[Federal Register Volume 78, Number 163 (Thursday, August 22, 2013)]
[Rules and Regulations]
[Pages 52079-52080]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20479]



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  Federal Register / Vol. 78, No. 163 / Thursday, August 22, 2013 / 
Rules and Regulations  

[[Page 52079]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

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


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: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that changed the size and grade 
requirements prescribed under the marketing order for oranges, 
grapefruit, tangerines, and tangelos grown in Florida (order). The 
interim rule reduced the minimum size 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. The interim rule also 
lowered the minimum grade 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 
provides additional Valencia and other late type oranges for late 
season markets, helping to maximize fresh shipments.

DATES: Effective August 23, 2013.

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 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/MarketingOrdersSmallBusinessGuide; or 
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.''
    USDA is issuing this rule in conformance with Executive Order 
12866.
    The handling of oranges, grapefruit, tangerines, and tangelos grown 
in Florida is regulated by 7 CFR part 905. Prior to this change, the 
minimum size for Valencia and other late type oranges was 2\8/16\ 
inches in diameter. Also, prior to the change, the minimum grade was 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 industry believes there may be 
a late season market for Florida Valencia and other late type oranges 
in the food service industry. However, the previous size and grade 
regulations were making it difficult to supply this market.
    Therefore, this rule continues in effect the interim rule published 
in the Federal Register on May 14, 2013, and effective on May 15, 2013, 
(78 FR 28115, Doc. No. AMS-FV-13-0009, FV13-905-2 IR) that reduced the 
minimum size 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 lowered the minimum grade 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. These changes provide additional Valencia and 
other late type oranges for late season markets, helping to maximize 
fresh shipments. 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).

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 
businesses 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

[[Page 52080]]

orange handlers and producers may be classified as small entities.
    This rule continues in effect the changes that relaxed the size and 
grade requirements prescribed under the order. These changes 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 the provisions of section 905.306 by 
lowering the minimum size 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 section 
905.306 by lowering the minimum grade 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 section 905.52.
    This action does not impose any additional costs on the industry. 
However, it is anticipated that this action will have a beneficial 
impact. Relaxing 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 provides an 
outlet for fruit that may otherwise go un-harvested. This action allows 
more fruit to be shipped to the fresh market and increases 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.
    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.
    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. 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.
    Comments on the interim rule were required to be received on or 
before July 15, 2013. One comment in favor of the action was received. 
Therefore, for the reasons given in the interim rule, we are adopting 
the interim rule as a final rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-13-0009-0001.
    This action also affirms information contained in the interim 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).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (78 FR 28115, May 14, 2013) 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.

    Accordingly, the interim rule that amended 7 CFR part 905, which 
was published at 78 FR 28115 on May 14, 2013, is adopted as a final 
rule, without change.

    Dated: August 16, 2013.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2013-20479 Filed 8-21-13; 8:45 am]
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