[Federal Register Volume 67, Number 141 (Tuesday, July 23, 2002)]
[Rules and Regulations]
[Pages 48015-48017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18571]



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  Federal Register / Vol. 67, No. 141 / Tuesday, July 23, 2002 / Rules 
and Regulations  

[[Page 48015]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV02-905-3 IFR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Removing Dancy and Robinson Tangerine Varieties From the Rules and 
Regulations

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule removes two varieties of tangerines from the 
regulated varieties of Florida citrus currently prescribed under the 
marketing order covering oranges, grapefruit, tangerines, and tangelos 
grown in Florida (order). The marketing order is administered locally 
by the Citrus Administrative Committee (committee). This rule removes 
Dancy tangerines and Robinson tangerines from the regulated varieties 
of Florida citrus. This rule also removes a section of the rules and 
regulations dealing with handling procedures when Dancy and Robinson 
tangerines are restricted. Production of these varieties has declined 
and it is expected production will continue to decline. Removing these 
varieties from the minimum grade and size requirements will have no 
significant impact on the tangerine market.

DATES: Effective July 24, 2002; comments received by September 23, 2002 
will be considered prior to issuance of a final rule.

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 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 G. Pimental, Southeast 
Marketing Field Office, Marketing Order Administration Branch, Fruit 
and Vegetable Programs, AMS, USDA, 799 Overlook Drive, Suite A, Winter 
Haven, Florida 33884-1671; 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 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 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.
    The order provides for the establishment of grade and size 
requirements for Florida citrus, with the concurrence of USDA. These 
grade and size requirements are designed to provide fresh markets with 
citrus fruit of acceptable quality and size. This helps create buyer 
confidence and contributes to stable marketing conditions. This is in 
the interest of growers, handlers, and consumers, and is designed to 
increase returns to Florida citrus growers.
    This rule removes Dancy tangerines and Robinson tangerines from the 
regulated varieties of Florida citrus fruit currently prescribed under 
the marketing order covering oranges, grapefruit, tangerines, and 
tangelos grown in Florida. Production of these varieties has declined 
and it is expected that production will continue to decline. Removing 
these varieties from the minimum grade and size requirements will have 
no significant impact on the overall quality of tangerines. This action 
was unanimously recommended by the committee at its meeting on May 22, 
2002.
    Section 905.52 of the order, in part, authorizes the committee to 
recommend minimum grade and size regulations to USDA. Section 905.306 
of the order's rules and regulations specifies the regulation period 
and the 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

[[Page 48016]]

paragraph (a), and for export shipments in Table II of paragraph (b). 
Currently, 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 both Dancy and Robinson tangerines.
    This rule modifies Sec. 905.306 by deleting Dancy tangerines and 
Robinson tangerines from the list of entries in Table I of paragraph 
(a), and in Table II of paragraph (b). In its deliberations, the 
committee realized that Dancy tangerines and Robinson tangerines no 
longer significantly impact the citrus market. During the 2001-02 
season, early indications are that total shipments of Dancy tangerines 
will only be around 13,000 cartons. Florida Department of Agriculture 
statistics show that in 2000-01, 23,000 cartons were shipped. This is 
down from 94,000 cartons shipped in the 1997-98 season. During 2001-02, 
early indications are that only 124,000 cartons of Robinson tangerines 
will be shipped. Florida Department of Agriculture statistics show that 
in 2000-01, 165,000 cartons were shipped. This is down from 262,000 
cartons in 1997-98. Production of these varieties has declined as newer 
varieties have been developed and planted. The decline is expected to 
continue. Currently, shipments of these varieties represent 
approximately 4 percent of fresh shipments of tangerines. Consequently, 
the committee believes that the current market share and shipment 
levels justify removal of minimum grade and size requirements for these 
varieties.
    Section 905.152 sets forth procedures for determining handlers' 
permitted quantities of Dancy and Robinson tangerine varieties when a 
portion of the 210 size of these varieties is restricted. Because Dancy 
and Robinson tangerines will no longer have to meet size requirements, 
Sec. 905.152 is unnecessary and is being removed with this rule.

