[Federal Register Volume 67, Number 5 (Tuesday, January 8, 2002)]
[Rules and Regulations]
[Pages 801-809]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-450]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV01-905-2 IFR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Modifying Procedures and Establishing Regulations To Limit the Volume 
of Small Red Seedless Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule modifies the procedures used to limit the volume of 
sizes 48 and 56 red seedless grapefruit entering the fresh market under 
the marketing order for oranges, grapefruit, tangerines, and tangelos 
grown in Florida (order). The order is administered locally by the 
Citrus Administrative Committee (Committee). This rule increases the 
number of weeks available under weekly percentage of size regulation 
from 11 weeks to 22 weeks and institutes weekly percentages for 6 
additional weeks of the 2001-02 season. It will be beneficial to have 
the additional weeks available, when necessary, to help stabilize the 
market and improve grower returns. The percentages established for the 
2001-02 season are intended to supply enough small red seedless 
grapefruit without saturating all markets with small sizes.

DATES: Effective January 7, 2002; comments received by January 23, 2002 
will be considered prior to issuance of a final rule. Pursuant to the 
Paperwork Reduction Act, comments on the information collection burden 
must be received by March 11, 2002.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, 1400 Independence Avenue, SW Stop 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938, 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 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 G. Pimental, Marketing 
Specialist, Southeast Marketing Field Office, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, PO Box 
2276, Winter Haven, Florida, 33881; telephone: (863) 324-3375, Fax: 
(863) 325-8793; or George Kelhart, Technical Advisor, Marketing Order 
Administration Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 
Independence Avenue, SW Stop 0237, Washington, DC 20250-0237; 
telephone: (202) 720-2491, Fax: (202) 720-8938.
    Small businesses may request information on complying with this 
regulation by contacting Jay Guerber, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence 
Avenue, SW Stop 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, Fax: (202) 720-8938, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This interim final rule is issued under 
Marketing Agreement 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 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 (USDA) is issuing this rule in 
conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This rule will not preempt any State or local laws, regulations, or 
policies, unless they present an irreconcilable conflict with this 
rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with USDA 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 USDA 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 USDA's ruling on the petition, 
provided an action is filed not later than 20 days after the date of 
the entry of the ruling.
    This rule modifies the procedures used to limit the volume of sizes 
48 (3\9/16\ inches minimum diameter) and 56 (3\5/16\ inches minimum 
diameter) red seedless grapefruit entering the fresh market under the 
order by increasing the number of weeks available under weekly 
percentage of size regulation from 11 weeks to 22 weeks. This rule also 
institutes weekly percentages for 6 additional weeks of the 2001-02 
season. It will be beneficial to have the additional weeks available, 
when necessary, to help stabilize the market and improve grower 
returns. This rule is intended to supply enough small red seedless 
grapefruit without saturating all markets with small sizes during 2001-
02.
    Section 905.52 of the order provides authority to 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 a handler may ship during a particular week would 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 USDA.
    Section 905.153 of the regulations provides procedures for limiting 
the volume of small red seedless grapefruit entering the fresh market. 
The procedures specify that the Committee may recommend that only a 
certain percentage of sizes 48 and 56 red seedless grapefruit be made 
available for shipment into fresh market channels for any week or weeks 
during the regulatory period. Currently, the regulation period

[[Page 802]]

covers 11 weeks starting the third Monday in September. Under such a 
limitation, the quantity of sizes 48 and 56 red seedless grapefruit 
that may be shipped by a handler during a regulated week is calculated 
using the recommended percentage. By taking the recommended weekly 
percentage times the average weekly volume of red seedless grapefruit 
handled by such handler in the previous five seasons, handlers can 
calculate the total volume of sizes 48 and 56 they may ship in a 
regulated week.
    This rule expands the weeks available for limiting the volume of 
small red seedless grapefruit entering the fresh market from the first 
11 weeks of each season to the first 22 weeks. This adds 11 weeks to a 
tool that has been effective in stabilizing the market and in improving 
returns to growers. This rule also establishes weekly base percentages 
for 6 additional weeks of the 2001-02 season. The Committee recommended 
the percentages be set at 40 percent for the first 3 weeks (December 3 
through December 23) and 30 percent for the remaining eight weeks 
(December 24 through February 17) of the second 11 weeks. These actions 
are based on unanimous recommendations of the Committee made at 
meetings on May 22, 2001, and August 29, 2001. Because of the current 
timeframe, this action establishes weekly percentages for the 6 
remaining weeks of the second 11-week regulatory period (January 7 
through February 17, 2002).
    At the May 22, 2001, meeting, the Committee also unanimously voted 
to establish percentage of size regulation for the first 11 weeks of 
the season (September 17 through December 2, 2001). The Committee's 
initial recommendation was issued as a proposed rule published in the 
Federal Register on July 31, 2001 (66 FR 39459). No comments were 
received during the comment period, which expired August 10, 2001. At 
the August 29, 2001 meeting, the Committee unanimously recommended 
adjusting the proposed percentages. The Committee's revised 
recommendation was issued as an interim final rule published in the 
Federal Register on September 26, 2001 (66 FR 49088). No comments were 
received during the comment period, which expired October 9, 2001.
    The first action considered in this rulemaking modifies the 
procedures for limiting the volume of small red seedless grapefruit 
entering the fresh market as specified in Sec. 905.153 of the order. 
This change increases the number of weeks available for regulation from 
the first 11 weeks of each season to the first 22 weeks. The red 
seedless grapefruit season runs approximately 33 weeks, from mid-
September through May. Prior to this rule, only the first 11 weeks of a 
season could be regulated to control shipments of sizes 48 and 56 red 
seedless grapefruit. This change in itself does not limit shipments, 
but expands the weeks available for percentage of size regulation to 22 
weeks so small sizes can be regulated for an additional 11 weeks, if 
needed.
    The original rule creating Sec. 905.153 (December 31, 1996, 61 FR 
69011) established procedures for percentage of size regulation of 
small red seedless grapefruit. This rule provided a tool, if needed, to 
help stabilize the price and supply of red seedless grapefruit. The 
procedures were established to cover an 11-week period to address 
problems associated with the oversupply of small-sized red seedless 
grapefruit early in the season. The Committee believed the overshipment 
of early, small-sized fruit was depressing the market for all red 
seedless grapefruit, and concluded having a tool to limit the amount of 
small red grapefruit entering the fresh market would be very helpful in 
addressing this problem.
    Under the original procedures, authority to limit shipments of 
sizes 48 and 56 red seedless grapefruit was established for the period 
starting the third Monday in September through the next 11 weeks. The 
Committee recommended 11 weeks at the time because the majority of 
small sizes were being shipped during this period. By the end of the 11 
weeks, fruit had begun to size naturally, and there were fewer small 
sizes available.
    However, this is no longer the case. The fruit is not sizing as it 
has in past seasons for reasons yet to be determined. This leaves a 
larger supply of smaller sizes available later in the season. For the 
past three seasons, the volume of small sizes available from December 
through February has been much larger than in past seasons. Returns on 
red seedless grapefruit have also been declining during this period. 
The Committee has concluded that the problems associated with small red 
seedless grapefruit have begun to extend beyond the 11-week regulation 
period. The Committee believes the increased volumes of small red 
seedless grapefruit shipped or available to be shipped during the 
middle of the season is having a detrimental effect on the market. The 
Committee recommended increasing the weeks available for percentage of 
size regulation to address this problem.
    The last three seasons, 1998-99, 1999-2000, 2000-01, have shown a 
marked increase in the volume of small-sized red seedless grapefruit 
available later in the season. For these three seasons, the percentage 
of the crop represented by small sizes in the month of February has 
averaged 51 percent. This compares to an average of 26 percent for the 
same month for the three prior seasons (1995-98). In fact, the last 
three seasons have averaged a greater percentage of smaller sizes 
across each month, October through February, than over the three 
previous seasons. The trend across the last six seasons has been a 
continuing increase in the volume of small sizes as a percentage of the 
overall crop. This is most dramatically evidenced by the 72 percent 
increase in small sizes as a percentage of the overall crop from 
February 1996 to February 2001.
    The available volumes of small-sized red seedless grapefruit in 
December, January, and February for the 1998-99, 1999-2000, and 2000-01 
seasons were comparable or exceeded volumes available for October, 
November, and December for the 1995-96, 1996-97, and 1997-98 seasons. 
The following chart that shows the volume of sizes 48 and smaller red 
seedless grapefruit available for these months as a percentage of the 
total crop.

