[Federal Register Volume 67, Number 194 (Monday, October 7, 2002)]
[Rules and Regulations]
[Pages 62313-62318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25430]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV02-905-4 IFR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Exemption for Shipments of Tree Run Citrus

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule changes the rules and regulations currently 
prescribed under the Florida citrus marketing order (order). The order 
regulates the handling of oranges, grapefruit, tangerines, and tangelos 
grown in Florida and is administered locally by the Citrus 
Administrative Committee (committee). This rule exempts shipments of 
small quantities of tree run citrus from the grade, size, and 
assessment requirements of the order. Producers can ship 150 1-3/5 
bushel boxes per variety, per shipment, of their own citrus free from 
order regulations, not to exceed 1,500 boxes per variety for the 
season. This change is effective for the 2002-03 season only. The 
committee believes this action may be a way to increase fresh market 
shipments, develop new markets, and improve grower returns.

DATES: Effective October 8, 2002; comments received by December 6, 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 December 6, 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 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: Doris Jamieson, 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

[[Page 62314]]

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 changes the rules and regulations under the order to 
exempt shipments of small quantities of tree run citrus from grade, 
size, and assessment requirements. Tree run citrus is wholesome citrus 
picked and boxed in the field and taken directly to market without 
being graded or sized. With this change, producers are allowed to ship 
150 1\3/5\ bushel boxes per variety, per shipment, of their own citrus 
free from marketing order regulations. Total shipments cannot exceed 
1,500 boxes per variety for the season. This action was unanimously 
recommended by the committee at its meeting held on May 22, 2002.
    Section 905.80 of the marketing order provides authority for the 
Committee to exempt certain types of shipments from regulation. 
Exemptions can be implemented for types of shipments of any variety in 
such minimum quantities, or for such purposes as the committee with the 
approval of USDA may specify. No assessment is levied on fruit so 
shipped. The committee shall, with the approval of USDA, prescribe such 
rules, regulations, or safeguards as it deems necessary to prevent 
varieties handled under the provisions of this section from entering 
channels of trade for other than the purposes authorized by this 
section.
    This rule adds section 905.149 to the rules and regulations under 
the order. This section defines grower tree run citrus and outlines the 
procedures to be used for growers to apply to the committee to ship 
their own tree run citrus fruit exempt from grade, size, and assessment 
requirements under the order. Under this section, once the exemption 
has been approved, the grower must report to the committee the volume 
of fruit shipped, the date of the shipment, and type of transportation 
used.
    According to Florida Department of Citrus (FDOC) regulation 20-
35.006, ``Tree run grade is that grade of naturally occurring sound and 
wholesome citrus fruit which has not been separated either as to grade 
or size after severance from the tree.'' Also, FDOC regulation 20-
62.002 defines wholesomeness as fruit free from rot, decay, sponginess, 
unsoundness, leakage, staleness, or other conditions showing physical 
defects of the fruit. By definition, this fruit is handled by the 
grower and bypasses normal handler operations. Prior to this change, 
all tree run citrus had to meet all requirements of the marketing 
order, as well as State of Florida Statutes and Florida Department of 
Citrus regulations. Even with this change, tree run citrus must 
continue to meet applicable State of Florida Statutes and Florida 
Department of Citrus regulations, including inspection. Growers will be 
able to pick, box, and ship directly to buyers, and avoid the costs 
incurred when citrus is handled by packinghouses.
    Over the past few years, small producers of Florida citrus have 
