[Federal Register Volume 70, Number 87 (Friday, May 6, 2005)]
[Rules and Regulations]
[Pages 23928-23930]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9109]



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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Docket No. FV05-905-1 FIR]


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

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule reducing 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 continues in 
effect the action that reduced 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 Date: June 6, 2005.

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 SE., 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.''
    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 continues in effect the action that reduced the minimum 
maturity requirement for soluble solids (sugars) of fresh grapefruit 
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 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. Prior to this change, the minimum 
maturity requirements for Florida grapefruit were 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 69 percent decrease from last year's 
estimate.
    In inspecting groves following the storms, growers 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 requirements return to their previous 
level. The Committee believes by reducing the soluble solids level and 
maintaining the minimum ratio combinations at the current levels for

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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.

Final 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 final 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 $6,000,000, 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 continues in effect the action that reduced the minimum 
maturity requirement for soluble solids (sugars) from 8.0 percent to 
7.5 percent for fresh grapefruit 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 makes 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 duplication by industry 
and public sector agencies. In addition, as noted in the initial 
regulatory flexibility analysis, 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.
    An interim final rule concerning this action was published in the 
Federal Register on December 22, 2004 (69 FR 76597). Copies of the rule 
were mailed by the Committee's staff to all Committee members and 
Florida citrus handlers. In addition, the rule was made available 
through the Internet by USDA and the Office of the Federal Register. 
That rule provided for a 60-day comment period which ended February 22, 
2005. Two comments were received.
    One commenter supported in principle the relaxation. The second 
commenter stated that the order should be eliminated and the Committee 
be disbanded. USDA disagrees with these suggestions.
    The marketing order was implemented and is being administered 
consistent with the authority in the Agricultural Marketing Agreement 
Act of 1937, and was favored by citrus growers in a recent continuance 
referendum. In addition, actions taken by the Committee under the order 
have

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helped increase grower returns to levels above the cost of production, 
which may contribute to more growers maintaining their groves. This 
rule is making more fruit available at a time when much of the crop was 
destroyed by last year's hurricanes without sacrificing fruit quality. 
This change benefits both growers and consumers by increasing the 
available supply of fresh grapefruit.
    Therefore, no changees will be made as a result of these comments.
    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.
    After consideration of all relevant material presented, including 
the Committee's recommendation, and other information, it is found that 
finalizing the interim final rule, without change, as published in the 
Federal Register (69 FR 76597, December 22, 2004) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 905

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

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

0
Accordingly, the interim final rule amending 7 CFR part 905 which was 
published at 69 FR 76597 on December 22, 2004, is adopted as a final 
rule without change.

    Dated: May 3, 2005.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 05-9109 Filed 5-5-05; 8:45 am]
BILLING CODE 3410-02-P