                               Sizes 48 and Smaller as a Percentage of Total Crop
----------------------------------------------------------------------------------------------------------------
                                   95-96     96-97     97-98                          98-99     99-00     00-01
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October........................        43        62        73   December..........        56        64        64
November.......................        34        56        61   January...........        54        58        57
December.......................        32        51        52   February..........        50        49        54
----------------------------------------------------------------------------------------------------------------

    It was following the 1995-96 season that the Committee began its 
initial discussions regarding the need to control the volume of small-
sized red seedless grapefruit entering the fresh market early in the 
season. Percentage of

[[Page 803]]

size regulation was first used to control the volume of small sizes 
during the first 11 weeks of the 1997-98 season. Small sizes were 
problem at those volume levels for the months of October through 
December for the 1995-96, 1996-97, and 1997-98 seasons. Having 
comparable or greater volumes of small sizes available during midseason 
also represents a problem for the industry.
    The University of Florida, Citrus Research and Education Center 
published an estimated cost of production per acre for the 2000-2001 
season. The cost to produce Florida citrus fruit for the fresh market 
was estimated at $882.25 per acre for the SunRidge area, or the 
interior of the state, $907.72 per acre for the Gulf production area, 
and $974.46 per acre for the Indian River area, or the Atlantic coast 
region. Using an average of these estimates, it cost approximately $921 
per acre to cultivate citrus for the fresh market in 2000-2001. This 
average represents a somewhat lower cost of production than what most 
growers of red seedless grapefruit experience because a major share of 
production is in the Indian River area.
    During the past five seasons, red seedless grapefruit production 
has averaged around 409 boxes (1\3/5\ bushels) per acre. For the 2000-
2001 season, the average on-tree value for red seedless grapefruit is 
estimated at $2.10 per box. Using these numbers, total on-tree revenue 
for the 2000-2001 season calculates as approximately $859 per acre. 
When combined with the cost of production, the average red seedless 
grapefruit producer in Florida had a negative return of more than $62 
per acre or a $0.15 per box loss.
    On-tree returns have been at below production costs for all but one 
of the last eight seasons. Eleven-week regulation has helped. Growers 
have benefited from several years of increased on-tree returns due to 
percentage of size regulation. While 11-week regulation has improved 
the situation, it has not solved all the problems.
    For the first time since the 1997-98 season, grower returns have 
again decreased. Total on-tree returns declined from $3.36 during the 
1999-2000 season to $2.10 for the 2000-01 season. On-tree returns for 
fresh red grapefruit also declined by 22 percent. Comparing on-tree 
returns for fresh sales by month, shows that for the seasons 1997-98, 
1998-99, and 1999-2000, there was an average decline in returns of $.60 
per box from November to February. When you combine this $.60 reduction 
with the average volume of 4.7 million boxes of all red seedless 
grapefruit moved during this period, the drop in revenue to growers is 
nearly $2.8 million. During a period when growers are struggling to 
realize returns that at least equal the cost of production, this $.60 
can mean the difference between profit and loss.
    A similar situation is observable with f.o.b. prices. F.o.b. prices 
have stabilized somewhat under 11-week regulation. However, while it 
has helped eliminate dramatic drops in price during the first 11 weeks, 
prices have continued to decrease throughout the season. In the three 
seasons 1998-99, 1999-2000, and 2000-01, prices of red seedless 
grapefruit fell from an average f.o.b. price of $7.72 per carton (\4/5\ 
bushel) in November to an average f.o.b. price of $7.02 in February. 
Also, as with grower returns, after two years of increased average 
season f.o.b. prices, this past season, 2000-01, represented a $.50 per 
carton decrease from the prior season.
    The Committee believes the overshipment of smaller sized red 
seedless grapefruit during the middle of the season is contributing to 
poor returns and lower prices. While there is a market for small-sized 
red seedless grapefruit, the shipment of large quantities in a short 
time oversupplies the fresh market and negatively impacts the market 
for all sizes. Smaller sizes normally return the lowest prices, and 
when there is too much volume, the overabundance of lower priced fruit 
drives prices down for all sizes.
    The purpose of this change is to provide the Florida citrus 
industry a tool, when needed, that helps stabilize the market and the 
price of red seedless grapefruit during the middle part of the season. 
Committee members agreed that extending the weeks available under 
Sec. 905.153 for percentage of size regulation an additional 11 weeks 
provides a tool that will help address the problems associated with 
small sizes during the middle of the season. The Committee supports the 
additional weeks because they have successfully used the provisions of 
Sec. 905.153 to address very similar problems for the first 11 weeks of 
the season.
    For the seasons 1994-95, 1995-96, and 1996-97, returns for red 
seedless grapefruit had been declining, often not returning the cost of 
production. On-tree prices for red seedless grapefruit had fallen 
steadily from $9.60 per carton (4/5 bushel) during the 1989-90 season, 
to $3.45 per carton during the 1994-95 season, to $1.41 per carton 
during the 1996-97 season.
    The Committee determined that one problem contributing to the 
market's condition was the excessive number of small-sized grapefruit 
shipped early in the marketing season. In the 1994-95, 1995-96, and 
1996-97 seasons, sizes 48 and 56 accounted for 34 percent of total 
shipments during the 11-week regulatory period, with the average weekly 
percentage exceeding 40 percent of shipments. This contrasted with 
sizes 48 and 56 representing only 26 percent of total shipments for the 
remainder of the season.
    To address this situation the Committee recommended weekly 
percentage of size regulation under Sec. 905.153 for the first 11 weeks 
of the 1997-98, 1998-99, 1999-2000, 2000-01, and 2001-02 seasons. Under 
11-week regulation, f.o.b. prices and on-tree returns increased and 
movement stabilized as compared to years with no 11-week percentage of 
size regulation.
    Average f.o.b. prices were higher during the 11-week percentage of 
size regulation than for the three years prior to regulation. The 
average price for red seedless grapefruit in late October was $8.46 per 
carton for the regulated seasons compared to $7.22 for the same period 
for the three years before regulation. Prices have also remained at a 
higher level, with an average f.o.b. price of $7.29 per carton in mid-
December during the years with regulation compared to $6.02 for the 
three prior years. The average season f.o.b. price has also been 
higher, averaging $7.15 per carton during years with 11-week regulation 
compared to $5.83 for the three prior seasons without regulation.
    The on-tree returns per box for fresh red seedless grapefruit also 
improved during 11-week regulation, providing better returns to 
growers. On-tree returns increased from $2.85 in 1997-98, to $4.52 in 
1998-99, to $5.52 for the 1999-2000 season.
    Eleven-week percentage of size regulation also helped stabilize the 
volume of small sizes entering the fresh market early in the season. 
During the three years prior to the 11-week regulation, small sizes 
accounted for over 34 percent of the total shipments of red seedless 
grapefruit during the 11-week period covered. This compares to 31 
percent for the same period during the last four years with 11-week 
regulation. There has also been a 43 percent reduction in the volume of 
small sizes entering the fresh market during the 11-week regulatory 
period from 1995-96 to 2000-01.
    An economic study done by Florida Citrus Mutual (Lakeland, Florida) 
in April 1998, found the weekly percentage regulation had been 
effective. The study stated that part of the strength in early season 
pricing appeared to be due to the use of the

[[Page 804]]

