[Federal Register Volume 61, Number 234 (Wednesday, December 4, 1996)]
[Rules and Regulations]
[Pages 64255-64257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-30860]
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DEPARTMENT OF AGRICULTURE
7 CFR Parts 911
[Docket No. FV96-911-1 FR]
Limes Grown in Florida and Imported Limes; Increase in the
Minimum Size Requirement
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: This final rule increases the current minimum size requirement
for limes grown in Florida and for limes imported into the United
States. This change was recommended by the Florida Lime Administrative
Committee (Committee), the agency responsible for the local
administration of the
[[Page 64256]]
marketing order covering limes grown in Florida. This rule increases
the minimum size requirement from 1\7/8\ inches to 2 inches in diameter
during the period of January 1 through May 31. Larger fruit tend to
have a higher juice content. Therefore, the increase in fruit size will
enable handlers to better meet the 42 percent juice content requirement
specified in the regulations for limes shipped to the fresh market. The
changes in import requirements are necessary under section 8e of the
Agricultural Marketing Agreement Act of 1937.
EFFECTIVE DATE: This final rule becomes effective January 3, 1997.
FOR FURTHER INFORMATION CONTACT: Caroline C. Thorpe, Marketing Order
Administration Branch, Fruit and Vegetable Division, AMS, USDA, P.O.
Box 96456, room 2525-S, Washington, DC 20090-6456; telephone: 202-720-
5127, or Fax # 202-720-5698; or Aleck J. Jonas, Southeast Marketing
Field Office, USDA/AMS, P.O. Box 2276, Winter Haven, Florida 33883;
telephone: 941-299-4770, or Fax # 941-299-5169. 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 final rule is issued under Marketing
Agreement No. 126 and Order No. 911 (7 CFR part 911), as amended,
regulating the handling of limes grown in Florida, hereinafter referred
to as the ``order.'' The 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.''
This rule is also issued under section 8e of the Act, which
requires the Secretary of Agriculture to issue grade, size, quality, or
maturity requirements for certain listed commodities, including limes,
imported into the United States that are the same as, or comparable to,
those imposed upon the domestic commodities regulated under the Federal
marketing orders.
The Department of Agriculture (Department) is issuing this final
rule in conformance with Executive Order 12866.
This final rule has been reviewed under Executive Order 12988,
Civil Justice Reform. This action is not intended to have retroactive
effect. This final 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 in equity 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.
There are no administrative procedures which must be exhausted
prior to any judicial challenge to the provisions of import regulations
issued under section 8e of the Act.
Pursuant to the requirements set forth in the Regulatory
Flexibility Act (RFA), the Agricultural Marketing Service (AMS) has
considered the economic impact of this final rule 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. Import regulations issued under
the Act are based on those established under Federal marketing orders.
There are approximately 10 handlers subject to regulation under the
order and approximately 30 producers of Florida limes. There are
approximately 35 importers of limes. Small agricultural service firms,
which include lime handlers and importers, have been defined by the
Small Business Administration (13 CFR 121.601) as those whose annual
receipts are less than $5,000,000, and small agricultural producers are
defined as those whose annual receipts are less than $500,000. A
majority of these handlers, producers, and importers may be classified
as small entities.
This rule increases the minimum size requirement for Florida and
imported limes, which could impose some additional costs on handlers
and importers, including small entities. However, any additional costs
are minimal and will not impose a significant economic impact. The
minimum size requirement will be applied to both small and large
handlers and importers in proportion to this. With an increase in the
minimum size, the larger limes are more likely to meet the 42 percent
minimum juice content requirement. This change is expected to reduce
the incidence of repacking, resulting in lower costs to handlers and
importers. Increasing the minimum size also ensures that such limes
will be more mature and have a higher juice content, which encourages
repeat purchases by consumers. This increase in quality to the consumer
is expected to increase returns to handlers, importers, and producers.
Therefore, AMS has determined that this action will not have a
significant economic impact on a substantial number of small entities.
Section 911.48 of the lime marketing order provides authority to
issue regulations establishing specific pack, container, grade and size
requirements. These requirements are specified under Sections 911.311,
911.329 and 911.344. Section 911.51 requires inspection and
certification that these requirements are met. Currently, the minimum
size requirement for Florida limes is that they measure at least 1\7/8\
inches in diameter.
The destruction caused by Hurricane Andrew in 1992 has drastically
reduced the lime acreage in Florida from 6,500 acres to approximately
1,500 acres. During the 1991-92 season, prior to Hurricane Andrew,
1,682,677 bushels of limes were assessed. For the 1993-94 season,
assessments were collected on 228,455 bushels, and for the 1994-95
season, assessments were collected on 283,977 bushels of limes. These
factors led the Committee to reconsider current marketing order
requirements, including the 1\7/8\ inches in diameter size requirement.
