[Federal Register Volume 59, Number 46 (Wednesday, March 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5559]


[[Page Unknown]]

[Federal Register: March 9, 1994]


                                                    VOL. 59, NO. 46

                                           Wednesday, March 9, 1994
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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 959

[FV-93-959-2PR]

 

Onions Grown in South Texas--Regulation of Red Onions and Change 
in Regulatory Period

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule with a request for comments.

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SUMMARY: This proposed rule would establish requirements for red 
variety onions grown in South Texas under Marketing Order 959. In 
recent years, shipments of poor quality red onions have appeared in the 
marketplace and have adversely affected grower prices. This rule would 
tend to improve grower prices by providing more desirable quality red 
onions for consumers. This rule also would extend the termination date 
of the order's regulatory period from May 20 to June 15 of each year. 
More late season onions are being grown in a portion of the production 
area, increasing the need for marketing order quality requirements over 
a longer time period. Regulating onions from the production area 
through June 15 would help make more desirable onions available to 
markets.

DATES: Comments must be received by March 24, 1994.

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, 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: Robert Matthews, Marketing Specialist, 
Marketing Order Administration Branch, F&V, AMS, USDA, Room 2523-S, 
P.O. Box 96456, Washington, DC, 20090-6456, telephone: (202) 690-0464; 
or Belinda G. Garza, McAllen Marketing Field Office, Marketing Order 
Administration Branch, F&V, AMS, USDA, 1313 E. Hackberry, McAllen, 
Texas 78501; telephone: (210) 682-2833.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Agreement No. 143 and Marketing Order No. 959 (7 CFR Part 959), as 
amended, regulating the handling of onions grown in South Texas, 
hereinafter referred to as the ``order.'' This order is effective under 
the Agricultural Marketing Agreement 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 12778, Civil 
Justice Reform. This action 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 
action.
    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 in equity to review the 
Secretary's ruling on the petition, provided a bill in equity 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 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 38 handlers of South Texas onions who are subject to 
regulation under the marketing order and 97 producers 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 $3,500,000, and small 
agricultural producers are defined as those having annual receipts of 
less than $500,000. The majority of handlers and producers of South 
Texas onions may be classified as small entities.
    At its November 9, 1993 meeting, the South Texas Onion Committee 
(committee) recommended, under the authority of Sec. 959.52(c) of the 
order, that red varieties of onions be regulated and also that the 
termination date of the regulatory period for all varieties of 
regulated onions be extended from May 20 to June 15 of each year.
    Red varieties of onions have been exempt from regulation since the 
inception of Marketing Order No. 959. The quantities of such onions 
produced have usually represented a small portion of the total annual 
production in the marketing order's regulated area. However, red 
variety acreage has increased significantly in recent seasons. 
Moreover, the committee reports that poor quality red onions grown in 
the production area have appeared in the marketplace from time to time.
    The impact on the industry is two-fold. Poor quality red onions 
diminish consumer confidence in the better quality red onions, leading 
to fewer sales and lower returns to growers. In addition, a less 
favorable consumer opinion of red variety onions often leads to lower 
sales for all onions grown in the production area, including yellow and 
white varieties which now enjoy an excellent reputation with receivers 
and consumers.
    Red onions, like yellow onions and white onions, are varieties of 
Allium cepa, and are therefore covered by the same U.S. standards 
referenced in Sec. 959.322(h). Because of this, regulatory requirements 
set forth in Sec. 959.322 applicable to yellow and white varieties of 
onions are appropriate for red varieties also. The committee believes 
that by regulating red onions in the same fashion as yellow and white 
onions, that consumers can be assured of buying better quality red 
onions. Thus, increased consumer confidence should result in improved 
returns to growers. In addition to grade and size requirements, the 
committee also recommended that red varieties be subject to the same 