weekly percentage rule to limit the volume of sizes 48 and 56. It said 
prices were generally higher across the size spectrum with sizes 48 and 
56 having the largest gains, and larger-sized grapefruit registering 
modest improvements. The rule shifted the size distribution toward the 
higher-priced, larger-sized grapefruit, helping raise weekly average 
f.o.b. prices. It further stated that sizes 48 and 56 grapefruit 
accounted for around 27 percent of domestic shipments during the same 
11 weeks during the 1996-97 season. Comparatively, sizes 48 and 56 
accounted for only 17 percent of domestic shipments during the same 
period in 1997-98, as small sizes were used to supply export customers 
with preferences for small sized grapefruit.
    Much of what the Committee is now seeing in the second 11 weeks of 
a season reminds them of the adverse conditions they were facing during 
the first 11 weeks for the 1994-95, 1995-96, and 1996-97 seasons. The 
Committee believes the problems successfully addressed by using the 11-
week percentage of size regulation during the first part of the season 
are the same problems they are now seeing during the middle of the 
season. The Committee believes the overshipment of smaller sized red 
seedless grapefruit during the middle of the season is contributing to 
poor returns and lower prices. Therefore, the Committee believes 
expanding the period available for percentage of size regulation under 
Sec. 905.153 from 11 weeks to 22 weeks will provide them with the best 
tool to address these problems.
    In making this decision, the Committee considered expanding the 
regulated period to cover all thirty-three weeks of a season. However, 
it was decided that the addition of 11 weeks best serves the current 
marketing situation. A major factor in deciding to expand the regulated 
period by 11 weeks rather than 22 weeks is the timing of the majority 
of export shipments. On average, more than 45 percent of export 
shipments occur after the second week in February. Export markets also 
tend to prefer smaller grapefruit. Last season, 85 percent of shipments 
to the Pacific Rim, 75 percent of shipments to Canada, and 60 percent 
of shipments to Europe were sizes 48 and 56. Consequently, starting in 
February, there is a much larger demand for sizes 48 and 56 red 
seedless grapefruit. This effectively addresses the problem with the 
volume of small sizes during the last 11 weeks of the season. 
Therefore, the Committee believed that under these conditions, it was 
not necessary to be able to regulate small sizes during the last 11 
weeks of a season, even though weak marketing conditions exist in some 
export markets.
    During deliberations regarding percentage of size regulation in 
past seasons, the Committee considered how shipments had affected the 
market. Based on available statistical information, Committee members 
concluded once shipments of sizes 48 and 56 reached levels above 
250,000 cartons a week, prices declined on those and most other sizes 
of red seedless grapefruit. The Committee determined if shipments of 
small sizes could be maintained at or below 250,000 cartons a week, 
prices should stabilize and demand for larger sizes should increase.
    In the last three seasons, weekly shipments of sizes 48 and 56 red 
seedless grapefruit exceeded 250,000 cartons an average of 5 of the 11 
weeks of the second 11 weeks of the season. When the initial 11-week 
regulated period ends, handlers are shipping greater quantities of 
smaller sizes to the fresh market. In 1998-99, 1999-2000, and 2000-01, 
shipments of sizes 48 and 56 red seedless grapefruit during the second 
11 weeks of the season exceeded shipments of small sizes for the first 
11 weeks by an average of nearly one million cartons. These factors may 
have contributed to the marketing problems experienced by the industry.
    Approximately 51 percent of red seedless grapefruit on average is 
shipped to fresh market channels. There is a processing outlet for 
grapefruit. The majority, 49 percent on average, is squeezed for juice. 
This outlet offers limited returns and currently is not profitable. 
Recent statistics from the Florida Department of Citrus show there is a 
40-week inventory of processed grapefruit from last season. This will 
have an additional negative impact on expected returns.
    For the 2000-2001 season, on-tree returns were negative for 
processed red seedless grapefruit. During the last five years, only 
1999-2000 produced on-tree returns for processed red seedless 
grapefruit that exceeded one dollar per box. When on-tree returns for 
processed grapefruit drop below a dollar, there is pressure to shift a 
larger volume of the overall crop to the fresh market to benefit from 
the higher prices normally paid for fresh fruit.
    A fair percentage of red seedless grapefruit shipped for processing 
tend toward the smaller sizes. When returns for processed red 
grapefruit are low, an additional volume of small sizes can be shifted 
toward the fresh market, further exacerbating problems with excessive 
volumes of small sizes. Current projections of on-tree prices for 
processed red seedless grapefruit for the 2001-02 season are low due to 
the large quantities of stored juice. This fact, combined with the past 
history for juice prices, further supports the need to have the 
additional 11 weeks available to control excessive volumes of small 
sizes during the middle of the season.
    Shipments during the 11 weeks added by this regulation account for 
nearly 50 percent of the total volume of red seedless grapefruit 
shipped to the fresh market. Considering this volume and the limited 
returns for processing, it is important that returns from the fresh 
market be maximized during this period. Even a small increase in price 
when coupled with the volume shipped represents a significant increase 
in the overall return to growers.
    The 11-week percentage of size regulation in place for the first 
part of the season has been having the desired effect on early markets 
the past four seasons. However, when the regulation period ends, there 
is an increased supply of small red seedless grapefruit shipped to the 
fresh market. This has had a depressing effect on price and grower 
returns. The Committee decided it needed to have a tool available to 
regulate shipments of small-sized red seedless grapefruit during the 
middle part of the marketing season. Therefore, the Committee voted to 
recommend increasing the weeks available for regulation under 
Sec. 905.153 from 11 to 22 weeks to provide them with that tool.
    To use these 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 for the next 22 
weeks. If approved by the USDA, this percentage would be applied to 
each handler's average week of fresh shipments to determine the amount 
of sizes 48 and 56 red grapefruit each handler could ship.
    The second action taken by this rule establishes weekly base 
percentages for 6 additional weeks during the 2001-02 season. The 
Committee met August 29, 2001, and recommended that percentages be set 
at 40 percent for the first 3 weeks (December 3 through December 23) 
and 30 percent for the remaining eight weeks (December 24 through 
February 17). However, because of the current timeframe, this action 
establishes weekly percentages for 6 weeks of the second 11-week period 
at 30 percent (January 7 through February 17, 2002. This rule supplies 
enough small-sized red seedless grapefruit to meet market demand, 
without saturating all markets with these small sizes. This action will 
help stabilize the market and improve grower returns. This action is

[[Page 805]]

