[Federal Register Volume 83, Number 65 (Wednesday, April 4, 2018)]
[Rules and Regulations]
[Pages 14348-14350]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06874]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-SC-17-0064; SC17-905-2 FIR]


Oranges, Grapefruit, Tangerines, and Pummelos Grown in Florida; 
Change in Size Requirements for Oranges

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture adopts as final without change, 
an interim rule implementing a recommendation from the Citrus 
Administrative Committee (Committee) to relax the minimum size 
requirements currently prescribed under the Marketing Order for 
oranges, grapefruit, tangerines, and pummelos grown in Florida (Order). 
This final rule also continues in effect administrative revisions to 
the subpart heading to bring the language into conformance with the 
Office of Federal Register requirements.

DATES: Effective April 5, 2018.

[[Page 14349]]


FOR FURTHER INFORMATION CONTACT: Abigail Campos, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Specialty Crops 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 291-8614, or 
Email: [email protected] or [email protected].
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Marketing Order and Agreement 
Division, Specialty Crops 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 action, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This rule is issued under Marketing Order No. 905, as 
amended (7 CFR part 905), regulating the handling of oranges, 
grapefruit, tangerines, and pummelos grown in Florida. Part 905 
(referred to as 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 Committee locally 
administers the Order and is comprised of growers and handlers 
operating within the production area and one public member.
    The Department of Agriculture (USDA) is issuing this rule in 
conformance with Executive Orders 13563 and 13175. This rule falls 
within a category of regulatory actions that the Office of Management 
and Budget (OMB) exempted from Executive Order 12866 review. 
Additionally, because this rule does not meet the definition of a 
significant regulatory action, it does not trigger the requirements 
contained in Executive Order 13771. See OMB's Memorandum titled 
``Interim Guidance Implementing Section 2 of the Executive Order of 
January 30, 2017, titled `Reducing Regulation and Controlling 
Regulatory Costs'[thinsp]'' (February 2, 2017).
    The handling of oranges, grapefruit, tangerines, and pummelos grown 
in Florida is regulated by 7 CFR part 905. Prior to this change, the 
minimum size requirement for oranges was 2\8/16\ inches. The reduction 
in size requirement to 2\4/16\ inches in diameter was established to 
meet both a market demand for small-sized oranges, as well as a general 
market shortage of citrus. Losses of citrus production in Florida due 
to citrus greening and damage caused by Hurricane Irma have resulted in 
an overall market shortage of citrus fruit. Therefore, this rule 
continues in effect the rule that relaxed the minimum size requirement 
for oranges from 2\8/16\ inches to 2\4/16\ inches in diameter.
    In an interim rule published in the Federal Register on November 
16, 2017, and effective on November 17, 2017, (82 FR 53397, Doc. No. 
AMS-SC-17-0064; SC17-905-2 IR), Sec.  905.306 was amended by changing 
the minimum diameter for oranges from 2\8/16\ inches to 2\4/16\ inches 
in diameter. The relaxation in the size requirements would allow more 
oranges into the market and help maximize shipments.

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 20 handlers of Florida Citrus who are 
subject to regulation under the Order and approximately 500 citrus 
producers in the regulated area. Small agricultural service firms are 
defined by the Small Business Administration (SBA) as those having 
annual receipts of less than $7,500,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$750,000 (13 CFR 121.201).
    According to data from the National Agricultural Statistics Service 
(NASS), the industry, and the Committee, the average f.o.b. price for 
Florida oranges during the 2016-17 season was $31.90 per box, and total 
fresh orange shipments were approximately 2.1 million boxes. Using the 
average f.o.b. price and shipment data, the majority of Florida orange 
handlers could be considered small businesses under SBA's definition 
($31.90 times 2.1 million boxes equals $66.99 million divided by 20 
handlers equals $3,349,500 per handler). In addition, based on the NASS 
data, the average grower price for the 2016-2017 season was $17.51 per 
box. Based on grower price, shipment data, and the total number of 
Florida citrus growers, the average annual grower revenue is below 
$750,000 ($17.51 times 2.1 million boxes equals $36,771,000 divided by 
500 growers equals $73,542 per grower). Thus, the majority of handlers 
and producers of oranges may be classified as small entities.
    This rule continues in effect the interim rule that relaxed the 
minimum size requirements for oranges covered under the Order from 2\8/
16\ inches to 2\4/16\ inches in diameter. This change is expected to 
maximize shipments by allowing more oranges to be shipped to the fresh 
market and will help reduce the losses sustained by the orange industry 
as a result of citrus greening and the September 2017 hurricane in 
Florida. This rule amends the provisions of Sec.  905.306. Authority 
for this change is provided in Sec.  905.52 of the Order.
    This action is not expected to increase costs associated with the 
Order requirements. Rather, this action will have a beneficial impact. 
Reducing the size requirements makes additional fruit available for 
shipment to the fresh market, provides an outlet for fruit that may 
otherwise go unharvested, and affords more opportunity to meet consumer 
demand. This change provides additional fruit to fill the shortage 
cause by citrus greening and by Hurricane Irma. Further, by maximizing 
shipments, this action will help provide additional returns to growers 
and handlers as they work to recover from the losses stemming from the 
hurricane.
    This action may also help reduce harvesting costs. By reducing the 
minimum size, more fruit can be harvested immediately. This may 
eliminate the need to leave fruit on the tree to increase in size, 
which requires follow-up picking later in the season. Given the amount 
of fruit loss, this could help reduce picking costs substantially. The 
benefits of this rule are expected to be equally available to all fresh 
orange 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 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 orange handlers. As with all 
Federal marketing order programs, reports and forms are periodically 
reviewed to

[[Page 14350]]

reduce information requirements and duplication by industry and public 
sector agencies. USDA has not identified any relevant Federal rules 
that duplicate, overlap or conflict with this rule.
    Further, the Committee's meetings were widely publicized throughout 
the Florida citrus industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the June 29, 2017, and September 28, 2017, meetings 
were public meetings and 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 January 16, 2018. Four comments were received during the comment 
period in response to the proposal. The commenters included three in 
favor and one raising concerns not applicable to the interim rule.
    The three commenters in support of the interim rule indicated 
relaxing the minimum size requirement for domestic shipments from 2\8/
16\ inches to 2\4/16\ inches in diameter would maximize shipments and 
reduce the financial burden on industry and consumers. In addition, 
they stated the reduction in size would mitigate the impact on 
consumers by allowing more inventory to enter the market.
    Two commenters mentioned that Florida citrus growers face a 
financial burden due to decreases in production. One commenter noted 
that there has been a constant decline in production. Another commenter 
noted that Hurricane Irma resulted in nearly $760 million in damages to 
the citrus industry and that growers have reported as high as 70 
percent crop loss.
    Accordingly, no changes will be made to the interim rule based on 
the comments received.
    To view the interim rule, go to: https://www.regulations.gov/document?D=AMS-SC-17-0064-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, 13563, and 13771; 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 (82 FR 53397, November, 16, 2017) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 905

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

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

    Accordingly, the interim rule that amended 7 CFR part 905, which 
was published at 82 FR 53399 on November 16, 2017, is adopted as final, 
without change.

    Dated: March 30, 2018.
Bruce Summers,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2018-06874 Filed 4-3-18; 8:45 am]
 BILLING CODE 3410-02-P