pack, container, inspection, assessment, and safeguard requirements as 
yellow and white varieties. In this way, red, yellow, and white onions 
would be regulated to the same extent.
    The second recommendation concerns the length of the regulatory 
period for shipments of onions from the regulated area. Currently, 
order regulations are in effect from March 1 through May 20 each year. 
District 2 (Laredo-Winter Garden) is in the northern part of the 
production area and has a shipping season that extends from May to well 
into June. This district is comprised of the Counties of Zapata, Webb, 
Jim Hogg, DeWitt, Wilson, Atascosa, Karnes, Val Verde, Frio, Kinney, 
Uvalde, Medina, Maverick, Zavala, Dimmit and LaSalle. In the 1980's, 
District 2 production was declining and industry members asked to be 
relieved from the marketing order requirements after May 20 each 
season, instead of the June 15 date in effect at that time. By May 20, 
shipments from District No. 1 in the southern part of the production 
area usually are finished. Thus, effective for the 1989 and subsequent 
seasons, the termination date for the regulatory period was advanced 
for the entire production area from June 15 to May 20 (54 FR 8519, 
March 1, 1989).
    However, committee records indicate an increase in onion shipments 
from District 2 during the past three years. The committee stated that 
it is the desire of the producers in District 2 that onions regulated 
under the marketing order once again be regulated during the May 20 
through June 15 period. Shipments from this district typically account 
for 10 to 12 percent of the production area total, and the committee 
believes that grade, size, container, and other order requirements are 
necessary to maintain the quality of South Texas onions that receivers 
and consumers have become accustomed to. Extension of the regulatory 
period would not affect District 1 handlers as shipments from that 
district normally are completed by mid-May.
    Currently, handlers may not package or load onions on Sunday during 
the period March 1 through May 20 of each season. The committee 
recommended not changing this requirement. After May 20, District 2 
handlers would be competing with unregulated shipments from other areas 
such as California. Permitting District 2 handlers to package and ship 
whenever they can find buyers would help to reduce the competitive 
advantage of handlers shipping from outside the regulated area.
    This action was unanimously recommended by the committee, and 
should ensure that consumers are provided with quality onions, 
including red varieties, during the entire South Texas shipping period.
    Section 8(e) of the Act requires that whenever grade, size, quality 
or maturity requirements are in effect for onions under a domestic 
marketing order, imported onions must meet the same or comparable 
requirements, subject to concurrence by the United States Trade 
Representative. Because this rule would establish grade, size, quality 
and maturity requirements on red onions and would change the regulatory 
period under the South Texas onion marketing order, corresponding 
changes would be needed in the onion import regulation. Such changes 
would be addressed in a separate onion import rule.
    Based on available information, the Administrator of the AMS has 
determined that this action would not have a significant economic 
impact on a substantial number of small entities.
    The information collection requirements contained in the referenced 
sections have been previously approved by the Office of Management and 
Budget (OMB) under the provisions of 44 U.S.C. chapter 35 and have been 
assigned OMB number 0581-0074.
    Interested persons are invited to submit their views and comments 
on this proposal. A 15-day comment period is considered appropriate 
because any changes to the regulations, if adopted, should be in effect 
as soon as possible. The marketing period begins March 1. All comments 
timely received will be considered prior to finalization of this rule.

List of Subjects in 7 CFR Part 959

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 959 is 
proposed to be amended as follows:

PART 959--ONIONS GROWN IN SOUTH TEXAS

    1. The authority citation for 7 CFR part 959 continues to read as 
follows:

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

    2. In Sec. 959.322, the introductory paragraph is revised to read 
as follows:


Sec. 959.322  Handling regulation.

    During the period beginning March 1 and ending June 15, no handler 
shall handle any onions unless they comply with paragraphs (a) through 
(d), or (e), or (f) of this section. In addition, no handler may 
package or load onions on Sunday during the period March 1 through May 
20.
* * * * *
    Dated: March 4, 1994.
Martha B. Ransom,
Acting Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-5559 Filed 3-8-94; 8:45 am]
BILLING CODE 3410-02-P