[Federal Register Volume 74, Number 177 (Tuesday, September 15, 2009)]
[Rules and Regulations]
[Pages 47048-47050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22115]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 959

[Doc. No. AMS-FV-09-0012; FV09-959-1 FIR]


Onions Grown in South Texas; Change in Regulatory Period

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim final rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim final rule that revised the regulatory 
period during which minimum grade, size, quality, and maturity 
requirements are in effect for onions grown in South Texas under 
Marketing Order No. 959 (order). The interim final rule shortened the 
regulatory period from March 1 through July 15 to March 1 through June 
4. The relaxation in the interim final rule was necessary to enable 
producers and handlers to compete more effectively in the marketplace.

DATES: Effective Date: Effective September 16, 2009.

FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Regional Manager, 
Texas Marketing Field Office, Marketing Order Administration Branch, 
Fruit and Vegetable Programs, AMS, USDA; Telephone: (956) 682-2833, 
Fax: (956) 682-5942; or E-mail: [email protected].
    Small businesses may obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateN&page=MarketingOrdersSmallBusinessGuide; or 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 Order 
No. 959, as amended (7 CFR part 959),

[[Page 47049]]

regulating the handling of onions grown in South Texas, 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.''
    Section 8e of the Act provides that whenever certain specified 
commodities, including onions, are regulated under a Federal marketing 
order, imports of these commodities into the United States are 
prohibited unless they meet the same or comparable grade, size, 
quality, or maturity requirements as those in effect for the 
domestically produced commodities. The interim final rule had no impact 
on the import regulation for onions.
    USDA is issuing this rule in conformance with Executive Order 
12866.
    The handling of onions grown in South Texas is regulated by 7 CFR 
part 959. Section 959.322 of the order's rules and regulations provides 
that the handling of South Texas onions shall be subject to specified 
grade, size, and inspection requirements. That section also prescribes 
the time period during which such regulatory requirements for South 
Texas onions are in effect. Previously, the regulatory period during 
which regulations were in effect ran from March 1 to July 15.
    In an interim final rule published in the Federal Register on April 
24, 2009, and effective on April 25, 2009 (74 FR 18621, Doc. No. AMS-
FV-09-0012, FV09-959-1 IFR), Sec.  959.322 was amended by changing the 
ending date of the regulatory period to June 4, except that onions 
handled from June 5 through July 15 would continue to be inspected. 
Relaxing the regulation helps shippers in districts with later 
production compete in the market with shippers from non-regulated 
production areas. Continuing the inspection requirement through July 15 
allows the South Texas Onion Committee (Committee) to continue 
collecting assessments through the end of the onion season in order to 
consistently fund onion promotion and research projects under the 
order.

Final Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), 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 rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf.

