[Federal Register Volume 69, Number 36 (Tuesday, February 24, 2004)]
[Rules and Regulations]
[Pages 8325-8327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3956]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 916 and 917

[Docket No. FV03-916-610 REVIEW]


Nectarines and Peaches/Pears Grown in California; Section 610 
Review

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Confirmation of regulations.

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SUMMARY: This action summarizes the results under the criteria 
contained in section 610 of the Regulatory Flexibility Act (RFA), of an 
Agricultural Marketing Service (AMS) review of Marketing Orders 916 and 
917 regulating the handling of nectarines and peaches/pears grown in 
California. The provisions and regulations for pears have been 
suspended since 1994. Based upon its review, AMS has determined that 
the nectarine and peach marketing orders should be continued, and that 
the pear order provisions should be continued, as suspended.

ADDRESSES: Interested persons may obtain a copy of the review. Requests 
for copies should 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].

FOR FURTHER INFORMATION CONTACT: Terry Vawter, Marketing Specialist, 
California Marketing Field Office, Marketing Order Administration 
Branch, Fruit and Vegetable Programs, AMS, USDA, 2202 Monterey Street, 
Suite 102B, Fresno, California 93721; telephone: (209) 487-5902; fax: 
(209) 487-5906; e-mail: Terry [email protected]; 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; e-mail: [email protected].

[[Page 8326]]


