[Federal Register Volume 78, Number 93 (Tuesday, May 14, 2013)]
[Rules and Regulations]
[Pages 28115-28118]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-11389]



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  Federal Register / Vol. 78, No. 93 / Tuesday, May 14, 2013 / Rules 
and Regulations  

[[Page 28115]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-FV-13-0009; FV13-905-2 IR]


Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Relaxing Size and Grade Requirements on Valencia and Other Late Type 
Oranges

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim rule with request for comments.

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SUMMARY: This rule changes the size and grade requirements currently 
prescribed under the marketing order for oranges, grapefruit, 
tangerines, and tangelos grown in Florida (order). The order is 
administered locally by the Citrus Administrative Committee 
(Committee). This rule reduces the minimum size requirement for 
Valencia and other late type oranges shipped to interstate markets from 
2\8/16\ inches to 2\4/16\ inches from May 15 through August 31 each 
season. This rule also reduces the minimum grade requirement for 
Valencia and other late type oranges shipped to interstate markets from 
a U.S. No. 1 to a U.S. No. 1 Golden from May 15, 2013, to June 14, 
2013, and to a U.S. No. 2 external/U.S. No. 1 internal from June 15, 
2013, to August 31, 2013. This rule will provide additional Valencia 
and other late type oranges for late season markets, helping to 
maximize fresh shipments.

DATES: Effective May 15, 2013; comments received by July 15, 2013 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 and Agreement Division, Fruit and Vegetable Program, 
AMS, USDA, 1400 Independence Avenue SW., STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938; or Internet: http://www.regulations.gov. All comments should reference the document 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.regulations.gov. All comments submitted in response to this rule 
will be included in the record and will be made available to the 
public. Please be advised that the identity of the individuals or 
entities submitting comments will be made public on the Internet at the 
address provided above.

FOR FURTHER INFORMATION CONTACT: Corey E. Elliott, Marketing 
Specialist, or Christian D. Nissen, Regional Director, Southeast 
Marketing Field Office, Marketing Order and Agreement Division, Fruit 
and Vegetable Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 
325-8793, or Email: [email protected] or 
[email protected].
    Small businesses may request information on complying with this 
regulation by contacting Jeffrey Smutny, Marketing Order and Agreement 
Division, Fruit and Vegetable Program, AMS, USDA, 1400 Independence 
Avenue SW., STOP 0237, Washington, DC 20250-0237; Telephone: (202) 720-
2491, Fax: (202) 720-8938, or Email: [email protected].

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
No. 905, 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 rule is not intended to have retroactive effect.
    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 changes the minimum size requirement on Valencia and 
other late type oranges shipped to interstate markets from 2\8/16\ 
inches to 2\4/16\ inches from May 15 through August 31 each season. It 
also reduces the minimum grade requirement on Valencia and other late 
type oranges shipped to interstate markets from a U.S. No. 1 to a U.S. 
No. 1 Golden from May 15, 2013, to June 14, 2013, and to a U.S. No. 2 
external/U.S. No. 1 internal from June 15, 2013, to August 31, 2013. 
This rule will provide additional Valencia and other late type oranges 
for late season markets and will help maximize fresh shipments. The 
Committee unanimously recommended these changes at a meeting on January 
8, 2013.
    Section 905.52 of the order provides, in part, authority to 
establish minimum grade and size requirements for Florida citrus. 
Section 905.306 of the order's rules and regulations specifies the 
minimum grade and size requirements for different varieties of fresh 
Florida citrus. Such requirements for domestic shipments are specified 
in Table I of Sec.  905.306(a). Currently, the minimum size for 
Valencia and other late type oranges is 2\8/16\ inches in diameter. The 
minimum grade for Valencia and other late type oranges is a U.S. No. 1 
from August 1 to June 14 and a U.S. No. 2 external/U.S. No. 1 internal 
from June 15 to July 31. The characteristics of these grades are 
specified in the U.S. Standard for Grades of Florida Oranges and 
Tangelos (7 CFR 51.1140 through 51.1179).
    At its meeting, the Committee discussed that there may be a late 
season market for Florida Valencia and other late type oranges in the 
food