similar to those taken during the first 11 weeks of the 1997-98, 1998-
99, 1999-2000, 2000-01, and 2001-02 seasons.
    For the 1998-99, 1999-2000, and 2000-01 seasons there has been a 
substantial increase in the volume of small sizes available later in 
the season. The percentage of the crop represented by small sizes in 
February averaged 51 percent for these three seasons, compared to a 26 
percent average for the same month for the three prior seasons (1995-
98). Small sizes available for shipment in December, January, and 
February for the 1998-99, 1999-2000, and 2000-01 seasons equal or 
exceed volumes available during October, November, and December for the 
1995-96, 1996-97, and 1997-98 seasons.
    Following the 1995-96 season the Committee began discussing the 
need to control the volume of small-sized red seedless grapefruit 
entering the fresh market. Small sizes were a problem for the months of 
October through December for the 1995-96, 1996-97, and 1997-98 seasons. 
Having equal or greater volumes available during midseason represents a 
comparable problem. Initial estimates by the Florida Agricultural 
Statistics Service show that small sizes represent a large percentage 
of the 2001-02 crop, accounting for over 83 percent of the fruit per 
September measurements.
    The Committee believes excessive shipments of small-sized red 
seedless grapefruit during the second 11 weeks of the season is 
contributing to the market's poor condition. For the months of December 
through February shipments of small sizes exceed those shipped during 
September through November by nearly 91,000 cartons a week on average. 
There is a market for small red seedless grapefruit. However, shipping 
large quantities in a short period oversupplies the market for these 
small sizes and negatively impacts the market for all sizes. As 
previously stated, the midseason crop has had a greater percentage of 
small sizes the past few seasons, creating a glut of smaller, lower-
priced fruit on the market, driving down the price for all sizes.
    On-tree returns have been below production costs for seven of the 
last eight seasons. Growers benefited from several years of increased 
returns, due to the 11-week percentage of size regulations used during 
the first part of the seasons. However, for the first time since the 
1997-98 season, on-tree returns have again decreased. On-tree returns 
dropped from $3.36 during the 1999-2000 season to $2.10 for the 2000-01 
season. On-tree returns for fresh red grapefruit also declined by 22 
percent. In addition, on-tree returns declined an average of $.60 from 
November to February for the seasons 1997-98, 1998-99, and 1999-2000. 
By combining this $.60 reduction with an average volume of 4.7 million 
boxes shipped during this period the loss in grower returns tops nearly 
$2.8 million.
    In the past three seasons, 1998-99, 1999-2000, and 2000-01, prices 
of red seedless grapefruit fell from an average f.o.b. price of $7.72 
per carton in November to an average f.o.b. price of $7.02 in February. 
Also, as with grower returns, after two years of increased average 
season f.o.b. prices, the 2000-01 season marked a $.50 per carton 
decrease from the prior season.
    The Committee believes the overshipment of small sizes is 
contributing to the decreasing returns. To address similar problems 
with an oversupply of small sizes and decreasing returns during the 
first part of the season, the Committee successfully used the 
provisions of Sec. 905.153, and recommended weekly regulation of small 
sizes during the first 11 weeks of the 1997-98, 1998-99, 1999-2000, 
2000-01, and 2001-02 seasons. Under the 11-week regulations, prices 
increased and movement stabilized as compared to seasons without 11-
week regulation.
    In making the recommendation to establish weekly percentages for 
the second 11 weeks, Committee members considered the success of the 
11-week regulations during the early season and their experiences from 
past seasons. Members reviewed shipment data covering the second 11-
week period for the last three seasons. The information contained the 
amounts and percentages of sizes 48 and 56 shipped during each week.
    Committee members agreed that limiting the volume of small sizes 
available for the fresh market has been successful when used during the 
early part of a season. The Committee believes that the volume of small 
sizes will be a problem during the middle of the season, and that 
limiting the volume available for shipment will be beneficial.
    Based on available statistical information, Committee members 
concluded once shipments of sizes 48 and 56 reached levels above 
250,000 cartons a week, prices declined on those and most other sizes 
of red seedless grapefruit. The Committee believed if shipments of 
small sizes could be maintained at or below 250,000 cartons a week, 
prices should stabilize and demand for larger, more profitable sizes 
should increase.
    The last three seasons during the second 11-week period, shipments 
of sizes 48 and 56 red seedless grapefruit exceeded 250,000 cartons an 
average of 5 of the 11 weeks. During the 1998-99, 1999-2000, and 2000-
01 seasons, shipments of sizes 48 and 56 red seedless grapefruit from 
the second 11 weeks exceeded shipments of small sizes from the first 11 
weeks by an average of nearly one million cartons. This may have 
contributed to the problems facing the industry.
    Setting the weekly percentages at 30 percent for the remaining 6 
weeks provides a total available weekly allotment of approximately 
244,000 cartons (30 percent of the total industry base of 813,191 
cartons). Setting the weekly percentages at this level allows total 
