[Federal Register Volume 61, Number 162 (Tuesday, August 20, 1996)]
[Rules and Regulations]
[Pages 42988-42989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21118]


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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service

7 CFR Part 922

[Docket No. FV96-922-1FIR]


Apricots Grown in Designated Counties in Washington; Temporary 
Suspension of Grade Requirements

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY:  The Department of Agriculture (Department) is adopting as a 
final rule, without change, the provisions of an interim final rule 
suspending for the 1996 season only, the minimum grade requirements 
(Washington No. 1), for fresh shipments of apricots grown in 
Washington. This change was recommended by the Washington Apricot 
Marketing Committee (committee), which works with the Department in 
administering the marketing order covering apricots grown in designated 
counties in Washington. This rule enables handlers to ship more fruit 
in fresh market channels, taking into consideration the damage caused 
to Washington apricots by freezing temperatures during the growing 
season. This change is expected to increase returns to producers and to 
make more fresh apricots available to consumers.

EFFECTIVE DATE: September 19, 1996.

FOR FURTHER INFORMATION CONTACT: Teresa L. Hutchinson, Northwest 
Marketing Field Office, Fruit and Vegetable Division, AMS, USDA, 1220 
SW Third Avenue, room 369, Portland, OR 97204; telephone: (503) 326-
2724; or Caroline C. Thorpe, Marketing Order Administration Branch, 
Fruit and Vegetable Division, Agricultural Marketing Service, U.S. 
Department of Agriculture, room 2523-S, P.O. Box 96456, Washington, DC 
20090-6456; telephone: (202) 720-5331. Small businesses may request 
information on compliance with this regulation by contacting: Jay 
Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2523-S, Washington, DC 20090-
6456; telephone (202) 720-2491; Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement No. 132 and Marketing Order No. 922 (7 CFR Part 922), both as 
amended, regulating the handling of apricots grown in designated 
counties in Washington, hereinafter referred to as the ``order.'' The 
order is authorized by the Agricultural Marketing Agreement Act of 
1937, as amended [7 U.S.C. 601-674], hereinafter referred to as the 
``Act.''
    The Department 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 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 to review the Secretary's 
ruling on the petition, provided an action 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 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

[[Page 42989]]

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 75 handlers of Washington apricots who are 
subject to regulation under the order and approximately 400 producers 
in the regulated area. Small agricultural service firms, which includes 
handlers of Washington apricots, have been defined by the Small 
Business Administration [13 CFR 121.601] as those having annual 
receipts of less than $5,000,000, and small agricultural producers are 
defined as those whose annual receipts are less than $500,000. The 
majority of Washington apricot handlers and producers may be classified 
as small entities.
    This rule finalizes an interim final rule suspending minimum grade 
requirements and therefore is a relaxation in regulations which should 
result in reduced costs and increased returns to handlers and 
producers. This will lower inspection costs and also enable handlers to 
ship a larger portion of their crop to the fresh market to meet 
consumer needs. Therefore, AMS has determined that this action will not 
have a significant economic impact on a substantial number of small 
entities.
    The interim final rule was issued on June 12, 1996, and published 
in the Federal Register (61 FR 30495, June 17, 1996), with an effective 
date of June 15, 1996. That rule amended Sec. 922.321 of the rules and 
regulations in effect under the order. That rule provided a 30-day 
comment period which ended July 17, 1996. No comments were received.
    Section 922.52 of the order authorizes the issuance of grade, size, 
quality, maturity, container markings, pack, and container regulations 
for any variety or varieties of apricots grown in any district or 
districts of the production area. Section 922.53 further authorizes the 
modification, suspension, or termination of regulations issued under 
Sec. 922.52. Section 922.55 provides that whenever apricots are 
regulated pursuant to Secs. 922.52 or 922.53, such apricots must be 
inspected by the Federal-State Inspection Service, and certified as 
meeting the applicable requirements of such regulations.
    The minimum grade, maturity, color, and size requirements for 
Washington apricots regulated under the order are specified in 
Sec. 922.321 Apricot Regulation 21 [7 CFR 922.321]. This final rule 
finalizes the interim final rule to temporarily suspend the minimum 
grade requirement in Sec. 922.321. This provides that no handler shall 
handle any container of apricots unless such apricots grade not less 
than Washington No. 1, except for shipments subject to exemption under 
the regulation. Other parts of Sec. 922.321 that remain in effect, 
provide that the Moorpark variety in open containers must be generally 
well matured. Also remaining in effect is the provision that with the 
exception of exempt shipments, apricots must be at least reasonably 
uniform in color, and be at least 1\5/8\ inches in diameter, except for 
the Blenheim, Blenril, and Tilton varieties which must be at least 1\1/
4\ inches in diameter. Individual shipments of apricots are also exempt 
from all these requirements if sold for home use only, do not exceed 
500 pounds net weight, and containers are stamped or marked with the 
words ``not for resale.''
    This rule finalizes the interim final rule that amended paragraph 
(a)(1) of Sec. 922.321 by continuing temporary suspension of the 
minimum grade requirements for fresh shipments of apricots for the 1996 
season only. The grade requirements currently specified in Sec. 922.321 
will resume April 1, 1997, for 1997 and future seasons.
    At its May 16, 1996, meeting, the committee unanimously recommended 
suspending the grade requirements for the 1996 season. The committee 
requested that this suspension be effective by June 15, the date 
shipments of the 1996 Washington apricot crop are expected to begin.
    The committee meets prior to and during each season to consider 
recommendations for modification, suspension, or termination of the 
regulatory requirements for Washington apricots 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 
Department 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.
    The committee reports that the apricot crop was severely damaged by 
several freezes last winter and early this spring. The severe weather 
conditions resulted in a high percentage of damage from russeting, scab 
spots, and other grade defects making it difficult for apricots to meet 
the minimum grade requirements of Washington No. 1. The committee 
estimates that only 2,300 tons of apricots will be shipped fresh during 
the 1996 season, even with the grade requirements suspended as 
requested. This amount is 52 percent of last season's fresh shipments 
of 4,452 tons and 46 percent of the five-year average of 4,965 tons.
    This final rule continues the suspension of the grade requirements 
specified in Sec. 922.321. Thus, the color and minimum size 
requirements for all varieties and the well matured requirements for 
the Moorpark variety will remain unchanged.
    This final rule enables handlers to continue to ship a larger 
portion of their crop to the fresh market this season, taking into 
account the abnormal growing conditions, than they would be allowed if 
the minimum grade requirements were not suspended. Continued suspension 
of the grade requirements for Washington apricots is intended to 
increase fresh shipments to meet consumer needs and improve returns to 
producers. It is the Department's view that the impact of this action 
upon producers and handlers, both large and small, will be beneficial 
because it will enable handlers to provide apricots consistent with 
1996 season growing conditions.
    After consideration of all relevant material presented, the 
information and recommendations submitted by the committee, and other 
information, it is found that finalizing the interim final rule, 
without change, as published in the Federal Register (61 FR 30495, June 
17, 1996) will tend to effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 922

    Marketing agreements, Apricots, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR Part 922 is 
amended as follows:

PART 922--APRICOTS GROWN IN DESIGNATED COUNTIES IN WASHINGTON

    Accordingly, the interim final rule amending 7 CFR part 922 which 
was published at 61 FR 30495 on June 17, 1996, is adopted as a final 
rule without change.

    Dated: August 13, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-21118 Filed 8-19-96; 8:45 am]
BILLING CODE 3410-02-P