[Federal Register Volume 65, Number 148 (Tuesday, August 1, 2000)]
[Proposed Rules]
[Pages 46879-46882]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-19344]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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 

  Federal Register / Vol. 65, No. 148 / Tuesday, August 1, 2000 / 
Proposed Rules  

[[Page 46879]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV00-905-3 PR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Proposed Increase in the Minimum Size Requirements for Dancy, Robinson, 
and Sunburst Tangerines

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would increase the minimum size 
requirements for Dancy, Robinson, and Sunburst tangerines grown in 
Florida. The minimum size requirements would be increased to 2\6/16\ 
inches diameter for both domestic and export shipments. The marketing 
order regulates the handling of oranges, grapefruit, tangerines, and 
tangelos grown in Florida and is administered locally by the Citrus 
Administrative Committee (Committee). This proposed rule would help the 
Florida tangerine industry meet market demands for larger fruit and 
should help increase returns to producers.

DATES: Comments must be received by August 31, 2000.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; Fax: 
(202) 720-5698, or E-mail: [email protected]. 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, or can be viewed at: http://www.ams.usda.gov/fv/moab/html.

FOR FURTHER INFORMATION CONTACT: William Pimental, Marketing 
Specialist, Southeast Marketing Field Office, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. 
Box 2276, Winter Haven, Florida 33883; telephone: (863) 299-4770, Fax: 
(863) 299-5169; or George Kelhart, Technical Advisor, 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) 720-5698.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, P.O. Box 96456, room 
2525-S, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: 
(202) 720-5698, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This proposed 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 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 proposed rule 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 the date of the entry of the ruling.
    The order for Florida citrus provides for the establishment of 
minimum grade and size requirements with the concurrence of the 
Secretary. The minimum grade and size requirements are designed to 
provide fresh markets with fruit of acceptable quality and size, 
thereby maintaining consumer confidence for fresh Florida citrus. This 
contributes to stable marketing conditions in the interest of growers, 
handlers, and consumers, and helps increase returns to Florida citrus 
growers. The current minimum grade standard for domestic and export 
shipments of Dancy, Robinson, and Sunburst tangerines is U.S. No. 1. 
The current minimum size requirement for domestic shipments is 2\4/16\ 
inches in diameter (size 210), and the minimum size for export 
shipments is 2\2/16\ inches in diameter for Dancy tangerines and 2\4/
16\ for Robinson and Sunburst.
    This proposed rule invites comments on a change to the order's 
rules and regulations that would increase the minimum size requirement 
for domestic and export shipments of Dancy, Robinson, and Sunburst 
tangerines. This rule would increase the minimum size to 2\6/16\ inches 
in diameter for Dancy, Robinson, and Sunburst tangerines both for 
domestic and export shipments. This proposed rule would help the 
Florida tangerine industry meet market and industry demands for larger 
fruit and should help increase returns to producers. The Committee met 
on May 26, 2000, and unanimously recommended this action.
    Section 905.52 of the order, in part, authorizes the Committee to 
recommend minimum grade and size regulations to the Secretary. Section 
905.306 (7 CFR part 905.306) specifies minimum grade and size 
requirements for different varieties of fresh Florida tangerines. 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).

[[Page 46880]]