shipments of small red seedless grapefruit to approach the 250,000-
carton mark during the regulated period without exceeding it.
    The Committee believes that the problems associated with an 
uncontrolled volume of small sizes entering the market in the middle of 
the season will continue without regulation. Therefore, this action 
establishes weekly percentages at 30 percent for the remaining 6 weeks 
(January 7 through February 17).
    The Committee believes it is best to set regulation at these 
levels, and then relax the percentages later in the season if 
conditions warrant. The Committee recognized they could meet again in 
December and in the months following and use the most current 
information to consider adjustments in the weekly percentage rates. Any 
changes to the weekly percentages established by this rule would 
require additional rulemaking and the approval of the USDA.
    The provisions governing the operation of percentage of size 
regulation remain the same. The Committee still cannot set restrictions 
tighter than 25 percent. The method for calculating base and allotment 
also remains the same. The only changes to Sec. 905.153 are the number 
of available regulation weeks and the cut off period for overshipments.
    Under Sec. 905.153, the quantity of sizes 48 and 56 red seedless 
grapefruit a handler may ship during a regulated week is calculated 
using the recommended percentage. By taking the weekly percentage times 
the average weekly volume of red seedless grapefruit handled by such 
handler in the previous five seasons, handlers can calculate the total 
volume of sizes 48 and 56 they may ship in a regulated week.
    The Committee calculates an average week for each handler. To 
calculate an average week, the total red seedless

[[Page 806]]

grapefruit shipments by a handler during the 33 week period beginning 
the third Monday in September and ending the first Sunday in May from 
the previous five seasons are added together, then divided by five to 
establish an average season. This average season is divided by the 33 
weeks to derive the average week. This average week is the base for 
each handler for each of the 11 weeks of the regulatory period.
    The weekly percentage is multiplied by a handler's average week. 
The product is that handler's total allotment of sizes 48 and 56 red 
seedless grapefruit for the given week. Handlers can fill their 
allotment with sizes 48 or 56, or a combination of both sizes such that 
total shipments are within established limits. The Committee staff 
performs the specified calculations and provides them to each handler.
    The average week for handlers with less than five seasons of 
shipments is calculated by averaging the total shipments for the 
seasons they did ship red seedless grapefruit during the previous five 
years and dividing that average by 33. New handlers have no prior 
shipments on which to base their average week. Therefore, a new handler 
can ship small sizes such that their volume of small sizes as a percent 
of their total shipments during their first week shipping are equal to 
the weekly percentage set for that week. Once a new handler has 
established shipments, their average week is calculated as an average 
of the weeks they have shipped during the current season.
    The regulatory period begins the third Monday in September, and 
runs for 22 weeks. Each regulation week begins Monday at 12:00 a.m. and 
ends at 11:59 p.m. the following Sunday, since most handlers keep 
records based on Monday as the beginning of the workweek.
    The rules and regulations governing percentage size regulation 
contain a variety of provisions designed to provide handlers with some 
marketing flexibility. Section 905.153(d) provides allowances for 
overshipments, loans, and transfers of allotment. These provisions 
should allow handlers the opportunity to supply their markets while 
limiting the impact of small sizes.
    This rule makes one slight change to the provisions governing 
overshipments. During a week of percentage of size regulation, any 
person who has received an allotment can handle an amount of sizes 48 
and 56 red seedless grapefruit equal to their weekly allotment, plus an 
additional overshipment amount not to exceed 10 percent of that week's 
allotment. The quantity of overshipments is deducted from the handler's 
allotment for the following week. Section 905.153 did state that 
overshipments were not allowed during week 11 because there were no 
allotments the following week from which to deduct the overshipments. 
This rule changes this to read that no overshipments are allowed during 
week 22 to reflect the longer regulated period.
    The Committee can act on behalf of handlers wanting to arrange 
allotment loans or participate in the transfer of allotment. Repayment 
of an allotment loan is at the discretion of the handlers' party to the 
loan. The Committee informs each handler of the quantity of sizes 48 
and 56 red seedless grapefruit they can handle during a particular 
week, making the necessary adjustments for overshipments and loan 
repayments.
    This rule does not affect the provision that handlers may ship up 
to 15 standard packed cartons (12 bushels) of fruit per day exempt from 
regulatory requirements. Fruit shipped in gift packages that are 
individually addressed and not for resale, and fruit shipped for animal 
feed are also exempt from handling 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 8e 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 or size requirements under the order, only 
the percentages of sizes 48 and 56 red grapefruit that may be handled. 
Therefore, no change is necessary in the grapefruit import regulation 
as a result of this action.

