[Federal Register Volume 63, Number 200 (Friday, October 16, 1998)]
[Rules and Regulations]
[Pages 55497-55500]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-27781]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV98-905-5 FR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Regulation of Fallglo Variety Tangerines

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This rule adds Fallglo tangerines to the varieties of citrus 
fruit regulated under the marketing order covering oranges, grapefruit, 
tangerines, and tangelos grown in Florida. It also establishes minimum 
grade and size requirements for the Fallglo variety. These actions were 
unanimously recommended by the Citrus administrative Committee 
(committee) which locally administers the marketing order. This rule is 
intended to assure that Fallglo tangerines entering fresh market 
channels are of a size and quality acceptable to consumers in the 
interest of producers, shippers, and consumers.

EFFECTIVE DATE: This final rule becomes effective October 19, 1998.

FOR FURTHER INFORMATION CONTACT: William G. Pimental, Marketing 
Specialist, Southeast Marketing Field Office, Marketing Order 
Administration Branch, F&V, AMS, USDA, P.O. Box 2276, Winter Haven, 
Florida 33883-2276; telephone: (941) 299-4770, Fax: (941) 299-5169; or 
George Kelhart, Technical Advisor, Marketing Order Administration 
Branch, F&V, AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 
20090-6456; telephone: (202) 720-2491, Fax: (202) 205-6632. Small 
businesses may request information on compliance with this regulation 
by contacting Jay Guerber, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; telephone (202) 720-2491, Fax: (202) 205-
6632.

SUPPLEMENTARY INFORMATION: This final rule is issued under Marketing 
Agreement No. 84 and Marketing Order No. 905, both as amended (7 CFR 
part 905), regulating the handling of oranges, grapefruit, tangerines, 
and tangelos

[[Page 55498]]

grown in Florida, hereinafter referred to as the ``order.'' The 
marketing agreement and order are 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 final 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.
    The order provides for the establishment of grade and size 
requirements for Florida citrus, with the concurrence of the Secretary. 
The grade and size requirements now in effect are designed to provide 
fresh markets with citrus fruit of acceptable quality and size, and 
help create buyer confidence. The requirements also contribute toward 
stable marketing conditions and foster market growth in the interest of 
growers, handlers, and consumers, and help increase returns to Florida 
citrus growers.
    This final rule adds Fallglo tangerines to the citrus varieties 
covered under the order. It also establishes minimum grade and size 
requirements for the Fallglo variety. This rule is designed to help 
assure that the size and quality of Fallglo tangerines entering fresh 
market channels are acceptable to consumers. This action was 
unanimously recommended by the committee at its meeting on May 22, 
1998.
    Section 905.5 of the order defines the varieties of fruit regulated 
under the order and authorizes the addition of other varieties as 
specified in Sec. 905.4, as recommended by the committee and approved 
by the Secretary. Section 905.105 contains the changes in varieties 
that have been made using this authority. This rule adds Fallglo 
tangerines to the varieties of citrus fruit regulated under the order 
by modifying Sec. 905.105.
    Fallglo tangerines are a relatively new variety coming into 
significant commercial production. The committee has been following the 
production statistics for Fallglo tangerines. During the last four 
years this variety has experienced rapid production growth. The 
committee uses a level of a million cartons of production as a measure 
in considering a variety's commercial significance. Another indicator 
of commercial significance used by the committee is the market share 
held by the variety.
    The committee noted that fresh shipments of Fallglo tangerines had 
increased from 381,990 cartons (\4/5\ bushel) in 1994-95 to 874,076 
cartons (\4/5\ bushel) in 1997-98. Total utilization had increased from 
465,876 \4/5\ bushel cartons in 1994-95 to 1,157,624 \4/5\ bushel 
cartons in 1997-98. In the 1997-98 season, approximately 76 percent of 
the Fallglo tangerine crop was shipped in fresh market channels, 
representing approximately 23 percent of the early tangerine crop. As 
the trees of this variety reach full bearing age and additional 
plantings begin to bear fruit, the committee expects shipments of 
Fallglo tangerines to continue to increase and comprise a larger share 
of the early tangerine market.
    The committee believes that the current market share and shipment 
levels justify adding this variety to those regulated under the order 
and establishing minimum grade and size requirements for Fallglo 
tangerines, and that these requirements will become increasingly 
important in helping assure and maintain acceptable shipments as 
production and market share increase. The establishment of such 
requirements for this tangerine variety is expected to help ensure that 
only fresh Fallglos of acceptable size and quality reach consumers in 
the interest of producers, handlers, and consumers. Experience has 
shown that providing uniform quality and size acceptable to consumers 
helps stabilize the market, improves grower returns, and fosters market 
growth.
    Section 905.52 of the order, in part, authorizes the committee to 
recommend minimum grade and size regulations to the Secretary. Section 
905.306 of the order's rules and regulations specifies minimum grade 
and size requirements for different varieties of fresh Florida citrus. 
Such requirements for domestic shipments are specified in Sec. 905.306 
in Table I of paragraph (a), and for export shipments in Table II of 
paragraph (b).
    This rule amends Sec. 905.306 by adding the Fallglo tangerine 
variety to the list of entries in Table I of paragraph (a), and in 
Table II of paragraph (b). A minimum grade of U. S. No. 1 as specified 
in the U.S. Standards for Grades of Florida Tangerines (7 CFR 51.1810 
through 51.1837), and a minimum size of 2\6/16\ inches diameter are 
established for Fallglo tangerines for both domestic and export 
shipments.
    The committee recommended a minimum size of 2\6/16\ inches diameter 
for Fallglo tangerines because this variety of tangerine tends to grow 
larger than the other tangerine varieties regulated at the 2\4/16\ inch 
minimum diameter, and it can easily attain the larger size. The minimum 
grade of U. S. No. 1 was recommended by the committee for this variety 
because tangerines meeting the requirements of this grade are mature, 
and, while having more cosmetic defects than the higher grades 
specified in the standards, the defects do not materially detract from 
the appearance, or the edible or marketing quality of the fruit. All 
regulated varieties of Florida tangerines, except Honey tangerines, 
have a minimum U. S. No. 1 grade. Honey tangerines are not regulated at 
U.S. No. 1 because their skin possesses excessive amounts of green 
coloring which causes them to exceed the tolerances for that grade 
defect. Honey tangerines must be at least Florida No. 1 grade, which 
permits more green coloring than U.S. No. 1. According to the 
committee, almost all of the Fallglo tangerines shipped fresh in 1997-
98 would have met these requirements had they been in effect.
    Minimum grade and size requirements for domestic and export 
shipments of tangerines are designed to prevent shipments of low grade, 
immature, small-sized, or otherwise unsatisfactory fruit from entering 
fresh market channels. Preventing such shipments helps create buyer 
confidence in the marketplace and helps foster stable marketing 
conditions in the interest of producers.
    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. Accordingly, AMS has 
prepared this final regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of