This rule would adjust Table I and Table II to establish a minimum size 
of 2\6/16\ inches diameter for Dancy, Robinson, and Sunburst 
tangerines.
    This proposed rule would increase the minimum size requirement for 
domestic and export shipments of Dancy, Robinson, and Sunburst 
tangerines. Based on an analysis of markets and demands of buyers, the 
Committee believes that an increase in minimum size would improve the 
marketing of Florida tangerines. This follows an industry movement 
toward shipping larger tangerines. New commercial varieties have 
resulted in larger-sized tangerines being shipped in response to a 
strong consumer demand. Because of this demand, production of larger 
tangerines has been a popular method of improving returns among 
producers as it also increases total yields.
    The shift toward tangerine varieties producing larger fruit has 
been in response to customer needs. Robinson and Dancy tangerines tend 
to be smaller varieties. Overall, production of these two varieties has 
decreased by more than 60 percent from the 1995-96 season to the 1999-
2000 season. Conversely, production of larger varieties such as 
Sunburst and Fallglo has been increasing. In terms of total shipments 
of Dancy, Robinson, and Sunburst tangerines, Sunburst represented 
almost 95 percent of combined shipments for the 1999-2000 season.
    The preference for large sizes is also evident in the volume of 
small sizes shipped. From the 1995-96 season to the 1999-2000 season, 
shipments of size 210 fruit accounted for on average less than 1.3 
percent of total Dancy, Robinson, and Sunburst tangerine shipments. 
Even during the 1998-99 season when sizes for all Florida citrus were 
unusually small, shipments of size 210 tangerines only accounted for 
2.3 percent of total shipments of these three varieties.
    The change in the minimum size was recommended to address this 
movement of customer demand and industry production toward larger 
sizes. Size continues to be a major influence on price. The Committee 
believes that the availability of small size 210 fruit has a negative 
affect on market price. In terms of price, a carton of size 210 (2\4/
16\ inch diameter) tangerines can be as much as $3 less than a carton 
of size 176 (2\6/16\ inch) tangerines. For the 1999-2000 season, the 
average price for a carton of size 210 Dancy, Robinson, or Sunburst 
tangerines was $7.80. This compares to a weighted average price for all 
sizes of $11.26. The Committee believes increasing the minimum size 
would match supply with demand and lessen the price depressing affect 
of smaller sizes.
    In addition, the seasons for these three varieties are short. The 
season for the Dancy tends to be three weeks long, five weeks for the 
Robinson, and 12 weeks for the Sunburst. With this short marketing 
window, it is of increased importance that only the best, most 
preferred fruit enters the market. The market has no time to recover 
from shipments of fruit that have a depressing effect on price. Also, 
on average, approximately 65 percent of the crop for these three 
varieties goes to the fresh market. With the on tree price for 
processing averaging less than $1.00, it is imperative that the fresh 
market be maintained.
    The increase in the minimum size to 2\6/16\ inches in diameter is 
not expected to significantly affect the total number of shipments. 
During the 1999-2000 season, of the approximate 3,821,000  \4/5\ bushel 
container shipments of Dancy, Robinson, and Sunburst tangerines from 
Florida, only about 20,670 cartons were size 210. Therefore, the 
increase in the size requirement would only reduce shipments by around 
.5 percent. This change would also make the minimum size consistent for 
all tangerines, as the minimum size is already 2\6/16\ inches for 
Fallglo and Honey tangerines.
    Experience has shown that providing uniform quality and size 
acceptable to consumers helps stabilize the market, improve grower 
returns, and foster market growth. The increased minimum size would 
match supply to market preferences, which would benefit both producers 
and handlers of Florida tangerines. Increasing the minimum size is 
expected to further enhance consumer demand and would encourage repeat 
purchases resulting in increased returns to producers. Therefore, based 
on available information, the Committee unanimously recommended that 
the minimum size for shipping Dancy, Robinson, or Sunburst tangerines 
to the domestic and export market be 2\6/16\ inches in diameter.
    Handlers in Florida shipped approximately 3,821,000 4/5 bushel 
cartons of tangerines to the fresh market during the 1999-2000 season. 
Of these cartons, about 150,000 were exported. In the past three 
seasons, domestic shipments of Florida tangerines averaged about 3.5 
million cartons.
    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 initial regulatory flexibility analysis.
    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 55 tangerine handlers who are subject to 
regulation under the order, and approximately 11,000 growers of citrus 
in the regulated area. Small agricultural service firms, which include 
tangerine handlers, are 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 121.201).
    Based on industry and Committee data for the 1999-2000 season, the 
average annual f.o.b. price for fresh tangerines was around $12.00 per 
4/5 bushel carton, and total fresh shipments for the 1999-2000 season 
were 3,821,000 cartons of tangerines. Approximately 25 percent of all 
handlers handled 70 percent of Florida tangerine shipments. In 
addition, many of these handlers ship other citrus fruit and products 
which are not included in Committee data but would contribute further 
to handler receipts. Using the average f.o.b. price, about 55 percent 
of tangerine handlers could be considered small businesses under SBA's 
definition. The majority of these handlers, and growers may be 
classified as small entities.
    This proposed rule would increase the minimum size requirement for 
domestic and export shipments of tangerines to 2\6/16\ inches in 
diameter for the Dancy, Robinson, and Sunburst varieties. The current 
minimum size requirement for domestic shipments is 2\4/16\ inches in 
diameter, and the minimum size for export shipments is 2\2/16\ inches 
in diameter for Dancy tangerines and 2\4/16\ for Robinson and Sunburst. 
Section 905.52 of the order, in part, authorizes the Committee to 
recommend minimum grade and size regulations to the Secretary. Section 
905.306 (7 CFR part 905.306) specifies minimum grade and size 
requirements for different varieties of fresh Florida tangerines. 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 would adjust

