[Federal Register Volume 78, Number 92 (Monday, May 13, 2013)]
[Rules and Regulations]
[Pages 27857-27858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-11253]


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DEPARTMENT OF AGRICULTURE

Grain Inspection, Packers and Stockyards Administration

7 CFR Part 810

RIN 0580-AB12


United States Standards for Wheat

AGENCY: Grain Inspection, Packers and Stockyards Administration, USDA.

ACTION: Final rule.

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SUMMARY: The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) is revising the United States Standards for Wheat under the 
United States Grain Standards Act (USGSA) to change the definition of 
Contrasting classes (CCL) in the class Hard White wheat. This change 
will help facilitate the marketing of wheat.

DATES: Effective Date: May 1, 2014.

FOR FURTHER INFORMATION CONTACT: Patrick McCluskey at GIPSA, USDA, 
10383 N. Ambassador Drive, Kansas City, MO, 64153; Telephone (816) 659-
8403; Fax Number (816) 872-1258; email [email protected].

SUPPLEMENTARY INFORMATION: 

Background

    The United States Grain Standards Act (USGSA) authorizes the 
Secretary of Agriculture to establish official standards of kind and 
class, quality and condition for wheat and other grains (7 U.S.C. 76). 
The United States Standards for Grain serve as the starting point to 
define grain quality in the marketplace. The United States Standards 
for Wheat are in the regulations at 7 CFR 810.2201-810.2205.
    On November 27, 2009, GIPSA published an Advance Notice of Proposed 
Rulemaking (ANPR) in the Federal Register (74 FR 62257) requesting 
public comment on what revisions, if any, are needed to the current 
wheat standards. GIPSA received 13 comments from wheat producers, 
breeders, market development groups, industry associations, and 
exporters.
    In the April 11, 2012, Federal Register (77 FR 21685-21690) GIPSA 
invited comments to our proposed rule identifying changes to the United 
States Standards for Wheat to:
    (1) Revise the United States Standards for Wheat under the United 
States Grain Standards Act (USGSA) to change the definition of 
Contrasting classes (CCL) in Hard White wheat, and
    (2) revise the grade limits for shrunken and broken kernels (SHBN) 
in U.S. No. 1 and U.S. No. 2 wheat.

Proposed Rule Comment Review

    GIPSA received 12 comments from wheat producer organizations, grain 
processor organizations, grain handlers, market developers, and others 
during the 60-day comment period for the proposed rule. On the basis of 
comments and other available information, GIPSA is implementing one of 
two proposed changes to the wheat standards. Some commentors requested 
additional changes which GIPSA believes are beyond the scope of the 
regulations. GIPSA will consider these comments for future policy 
changes. The following paragraphs address comments received regarding 
the proposed changes.

Contrasting Class Definition

    GIPSA proposed changing the definition of contrasting classes for 
Hard White wheat so that Hard Red Winter wheat and Hard Red Spring 
wheat are no longer contrasting classes, and are considered only as 
wheat of other classes. Four comments were received supporting the 
proposal and no comment was received opposing the proposal. Therefore 
as set forth in the proposal, GIPSA is amending the grain standards to 
change the definition of contrasting classes in Hard White wheat so 
that Hard Red Winter wheat and Hard Red Spring wheat are no longer 
contrasting classes. The grade limits will remain unchanged.

Shrunken and Broken Kernel Grade Limits

    GIPSA proposed making grade limits for SHBN more restrictive for 
U.S. No. 1 and U.S. No. 2, leaving the grade limits unchanged for U.S. 
No. 3, 4, and 5. In the proposed rule, GIPSA cited data for over 
100,000 official export and domestic inspection samples for all wheat 
classes in market years 2005 through 2009.
    GIPSA received 10 comments opposing the proposal and one comment 
supporting the proposal. Opposing comments from wheat producers in 
Oklahoma stated that more restrictive standards would place Oklahoma 
wheat growers at a competitive disadvantage. Those stakeholders 
suggested that because GIPSA's data was at the national level, it did 
not reflect the situation that Oklahoma wheat growers experience. Most 
other stakeholders who opposed the proposal, did so on similar grounds. 
North American Millers Association opposed the proposal stating GIPSA 
should consider a larger reduction in the grade limits. U.S. Wheat 
Associates supported the proposal stating their belief that the overall 
economic impact on wheat producers and the U.S. wheat industry would be 
positive.
    Because of concerns raised over the issue of whether the data 
supported the proposal, GIPSA will not revise the standards to reduce 
the grade limits on SHBN for grades U.S. No. 1 and U.S. No. 2 wheat, 
but may propose these changes in a future rulemaking.

Effective Date

    As specified in the USGSA (7 U.S.C. 76(b)), amendments to the 
standards

[[Page 27858]]

cannot become effective less than one calendar year after public 
notification, unless in the judgment of the Secretary, the public 
health, interest, or safety require that they become effective sooner. 
In accordance with that section of the Act, it is determined that it is 
in the public interest to have this final rule effective on May 1, 
2014, in order to coincide with the start of the 2014 wheat harvest, 
and to facilitate domestic and export marketing of wheat.