Initial Regulatory Flexibility Analysis

    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 75 grapefruit handlers subject to 
regulation under the order and approximately 11,000 growers of citrus 
in the regulated area. Small agricultural service firms, which includes 
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 $750,000 (13 CFR 121.201).
    Based on industry and Committee data, the average annual f.o.b. 
price for fresh Florida red seedless grapefruit during the 2000-01 
season was approximately $7.20 per 4/5 bushel carton, and total fresh 
shipments for the 2000-01 season are estimated at 24.7 million cartons 
of red grapefruit. Approximately 25 percent of all handlers handled 70 
percent of Florida grapefruit 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 69 percent of grapefruit handlers could 
be considered small businesses under SBA's definition. Therefore, the 
majority of Florida grapefruit handlers may be classified as small 
entities. The majority of Florida grapefruit producers may also be 
classified as small entities.
    The overshipment of small-sized red seedless grapefruit has 
contributed to poor returns for growers and lower on-tree values. This 
rule increases the current number of regulated weeks available under 
weekly percentage of size regulation from 11 weeks to 22 weeks. With 
additional volumes of small size now available later in the season, it 
will be beneficial to have the additional weeks available, when 
necessary, to help stabilize the market and improve grower returns. 
This rule also institutes weekly percentages for an additional 6 weeks 
during 2001-02 season. Authority for this action is provided in 
Sec. 905.52 of the order. This rule also uses the provisions of 
Sec. 905.153. The rule is based on unanimous recommendations of the 
Committee at meetings on May 22, and August 29, 2001.
    The first change this rule makes only provides additional weeks for 
percentage of size regulation. The goal of this change is to provide an 
additional tool, if needed, to help stabilize the price of red seedless 
grapefruit.
    The second action establishes weekly percentages for an additional 
6 weeks of the 2001-02 season. The Committee

[[Page 807]]

recommended that weekly percentages be set at 40 percent for the first 
three weeks (December 3 through December 23) and 30 percent for the 
eight remaining weeks (December 24 through February 17) of the second 
11-week period. However, because of the current timeframe, this action 
establishes weekly percentages for the remaining 6 weeks of the second 
11-period regulatory period at 30 percent (January 7, 2002, through 
February 17, 2002).
    This action is intended to supply enough small red seedless 
grapefruit, without saturating all markets with small sizes. The 
quantity of sizes 48 and 56 red seedless grapefruit that may be shipped 
by a handler during a particular week is calculated using the 
recommended percentage. This action will help stabilize the market and 
improve grower returns. This action is similar to the actions taken 
during the first 11 weeks of the 1997-98, 1998-99, 1999-2000, 2000-01, 
and 2001-02 seasons.
    During the past three seasons for the months of December through 
February available supplies of small sizes have been at levels 
previously only seen during the months of September to early December. 
For these three seasons, the percentage of the crop represented by 
small sizes in the month of February has averaged 51 percent. This 
compares to an average of 26 percent for the same month for the three 
prior seasons (1995-98). In the past three seasons, during the second 
11 weeks of the season, prices of red seedless grapefruit have fallen. 
On-tree prices for fresh red seedless grapefruit have also declined. In 
many cases, prices have provided returns less than production costs. 
This is making it difficult for some small producers to remain in 
business.
    The Committee believes having the ability to control the volume of 
small sized red seedless grapefruit has been an important tool during 
the first 11 weeks of the past four seasons. The Committee believes the 
benefits the industry derived under 11 weeks of volume regulation will 
continue if the period available for volume regulation is increased to 
22 weeks. Recognizing the trend of having more small sizes available 
later in a season, the Committee believes having the ability to 
regulate volume during the middle of the season will be a valuable 
tool. The purpose of this change is not to eliminate small-sized red 
grapefruit. It is merely to provide a tool to prevent a surplus of 
small-sized red seedless grapefruit from damaging the overall 
grapefruit market during the middle part of the season. A tool that 
will help stabilize price and returns benefits both small and large 
producers and handlers.
    The past three seasons, shipments of small sizes for December 
through February exceeded those shipped during September through 
November by nearly 91,000 cartons a week on average. For the first time 
since the 1997-98 season, on-tree returns have decreased. On-tree 
returns dropped from $3.36 during the 1999-2000 season to $2.10 for the 
2000-01 season. On-tree returns for fresh red grapefruit also declined 
by 22 percent. In addition, on-tree returns declined an average of $.60 
from November to February for the seasons 1997-98, 1998-99, and 1999-
2000. By combining this $.60 reduction with an average volume of 4.7 
million boxes shipped during this period the loss in grower returns 
tops nearly $2.8 million. The Committee attributes the decrease in 
returns to the volume of small sizes.
    The Committee believes the volume of small sizes will continue to 
be a problem during the middle part of this season. Initial estimates 
by the Florida Agricultural Statistics Service show that small sizes 
represent a large percentage of the 2001-02 crop, accounting for over 
83 percent of the fruit per September measurements. Therefore, the 
Committee recommended establishing volume regulation during the second 
11 weeks of the 2001-2002 season. However, because of the current 
timeframe, this action establishes weekly percentages for the remaining 
6 weeks of the second 11-week period.
    While the establishment of volume regulation may necessitate 
additional spot picking, which could entail slightly higher harvesting 
costs, many producers are already using the practice. In addition, with 
spot picking, the persons harvesting the fruit are more selective and 
pick only the desired sizes and qualities. This reduces the amount of 
time and effort needed in sorting fruit, because undersize fruit is not 
harvested. These savings may result in reduced processing and packing 
costs. Also, regulation is only in effect for part of the season.
    If a 25 percent restriction on small sizes had been applied during 
the second 11-week period for the three prior seasons, an average of 
4.9 percent of the overall shipments during that period would have been 
subject to regulation. A large percentage of this volume most likely 
could have been replaced by larger sizes for which there are no volume 
restrictions. Under percentage of size regulation, larger sizes have 
been substituted for smaller sizes with a nominal effect on overall 
shipments.
    In addition, handlers can transfer, borrow or loan allotment based 
on their needs in a given week. Handlers also have the option of 
overshipping their allotment by 10 percent in a week, provided any 
overshipments are deducted from the following week's shipments. 
Transfers and loans have been used very effectively during past seasons 
with percentage of size regulation. Therefore, the overall impact of 
this regulation on total shipments should not be substantial.
    The Committee believes establishing volume regulation during the 
second 11 weeks of the season will have benefits similar to those 
realized under regulation of the first 11 weeks. Handlers and producers 
have received higher returns under the 11-week percentage of size 
regulations issued for the first 11 weeks of the last four seasons. In 
late October, during the four years with 11-week regulation, the 
average f.o.b. price for red seedless grapefruit was $7.99 per carton 
compared to $7.22 for the three years prior to regulation. F.o.b. 
prices also have remained higher, with an average price of $7.29 in 
mid-December during 11-week regulation compared to $6.02 for the three 
years prior to regulation. Season average prices have also been higher 
under 11-week regulation averaging $7.14 per carton compared to $5.83 
for the prior three years. On-tree earnings per box for fresh red 
seedless grapefruit have also improved under regulation, providing 
better returns to growers. The on-tree price increased from $3.26 per 
box in 1996-97, to $3.42 for 1997-98, to $5.04 for 1998-99, to $5.62 
for the 1999-2000 season.
    If 11-week regulation applied at the start of a season has been 
successful in controlling the volume of small sizes and increasing 
returns, applying similar volume regulation during the second 11 weeks 
of the season should also be effective in addressing the problems with 
the overshipment of small sizes. Even if this action was only 
successful in raising returns by $.10 per carton, this increase in 
combination with the substantial number of shipments generally made 
during this second 11 week period, would represent an increased return 
of nearly $1 million. Consequently, any increased returns generated by 
this action should more than offset any additional costs associated 
with this regulation.
    The purpose of this rule is to help stabilize the market and 
improve grower returns. This rule provides a supply of small-sized red 
seedless grapefruit sufficient to meet market demand, without 
saturating all markets with these small sizes. This action is not