[[Page 46881]]

Table I and Table II to establish a minimum size of 2\6/16\ inches in 
diameter for Dancy, Robinson, and Sunburst tangerines. This proposed 
rule would help the Florida tangerine industry meet market and industry 
demands and should help increase returns to producers.
    The costs associated with this rule are expected to be minimal. The 
increase in the minimum size is not expected to significantly affect 
the total number of tangerine shipments. Rather, the Committee believes 
this size increase would help improve the marketing of Florida 
tangerines. The direct cost related to this change would stem from the 
shipment volume of size 210 tangerines times price. In terms of last 
season, that would be approximately 20,670 cartons times the average 
price for size 210 tangerines, $7.80, for a possible cost of about 
$161,226.
    However, the Committee believes that this action would help 
stabilize prices and increase shipments. This change was made to 
address the increasing demand for larger sizes. While there are some 
short-term costs associated with increasing the minimum size, the 
benefits are expected to outweigh the costs. If this regulation just 
succeeds in raising returns five cents a carton, it would more than 
cover its costs. In addition, this change should not require the 
purchase of any additional equipment. This action is consistent with 
current and anticipated demand. The opportunities and benefits of this 
rule are expected to be equally available to tangerine handlers and 
growers regardless of their size of operation.
    The Committee considered one alternative to this action. The 
Committee discussed leaving the regulations as they were. However, this 
alternative was rejected based on the consideration of current demand 
for larger sizes and the possible negative impact on price resulting 
from maintaining the current minimum size.
    This proposed rule would increase size requirements under the 
marketing order for Florida citrus. Accordingly, this action would not 
impose any additional reporting or recordkeeping requirements on either 
small or large tangerine 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 proposed 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 Florida 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 26, 
2000, meeting was a public meeting and all entities, both large and 
small, were able to express their views on this issue. Finally, 
interested persons are invited to submit information on the regulatory 
and informational impacts of this action on small businesses.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about the compliance 
guide should be sent to Jay Guerber at the previously mentioned address 
in the FOR FURTHER INFORMATION CONTACT section.
    A 30-day comment period is provided to allow interested persons to 
respond to this proposal. Thirty days is deemed appropriate because 
this rule would need to be in place as soon as possible since handlers 
will begin shipping tangerines in September. Also, Florida tangerine 
handlers are aware of this issue which was discussed at a public 
meeting and was unanimously recommended by the Committee. All comments 
received in a timely manner will be considered before a final 
determination is made on this matter.

List of Subjects in 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangerines, Tangelos.
    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. In Sec. 905.306, Table I in paragraph (a) and Table II in 
paragraph b) are amended by revising the entries for Dancy, Robinson, 
and Sunburst under ``Tangerines,'' to read as follows:


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

    (a) * * *

                                                     Table I
----------------------------------------------------------------------------------------------------------------
                                                                                                       Minimum
               Variety                           Regulation period                Minimum grade        diameter
                                                                                                       (inches)
(1)                                    (2)..................................  (3)..................          (4)
----------------------------------------------------------------------------------------------------------------
              TANGERINES
 
Dancy................................  On and after 9/1/00..................  U.S. No. 1...........      2\6/16\
Robinson.............................  On and after 9/1/00..................  U.S. No. 1...........      2\6/16\
Sunburst.............................  On and after 9/1/00..................  U.S. No. 1...........      2\6/16\
*                  *                  *                  *                  *                  *
                                               *
----------------------------------------------------------------------------------------------------------------

    (b) * * *

[[Page 46882]]



                                                Table II Variety
----------------------------------------------------------------------------------------------------------------
                                                                                                       Minumum
               Variety                           Regulation period                Minimum grade        diameter
                                                                                                       (inches)
(1)                                    (2)..................................  (3)..................          (4)
----------------------------------------------------------------------------------------------------------------
              TANGERINES
 
Dancy................................  On and after 9/1/00..................  U.S. No. 1...........     2\6/16\\
*                  *                  *                  *                  *                  *
                                               *
Robinson.............................  On and after 9/1/00..................  U.S. No. 1...........      2\6/16\
Sunburst.............................  On and after 9/1/00..................  U.S. No. 1...........      2\6/16\
*                  *                  *                  *                  *                  *
                                               *
----------------------------------------------------------------------------------------------------------------

* * * * *

    Dated: July 27, 2000.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 00-19344 Filed 7-31-00; 8:45 am]
BILLING CODE 3410-02-P