[[Page 55499]]

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 tangerine handlers subject to regulation 
under the order and approximately 11,000 growers of citrus in the 
regulated area. Small agricultural service firms have been defined by 
the Small Business Administration (SBA) 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 (13 CFR 121.601).
    Based on industry and committee data for the 1997-98 season, the 
average annual free-on-board price for fresh Florida tangerines during 
the 1997-98 season was around $12.51 per \4/5\ bushel carton, and total 
fresh shipments of early tangerines for the 1997-98 season are 
estimated at 3.8 million cartons.
    Approximately 40 percent of all handlers handled 80 percent of 
Florida tangerine shipments. In addition, many of these handlers ship 
other citrus fruit and products that contribute further to handler 
receipts. About 80 percent of citrus handlers could be considered small 
businesses under SBA's definition and about 20 percent of the handlers 
could be considered large businesses. The majority of Florida citrus 
handlers and growers may be classified as small entities.
    Under Sec. 905.5, the committee has the authority to recommend to 
the Secretary the addition of other citrus varieties to those covered 
under the order. Section 905.52 of the order, in part, authorizes the 
committee to recommend minimum grade and size regulations to the 
Secretary. Pursuant to this authority, minimum grade and size 
requirements for domestic and export shipments are specified for 
numerous citrus varieties covered under the order. Currently, Fallglo 
tangerines are not included under the order and no minimum grade and 
size requirements are established for this variety.
    This rule makes changes to Secs. 905.105 and 905.306 of the rules 
and regulations concerning covered varieties and minimum grade and size 
requirements, respectively. This rule adds Fallglo tangerines to the 
varieties covered under the order. It also establishes a minimum grade 
and size requirement for Fallglo tangerines. The establishment of such 
requirements for this variety will help stabilize the market and 
improve grower returns by providing uniform quality and size acceptable 
to consumers.
    This regulation is expected to have a positive impact on affected 
entities. This action is intended to maintain and improve quality. The 
purpose of this rule is to improve the quality of fruit entering fresh 
market channels in the interest of producers, shippers, and consumers. 
Minimum grade and size requirements for domestic and export shipments 
of tangerines are designed to prevent shipments of low grade, immature, 
small sized, or otherwise unsatisfactory fruit from entering fresh 
market channels.
    While this rule establishes a minimum grade and size requirement 
for Fallglo tangerines, many handlers in the industry have been using 
these requirements voluntarily. According to the committee, almost all 
of the Fallglo tangerines shipped fresh in 1997-98 (874,076 \4/5\ 
bushel cartons) would have met the requirements established in this 
rule (i.e., U.S. No. 1 and 2\6/16\ inches in diameter) had they been in 
effect. Therefore, this rule should not be overly restrictive, and the 
overall effect on costs is expected to be minimal in relation to the 
benefits expected.
    Regarding expected handler inspection costs, three inspection and 
certification options are being used by Florida citrus handlers 
regulated under the order. The options are Partners in Quality (PIQ), 
continuous in-line, and lot inspection. The PIQ inspection option is an 
audit based quality assurance program between inspection officials of 
the Fresh Products Branch, F&V, AMS, USDA, and officials from the 
individual packinghouses. Under PIQ, the packinghouse and inspection 
officials develop a system of checks along the processing/packing line 
which demonstrate and document their ability to pack product that meets 
all applicable requirements. The effectiveness of PIQ is verified 
through periodic, unannounced audits of each packer's system by USDA-
approved auditors. Under the latter two inspection options, the 
commodity is inspected by Federal or Federal-State inspection officials 
as packaged product, rather than before packaging by packinghouse 
officials as with PIQ, and the results are certified. Current costs are 
$0.04 cents per carton for PIQ type inspection, $0.07 cents per carton 
for continuous in-line inspection, and $39.00 per hour for lot 
inspection.
    By not setting minimum quality and size regulations, a quantity of 
poor quality, small-sized fruit may reach the retail market, resulting 
in consumer dissatisfaction and product substitution. Such a lapse in 
quality and/or size could result in a price reduction. Preventing such 
shipments helps create buyer confidence in the marketplace and helps 
foster stable marketing conditions in the interest of producers.
    A stabilized market that returns a fair price will be beneficial to 
both small and large growers and handlers. The opportunities and 
benefits of this rule are expected to be available to all Fallglo 
tangerine growers and handlers regardless of their size of operation.
    This action will not impose any additional reporting or 
recordkeeping requirements on either small or large citrus handlers. As 
with all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this rule. However, tangerines 
must meet the requirements as specified in the U.S. Standards for 
Grades of Florida Tangerines (7 CFR 51.1810 through 51.1837) issued 
under the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 through 
1627).
    In addition, the committee's meeting was widely publicized 
throughout the citrus industry and all interested persons were invited 
to attend the meeting and participate in committee deliberations on all 
issues. Like all committee meetings, the May 22, 1998, meeting was a 
public meeting and all entities, both large and small, were able to 
express views on this issue.
    A proposed rule concerning this action was published in the Federal 
Register on September 2, 1998 (63 FR 46708). Copies of that rule were 
also mailed or sent via facsimile to all Florida tangerine growers and 
handlers. Finally, the proposed rule was made available through the 
Internet by the Office of the Federal Register. A 20-day comment period 
was provided for interested persons to respond to the proposed rule. 
The comment period ended on September 22, 1998, and no comments were 
received.
    After consideration of all relevant matter presented, including the 
information and recommendation 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.
    It is further found that good cause exists for not postponing the 
effective date of this rule until 30 days after publication in the 
Federal Register (5 U.S.C. 553) because: (1) Handlers are expected to 
begin shipping Fallglo