[[Page 808]]

expected to decrease the overall consumption of red seedless 
grapefruit. It is expected to benefit all red seedless grapefruit 
growers and handlers regardless of their size of operation. This rule 
will likely help small under-capitalized growers who need additional 
weekly revenues to meet operating costs.
    The Committee discussed different alternatives to these changes. 
Several alternatives had to do with the number of weeks that would be 
available under percentage of size regulation. The alternatives 
considered included not increasing the number of weeks available, to 
increasing the regulation to include all 33 weeks of the season. 
Committee members agreed producers and handlers would benefit from 
smaller-sized fruit being controlled for a greater portion of the 
season. They also noted the majority of export shipments occur during 
the last 11 weeks of the season helping to alleviate problems with 
small sizes during that part of the season. Consequently, these 
alternatives were rejected.
    Other alternatives considered had to do with the length of the 
holiday season and percentages set for that period. The holiday season 
is the weeks before Christmas when a large volume of small sizes are 
used for gift fruit shipments and fundraisers. One alternative was to 
add an additional week to those weeks considered as the holiday season, 
and set higher percentages for the first four weeks rather than the 
first three. Another alternative discussed was setting percentages 
higher than 40 percent for the weeks covered that were considered part 
of the holiday season. The Committee reviewed and discussed the 
suggestions and agreed that the weeks included and the percentages 
recommended were the best solutions based on the information available. 
The Committee further recognized that if marketing conditions indicated 
a change might be necessary the Committee could meet again later in the 
season and recommend that the percentages be relaxed. Therefore, these 
alternates also were rejected.
    This action requires two new handler reports. These information 
collection requirements are discussed in the following section.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this rule. However, red seedless grapefruit 
must meet the requirements as specified in the U.S. Standards for 
Grades of Florida Grapefruit (7 CFR 51.760 through 51.784) issued under 
the Agricultural Marketing Act of 1946 (7 U.S.C. 1621 through 1627).
    In addition, the Committee's meetings were widely publicized 
throughout the Florida citrus industry and all interested persons were 
invited to attend the meetings and participate in Committee 
deliberations on all issues. Like all Committee meetings, the May 22, 
and August 29, 2001, meetings were public meetings and all entities, 
both large and small, were able to express views on this issue. 
Finally, interested persons are invited to submit information on the 
regulatory and informational impacts of these actions 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.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), this notice announces that AMS has obtained emergency 
approval for a new information collection request for Oranges, 
Grapefruit, Tangerines, and Tangelos Grown in Florida, Marketing Order 
No. 905. The emergency request was necessary because insufficient time 
was available to follow normal clearance procedures.
    Title: Oranges, Grapefruit, Tangerines, and Tangelos Grown in 
Florida, Marketing Order No. 905.
    OMB Number: 0581-NEW.
    Type of Request: New collection.
    Abstract: 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.
    On May 22, and August 29, 2001, the Committee unanimously 
recommended revising the order's administrative rules and regulations 
to require handlers to report to the Committee information on small red 
seedless grapefruit during an additional 11-week volume regulation 
period. This information will be reported on two new Committee forms. 
Form CAC 301A, Handler making/acquiring Loan and/or Transfer, is used 
by handlers receiving base quantity loans, and by handlers receiving 
base quantity transfers during weeks 12 through 22 of the regulation 
period. Form CAC 302A, Report of Red Grapefruit Shipments by Day and 
Regulation Week, is used by handlers to inform the Committee of their 
daily shipments of sizes 48 and 56 red seedless grapefruit during weeks 
12 through 22 of the regulation period.
    The new reports are needed so the Committee can collect information 
on sizes 48 and 56 red seedless grapefruit during the second 11-week 
volume regulation period. The Committee will evaluate this information 
and determine whether a handler is in compliance with the regulation. 
These reports will ensure compliance with the volume regulation and 
assist the Committee and the USDA with oversight and planning.
    The information collected is used only by authorized 
representatives of USDA, including AMS, Fruit and Vegetable Programs 
regional and headquarters staff, and authorized Committee employees. 
Authorized Committee employees will be the primary users of the 
information and AMS is the secondary user.
    The request for approval of the new information collections under 
the order is as follows:

