[Federal Register Volume 61, Number 168 (Wednesday, August 28, 1996)]
[Proposed Rules]
[Pages 44187-44192]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-21960]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV-96-905-2PR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Procedures to Limit the Volume of Small Florida Red Seedless Grapefruit 
and Notice of Request for Extension and Revision of a Currently 
Approved Information Collection

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on the addition of a section to 
the rules and regulations currently prescribed under the marketing 
order for oranges, grapefruit, tangerines, and tangelos grown in 
Florida. This action also announces the Agricultural Marketing 
Service's (AMS) intention to request an extension for and revision to 
the currently approved information

[[Page 44188]]

collection requirements issued under the marketing order. The marketing 
order is administered locally by the Citrus Administrative Committee 
(committee). This rule would establish procedures for limiting the 
volume of small red seedless grapefruit entering the fresh market 
during the first 11 weeks of each season. The committee believes these 
procedures could be used, when necessary, to help stabilize the market 
and improve grower returns.

DATES: Comments must be received by September 27, 1996. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
must be received by October 28, 1996.

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, D.C. 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. 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.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Southeast 
Marketing Field Office, AMS, USDA, P.O. Box 2276, Winter Haven, Florida 
33883-2276; telephone: (941) 299-4770, Fax # (941) 299-5169; or 
Caroline Thorpe, Marketing Order Administration Branch, Fruit and 
Vegetable Division, AMS, USDA, P.O. Box 96456, Room 2522-S, Washington, 
D.C. 20090-6456; telephone: (202) 720-8139, Fax # (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposal is issued under Marketing 
Agreement and Marketing Order No. 905 (7 CFR Part 905), as amended, 
regulating the handling of oranges, grapefruit, tangerines, and 
tangelos grown in Florida, hereinafter referred to as the ``order.'' 
This 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 (Department) is issuing this rule in 
conformance with Executive Order 12866.
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule 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 
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 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 
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 100 handlers subject to regulation under 
the order and approximately 11,000 producers of citrus 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 $5,000,000, and small 
agricultural producers are defined as those having annual receipts of 
less than $500,000. The majority of handlers and producers of citrus 
grown in Florida may be classified as small entities.
    This proposed rule would add procedures to the rules and 
regulations itself. It would not establish any volume regulation. Any 
implementation of these procedures concerning regulation would require 
further committee action and additional public rulemaking by the 
Department.
    However, if the procedures in this proposal were used and volume 
regulations established, all growers and handlers would be impacted 
equitably. Before any implementation would occur, the committee would 
meet and consider any and all economic data available. The goal of this 
proposal is to provide an additional tool, if needed, to help stabilize 
the price of red grapefruit. In the past three seasons, during the 
period which would be covered by this proposed rule, prices of red 
seedless grapefruit have fallen from an average f.o.b. of $7.80 per box 
to an average f.o.b. of $5.50 per box. On tree prices for fresh red 
seedless grapefruit have declined steadily from $9.60 per box during 
the 1989-90 season, to $3.45 per box during the 1994-95 season. In many 
cases, prices during the past two seasons have provided returns less 
than production costs. This price reduction is forcing many small 
producers out of business. A stabilized price that returns a fair 
market value would be beneficial to both small and large producers and 
handlers.
    Based on this information, the AMS has determined that this action 
would not have a significant economic impact on a substantial number of 
small entities. Interested persons are invited to submit information on 
the regulatory and informational impacts of this action on small 
businesses.
    The order provides for the establishment of grade and size 
requirements for Florida citrus. These grade and size requirements are 
designed to provide fresh markets with citrus fruit of acceptable 
quality and size, thereby maintaining consumer confidence for fresh 
Florida citrus. This helps create buyer confidence and contributes to 
stable marketing conditions. This is in the interest of producers, 
handlers, and consumers, and is designed to increase returns to Florida 
citrus producers. The current minimum grade standard for red seedless 
grapefruit is U.S. No. 1, and the minimum size requirement is size 56 
(at least 3\5/16\ inches in diameter).
    This proposal invites comments on the addition of a section to the 
rules and regulations under the order. This rule would establish 
procedures for limiting the volume of small red seedless grapefruit 
entering the fresh market during the first 11 weeks of each season. The 
red seedless grapefruit season runs from mid-September to May. This 
rule would provide an additional tool under the order to help stabilize 
the market and improve returns to growers. These changes were 
recommended by the committee at its meeting on May 24, 1996, by a 10 to 
4 vote.
    Section 905.52 of the Florida citrus marketing order provides 
authority to