expressed concerns regarding problems incurred when selling their 
citrus. These concerns include costs, returns, and available markets. 
These problems, along with market conditions, have driven a fair number 
of citrus growers and handlers out of the citrus industry. These 
concerns have been discussed at committee meetings, as well as meetings 
of other industry groups.
    Some small growers have stated they have had difficulty getting 
packinghouses to pack their fruit. There is limited demand for certain 
varieties of citrus produced. In some cases, supply exceeds demand in 
the standard markets. According to committee data, over the past five 
years, fresh grapefruit sales have dropped 25 percent and fresh orange 
shipments are down 11 percent. In some cases, varieties may be out of 
favor with handlers and consumers, or there may be a glut on the market 
of a particular variety of fruit. As a result, packinghouses do not 
wish to become over stocked with fruit which is difficult to market 
and, therefore, will not pack less popular minor varieties of fruit or 
fruit that is in oversupply. Packinghouses do not want to pack what 
they cannot sell. These factors have caused wholesome fruit to be 
shipped to processing plants or left on the tree.
    The costs of growing for the fresh market have been increasing, 
while, in many cases the returns to the grower have been decreasing. 
The cost of picking, packing, and hauling, and associated handling 
costs for fruit going to the fresh market, is sometimes greater than 
the grower's return on the fruit. The costs associated with growing for 
the fresh market are greater than the costs for growing for the 
processed market.
    When citrus cannot be sold into the fresh market, it can be sold to 
the processing plants. However, the prices received are considerably 
lower. For example, during the last five years, only the 1999-2000 
season produced on-tree returns for processed red seedless grapefruit 
that exceeded one dollar per box. Over the period from 1977 through 
2000, the differential between fresh prices and processed prices has 
averaged $3.55 per box. The average on-tree price for processed Florida 
oranges during the 2000-01 season was $2.72 compared to $4.25 for fresh 
oranges.
    In some cases, where the cost of harvesting citrus exceeds the 
returns to the grower or the grower cannot find a buyer for the fruit, 
economic abandonment can occur. According to information from the 
National Agricultural Statistics Service, the seasons of 1995-96, 1996-
97, 1997-98, and 2000-01 had an average economic abandonment of two 
million boxes or more of red seedless grapefruit alone.
    Consequently, growers are looking for other outlets to move their 
fruit in an effort to increase returns. Several growers at the meeting 
stated regulations imposed on the citrus industry have made it 
difficult for them to ship homegrown fruit into interstate markets. 
Some growers believe secondary markets exist which are not currently 
being supplied that would provide them an additional outlet to sell 
their citrus. They think niche markets exist that could be profitable 
if they were given the opportunity to reach them. They believe they can 
ship quality fruit directly to out-of-state markets and that it would 
be well received.
    Growers want the opportunity to pursue those niche markets. These 
growers contend tree run citrus does not need a minimum grade and size 
to be marketable, and that they can supply quality fruit to secondary 
markets not served by packed fruit. However, they believe to do it 
profitably, they need to bypass the normal handler operations and the 
associated costs.
    The committee listened to the concerns of these small growers and 
the problems they have encountered. In an effort to allow these growers 
to pursue these niche markets, the committee, which consists of growers 
and handlers, unanimously voted to allow a minimum quantity of citrus 
to be shipped exempt from the grade, size, and assessment regulations. 
The committee recommended growers be allowed to ship up to 150 1\3/5\ 
bushel boxes of each variety, per shipment, from their own groves, with 
total shipments for the season not to exceed 1,500 boxes per variety.
    Throughout industry discussions, many different combinations of 
varieties and shipment totals were discussed. In

