[Federal Register Volume 60, Number 122 (Monday, June 26, 1995)]
[Proposed Rules]
[Pages 32922-32923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15509]



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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 965

[Docket No. FV95-965-1PR]


Tomatoes Grown in the Lower Rio Grande Valley in Texas; Proposed 
Termination of Marketing Order 965

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule proposes to terminate the Federal marketing order 
for tomatoes grown in the Lower Rio Grande Valley in Texas (order) and 
the rules and regulations issued thereunder. In recent years, this 
industry has declined significantly in numbers of producers and 
handlers. In March 1959, when the order commenced, there were 2,488 
producers and 61 handlers of tomatoes. Currently, there are 
approximately 10 producers, 5 of which are also handlers. The Texas 
Valley Tomato Committee (committee) last met on October 1, 1991, to 
conduct nominations. However, only a few of the former committee 
members are currently producers or handlers in the tomato industry and 
eligible to serve on the committee. Handling regulations have not been 
implemented since the 1973-74 fiscal period and there is no indication 
that the industry will be revived. Thus, there is no need for the 
Department of Agriculture to continue operation of this order.

DATES: Comments must be received by July 26, 1995.

ADDRESSES: Interested person 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, P.O. Box 96456, 
room 2523-S, Washington, D.C. 20090-6456; (202) 720-5698. 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: James B. Wendland, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, room 2523-S, Washington, DC 20090-6456, telephone (202) 720-
2170, or Belinda G. Garza, McAllen Marketing Field Office, Fruit and 
Vegetable Division, AMS, USDA, 1313 East Hackberry, McAllen, Texas 
78501, telephone (210) 682-2833.

SUPPLEMENTARY INFORMATION: This proposed rule is governed by the 
provisions of Sec. 608c(16)(A) of the Agricultural Marketing Agreement 
Act of 1937, as amended (7 U.S.C. 601-674), hereinafter referred to as 
the Act and Sec. 965.84 of the order.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This proposed termination of the order has been reviewed under 
Executive Order 12778, Civil Justice Reform. This proposed rule is not 
intended to have retroactive effect. This proposed rule would 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 Sec. 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 a 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 the 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 
[[Page 32923]] small entities acting on their own behalf. Thus, both 
statutes have small entity orientation and compatibility.
    There are approximately 10 producers, 5 of which are also handlers 
who would be subject to seasonal handling regulations under the order, 
but none have been recommended since the early 1970's. Small 
agricultural producers have been defined by the Small Business 
Administration (13 CFR 121.601) as those having annual receipts of less 
than $500,000, and small agricultural service firms are defined as 
those whose annual receipts are less than $5,000,000. The majority of 
the remaining South Texas tomato producers and handlers may be 
classified as small entities.
    The order was initially established in March 1959, to help the 
industry solve its marketing problems and maintain orderly marketing 
conditions. It was the responsibility of the Texas Valley Tomato 
Committee (committee), the agency established for local administration 
of the marketing order, to periodically investigate and assemble data 
on the growing, harvesting, shipping, and marketing conditions of 
tomatoes. The committee endeavored to achieve orderly marketing and 
improve acceptance of Texas tomatoes through establishment of minimum 
size and quality requirements. When regulated, fresh tomato shipments 
consisted only of those grades and sizes desired by consumers, thus, 
tending to increase returns to producers and handlers.
    During the first year the order was in effect, there were 2,488 
producers and 61 handlers of South Texas tomatoes. Over the years, 
commercial production and handling of tomatoes grown in South Texas 
have declined significantly. As a consequence, handling requirements 
have not been applied since the early 1970's and there is no indication 
that the industry will be revived or that regulations will be needed.
    In September 1994, the Department conducted interviews with former 
and remaining industry members to determine whether they expected a 
revival of South Texas tomato production in the next two years. 
Industry members did not give any indication that the industry would be 
revived. Former industry members that were interviewed stated that they 
did not plan to resume tomato production. They reported that the 
decline in the industry was caused by a lack of new tomato varieties 
adaptable to South Texas, which could make it more competitive with 
Mexico and Florida.
    Further, as stated above, there are currently only 10 producers, 5 
of which are also handlers. Without an adequate number of producers and 
handlers, the Department cannot appoint the required committee of 
members and alternates, or otherwise continue the operation of the 
order.
    The committee holds a certificate of deposit in the amount of 
$3,778.16, which matures on September 23, 1995, and a savings account 
that totals $514.23. At the last meeting in 1991, the committee 
recommended that any funds exceeding the expense of termination should 
be donated to an institution that conducts research for agriculture in 
the Lower Rio Grande Valley of South Texas.
    Therefore, based on the foregoing, pursuant to Sec. 608c(16)(A) of 
the Act and Sec. 965.84 of the order, the Department is considering the 
termination of Marketing Order No. 965, covering tomatoes grown in the 
Lower Rio Grande Valley in Texas. If the Secretary decides to terminate 
the order, trustees would be appointed to continue in the capacity of 
concluding and liquidating the affairs of the former committee, until 
discharged by the Secretary.
    Section 608c(16)(A) of the Act requires the Secretary to notify 
Congress 60 days in advance of the termination of a Federal marketing 
order.
    Based on the foregoing, the Administrator of the AMS has determined 
that this action would not have a significant impact on a substantial 
number of small entities.

List of Subjects in 7 CFR Part 965

    Marketing agreements, Reporting and recordkeeping requirements, 
Tomatoes.

    For the reasons set forth in the preamble, 7 CFR part 965 is 
proposed to be removed.

PART 965--[REMOVED]

    1. The authority citation for 7 CFR part 965 continues to read as 
follows:

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

    2. Accordingly, 7 CFR part 965 is removed.

    Dated: June 20, 1995
Lon Hatamiya,
Administrator.
[FR Doc. 95-15509 Filed 6-23-95; 8:45 am]
BILLING CODE 3410-02-P