[[Page 44189]]

limit shipments of any grade or size, or both, of any variety of 
Florida citrus. Such limitations may restrict the shipment of a portion 
of a specified grade or size of a variety. Under such a limitation, the 
quantity of such grade or size that may be shipped by a handler during 
a particular week shall be established as a percentage of the total 
shipments of such variety by such handler in a prior period, 
established by the committee and approved by the Secretary, in which 
the handler shipped such variety. This proposed rule would add 
Sec. 905.153 to the rules and regulations to establish a specified 
prior period and other procedures necessary to limit the volume of 
small red seedless grapefruit, sizes 48 and 56, entering the fresh 
market during the first 11 weeks of the season.
    Currently, there are no limitations on the amount of size 48 and 
size 56 red seedless grapefruit that can be shipped to market. This 
rule in itself would not limit shipments, but would outline procedures 
to do so if needed. Implementation of these procedures to limit 
shipments would require further rulemaking.
    The committee recommended this rule to address problems currently 
facing the industry. For the past few seasons, returns on red seedless 
grapefruit have been at all time lows, often not returning the cost of 
production. Fifty-nine percent of red seedless grapefruit is shipped to 
fresh market channels. There is a processing outlet for grapefruit not 
sold into the fresh market. The vast majority of processing is 
squeezing the grapefruit for juice. Because of the properties of the 
juice of red seedless grapefruit, including problems with color, the 
processing outlet is limited, and not currently profitable.
    Several areas of new plantings in the southern growing region are 
just beginning to bear fruit. Young trees normally produce mostly small 
fruit when they first come into production. Florida producers and 
handlers realize that these new acres will add to the abundance of 
small sizes of red seedless grapefruit.
    The committee believes that to stabilize the market and improve 
returns to producers, demand for fresh red seedless grapefruit must be 
stabilized and increased. One problem contributing to the current state 
of the market is the excessive number of small sized grapefruit shipped 
early in the marketing season. While there is a market for early 
grapefruit, the shipment of large quantities of small red seedless 
grapefruit in a short period oversupplies the fresh market for these 
sizes and negatively impacts the market for all sizes.
    The committee believes that the overshipment of smaller sized red 
seedless grapefruit early in the season has contributed to below 
production cost returns for producers. Based on statistical information 
from past seasons, there is an indication that once shipments of sizes 
48 and 56 reach levels above 250,000 cartons a week, prices decline on 
those and most other sizes of red seedless grapefruit. Thus, even 
though later in the season the crop has sized to naturally limit the 
amount of smaller sizes available for shipment, the price structure in 
the market has already been negatively affected.
    For the majority of the season, larger sizes return better prices 
than smaller sizes. If these small grapefruit were allowed to remain on 
the tree to increase in size and maturity, they could provide greater 
returns to producers. Delaying the harvest of small sizes may also 
extend the season, thereby increasing the total volume of fresh 
shipments and improving producer returns. Without volume regulation, 
the industry has been unable to limit the shipments of small sizes. The 
committee believes that if shipments of small sizes could be maintained 