Industry Information

    There are approximately 84 producers of onions in the production 
area and approximately 31 handlers subject to regulation under the 
order. Small agricultural producers are defined by the Small Business 
Administration (SBA) (13 CFR 121.201) as those having annual receipts 
of less than $750,000. Small agricultural service firms are defined as 
those having annual receipts of less than $7,000,000.
    Most of the South Texas handlers are vertically integrated 
corporations involved in producing, shipping, and marketing onions. For 
the 2007-08 marketing year, the industry's 31 handlers shipped onions 
produced on 10,978 acres with the average and median volume handled 
being 202,245 and 176,551 fifty-pound equivalents, respectively. In 
terms of production value, total revenues for the 31 handlers were 
estimated to be $174.7 million, with average and median revenues being 
$5.64 million and $4.92 million, respectively.
    The South Texas onion industry is characterized by producers and 
handlers whose farming operations generally involve more than one 
commodity, and whose income from farming operations is not exclusively 
dependent on the production of onions. Alternative crops provide an 
opportunity to utilize many of the same facilities and equipment not in 
use when the onion production season is complete. For this reason, 
typical onion producers and handlers either produce multiple crops or 
alternate crops within a single year.
    Based on the SBA's definition of small entities, the Committee 
estimates that all of the 31 handlers regulated by the order would be 
considered small entities if only their onion revenues are considered. 
However, revenues from other farming enterprises could result in a 
number of these handlers being above the $7,000,000 annual receipt 
threshold. All of the 84 producers may be classified as small entities 
based on the SBA definition if only their revenue from onions is 
considered.
    This rule continues in effect the action that shortened the ending 
date of the order's regulatory period for Texas onions shipped to the 
fresh market from July 15 to June 4 of each year. This action, which 
was unanimously recommended by the Committee, shortened the regulatory 
period during which minimum grade, size, quality, and maturity 
requirements are in effect for onions grown under the order. 
Authorization to implement such regulations is provided in Sec.  
959.52(b) of the order. Regulatory requirements authorized under this 
section are provided in Sec.  959.322.
    The interim final rule provided that fresh onion shipments from the 
South Texas onion production areas meet minimum grade, size, quality, 
and maturity requirements from March 1 through June 4 of each year. 
Inspection requirements will continue through July 15. Previously, 
regulations required that onions grown in the production area meet 
order requirements from March 1 through July 15 of each year. Prior to 
the 2007 marketing season, the regulatory period was from March 1 
through June 4. In 2007, the regulatory period was extended from June 4 
to July 15. At that time, the Committee believed that applying quality 
requirements for a longer time period was necessary to accommodate an 
extended growing season.
    After two seasons' experience, District 2 producers and handlers 
requested that the Committee reconsider the previous regulatory 
extension. Onions subject to quality requirements under the order from 
June 5 to July 15 had been competing in the market with non-regulated 
onions from growing areas outside the order. Relaxing the requirements 
by changing the ending date of the regulatory period back to June 4 
relieves District 2 handlers of the resulting inequity and enables them 
to be more competitive with shippers from other production areas.
    Under the order, the Committee collects assessments from handlers 
based on inspection of onions to be shipped to market. The Committee's 
recommendation to continue the inspection requirement to July 15 allows 
the Committee to continue to collect assessments through the end of the 
season. This revenue will continue to be used by the Committee to fund 
its operations, including consistent funding for onion promotion and 
research projects under the order.
    One alternative to such action would have been to not change the 
regulatory period back to June 4. However, the Committee believed that 
leaving the quality requirements in place for the entire season would 
not have been as beneficial for those shipping onions in the latter 
part of the season.

[[Page 47050]]

    This rule does not impose any additional reporting or recordkeeping 
requirements on either small or large onion 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.
    Further, the Committee's meeting was widely publicized throughout 
the South Texas onion industry and all interested persons were invited 
to attend the meeting and participate in Committee deliberations. All 
Committee meetings are public meetings and all entities, both large and 
small, are able to express their views.
    This action also affirms information contained in the interim final 
rule concerning Executive Orders 12866 and 12988, the Paperwork 
Reduction Act (44 U.S.C. Chapter 35), and the E-Gov Act (44 U.S.C. 
101).
    Comments on the interim final rule were required to be received on 
or before June 23, 2009. No comments were received. Therefore, for the 
reasons given in the interim final rule, we are adopting the interim 
final rule as a final rule, without change.
    To view the interim final rule, go to http://www.regulations.gov/fdmspublic/component/main?main=DocketDetail&d=AMS-FV-09-0012.
    After consideration of all relevant material presented, it is found 
that finalizing the interim final rule, without change, as published in 
the Federal Register (74 FR 18621; April 24, 2009) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 959

    Marketing agreements, Onions, Reporting and recordkeeping 
requirements.

PART 959--[AMENDED]

0
Accordingly, the interim final rule amending 7 CFR part 959 which was 
published at 74 FR 18621 on April 24, 2009, is adopted as a final rule 
without change.

    Dated: September 9, 2009.
Rayne Pegg,
Administrator, Agricultural Marketing Service.
[FR Doc. E9-22115 Filed 9-14-09; 8:45 am]
BILLING CODE 3410-02-P