[[Page 62315]]

making this recommendation, the committee determined that 150 boxes of 
each variety per shipment will allow the grower to ship a sufficient 
amount of fruit to make the exemption cost effective and yet not allow 
too much fruit to enter market channels exempt from marketing order 
requirements. The committee believes this level of volume will help 
keep this fruit in non-competitive outlets.
    The committee believes this tree run fruit will be sold primarily 
to non-competitive, niche markets, such as farmers' markets, flea 
markets, roadside stands, and similar outlets and will not compete with 
non-exempt fruit shipped under the order. Fruit is sold in similar 
markets within the state, and such markets have been successful. This 
change allows growers to sell directly to similar markets outside of 
the state. The committee believes this action will allow the industry 
to service more non-traditional markets and that this may be a way to 
increase fresh market shipments and develop new markets. Granting this 
exemption will allow growers to supply markets that might not otherwise 
be supplied. Some members expect that this tree run or grove fresh 
fruit may create greater consumer interest in fresh citrus fruit.
    Under this provision, the grower is required to apply to the 
committee, on a ``Grower Tree Run Certificate Application'' form 
provided by the committee, for an exemption to ship tree run citrus 
fruit to interstate markets. On this form, the grower must provide the 
committee with their name; address; phone number; legal description of 
the grove; variety of citrus to be shipped; and the approximate number 
of boxes produced on the specified grove. The grower must also certify 
that the fruit to be handled comes from the grove owned by the grower 
applicant. The grower will report to the committee the actual number of 
boxes per variety shipped under the exemption on the shipment form 
discussed below.
    The Grower Tree Run Certificate Application form will be submitted 
to the committee manager. The manager will review the application for 
completeness and accuracy. The manager will also verify the information 
provided. After the application has been reviewed, the manager will 
notify the grower applicant in writing whether the application is 
approved or denied.
    Once the grower has received approval for their application for 
exemption and begins shipping fruit, a ``Report of Shipments Under 
Grower Tree Run Certificate'' form, also provided by the committee, 
must be completed for each shipment. On this form, the grower will 
provide the location of the grove, the amount of fruit shipped, the 
shipping date, and the type of transportation used to ship the fruit, 
along with the vehicle license number. The grower must supply the Road 
Guard Station with a copy of the grower certificate report for each 
shipment, and provide a copy of the report to the committee. This 
report will enable the committee to maintain compliance and gather 
data, which will be used to determine the effectiveness of the 
exemption. Failure to comply with these requirements may result in the 
cancellation of a grower's certificate.
    The FDOC defines tree run grade and wholesomeness of citrus fruit. 
This fruit is handled by the grower and bypasses normal handler 
operations. Even with the change to the provisions under the order, 
tree run citrus must still meet the requirements of the State of 
Florida Statutes and FDOC regulations, including inspection. 
Consequently, growers will continue to need to have the fruit inspected 
to meet current State requirements.
    This exemption will be effective for the current season, beginning 
with the effective date of this rule, and ending July 1, 2003, only. 
The committee determined that offering the exemption for one season 
will provide sufficient information on how the fruit shipped under the 
exemption was received on the market. It will also indicate whether or 
not other markets exist that packed fruit is not currently supplying, 
where these markets are located, and approximately how much fruit can 
be sold in such markets. It will also indicate the number of growers 
interested in utilizing the exemption and the volume of citrus shipped 
under the exemption. In addition, it will provide the committee with 
information regarding any potential impact on competitive outlets. The 
committee will also have information available regarding any compliance 
issues not previously discussed. At the end of the season, the 
committee will review all available information and decide whether the 
exemption should be continued.
    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 citrus, imports of that commodity 
must meet the same or comparable requirements. This rule does not 
change the minimum grade and size requirements under the order. 
Therefore, no change is necessary in the citrus import regulations 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 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 80 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 Florida citrus during the 2000-01 season was 
approximately $8.10 per \4/5\-bushel carton for all shipments, and the 
total fresh shipments for the 2000-01 season are estimated at 53.5 
million \4/5\-bushel cartons of Florida citrus. Approximately 50 
percent of the handlers handled 93 percent of Florida citrus shipments. 
Using information provided by the committee, about 60 percent of citrus 
handlers could be considered small businesses under the SBA definition. 
Although specific data is unavailable, the Department believes that the 
majority of Florida citrus producers may be classified as small 
entities.
    This rule adds a Sec.  905.149 to the rules and regulations under 
the order to exempt shipments of small quantities of

[[Page 62316]]