at around 250,000 cartons a week, prices should stabilize and demand 
for larger, more profitable sizes should increase.
    Similar procedures to those considered in this rule are already in 
place for Dancy tangerines under Sec. 905.152. While the committee has 
not utilized these procedures for several years, they were successfully 
implemented for several seasons.
    Under the proposed procedures, the authority to limit the shipment 
of sizes 48 and 56 red seedless grapefruit would only be available for 
the 11-week period from the third Monday in September (week #1) through 
the first Sunday in December (week #11), hereinafter called the 
regulatory period. The committee recommended these weeks for regulation 
because the majority of small sizes are shipped during this period. By 
the end of the regulatory period, fruit has begun to size naturally, 
and there are fewer small sizes available.
    The committee may recommend that only a certain percentage of size 
48 (3\9/16\ minimum diameter in inches) and size 56 (3\5/16\ minimum 
diameter in inches) red seedless grapefruit be made available for 
shipment into fresh market channels for any week or weeks during the 
regulatory period. Should the committee decide to recommend the 
limitation of shipments of sizes 48 and 56 red seedless grapefruit, 
they would meet and recommend to the Secretary a percentage on which to 
base the amount of sizes 48 and 56 that could be shipped during a 
particular week or weeks during the regulatory period. The committee 
realizes that markets for these sizes do exist. Therefore, the 
percentage set could not be less than 25 percent of the calculated 
shipment base. These procedures are designed not to eliminate shipments 
of sizes 48 and 56, but to keep them from saturating the entire market.
    Section 905.52 provides that whenever any size limitation restricts 
the shipment of a portion of a specified size, the quantity of such 
size that may be shipped by a handler during a particular week shall be 
established as a percentage of the total shipments of such variety by 
such handler in such prior period as established by the committee and 
approved by the Secretary.
    This proposed rule would establish the prior period as an average 
week within the immediately preceding five seasons. An average week 
would be calculated as follows. The total red seedless grapefruit 
shipments by a handler during the 33-week period beginning the third 
Monday in September and ending the first Sunday in May during the past 
five seasons would be added and divided by five to establish an average 
season. This average season would then be divided by the 33 weeks in a 
season to derive the average week. This week would be the basis for 
each shipper for each of the 11 weeks contained in the regulation 
period.
    To illustrate, suppose Handler A shipped a total of 50,000 cartons, 
65,000 cartons, 45,000 cartons, 80,000 cartons, and 25,000 cartons of 
red seedless grapefruit in the last five seasons, respectively. Adding 
these season totals and dividing by five yields an average season of 
53,000 cartons. The average season would then be divided by 33 weeks to 
yield an average week, in this case, 1,606 cartons. This would be 
Handler A's base.
    The committee chose to use the past five seasons for the average 
season to provide the most accurate picture of an average season. The 
use of an average week helps adjust for variations in growing 
conditions that may affect when fruit matures in different seasons and 
growing areas. The committee believes that this definition of prior 
period would provide each handler with an equitable base from which to 
establish shipments.
    The average week for handlers with less than five previous seasons 
of shipments would be calculated by