SUPPLEMENTARY INFORMATION: Marketing Orders 916 and 917, as amended (7 
CFR parts 916 & 917), regulate the handling of nectarines and peaches 
grown in California. The marketing orders are effective under the 
Agricultural Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-
674) hereinafter referred to as the ``Act.''
    The nectarine marketing order authorizes the Nectarine 
Administrative Committee (NAC), consisting of eight growers or 
employees of growers and their respective alternates from four 
districts in California.
    The peach marketing order authorizes the Peach Commodity Committee 
(PCC) consisting of 13 growers or employees of growers, representing 
five districts within the production area.
    Currently, there are approximately 1,800 nectarine and peach 
growers and approximately 300 handlers. The majority of the growers and 
handlers may be classified as small entities. The regulations 
implemented under the orders are applied uniformly to all size 
entities, and are designed to benefit all entities, regardless of size.
    Marketing Order No. 916, originally established in 1948, and 
Marketing Order No. 917, established in 1939, authorize grade, size, 
maturity, quality, and container marking and pack requirements; 
mandatory inspection and reporting; cultural research; marketing 
research; marketing development; and promotion projects.
    AMS published in the Federal Register (63 FR 8014; February 18, 
1999), its plan to review certain regulations, including Marketing 
Orders 916 and 917, under criteria contained in section 610 of the 
Regulatory Flexibility Act (RFA; 5 U.S.C. 601-612). Updated plans were 
published in the Federal Register on January 4, 2002 (67 FR 525), and 
again on August 14, 2003 (68 FR 48574). AMS published a notice of 
review and request for written comments on the California nectarine, 
peach, and pear marketing orders in the April 21, 2003, issue of the 
Federal Register (68 FR 19491). No comments were received from that 
publication, but, as discussed below, numerous comments on the programs 
were received as a result of a public meeting (listening sessions) held 
by USDA in May 2003.
    The 610 review was undertaken to determine whether the California 
nectarine and peach marketing orders should be continued without 
change, amended, or rescinded to minimize the impacts on small 
entities. Regarding pears, the review was conducted to determine 
whether the program should be reactivated with change, amended, or 
rescinded. In conducting this review, AMS considered the following 
factors: (1) The continued need for the marketing orders; (2) the 
nature of complaints or comments received from the public concerning 
the marketing orders; (3) the complexity of the marketing orders; (4) 
the extent to which the marketing orders overlap, duplicate, or 
conflict with other Federal rules, and, to the extent feasible, with 
State and local governmental rules; and (5) the length of time since 
the marketing orders have been evaluated or the degree to which 
technology, economic conditions, or other factors have changed in the 
area affected by the marketing orders.
    The nectarine and peach marketing orders require that a continuance 
referendum be held every four years to determine whether growers favor 
continuation. Continuance referenda were held on both orders in January 
2003. Results from the referenda revealed that slightly less than two-
thirds of those voting favored continuation of the nectarine and peach 
orders. The vote of pear growers to continue the order met the two-
thirds criteria. As a result, USDA published an announcement of a 
public meeting to review the nectarine and peach orders (listening 
sessions) in the April 21, 2003, issue of the Federal Register (68 FR 
19466). The listening sessions were held in the production area on May 
20 and 21, 2003, and written comments were solicited until June 20, 
2003. Thirty-seven individuals spoke at the listening sessions and 
seven others filed comments on the marketing orders.
    The majority of commenters believed that the programs are effective 
and important tools for the nectarine and peach industries. Commenters 
identified the orders' promotional programs, research activities, 
quality regulations, and data collection provisions as benefits to 
growers and handlers. Many commenters believe that recent changes in 
the programs will improve support for the marketing orders.
    The marketing orders for nectarines and peaches have been used 
effectively in the areas of quality control and marketing research and 
development. The establishment of a quality control program that 
includes minimum grades and standards and mandatory inspections, the 
establishment of container and pack requirements, and the compilation 
and dissemination of statistical information to the industry has helped 
improve the quality of product moving from the farm to market and has 
helped growers and handlers more effectively market their crops.
    These order requirements have helped ensure that only satisfactory 
quality product reaches the consumer. This has helped increase and 
maintain market demand for nectarines and peaches from this marketing 
order area over the years. In regard to complaints or comments received 
from the public regarding the marketing orders, USDA received 44 
comments from industry members as a result of the listening sessions 
relative to the nectarine and peach marketing orders. Only four of the 
commenters favored termination of the marketing orders. The majority of 
the comments were supportive of the programs as they currently exist. 
However, there were some concerns voiced by commenters. Some of the 
commenters found the referendum ballot complicated or confusing, some 
objected to or supported continued shipments of ``CA Utility'' quality 
fruit, some felt that reporting and compliance requirements should be 
eliminated and assessments reduced, and some felt that the size 
regulations needed to be reviewed. The committees and USDA will review 
the issues raised by the commenters.
    Marketing order issues and programs are discussed at public 
meetings, and all interested persons are allowed to express their 
views. All comments are considered in the decision making process by 
the committees and USDA before program changes are implemented.
    In considering the orders' complexity, AMS has determined that the 
marketing orders are not unduly complex. During the review, the orders 
were also checked for duplication and overlap with other regulations. 
AMS did not identify any relevant Federal rules, or State and local 
regulations that duplicate, overlap, or conflict with the marketing 
orders for nectarines and peaches grown in California.
    As stated previously, the orders were established in 1939 and 1958. 
During this time, AMS and the California nectarine and peach industries 
have continuously monitored marketing operations. Changes in 
regulations have been implemented to reflect current industry operating 
practices, and to solve marketing problems as they occur. The goal of 
these evaluations is to assure that the marketing orders and the 
regulations implemented under them fit the needs of the industries and 
are consistent with the Act. The committees meet whenever needed, but 
at least annually, to discuss the marketing orders and the various 
regulations issued thereunder, and to determine if, or what, changes 
may be necessary to reflect current industry practices. As a result, 
regulatory changes have been

[[Page 8327]]

made numerous times over the years to address industry operation 
changes and to improve program administration.
    In 1994, the provisions of part 917 relating to pears were 
suspended indefinitely (59 FR 10054). The suspension was implemented 
because the California Bartlett pear industry began using a California 
State pear program. We believe that if a pear program were in effect 
under part 917, similar conclusions could be made regarding the 610 
review as have been made for nectarines and peaches.
    Based upon its review, AMS has determined that the nectarine and 
peach marketing orders should be continued, and that the pear order 
provisions should be continued, as suspended.
    The marketing orders were established to help the California 
nectarine and peach industries work with USDA to solve marketing 
problems. The marketing order regulations on grade, size, maturity, 
quality, container marking and pack requirements, mandatory inspection, 
and reporting; and cultural research, marketing research, marketing 
development, and promotion continue to be beneficial to producers, 
handlers, and consumers. AMS will continue to work with the California 
nectarine and peach industries in maintaining effective marketing order 
programs.

    Dated: February 18, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-3956 Filed 2-23-04; 8:45 am]
BILLING CODE 3410-02-P