[Federal Register Volume 69, Number 245 (Wednesday, December 22, 2004)]
[Rules and Regulations]
[Pages 76597-76599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27892]



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  Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / 
Rules and Regulations  

[[Page 76597]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV05-905-1 IFR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Change in the Minimum Maturity Requirements for Fresh Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule reduces the minimum maturity requirements for fresh 
grapefruit under the marketing order for Oranges, Grapefruit, 
Tangerines, and Tangelos Grown in Florida (order). The Citrus 
Administrative Committee (Committee), which locally administers the 
order, recommended this change. This rule reduces the minimum maturity 
requirement for soluble solids (sugars) from 8.0 percent to 7.5 percent 
until July 31, 2005. This action makes additional quantities of 
grapefruit available for the fresh market and will help reduce the 
losses sustained by the grapefruit industry during the recent 
hurricanes in Florida.

DATES: Effective December 23, 2004; comments received by February 22, 
2005 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]; 
or Internet: http://www.regulations.gov. 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 action 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 reduces the minimum maturity requirement for soluble 
solids (sugars) from 8.0 percent to 7.5 percent until July 31, 2005. 
This action makes additional quantities of grapefruit available for the 
fresh market and will help reduce the losses sustained by the 
grapefruit industry during the recent hurricanes in Florida. This 
action was unanimously recommended by the Committee at its meeting on 
November 16, 2004.
    Section 905.52 of the order provides authority for the 
establishment of grade and size requirements for Florida citrus. One 
element of grade is maturity. Section 905.306 of the order specifies, 
in part, the minimum maturity requirements for grapefruit. The current 
minimum maturity requirements for Florida grapefruit are 8.0 percent 
soluble solids (sugars) and 7.5 to 1 solids to acid ratio with a 
sliding scale minimum ratio of 7.2 to 1.
    This rule reduces the minimum maturity requirement for soluble 
solids (sugars) from 8.0 percent to 7.5 percent soluble solids for the 
remainder of the 2004-05 season which ends July 31, 2005. On August 1, 
2005, the requirement returns to 8.0 percent soluble solids. The 7.5 to 
1 solids to acid ratio with a sliding scale minimum of 7.2 to 1 remains 
unchanged by this action.
    During the months of August and September the major grapefruit 
growing regions in Florida suffered significant damage and fruit loss 
from multiple hurricanes. The strong winds from the storms blew 
substantial volumes of the setting fruit off the trees. The impact of 
the storms also produced a much higher than normal fruit drop. The 
extent of the loss is evident in the official USDA crop estimate for 
this season which reflects a

[[Page 76598]]