[[Page 44190]]

averaging the total shipments for the seasons they did ship red 
seedless grapefruit during the immediately preceding five years and 
dividing that average by 33. New handlers with no record of shipments 
would have no prior period on which to base their average week. 
Therefore, if a volume regulation was established before such handlers 
have shipped any red seedless grapefruit, the new handlers could ship 
small sizes as a percentage of their total shipments equal to the 
percentage applied to other handlers' base. Once new handlers have 
established shipments, the average week would be calculated as an 
average of the weeks they have shipped during the current season.
    To use these new procedures, the committee would meet and recommend 
a base percentage of sizes 48 and 56 that could enter the fresh market 
in any week or weeks from the first Monday in September through the 
first Sunday in December. If approved by the Secretary, this percentage 
would be applied to each handler's average week of fresh shipments to 
determine the amount (allocation) of sizes 48 and 56 red grapefruit 
each handler could ship. Each regulation period would begin Monday at 
12:00 a.m. and end at 11:59 p.m. the following Sunday, since most 
handlers keep records based on Monday being the beginning of the work 
week.
    When a size limitation is recommended to restrict the shipment 
during a particular week, the committee would compute each handler's 
allotment by multiplying the handler's average week by the percentage 
established by regulation for that week. Such set percentage could vary 
from week to week, but could not be less than 25 percent. The committee 
would notify each handler prior to the particular week of the quantity 
of sizes 48 and 56 red seedless grapefruit such handler could handle 
during a particular week.
    To provide handlers with some flexibility, these procedures would 
provide allowances for overshipments, loans, and transfers of 
allotment. These allowances should allow handlers the opportunity each 
week to supply their markets while limiting the impact of small sizes.
    During any regulation week for which the Secretary has fixed the 
percentage of sizes 48 and 56 red seedless grapefruit, any person who 
has received an allotment could handle, in addition to their weekly 
allotment, an amount of size 48 and 56 red seedless grapefruit not to 
exceed 10 percent of that week's allotment. The quantity of 
overshipments would be deducted from the handler's allotment for the 
following week. Overshipments would not be allowed during week 11 
because there would be no allotments the following week from which to 
deduct the overshipments.
    If handlers fail to use their entire allotments in a given week, 
the amounts undershipped would not be carried forward to the following 
week. However, a handler to whom an allotment has been issued could 
lend or transfer all or part of such allotment (excluding the 
overshipment allowance) to another handler. In the event of a loan of 
allotment, each party would, prior to the completion of the loan 
agreement, notify the committee of the proposed loan and date of 
repayment. If a transfer of allotment is desired, each party would 
promptly notify the committee so that proper adjustments of the records 
could be made. In each case, the committee would confirm in writing all 
such transactions prior to the following week. The committee could also 
act on behalf of handlers wanting to arrange allotment loans or 
participate in the transfer of allotment. Repayment of an allotment 
loan would be at the discretion of the handlers party to the loan.
    In considering these procedures, the committee discussed several 
possible alternatives. One alternative considered was an amendment to 
the marketing order. The amendment would have changed the language 
regarding the ``prior period'' in section 905.52. However, this 
alternative was rejected because of the time required to amend the 
order.
    The committee also discussed limiting or eliminating only shipments 
of size 56 grapefruit. However, the committee found that it is 
important to include both sizes 48 and 56 for this regulation to be 
effective. Also, the committee did not want to eliminate a size 
entirely. They realize there is a market for small sizes and wish to 
allow handlers to take advantage of this market without negatively 
affecting the market for other sizes.
    Other concerns were raised during discussion of these procedures. 
One committee member questioned whether these procedures would allow 
him to continue to increase his business. It was explained that this 
action would only put tools in place to allow the limitation of just a 
certain percentage of the smaller sized red seedless grapefruit. A 
handler would not in any way be limited from shipping any amount of 
larger sizes. Another concern raised was the impact these procedures 
would have on harvesting. It was explained again that this rule would 
just establish procedures. However, if implemented, it would require 
more selective picking of only the sizes desired, something that many 
are doing already.
    After a lengthy discussion, the committee decided that it needs to 
have available a tool to regulate shipments of small sized red seedless 
grapefruit early in each marketing season. The committee voted to 
recommend the establishment of these procedures to provide them with 
that tool.
    The committee reports that it expects that more red seedless 
grapefruit will be produced in Florida during the 1996-97 season than 
last season. The committee also expects that supplies of fresh Florida 
red seedless grapefruit will be adequate to meet consumer demand during 
the entire 1996-97 season.
    This rule does not affect the order provision that handlers may 
ship up to 15 standard packed cartons (12 bushels) of fruit per day 
exempt from grade and size requirements. Fruit shipped in gift packages 
that are individually addressed and not for resale, and fruit shipped 
for animal feed are also exempt from grade and size requirements under 
specific conditions. Also, fruit shipped to commercial processors for 
conversion into canned or frozen products or into a beverage base are 
not subject to the handling requirements under the order.
    Section 8(e) of the Act requires that whenever grade, size, quality 
or maturity requirements are in effect for certain commodities under a 
domestic marketing order, including grapefruit, imports of that 
commodity must meet the same or comparable requirements. This rule does 
not change the minimum grade and size requirements under the order. 
Therefore, no change is necessary in the grapefruit import regulations 
as a result of this action.
    The information collection requirements contained in this section 
must be approved by the Office of Management and Budget (OMB) under the 
provisions of the Paperwork Reduction Act of 1995 (Pub. L. 104-13) and 
assigned OMB number 0581-0094 for Florida citrus.
    This rule would increase the reporting burden on an estimated 10 
handlers of red seedless grapefruit who would be taking about 0.083 
hour to complete a report regarding allotment loans or transfers an 
average of 11 times per year. The total annual increase in burden would 
be about 9 hours.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. All written comments received within the 
comment period will be considered before a final determination is made 
on this matter.