The Committee met on January 10, 1996, and recommended to increase
the minimum size requirement for Florida limes from 1\7/8\ inches to 2
inches in diameter during the period of January 1 through May 31. The
recommendation passed by a vote of seven in favor to one opposed. The
one dissenting voter did not comment on why he was opposed to the
increase.
Florida lime production and the quantity of lime imports into the
United States reach their lowest point from January through May. During
the 1994-95 season, 32,035 bushels of Florida
[[Page 64257]]
limes and 2,402,987 bushels of imported limes, were shipped to the
fresh market during the January through May production period. In
comparison, 257,178 bushels of Florida limes and 5,980,669 bushels of
imported limes, were shipped to the fresh market during the peak
production period of June through December.
This rule needs to be effective by January 1, 1997, because during
the January through May period, prices are generally higher while lime
quality is lower. Market demand however, remains the same as in the
peak production period. These factors have resulted in an incentive to
pack low quality fruit. Also, the juice content requirement for limes
shipped to the fresh market is 42 percent. Handlers have had difficulty
meeting the requirement during the low production period because limes
are less mature and have thicker skins. The thicker-skinned limes tend
to have lower juice content.
Limes that are 2 inches or larger in diameter have a higher juice
content than smaller limes. The larger limes, therefore, have a greater
chance of meeting the 42 percent juice content requirement. Increasing
the minimum size to 2 inches in diameter is expected to result in more
fresh limes meeting the 42 percent juice content requirement. These
limes are more likely to pass inspection without the expense of
repacking and regrading the fruit which will reduce handling costs.
The increase in minimum size has a positive cost effect on
consumers because it allows handlers of limes to provide the consumer
with higher quality fruit at a reasonable cost. According to the
Committee, the industry's past sales records indicate that consumers
have a preference for the larger sized limes. Producers and importers
of limes will also benefit by experiencing higher return rates.
Section 8e of the Act provides that when certain domestically
produced commodities, including limes, are regulated under a Federal
marketing order, imports of that commodity must meet the same or
comparable grade, size, quality, and maturity requirements. Since this
rule increases the minimum size requirement for Florida limes, a
corresponding change also applies to imports.
In a separate rulemaking action, as finalized in the Federal
Register on August 21, 1996 (61 FR 43141), the Department reduced the
regulatory period for Florida limes and limes imported into the United
States. That action modified language in both the domestic and import
regulations to change the regulatory period to January 1 through May 31
from a continuous, year round, implementation.
Minimum grade, size, quality, and maturity requirements for limes
imported into the United States are currently in effect under
Sec. 944.209 (7 CFR 944.209). This rule increases the minimum size
requirement for imported limes from 1\7/8\ inches to 2 inches in
diameter during the period of January 1 through May 31. By increasing
the minimum size, this rule will result in more imported limes passing
the 42 percent juice content requirement, providing higher quality
fruit at a reasonable cost.
The largest exporter of limes to the United States is Mexico, with
the heaviest volumes of lime shipments occurring between June 1 and
December 31. Mexico exported 6,075,685 bushels of fresh limes to the
United States during the 1994-95 season, while other import sources
shipped a total of 201,053 bushels, combined.
The 1\7/8\ inches in diameter size requirement is not specifically
stated in the lime import regulation. Therefore, no change is needed in
the text of Sec. 944.209.
The proposed rule concerning this action was issued on July 31,
1996, and was published in the August 5, 1996, Federal Register (61 FR
40551), with a 60-day comment period ending October 4, 1996. No
comments were received. However, a request to extend the comment period
to October 31, 1996, was received. This request was denied as the
proposed rule already had an extended 60-day comment period. Therefore,
the Department continues to believe that this was sufficient time to
file comments. This rule needs to be implemented by January 1. Due to
market conditions, the period from January through May is when the
prices for limes tend to be higher and the quality of limes tends to be
lower. This creates an incentive to pack low quality fruit that can
hurt the marketing of limes. Because of this situation, the Department
has determined not to reopen the comment period.
After thoroughly analyzing the comments received and other
available information, the Department has concluded that this final
rule is appropriate.
In accordance with section 8e of the Act, the United States Trade
Representative has concurred with the issuance of this final rule.
After consideration of all relevant matter presented, including the
information and recommendations submitted by the Committee and other
available information, it is hereby found that this rule, as
hereinafter set forth, will tend to effectuate the declared policy of
the Act.
List of Subjects in 7 CFR Part 911
Limes, Marketing agreements, Reporting and recordkeeping
requirements.
For the reasons set forth above, 7 CFR part 911 is amended as
follows:
1. The authority citation for 7 CFR part 911 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
PART 911--LIMES GROWN IN FLORIDA
Sec. 911.344 [Amended]
2. In Section 911.344, paragraph (a)(3) the words ``at least 1\7/8\
inches'' are revised to read ``at least 2 inches''.
Dated: November 27, 1996
Robert C. Keeney,
Director, Fruit and Vegetable Division.
[FR Doc. 96-30860 Filed 12-3-96; 8:45 am]
BILLING CODE 3410-02-P