[Federal Register Volume 60, Number 135 (Friday, July 14, 1995)]
[Rules and Regulations]
[Pages 36204-36205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-17281]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 921

[Docket No. FV94-921-1FR]


Termination of Marketing Order 921; Fresh Peaches Grown in 
Designated Counties in Washington

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Termination order.

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SUMMARY: This document terminates the Federal marketing order for 
peaches grown in designated counties in Washington and the rules and 
regulations issued thereunder. The Secretary of Agriculture has 
determined that the marketing order no longer tends to effectuate the 
declared policy of the Agricultural Marketing Agreement Act of 1937 
(Act). Results of a producer referendum, held to determine the level of 
support for the marketing order, indicate that continuance is favored 
by only 14 percent of the producers voting, representing 1.5 percent of 
the volume voted. The vote demonstrates a lack of producer support 
necessary to accomplish the objectives of the Act.

EFFECTIVE DATE: August 14, 1995.

FOR FURTHER INFORMATION CONTACT: Mark J. Kreaggor, Marketing Order 
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O. 
Box 96456, Room 2525-S, Washington, DC 20090-6456, telephone (202) 720-
1755, or Robert Curry, Northwest Marketing Field Office, 1220 SW Third 
Avenue, Room 369, Portland, Oregon 97204, telephone (503) 326-2724.

SUPPLEMENTARY INFORMATION: This rule is governed by the provisions of 
section 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.
    The Department of Agriculture (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This termination rule has been reviewed under Executive Order 
12778, Civil Justice Reform. This rule is not intended to have 
retroactive effect. This termination order 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 of 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 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 approximately 65 Washington peach handlers who were 
subject to regulation under the marketing order and approximately 260 
producers within the production area. 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 Washington peach handlers 
and producers may be classified as small entities.
    Prior to its suspension on March 31, 1993, Marketing Order No. 921 
had been in effect since 1960. The marketing order provided for the 
establishment of grade, size, quality, maturity, pack, container and 
inspection requirements. In addition, the order authorized marketing 
research and development projects.
    The Washington Fresh Peach Marketing Committee (committee) met on 
May 12, 1992, and by an 11 to 1 vote recommended that the marketing 
order be suspended at the end of the 1992-93 fiscal period. The 
recommendation was made to eliminate the continued expense of 
administering the order. Since that time, handling requirements similar 
to those under the Federal order 

[[Page 36205]]
have been promulgated through the Washington State Department of 
Agriculture (State) for intrastate shipments of fresh peaches. Thus, 
the committee determined that continued funding through the Federal 
order was an unnecessary expense.
    On January 5, 1993, the Department issued an order published in the 
Federal Register [58 FR 220, January 5, 1993] suspending all of the 
provisions of Marketing Order No. 921 effective March 31, 1993. The 
action also directed that a referendum be conducted during the period 
November 13 through December 10, 1993, to determine if affected 
producers favored continuation of the order. The referendum order 
provided that the Secretary would consider terminating the order if 
less than two-thirds of the number of producers voting, and producers 
of less than two-thirds of the volume of peaches represented in the 
referendum, favored continuance.
    Of the 260 ballots mailed to producers of record, 21 valid votes 
were cast, representing approximately 8 percent of producers. The 
results of the referendum indicate that only 14 percent of the growers 
who voted, representing 1.5 percent of the volume voted, favored 
continuance of the order. Thus, the vote failed to meet the approval 
criteria by both number and volume.
    Given the level of producer participation, as well as the 
demonstrated lack of producer support for the order, these results are 
a reliable indicator of industry sentiment, and clearly demonstrate 
that a significant portion of the producers do not favor continuation 
of the order.
    Therefore, based on the foregoing considerations, pursuant to 
section 608c(16)(A) of the Act and section 9231.64 of the order, it is 
found that Marketing Order No. 921, covering peaches grown in 
designated counties in Washington, does not tend to effectuate the 
declared policy of the Act and is hereby terminated.
    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. Congress was so notified on March 1, 1994.

List of Subjects in 7 CFR Part 921

    Marketing agreements, Peaches, Reporting and recordkeeping 
requirements.

PART 921--[REMOVED]

    For the reasons set forth in the preamble, and under the authority 
of 7 U.S.C. 601-674, 7 CFR Part 921 is removed.

    Dated: July 10, 1995.
Patricia Jensen,
Acting Assistant Secretary, Marketing and Regulatory Programs.
[FR Doc. 95-17281 Filed 7-13-95; 8:45 am]
BILLING CODE 3410-02-P