[[Page 44191]]

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the AMS announces its intention to request an extension 
for and revision to a currently approved information collection for 
Florida oranges, grapefruit, tangerines, and tangelos.
    Title: Oranges, Grapefruit, Tangerines, and Tangelos Grown in 
Florida, Marketing Order No. 905.
    OMB Number: 0581-0094.
    Expiration Date of Approval: August 31, 1998.
    Type of Request: Extension and revision of a currently approved 
information collection.
    Abstract: Marketing order programs provide an opportunity for 
producers of fresh fruits, vegetables and specialty crops, in a 
specified production area, to work together to solve marketing problems 
that cannot be solved individually. Order regulations help ensure 
adequate supplies of high quality product and adequate returns to 
producers. Under the Act, industries enter into marketing order 
programs. The Secretary of Agriculture is authorized to oversee the 
order operations and issue regulations recommended by a committee of 
representatives from each commodity industry.
    The information collection requirements in this request are 
essential to carry out the intent of the Act, to provide the 
respondents the type of service they request, and to administer the 
Florida citrus marketing order program, which has been operating since 
1939.
    The Florida citrus marketing order authorizes the issuance of 
grade, size, container, and pack regulations. It also authorizes the 
limitation of shipments of certain grades or sizes. Regulatory 
provisions apply to oranges, grapefruit, tangerines and tangelos 
shipped outside of the production area, except for those shipments 
specifically exempt.
    The order, and rules and regulations issued thereunder, authorize 
the committee to require handlers and producers to submit certain 
information. Much of this information is compiled in aggregate and 
provided to the industry to assist in marketing decisions.
    The committee has developed forms as a means for persons to file 
required information with the committee relating to citrus supplies, 
shipments, dispositions, and other information needed to effectively 
carry out the purpose of the Act and order. As shipments occur 
throughout the year, these forms are utilized accordingly. A USDA form 
is used to allow producers to vote on amendments to the order and 
whether the order should be continued. In addition, producers and 
handlers who are nominated by their peers to serve as representatives 
on the committee must file nomination forms with the Secretary.
    This proposed collection includes a new requirement for handlers to 
report to the committee any allotment loans or transfers during volume 
regulation of smaller size 48 (at least 3\9/16\ inches) or 56 (at least 
3\5/16\ inches) red seedless grapefruit. Allowing transfers and loans 
would provide flexibility during such regulation, by allowing handlers 
to loan or transfer their individual allotments of smaller sized red 
seedless grapefruit. Requiring such transactions to be reported to the 
committee would ensure compliance with volume regulations and assist 
the committee and the Department with oversight and planning of volume 
regulation of red seedless grapefruit. This new requirement would 
increase the reporting burden on an estimated 10 handlers of red 
seedless grapefruit who would be taking about 0.083 hour to complete a 
report regarding allotment loans or transfers an average of 11 times 
per year. The total annual increase in burden would be about 9 hours.
    These forms require the minimum information necessary to 
effectively carry out the requirements of the order, and their use is 
necessary to fulfill the intent of the Act as expressed in the order.
    The information collected is used only by authorized 
representatives of the USDA, including AMS, Fruit and Vegetable 
Division regional and headquarter's staff, and authorized employees of 
the committee. Authorized committee employees are the primary users and 
AMS employees are the secondary users of the information.
    Estimate of Burden: Public reporting burden for this proposed 
collection of information is estimated to average 0.089 hours per 
response.
    Respondents: Florida citrus producers and for-profit businesses 
handling fresh citrus.
    Estimated Number of Respondents: 1,176.
    Estimated Number of Responses per Respondent: 1
    Estimated Total Annual Burden on Respondents: 204 hours.
    Comments are invited on: (a) Whether the proposed collection of 
information is necessary for the proper performance of the functions of 
the Florida citrus marketing order program and the Department's 
oversight of that program, including whether the information will have 
practical utility; (b) the accuracy of AMS's burden estimate of the 
proposed collection of information including the validity of 
methodology and assumptions used; (c) ways to enhance the quality, 
utility, and clarity of the information collected; and (d) ways to 
minimize the burden of the collection of appropriate information on 
those who are to respond, including through the use of appropriate, 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology.
    Comments should reference OMB No. 0581-0094 and the Florida citrus 
Marketing Order No. 905, and be sent to USDA in care of Caroline C. 
Thorpe, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, PO Box 96456, room 2522-S, Washington, DC 20090-
6456; telephone: 202-720-5127 or Fax: 202-720-5698.
    All comments received will be available for public inspection 
during regular business hours at the same address.
    All responses to this notice will be summarized and included in the 
request for OMB approval. All comments will become a matter of public 
record.
    Because there is insufficient time for a normal clearance 
procedure, AMS is seeking temporary approval from OMB for the use of a 
new form for this upcoming season. The form would be added to the forms 
which are currently approved for use under OMB Number 0581-0094.