[[Page 28116]]

service industry. One member stated that this market prefers a smaller-
size orange and may be undersupplied during the last few months of the 
Florida citrus season, as supplies from other states have been 
declining. At the end of the season, growers still have Valencia and 
other late type oranges left on the tree to supply this market. 
However, with current size and grade regulations, it is difficult to 
supply this market.
    During the last few seasons, approximately 97.5 percent of Valencia 
and other late type oranges were utilized in the production of orange 
juice, while approximately 2.5 percent, or about 3.1 million cartons, 
were utilized as shipments to the fresh market. Of the fresh shipments, 
85 percent were shipped between March and May. With the current size 
and grade requirements, the Committee estimates that fewer than 465,000 
cartons would be available after May 15 for shipment to the food 
service market.
    According to the National Agricultural Statistics Service (NASS), 
approximately 10 percent of Valencia oranges measured at the end of 
April are 2\4/16\ inches. From this forecast, the Committee estimates 
an additional 200,000 cartons of Valencia and other late type oranges, 
between 2\4/16\ and 2\8/16\ inches in size, still remain on the tree.
    However, most of the remaining fruit wouldn't meet grade 
requirements due to discoloration and scarring. As fruit continues to 
mature on the tree, physiological changes occur that affect the color 
of the fruit. Also, over time, the fruit gets more blemishes due to 
wind scarring. Therefore, only changing the minimum size may not be 
sufficient to make additional fruit available late in the season.
    Consequently, to provide additional Valencia and other late type 
oranges to supply the food service market, the Committee recommended a 
relaxation in size and grade. This rule changes the minimum size 
requirement for Valencia and other late type oranges shipped to 
interstate markets from 2\8/16\ inches to 2\4/16\ inches from May 15 
through August 31 each season. It also reduces the minimum grade 
requirement for Valencia and other late type oranges shipped to 
interstate markets from a U.S. No. 1 to a U.S. No. 1 Golden from May 
15, 2013, to June 14, 2013, and to a U.S. No. 2 external/U.S. No. 1 
internal from June 15, 2013, to August 31, 2013. The Committee believes 
that relaxing the size and grade requirements will provide an outlet 
for fruit that may otherwise go un-harvested. This will maximize fresh 
shipments, allowing more fruit to be shipped to the fresh market, and 
increasing returns to both handlers and growers.

Initial 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 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.
    There are approximately 29 Valencia and other late type orange 
handlers subject to regulation under the marketing order and 
approximately 8,000 producers of citrus in the production area. Small 
agricultural service firms are defined by the Small Business 
Administration (SBA) as those whose annual receipts are less than 
$7,000,000, and small agricultural producers are defined as those 
having annual receipts less than $750,000 (13 CFR 121.201).
    Based on industry and Committee data, the average f.o.b. price for 
fresh Valencia and other late type oranges during the 2011-12 season 
was approximately $12.42 per \4/5\ bushel carton, and total fresh 
shipments were approximately 3.2 million cartons. Using the average 
f.o.b. price and shipment data, the majority of Florida Valencia and 
other late type orange handlers could be considered small businesses 
under SBA's definition. In addition, the average annual grower revenue 
is below $750,000 based on production data, grower prices as reported 
by NASS, and the total number of Florida citrus growers. Thus, assuming 
a normal distribution, the majority of Valencia and other late type 
orange handlers and producers may be classified as small entities.
    This rule relaxes the size and grade requirements prescribed under 
the order. These changes will allow additional late season fruit to be 
shipped to the fresh market, maximizing shipments and providing 
additional returns to both handlers and growers. This rule revises 
Sec.  905.306 by reducing the minimum size requirements for interstate 
shipments of fresh Valencia and other late type oranges from 2\8/16\ 
inches to 2\4/16\ inches from May 15 to August 31 each season. This 
rule further revises Sec.  905.306 by reducing the minimum grade 
requirements for interstate shipments of Valencia and other late type 
oranges from a U.S. No. 1 to a U.S. No. 1 Golden from May 15, 2013, to 
June 14, 2013, and to a U.S. No. 2 external/U.S. No. 1 internal from 
June 15, 2013, to August 31, 2013. Authority for these changes is 
provided for in Sec.  905.52. These changes were unanimously 
recommended by the Committee at a January 8, 2013, meeting.
    This action does not impose any additional costs on the industry. 
However, it is anticipated that this action will have a beneficial 
impact. Reducing size and grade requirements for Valencia and other 
late type oranges from May 15 to August 31 will make additional fruit 
available for shipment to the fresh market, providing the opportunity 
to supply the potential food service industry market. The Committee 
believes that relaxing the size and grade requirements will provide an 
outlet for fruit that may otherwise go un-harvested. This will allow 
more fruit to be shipped to the fresh market and increase returns to 
both handlers and growers. The benefits of this rule are expected to be 
equally available to all fresh citrus growers and handlers, regardless 
of their size.
    Regarding alternatives to this action, the Committee considered two 
different approaches to providing additional fruit to the market. They 
considered changing the minimum size and leaving the current grade 
standard in place. However, the consensus of the Committee was that 
late in the season the additional quantity demanded could not be met 
through a size change alone. The Committee also considered changing the 
minimum size and establishing U.S. No. 1 Golden as the grade from May 
15 to August 31. However, this option would effectively increase the 
grade from June 15 to July 31, which was not the Committee's intention 
for the 2013 season. Therefore, the Committee rejected both of these 
alternatives.
    In accordance with the Paperwork Reduction Act of 1995, (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189, Generic Fruit Crops. No changes in those 
requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.