64 percent decrease from last year's estimate.
    In inspecting groves following the storms, growers have found that 
the younger trees retained their fruit better compared to trees in 
established groves. However, based on Committee discussion, the fruit 
from younger trees has more difficulty meeting the current maturity 
requirement. To address the situation, the Committee considered how the 
maturity requirements might be adjusted so that more fruit from the 
younger trees would be available for the fresh market.
    The Committee considered several options to address this issue 
including a one-point reduction in the soluble solids and a reduction 
in the minimum ratio. Several members were concerned about reducing 
requirements too much and believed that reducing maturity requirements 
by a full point would impact the quality of the fruit. It was also 
stated that the industry should not pack inferior fruit just because 
there is a shortage of volume. The Committee agreed that the current 
maturity standards have been well received by the market. However, 
Committee members also recognized that the special circumstances 
surrounding this season were unprecedented in the history of the 
grapefruit industry, and based on that, if it was possible, some 
allowances should be made to assist growers and provide some additional 
volume to the market.
    The Committee reached a compromise position where the soluble solid 
requirement was reduced by a half a point and the ratios were 
maintained at current levels. The Committee stressed that this change 
be made for the remainder of the current season only, and starting 
August 1, 2005, the maturity retirements return to their current level. 
The Committee believes by reducing the soluble solids level and 
maintaining the minimum ratio combinations at the current levels for 
the remainder of the season, additional quantities of grapefruit can be 
made available for the fresh market without a significant reduction in 
quality. Therefore, the Committee voted unanimously to reduce the 
minimum soluble solid level from 8.0 to 7.5 until July 31, 2005. This 
change benefits both growers and consumers by increasing the available 
supply of fresh grapefruit.
    Section 8e of the Act provides that when certain domestically 
produced commodities, including grapefruit, are regulated under a 
Federal marketing order, imports of that commodity must meet the same 
or comparable grade, size, quality, and maturity requirements. As this 
rule changes the minimum maturity requirements under the domestic 
handling regulations, a corresponding change to the import regulations 
must be considered. Such change to the import regulations would be made 
under a separate 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 75 grapefruit handlers subject to 
regulation under the order and approximately 11,000 producers 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 grapefruit during the 2003-04 season was 
approximately $8.00 per 4/5-bushel carton, and total fresh shipments 
for the 2003-04 season are estimated at 26 million cartons of 
grapefruit. Approximately 25 percent of all handlers handled 75 percent 
of Florida's grapefruit shipments. Using the average f.o.b. price, at 
least 69 percent of the grapefruit handlers could be considered small 
businesses under SBA's definition. In addition, based on production and 
grower prices reported by the National Agricultural Statistics Service, 
and the total number of grapefruit growers, the average annual grower 
revenue is approximately $20,600. In view of the foregoing, it can be 
concluded that the majority of handlers and producers of Florida 
grapefruit may be classified as small entities.
    This rule reduces the minimum maturity requirement for soluble 
solids (sugars) from 8.0 percent to 7.5 percent until July 31, 2005. 
This action makes additional quantities of grapefruit available for the 
fresh market and will help reduce the losses sustained by the 
grapefruit industry during the recent hurricanes in Florida. This 
action was unanimously recommended by the Committee at its meeting on 
November 16, 2004. This rule modifies the maturity requirements 
specified in Sec.  905.306. Authority for this action is provided for 
in Sec.  905.52 of the order.
    With respect to the impact of this action, it is anticipated that 
this temporary change will not result in any increase in grower or 
handler costs. However, it will make some additional quantities of 
grapefruit available for the fresh market. This will help growers 
maximize their fresh shipments in a year where there may be potential 
shortages of grapefruit. This will help increase grower returns and 
address some of the losses sustained from the storms.
    The Committee believes by reducing the soluble solids level and 
maintaining the minimum ratio combinations at the current levels for 
the remainder of the 2004-05 season, additional quantities of 
grapefruit will be made available for the fresh market without a 
significant reduction in quality. This change benefits both growers and 
consumers by increasing the available supply of fresh grapefruit.
    The purpose of this rule is to help improve producer returns and 
provide some additional volume of grapefruit to the market. The 
opportunities and benefits of this rule are expected to be available to 
all grapefruit handlers and producers regardless of their size of 
operation.
    The Committee considered several alternatives to taking this 
action. One alternative considered was a reduction in maturity 
requirements to 7.0 percent soluble solids with 7.0 to 1 solids to acid 
ratio. Committee members believed that this was too much of a change 
and that it would negatively impact the quality of the fruit. 
Therefore, this option was rejected. Another alternative considered was 
making no change to the maturity requirement. However, the Committee 
believed that some adjustment should be made to accommodate fruit from 
young trees. The Committee also recognized the special circumstances 
surrounding this season as a result of the hurricanes. Consequently, 
the Committee unanimously supported the action taken by this rule.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large grapefruit handlers. As with all 
Federal marketing order programs, reports and forms are periodically 
reviewed to reduce information requirements and

[[Page 76599]]

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. However, 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).
    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 on all issues. Like all 
Committee meetings, the November 16, 2004, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue. In addition, 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 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 a reduction in the minimum maturity 
requirements prescribed under the order until July 31, 2005. 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 that good cause exists for not postponing the effective date 
of this rule until 30 days after publication in the Federal Register 
because: (1) Handlers began shipping grapefruit in late September; (2) 
Florida grapefruit growers need to know as soon as possible that they 
can begin picking this fruit; (3) the Committee recommended this change 
at a public meeting and interested parties had an opportunity to 
provide input; and (4) this rule provides a 60-day comment period and 
any comments received will be considered prior to finalization of this 
rule.

List of Subjects in 7 CFR Part 905

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


0
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

0
1. The authority citation for 7 CFR part 905 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.


0
2. In Sec.  905.306, paragraph (e) is amended as follows:
0
a. By designating the current text preceding Table III as paragraph 
(e)(1);
0
b. By adding new paragraph (e)(2) to read as follows:


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

* * * * *
    (e) * * *
    (2) Notwithstanding the provision of paragraph (e)(1) of this 
section, for the period December 23, 2004 to July 31, 2005, all 
grapefruit shipped under the order shall meet minimum maturity 
requirements of 7.5 percent soluble solids (sugars) and 7.5 to 1 solids 
to acid ratio or shall comply with one of the alternate equivalent 
soluble solids and solids to acid ratio combinations set forth in Table 
III: Provided, That the minimum ratio shall not drop below 7.2 even if 
the soluble solids (sugars) reaches a level higher than 9.6.

    Dated: December 15, 2004.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 04-27892 Filed 12-17-04; 4:47 pm]
BILLING CODE 3410-02-P