tree run citrus from the grade, size, and assessment requirements of 
the order. This action allows growers to ship 150 1\3/5\ bushel boxes 
per variety, per shipment, of their own tree run citrus free from 
marketing order regulations into interstate markets. Total shipments 
cannot exceed 1,500 boxes per variety for the season per individual 
grower. This change is effective for the 2002-03 season only. The 
committee believes this action may be a way to increase fresh market 
shipments, develop new markets, and improve grower returns. Authority 
for this action is provided in Sec.  905.80(e).
    According to a recent study by the University of Florida--Institute 
of Food and Agricultural Sciences, production costs for the 2001-02 
season ranged from $1.71 per box for processed oranges to $2.41 per box 
for grapefruit grown for the fresh market. The average packing charge 
for oranges is approximately $6.50 per box, for grapefruit the charge 
is approximately $5.75 per box, and for tangerines the charge can be as 
high as $9 per box. In a time when grower returns are weak, sending 
fruit to a packinghouse can be cost prohibitive, especially for the 
small grower. This rule may provide an additional outlet for fruit that 
might otherwise be forced into the processing market or left on the 
tree altogether.
    This rule will not impose any additional costs on the grower. This 
rule has the opposite effect, reducing the costs associated with having 
fruit handled by a packinghouse. This rule will enable growers to ship 
their tree run citrus free from grade, size, and assessment 
requirements under the order. This action will allow growers to ship 
minimum quantities of their citrus directly into interstate commerce 
exempt from some order requirements and their related costs. With this 
action, growers will be able to reduce handling costs and use those 
savings toward developing additional markets. This will benefit all 
growers regardless of size but it is expected to have a particular 
benefit for the small grower.
    The committee considered several alternatives to this action, 
including making no change to the current regulations. The committee 
believed that some change was necessary to help Florida citrus growers. 
The committee considered allowing growers to ship unlimited quantities 
of any grower's citrus. This option was rejected because it would have 
caused market disruption and compliance problems, as growers could 
become shippers for other growers. It would have also made it more 
difficult to keep this fruit in noncompetitive outlets. Other 
alternatives considered were increasing the number of boxes available 
to be shipped per load, and increasing the number of boxes available to 
be shipped per season. These options were also rejected amid concerns 
that too much fruit could be shipped and find its way into the 
competitive markets.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap or conflict with this rule. 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.
    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 committee 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.
    Also, the committee has a number of appointed subcommittees to 
review certain issues and make recommendations to the committee. A 
subcommittee met May 21, 2002, and discussed the tree run issue in 
detail. That meeting was also a public meeting and both large and small 
entities were able to participate and express their views. 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.
    This action requires two additional forms. These information 
collection requirements are discussed in the following section.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), this notice announces that AMS is requesting emergency 
approval for a new information collection request for Oranges, 
Grapefruit, Tangerines, and Tangelos Grown in Florida, Marketing Order 
No. 905. The emergency request is necessary because insufficient time 
is 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, 2002, the committee unanimously recommended revising the 
order's administrative rules and regulations to exempt a small volume 
of a grower's tree run fruit from certain order requirements and to 
require producers to apply to the committee for such an exemption and 
to report to the committee information on their shipments under the 
exemption. This information will be reported on two new committee 
forms. Form CAC 401, Grower Tree Run Certificate Application, is used 
by growers to apply for an exemption to ship their own tree run Florida 
citrus fruit during the season. Form CAC 402, Report of Shipments Under 
Grower Tree Run Certificate, is used by growers to inform the committee 
of their tree run shipments during the regulation period.
    The new reports are needed so the committee can collect information 
on the number of growers shipping their own tree run Florida citrus 
fruit into interstate commerce during the regulation period, and 
information on the volume of tree run fruit shipped. The committee will 
evaluate this information and determine whether a grower is in 
compliance with the regulation. These reports will ensure compliance 
with the regulations 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 would be the secondary user.
    The request for approval of the new information collections under 
the order is as follows:

CAC 401, Grower Tree Run Certificate Application

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 5 minutes per response.
    Respondents: Growers applying to ship their own tree run Florida 
citrus fruit during the 2002-03 season.
    Estimated Number of Respondents: 45.

[[Page 62317]]

    Estimated Number of Responses per Respondent: 1.
    Estimated Total Annual Burden on Respondents: 3.74 hours.

CAC 402, Report of Shipments Under Grower Tree Run Certificate

    Estimate of Burden: Public reporting burden for this collection of 
information is estimated to average 5 minutes per response.
    Respondents: Growers who handle their own tree run Florida citrus 
fruit during the regulation period.
    Estimated Number of Respondents: 45.
    Estimated Number of Responses per Respondent: 3.
    Estimated Total Annual Burden on Respondents: 11.21 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; (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 is insufficient time for a 
normal clearance procedure and prompt implementation is needed, AMS is 
seeking emergency approval from OMB for the use of the two new forms 
for the 2002-03 regulation period. Upon OMB approval, the forms will be 
merged with the forms currently approved under OMB No. 0581-0189, 
``Generic OMB Fruit Crops.'' 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 this change in the information collection burden, 
this rule exempts grower owned, tree run, Florida citrus fruit from 
some of the rules and regulations under the order. 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 as soon as possible to cover as many 
shipments during the 2002-03 season as possible. Also, growers need to 
know they are free to market their citrus under these exemption 
procedures. In addition, 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, growers and handlers 
are aware of this rule, which was recommended at public meetings. Also, 
a 60-day comment period is provided for in this rule.

List of Subjects in 7 CFR Part 905

    Oranges, Grapefruit, Tangerines, Tangelos, Marketing agreements, 
Reporting and recordkeeping requirements.

    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. A new Sec.  905.149 is added to read as follows:


Sec.  905.149  Procedure for permitting growers to ship tree run citrus 
fruit.