Executive Order 12866 and Regulatory Flexibility Act

    The Office of Management and Budget designated this rule as not 
significant for the purposes of Executive Order 12866.
    GIPSA has determined that this amendment would not have a 
significant economic impact on a substantial number of small entities 
as defined in the Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612). 
The RFA requires agencies to consider the economic impact of each rule 
on small entities and evaluate alternatives that would accomplish the 
objectives of the rule without unduly burdening small entities or 
erecting barriers that would restrict their ability to compete in the 
market. The purpose is to fit regulatory actions to the scale of 
businesses subject to the action.
    Under the USGSA, grain exported from the U.S. must be officially 
inspected and weighed. Mandatory inspection and weighing services are 
provided by GIPSA and delegated states at 60 export elevators 
(including four floating elevators). All of these facilities are owned 
by multi-national corporations, large cooperatives, or public entities 
that do not meet the requirements for small entities established by the 
Small Business Administration. For North American Industry 
Classification System (NAICS) code 424510 ``grain and field bean 
merchant wholesalers'' the Small Business Administration size standard 
is 100 or fewer employees. Most users of the official inspection and 
weighing services, and these entities that perform these services, do 
not meet the regulations for small entities. In addition to GIPSA, 
there are 55 official agencies that perform official services under the 
USGSA, and most of these entities do not meet the requirements for 
small entities.
    GIPSA is amending the wheat standards to change the definition of 
contrasting classes in Hard White wheat. GIPSA believes that this 
change to the wheat standards will facilitate the marketing of wheat.
    The U.S. wheat industry, including approximately 159,527 wheat 
farms (USDA-2007 Census of Agriculture-updated), handlers, processors, 
and merchandisers are the primary users of the wheat standards and 
utilize the official standards as a common trading language to market 
wheat. The USGSA (7 U.S.C. 87f-1) requires that all persons engaged in 
the business of buying grain for sale in foreign commerce be registered 
with USDA. In addition, those individuals who handle, weigh, or 
transport grain for sale in foreign commerce must also register. The 
USGSA regulations (7 CFR 800.30) define a foreign commerce grain 
business as persons who regularly engage in buying for sale, handling, 
weighing, or transporting grain totaling 15,000 metric tons or more 
during the preceding or current calendar year.
    At present, there are 125 registrants who account for practically 
100 percent of U.S. wheat exports, which for fiscal year 2011 totaled 
approximately 31,260,659 metric tons. While most of the 125 registrants 
are large businesses, some entities may be small. GIPSA believes that 
this proposed rule would not adversely affect or burden these users, 
nor add any additional cost for entities of any size.

Executive Order 12988

    This proposed rule has been reviewed under Executive Order 12988, 
Civil Justice Reform. This action is not intended to have retroactive 
effect. The USGSA provides in section 87g (7 U.S.C. 87g) that no 
subdivision may require or impose any requirements or restrictions 
concerning the inspection, weighing, or description of grain under the 
USGSA. Otherwise, this rule would not preempt any State or local laws, 
or regulations, or policies unless they present an irreconcilable 
conflict with this rule. There are no administrative procedures which 
must be exhausted prior to any judicial challenge to the provisions of 
this rule.

 Executive Order 13175

    This proposed rule has been reviewed with the requirements of 
Executive Order 13175, Consultation and Coordination with Indian Tribal 
Governments. This rule would not have substantial and direct effects on 
Tribal governments and would not have significant Tribal implications.

Paperwork Reduction Act

    Pursuant to the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 
3501-3520), the existing information collection requirements are 
approved under the Office of Management and Budget (OMB) Number 0580-
0013. No additional collection or recordkeeping requirements are 
imposed on the public by this proposed rule.

E-Government Compliance

    GIPSA is committed to complying with the E-Government Act, to 
promote the use of the Internet and other information technologies to 
provide increased opportunities for citizen access to Government 
information and services, and for other purposes.

List of Subjects in 7 CFR Part 810

    Export, Grain.

    For reasons set out in the preamble, 7 CFR part 810 is amended as 
follows:

PART 810--OFFICIAL UNITED STATES STANDARDS FOR GRAIN

0
1. The authority citation for part 810 continues to read as follows:

    Authority: 7 U.S.C. 71-87k.

0
2. In Sec.  810.2202, revise paragraph (b) to read as follows:


Sec.  810.2202  Definition of other terms.

* * * * *
    (b) Contrasting Classes. Contrasting classes are:
    (1) Durum wheat, Soft White wheat, and Unclassed wheat in the 
classes Hard Red Spring wheat and Hard Red Winter wheat.
    (2) Hard Red Spring wheat, Hard Red Winter wheat, Hard White wheat, 
Soft Red Winter wheat, Soft White wheat, and Unclassed wheat in the 
class Durum wheat.
    (3) Durum wheat and Unclassed wheat in the class Soft Red Winter 
wheat.
    (4) Durum wheat, Hard Red Spring wheat, Hard Red Winter wheat, Soft 
Red Winter wheat, and Unclassed wheat in the class Soft White wheat.
    (5) Durum wheat, Soft Red Winter wheat, and Unclassed wheat in the 
class Hard White wheat.
* * * * *

Larry Mitchell,
Administrator, Grain Inspection, Packers and Stockyards Administration.
[FR Doc. 2013-11253 Filed 5-10-13; 8:45 am]
BILLING CODE 3410-KD-P