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 the 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 11,000 producers of Florida citrus in the 
production area and approximately 75 tangerine handlers subject to 
regulation under the marketing order. Small agricultural producers are 
defined by the Small Business Administration (13 CFR 121.201) as those 
having annual receipts less than $750,000, and small agricultural 
service firms are defined as those whose annual receipts are less than 
$5,000,000.
    Based on industry and committee data, the average annual F.O.B. 
price for fresh early Florida tangerines during the 2000-01 season was 
around $9.50 per 4/5-bushel carton, and total fresh shipments of early 
tangerines for the 2000-01 season were 4.5 million cartons.
    Approximately 20 percent of all handlers handled 77 percent of 
Florida tangerine shipments. Using tangerine shipments and the average 
F.O.B. prices, it can be determined that the majority of Florida 
tangerine handlers could be considered small businesses under SBA's 
definition. In addition, the majority of Florida citrus growers may be 
classified as small entities.
    This rule removes Dancy tangerines and Robinson tangerines from the 
varieties of citrus regulated under the order. These varieties will no 
longer be required to meet the minimum grade and size requirements. 
Production of these varieties has declined and it is expected 
production will continue to decline. Removing these varieties from the 
minimum grade and size requirements will have no significant impact on 
the tangerine market.
    Section 905.52 of the order, in part, authorizes the committee to 
recommend minimum grade and size regulations to the USDA. Section 
905.306 of the order's rules and regulations specifies the regulation 
period and the minimum grade and size requirements for different 
varieties of fresh Florida citrus. This rule modifies Sec. 905.306 of 
the rules and regulations concerning covered varieties and minimum 
grade and size requirements, respectively. This rule also removes 
Sec. 905.152.
    This rule relaxes the handling requirements by removing two 
varieties from the list of varieties regulated. Handlers will be able 
to market these varieties free from the order's requirements. There 
will be no additional costs imposed on growers and handlers with this 
rule.
    Early indications are that only a total of 137,000 cartons of these 
tangerines will be shipped in the 2001-02 season. Florida Department of 
Agriculture statistics show that in 2000-01, a total of 188,000 cartons 
of these varieties were shipped. This is down from a total of 356,000 
cartons of Dancy and Robinson tangerines shipped in the 1997-98 season. 
Currently, shipments of these varieties account for approximately 4 
percent of the overall 4.5 million cartons of early Florida tangerines 
shipped during the 2000-01 season. Production of these varieties has 
declined as newer varieties have been developed and planted. The 
decline in production of these varieties is expected to continue. Most 
producers have already discontinued growing these varieties and 
handlers find it easier to sell the newer varieties that have been 
developed. This change is expected to benefit both large and small 
entities equally.
    One alternative discussed was to make no change to the order's 
handling regulations. The committee saw this alternative as being of no 
benefit to the industry because of the declining production and minimal 
market share of these varieties. The committee believes these varieties 
have no significant impact on the tangerine market and agreed that 
action should be taken to remove these varieties from the handling 
regulations, so this alternative was rejected.
    Another alternative was to also remove the Ambersweet variety of 
tangerines from the regulations. However, the committee determined that 
annual shipments of this variety impact the tangerine market and, 
therefore, this alternative was rejected.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large Florida 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Further, the committee's meeting was widely publicized throughout 
the citrus industry and all interested persons were invited to attend 
the meeting and participate in the committee's deliberations. Like all 
committee meetings, the May 22, 2002, 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

[[Page 48017]]

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.
    This rule invites comments on removal of Dancy tangerines and 
Robinson tangerines from the rules and regulations concerning covered 
varieties of Florida citrus. 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 relaxes handling requirements for two varieties of tangerines and, 
therefore, should be in place when the handlers begin shipments of 
these early tangerine varieties, beginning October 1, 2002. This issue 
has been widely discussed at various industry and association meetings, 
and the committee has kept the industry well informed. Interested 
persons have had time to determine and express their positions. 
Further, handlers are aware of this rule, which was recommended at a 
public meeting. Also, a 60-day comment period is provided in this 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.


Sec. 905.152  [Removed]

    2. Section 905.152 is removed.


Sec. 905.306  [Amended]

    3. In Sec. 905.306, Table I and Table II are amended by removing 
the entries for ``Dancy tangerines'' and ``Robinson tangerines.''

    Dated: July 17, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-18571 Filed 7-22-02; 8:45 am]
BILLING CODE 3410-02-P