    (a) Tree run citrus fruit. Tree run citrus fruit as referenced in 
this section is defined in the Florida Department of Citrus (FDOC) 
regulation 20-35.006, which specifies that ``Tree run grade is that 
grade of naturally occurring sound and wholesome citrus fruit which has 
not been separated either as to grade or size after severance from the 
tree.'' Wholesomeness is as defined in FDOC regulation 20-62.002. The 
tree run citrus fruit shipped under this provision also must be from 
the applying grower's own grove.
    (b) Application. A grower shall apply to ship tree run fruit using 
a Grower Tree Run Certificate Application, furnished by the committee. 
Such application shall contain, but not be limited to: the name, 
address, and phone number of the grower; legal description of the 
grove(s) from which citrus will be shipped; variety of citrus produced 
on the identified grove(s); approximate number of boxes produced on the 
identified grove(s); and a certification to the U.S. Department of 
Agriculture and to the committee as to the truthfulness of the 
information shown thereon; and any other appropriate information or 
documents deemed necessary by the committee or its duly authorized 
agents.
    (c) Approval. The committee or its duly authorized agents shall 
give prompt consideration to each application for a Grower Tree Run 
Certificate. Approval of an application will be based upon a 
determination as to whether the information contained therein and on 
whether other information available to the committee supports an 
application's approval. Approval of an application shall be evidenced 
by the issuance of a Grower Tree Run Certificate to the applicant. Each 
certificate shall expire at the end of the fiscal period.
    (d) Suspension or denial of a Grower Tree Run Certificate. The 
committee may investigate the handling of tree run shipments under a 
Grower Tree Run Certificate to determine whether growers are complying 
with the requirements and regulations applicable to such certificates. 
Whenever the committee finds that a grower is failing to comply with 
the requirements and regulations applicable to such certificates, the 
Grower Tree Run Certificate issued to such grower may be suspended or, 
in the case of an application for the issuance of an initial Grower 
Tree Run Certificate, may be denied. Such suspension of a certificate 
shall be for a reasonable period of time as determined by the 
committee, but in no event shall it extend beyond July 31, 2003. In the 
case of the denial of an application for the issuance of an initial 
certificate, such certificate shall be denied until the applicant comes 
into compliance with the requirements and regulations applicable to 
such certificates. Prior to suspending or denying an application for a 
Grower Tree Run Certificate, the committee shall give the grower 
reasonable

[[Page 62318]]

advance notice in writing of its intention and the facts and reasons 
therefor, and afford the grower an opportunity, either orally or in 
writing, to present opposing facts and reasons. The grower shall be 
informed of the committee's determination in writing and in a timely 
manner.
    (e) To qualify for a Grower Tree Run Certificate, each such grower 
must notify the committee prior to the first shipment of tree run 
Florida citrus fruit of the grower's intent to ship such citrus, submit 
an application on forms supplied by the committee, and agree to other 
requirements as set forth in this section with respect to such 
shipments.
    (f) The handling of tree run citrus under a Grower Tree Run 
Certificate shall be exempt from the provisions of Sec. Sec.  905.52 
and 905.53 and the regulations issued thereunder, under the following 
conditions:
    (1) A grower may only ship up to 150 1\3/5\ bushel boxes per 
variety, per shipment.
    (2) A grower may only ship up to 1,500 boxes per variety per 
season.
    (3) This rule is applicable for the 2002-03 season only. Each 
grower certificate shall expire July 31, 2003.
    (4) Each grower shall apply to the Citrus Administrative Committee 
and receive a Grower Tree Run Certificate prior to shipping their own 
tree run Florida citrus fruit.
    (5) Each grower of citrus shipping under a Grower Tree Run 
Certificate shall supply the committee with reports on each shipment as 
requested by the committee, on forms supplied by the committee, 
providing the following information: The name and address of the 
grower, along with the grower's Grower Tree Run Certificate number; the 
legal description of the grove; the variety and amount of citrus 
shipped; the date the fruit was shipped; and the truck/trailer license 
number. A copy of the form will be completed for each shipment. One 
copy of the report will be forwarded by the grower to the committee 
office within 10 days after such shipment, and one copy of the report 
will accompany each shipment and be given to the Road Guard Station.

    Dated: October 1, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-25430 Filed 10-2-02; 2:25 pm]
BILLING CODE 3410-02-P