CAC 301A, Handler making/acquiring Loan and/or Transfer

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 5 minutes per response.
    Respondents: Handlers who acquire a loan or transfer for sizes 48 
and 56 small red seedless grapefruit during the additional 11-week 
regulation period.
    Estimated Number of Respondents: 45.
    Estimated Number of Responses per Respondent: 3.
    Estimated Total Annual Burden on Respondents: 11.21 hours.

CAC 302A, Report of Red Grapefruit Shipments by Day and Regulation Week

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 3 minutes per response.
    Respondents: Handlers who handle size 48 and/or 56 small red 
seedless grapefruit during the second 11-week regulation period.
    Estimated Number of Respondents: 45.
    Estimated Number of Responses per Respondent: 55.
    Estimated Total Annual Burden on Respondents: 123.75 hours.
    Comments: Comments are invited on: (1) Whether the collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (2) the accuracy of the agency's estimate of the burden of the 
collection of information, including the validity of the methodology 
and assumptions used;

[[Page 809]]

(3) ways to enhance the quality, utility, and clarity of the 
information to be collected; and (4) ways to minimize the burden of the 
collection of information on those who are to respond, including the 
use of appropriate automated, electronic, mechanical, or other 
technological collection techniques or other forms of information 
technology.
    Comments should reference OMB No. 0581-NEW and the Florida citrus 
marketing order, and be sent to USDA in care of the Docket Clerk at the 
previously mentioned address. 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.
    As mentioned before, because there was insufficient time for a 
normal clearance procedure and prompt implementation is needed, AMS has 
obtained emergency approval from OMB for the use of the two new forms 
for the second 11-week volume regulation period. The forms will be 
added to the forms currently approved for use under OMB No. 0581-0189. 
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.
    In addition to the information collection burden, this rule also 
invites comments on the modification to the procedures used to limit 
the volume of sizes 48 and 56 red seedless grapefruit entering the 
fresh market under the order. This rule increases the number of weeks 
available under weekly percentage of size regulation from 11 weeks to 
22 weeks and institutes weekly percentages for 6 additional weeks of 
the 2001-02 season. Any comments received will be considered prior to 
finalization of this rule.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
this interim final rule, as hereinafter set forth, will tend to 
effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect and good cause exists for not postponing the effective date of 
this rule until 30 days after publication in the Federal Register. This 
rule needs to be in place when the during the second 11-week regulatory 
period. Also, handlers need to know what their allotments of small 
sizes are to make their marketing plans. This issue has been widely 
discussed at various industry meetings, and the Committee has kept the 
industry well informed. Further, handlers are aware of this rule, which 
was recommended at public meetings. Also, a 15-day comment period is 
provided in this rule on increasing the number of weeks in the 
regulatory period from 11 to 22, and on the percentages established for 
the remaining 6 weeks of the second 11-week regulatory period. A 15-day 
comment period is deemed appropriate because this action should be 
finalized by the end of the regulatory period (February 17, 2002).

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. 905.153, paragraph (a), the last sentence is revised, 
and in paragraph (d), the third sentence is revised 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) * * * The term regulation period means the 22-week period 
beginning the third Monday in September of the current season.
* * * * *
    (d) * * * Overshipments will not be allowed during week 22. * * *
* * * * *

    3. Section 905.350 is revised to read as follows:


Sec. 905.350  Red seedless grapefruit regulation.

    This section establishes the weekly percentages to be used to 
calculate each handler's weekly allotment of small sizes. Handlers can 
fill their allotment with size 56, size 48, or a combination of the two 
sizes such that the total of these shipments are within the established 
weekly limits. The weekly percentages for size 48 (3\9/16\inches 
minimum diameter) and size 56 (3\5/16\ inches minimum diameter) red 
seedless grapefruit grown in Florida, which may be handled during the 
specified weeks are as follows:

------------------------------------------------------------------------
                                                                Weekly
                            Week                              percentage
------------------------------------------------------------------------
(a) 9/17/01 through 9/23/01.................................          45
(b) 9/24/01 through 9/30/01.................................          45
(c) 10/1/01 through 10/7/01.................................          35
(d) 10/8/01 through 10/14/01................................          30
(e) 10/15/01 through 10/21/01...............................          30
(f) 10/22/01 through 10/28/01...............................          30
(g) 10/29/01 through 11/4/01................................          30
(h) 11/5/01 through 11/11/01................................          30
(i) 11/12/01 through 11/18/01...............................          30
(j) 11/19/01 through 11/25/01...............................          30
(k) 11/26/01 through 12/2/01................................          40
(l) 1/7/02 through 1/13/02..................................          30
(m) 1/14/02 through 1/20/02.................................          30
(n) 1/21/02 through 1/27/02.................................          30
(o) 1/28/02 through 2/3/02..................................          30
(p) 2/4/02 through 2/10/02..................................          30
(q) 2/11/02 through 2/17/02.................................          30
------------------------------------------------------------------------


    Dated: January 3, 2002.
Barry L. Carpenter,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 02-450 Filed 1-4-02; 10:39 am]
BILLING CODE 3410-02-P