List of Subjects in 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

    For the reasons set forth in the preamble, 7 CFR part 905 is 
proposed to be amended as follows:

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

    1. The authority citation for 7 CFR Part 905 continues to read as 
follows:

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

    2. A new Sec. 905.153 is added to read as follows:


Sec. 905.153  Procedure for determining handlers' permitted quantities 
of red seedless grapefruit when a portion of sizes 48 and 56 of such 
variety is restricted.

    (a) For the purposes of this section, the prior period specified in 
Sec. 905.52 is hereby established as an average week within the 
immediately preceding five seasons. Each handler's average week shall 
be computed by adding the total volume of red seedless grapefruit 
handled in the immediately preceding five seasons and dividing the 
total by

[[Page 44192]]

165. The average week for handler with less than five previous seasons 
of shipments shall be calculated by adding the total volume of 
shipments for the seasons they did ship red seedless grapefruit, 
divided by the number of seasons, divided further by 33. New handlers 
with no record of shipments could ship size 48 and 56 red seedless 
grapefruit as a percentage of total shipments equal to the percentage 
applied to other handlers' average week; once such handlers have 
recorded shipments, their average week shall be calculated as an 
average of total shipments for the weeks they have shipped red seedless 
grapefruit during the current season. When used in the regulation of 
red seedless grapefruit the term season means the weeks beginning the 
third Monday in September and ending the first Sunday in the following 
May. The term regulation period means the 11 weeks beginning the third 
Monday in September and ending the first Sunday in December of the 
current season.
    (b) When a size limitation restricts the shipment of a portion of 
sizes 48 and 56 red seedless grapefruit during a particular week as 
provided in Sec. 905.52, the committee shall compute the quantity of 
sizes 48 and 56 red seedless grapefruit that may be shipped by each 
handler by multiplying the handler's calculated average week shipments 
of such grapefruit by the percentage established by regulation for red 
seedless grapefruit for that week.
    (c) The committee shall notify each handler of the quantity of size 
48 and 56 red seedless grapefruit such handler may handle during a 
particular week.
    (d) During any regulation week for which the Secretary has fixed 
the percentage of sizes 48 and 56 red seedless grapefruit, any person 
who has received an allotment may handle, in addition to their total 
allotment available, an amount of size 48 and 56 red seedless 
grapefruit up to 10 percent greater than their allotment. The quantity 
of the overshipment shall be deducted from the handler's allotment for 
the following week. Overshipments will not be allowed during week 11. 
If the handler fails to use his or her entire allotment, the 
undershipment is not carried forward to the following week.
    (e) Any handler may transfer or loan any or all of their shipping 
allotment (excluding the overshipment allowance) of size 48 and 56 red 
seedless grapefruit to any other handler. Each handler party to such 
transfer or loan shall promptly notify the committee so the proper 
adjustment of records may be made. In each case, the committee shall 
confirm in writing all such transactions, prior to the following week, 
to the handlers involved. The committee may act on behalf of handlers 
wanting to arrange allotment loans or participate in the transfer of 
allotments.

    Dated: August 22, 1996.
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-21960 Filed 8-27-96; 8:45 am]
BILLING CODE 3410-02-P