[[Page 55500]]

tangerines in early October and the changes in the regulation need to 
be in place as soon as possible to cover as many of the 1998 shipments 
as possible so producers and handlers can accrue the benefits expected; 
(2) handlers are aware of the changes recommended at a public meeting, 
and have made plans to operate thereunder; and (3) a 20-day comment 
period was provided for in the proposed rule, and no comments were 
received in response to that rule.

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 
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. In Sec. 905.105, paragraph (b) is revised to read as follows:


Sec. 905.105  Tangerine and grapefruit classifications.

* * * * *
    (b) Pursuant to Sec. 905.5(m), the term ``variety'' or 
``varieties'' includes Sunburst and Fallglo tangerines.
    3. Section 905.306 is amended by adding a new entry for Fallglo 
tangerines in paragraph (a), Table I, and in paragraph (b), Table II, 
to read as follows:


Sec. 905.306  Orange, Grapefruit, Tangerine, and Tangelo Regulations.

    (a) * * *

                                                     Table I
----------------------------------------------------------------------------------------------------------------
                                                                                                       Minimum
               Variety                       Regulation Period                Minimum Grade            diameter
                                                                                                       (inches)
----------------------------------------------------------------------------------------------------------------
 (1)                                   (2)..........................  (3)..........................          (4)
      *                   *                   *                   *                   *                   *
                                                           *
              Tangerines
      *                   *                   *                   *                   *                   *
                                                           *
Fallglo..............................  On and after October 19, 1998  U.S. No. 1...................       2 6/16
      *                   *                   *                   *                   *                   *
                                                           *
----------------------------------------------------------------------------------------------------------------

    (b) * * *

                                                    Table II
----------------------------------------------------------------------------------------------------------------
                                                                                                       Minimum
               Variety                       Regulation period                Minimum grade            diameter
                                                                                                       (inches)
----------------------------------------------------------------------------------------------------------------
 (1)                                   (2)..........................  (3)..........................          (4)
      *                   *                   *                   *                   *                   *
                                                           *
              Tangerines
      *                   *                   *                   *                   *                   *
                                                           *
Fallglo..............................  On and after October 19, 1998  U.S. No......................     1 2 6/16
      *                   *                   *                   *                   *                   *
                                                           *
----------------------------------------------------------------------------------------------------------------

* * * * *

    Dated: October 9, 1998
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-27781 Filed 10-15-98; 8:45 am]
BILLING CODE 3410-02-P