[[Page 28117]]

    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large Florida citrus 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.
    AMS 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap, or conflict with this rule.
    Further, the Committee meeting was widely publicized throughout the 
Florida citrus industry. All interested persons were invited to attend 
the meeting and participate in Committee deliberations. Like all 
Committee meetings, the January 8, 2013, meeting was a public meeting. 
All entities, both large and small, were able to express their views on 
this issue. Finally, interested persons are invited to submit comments 
on this interim rule, including 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: 
www.ams.usda.gov/MarketingOrdersSmallBusinessGuide. Any questions about 
the compliance guide should be sent to Jeffrey Smutny at the previously 
mentioned address in the FOR FURTHER INFORMATION CONTACT section.
    This rule invites comments on changes to the size and grade 
requirements currently prescribed under the Florida citrus marketing 
order. 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 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) This action relaxes the current size and grade 
requirements under the order; (2) these changes need to be in effect by 
May 15, 2013; (3) the Committee recommended these changes 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.

    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 parts 905 continues to read as 
follows:

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


0
2. In Sec.  905.306, Table I in paragraph (a) is amended by revising 
the entry for ``Valencia and other late type'' under ``Oranges'' to 
read as follows:


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

    (a) * * *

                                                     Table I
----------------------------------------------------------------------------------------------------------------
                                                                                                      Minimum
                 Variety                       Regulation period             Minimum grade           diameter
                                                                                                     (inches)
(1)                                       (2).......................  (3).......................             (4)
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
Valencia and other late type............  08/01/2012-05/14/2013.....  U.S. No. 1................         2\8/16\
                                          05/15/2013-06/14/2013.....  U.S. No. 1 Golden.........         2\4/16\
                                          06/15/2013-08/31/2013.....  U.S. No. 2, External......         2\4/16\
                                                                      U.S. No. 1, Internal......
                                          On or after 09/01/13......  U.S. No. 1................         2\8/16\
                                          September 1-May 14........  U.S. No. 1................         2\4/16\
                                          May 15-June 14............  U.S. No. 2, External......         2\4/16\
                                          June 15-July 31...........  U.S. No. 1, Internal......
                                          August 1-August 31........  U.S. No. 1................         2\4/16\
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------


[[Page 28118]]

* * * * *

    Dated: May 8, 2013.
David R. Shipman,
Administrator, Agricultural Marketing Service.
[FR Doc. 2013-11389 Filed 5-13-13; 8:45 am]
BILLING CODE 3410-02-P