexibility for
foreign consumers.
The Committee considered alternatives to this recommendation. One
consideration would have relaxed the minimum quality requirement of all
onion shipments, both domestic and export, from U.S. No. 1 to U.S. No.
2. Although this option may have taken care of the export market
demands, it was rejected early in the discussion due to the problems
associated with trying to market onions that grade less than U.S. No. 1
to U.S. consumers. Also briefly considered was the option of suspending
the entire handling regulation, either on a temporary basis or
indefinitely. The Committee also rejected this option as being too
extreme for the current situation.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection requirements that are contained
in this rule are currently approved by the Office of Management and
Budget (OMB), under OMB No. 0581-0178, Vegetable and Specialty Crops.
This rule will impose minimal additional reporting or recordkeeping
requirements, deemed to be insignificant, on both small and large onion
handlers that export onions.
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, USDA
has not identified any relevant Federal rules that duplicate, overlap
or conflict with this rule.
The AMS is committed to complying with the E-Government Act, to
promote the use of the Internet and other information technologies to
provide increased opportunities for citizen access to Government
information and services, and for other purposes.
The Committee's meeting was widely publicized throughout the South
Texas onion industry and all interested persons were invited to attend
the meeting and participate in Committee deliberations. Like all
Committee meetings, the March 16, 2007, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue. Furthermore, interested persons are invited to
submit information on the regulatory and informational impacts of this
action on small businesses.
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
[[Page 17362]]
address in the FOR FURTHER INFORMATION CONTACT section.
This rule invites comments on the exemption of onions for export
from the handling regulations prescribed under the Texas onion
marketing order. Any comments received will be considered prior to
finalization of this rule.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
this interim final 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 rule until 30 days after publication in the Federal Register
because: (1) This rule relaxes the order's regulatory requirements by
exempting South Texas onions shipped to the export market from the
order's handling regulations; (2) onion handlers are aware of this
recommendation and need no additional time to comply with the relaxed
requirements; (3) the shipping season for South Texas onions started
around March 1, thus this rule should be effective as soon as possible
to ensure that all handlers can take advantage of the relaxation for as
much of the season as possible; and (4) this rule provides a 60-day
comment period, and any comments received will be considered prior to
finalization of this rule.
List of Subjects in 7 CFR Part 959
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
0
For the reasons set forth in the preamble, 7 CFR part 959 is amended as
follows:
PART 959--ONIONS GROWN IN SOUTH TEXAS
0
1. The authority citation for 7 CFR part 959 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
0
2. Section 959.322 is amended by revising paragraph (e)(1) and the
introductory sentence of paragraph (f) to read as follows:
* * * * *
(e) Special purpose shipments. (1) The minimum grade, size,
quality, and inspection requirements set forth in paragraphs (a)
through (c) of this section shall not be applicable to shipments of
onions for charity, relief, export, and processing if handled in
accordance with paragraph (f) of this section.
* * * * *
(f) Safeguards. Each handler making shipments of onions for
charity, relief, export, processing, or experimental purposes shall:
* * * * *
Dated: April 4, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. 07-1749 Filed 4-4-07; 4:27 pm]
BILLING CODE 3410-02-P