[Federal Register Volume 88, Number 134 (Friday, July 14, 2023)]
[Rules and Regulations]
[Pages 45055-45057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14856]



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 Rules and Regulations
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  Federal Register / Vol. 88, No. 134 / Friday, July 14, 2023 / Rules 
and Regulations  

[[Page 45055]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Parts 800 and 810

[Doc. No. AMS-AMS-22-0083]


United States Standards for Soybeans

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Agricultural Marketing Service (AMS) is revising the 
United States Standards for Soybeans by removing soybeans of other 
colors (SBOC) as an official factor. In addition, AMS is revising the 
table of Grade Limits and Breakpoints for Soybeans to reflect this 
change.

DATES: This rule is effective September 1, 2023.

FOR FURTHER INFORMATION CONTACT: Barry Gomoll, USDA AMS; Telephone: 
(202) 720-8286; Email: [email protected].

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 551 et 
seq., amends regulations, at 7 CFR part 800 and part 810, issued under 
the United States Grain Standards Act (7 U.S.C. 71-87k), as amended 
(USGSA). Section 4 of the USGSA (7 U.S.C. 76(a)) grants the Secretary 
of Agriculture the authority to establish standards for grain regarding 
kind, class, quality, and condition.

Background

    In response to requests from grain industry representatives, AMS 
published a proposed rule in the Federal Register on March 31, 2023 (88 
FR 19229), inviting interested parties to comment on the proposed 
removal of SBOC as an official factor for soybeans.
    AMS regularly reviews grain standards to ensure their effectiveness 
in meeting the quality requirements of grain moving in the value chain. 
An increase in the amount of SBOC in officially graded soybean lots 
over the past two years has led to a decrease in the marketability of 
U.S. soybeans versus those from other exporting countries. In the 
proposed rule, AMS invited stakeholders to comment on the effect of 
removing SBOC as an official grade-determining factor.
    Additionally, the proposed rule addressed making the standards 
effective on an expediated timeline. According to the USGSA, ``No 
standards established or amendments or revocations of standards under 
this chapter shall become effective less than one calendar year after 
promulgation thereof, unless in the judgment of the Secretary, the 
public health, interest, or safety require that they become effective 
sooner'' (7 U.S.C. 76(b)(1)). In the proposed rule, AMS argued that 
effecting the standards change in a shorter timeframe is in the 
public's interest and invited comments to determine if this is the 
case.

Comment Review

    AMS received 14 comments in response to the proposed rule. All 14 
comments were in favor of the proposed changes. The comments received 
were submitted by individuals, small businesses, trade organizations, 
and producer advocacy groups. Two commenters were national and state 
organizations representing soybean growers. Another comment was 
submitted by a large grain trade organization and was cosigned by 43 
organizations that represent grain handling, storage, export, 
processing, as well as seed and feed sectors. The remainder of comments 
were from individuals representing small producers and trade 
businesses.
    Many comments expressed favor toward the proposed rule, noting that 
there is no significant difference in end-use quality between soybeans 
with differing levels of SBOC. Nine of the comments included this 
information, in some form or another. Of these, four specifically cited 
the study that AMS conducted, based on the recommendation of the Grain 
Inspection Advisory Committee.\1\
---------------------------------------------------------------------------

    \1\ https://www.ams.usda.gov/sites/default/files/media/FGISSBOCStudy.pdf.
---------------------------------------------------------------------------

    Five of the comments noted that the inclusion of SBOC, as a grade 
factor, causes U.S. soybeans to be less competitive in the world export 
market. Two of these comments also noted that other major soybean 
producing countries do not use a factor like SBOC to determine soybean 
quality.
    Some comments referenced the negative impact that higher levels of 
SBOC had on growers and handlers of soybeans. Five commenters mentioned 
that SBOC, as a grade determining factor, has led to reduced income for 
growers who failed to meet the standard for U.S. No. 2 Yellow Soybeans 
on SBOC alone. Two comments noted that higher SBOC levels has led to 
increased operational cost, such as having to pay for extra inspections 
or trucking soybeans longer distances to find buyers.
    Commenters also asserted that keeping SBOC, as a grading criterion, 
would be contrary to the stated objectives of the USGSA, which states 
that the grading standards shall ``offer users of such standards the 
best possible information from which to determine end-product yield and 
quality of grain'' and ``reflect the economic value-based 
characteristics in the end uses of grain'' (7 U.S.C. 74(b)(3)).
    AMS agrees with the commentors. The comment process is designed to 
give interested parties an opportunity to present data, views, and 
arguments. The needs of the trade in soybeans requires this change for 
U.S. soybeans to be competitive in the export market, and the available 
data shows that SBOC does not affect soybean quality. Therefore, AMS is 
amending the standards for soybeans.

Implementation Period

    AMS invited interested parties to comment on whether the proposed 
changes should go into effect by September 1, 2023. The Agency sought 
such comments because the USGSA requires that changes to the grain 
standards may not be made effective within one calendar year of their 
promulgation ``unless in the judgment of the Secretary, the public 
health, interest, or safety require that they become effective sooner'' 
(7 U.S.C. 76(b)(1)). This provision was put into place to allow 
industry participants adequate time to adjust and transition to new 
standards. However, in this case, the soybeans that are more likely to 
exhibit discolored seedcoats and trigger higher determinations of SBOC 
in soybean samples are already present in the supply chain. 
Additionally, based on AMS research showing that the color

[[Page 45056]]

variation does not materially affect the end use of the soybeans, the 
Agency did not foresee any deleterious effects to farmers or 
merchandisers by making the rule effective sooner.
    As a result of the request for comments regarding the 
implementation period, AMS received a comment from a national producer 
organization that strongly urged the Agency to implement the rule in 
advance of the 2023-2024 soybean marketing year, which begins on 
September 1, 2023. All other comments were in support of implementing 
the proposed rule, as published.
    In light of the comment urging AMS to adopt the new standard 
quickly, the standard ``shall become effective less than one calendar 
year after promulgation thereof'' because ``the public health, 
interest, or safety require that [this standard] become effective 
sooner [than one year.]'' (7 U.S.C. 76(b)(1)). The current standard is 
unnecessarily increasing costs to the public and farmers, and 
unnecessarily foreclosing markets for otherwise commercially 
indistinguishable soybeans. Therefore, AMS will maintain September 1, 
2023, as the effective date for implementing the changes contained in 
this final rule.

AMS Action

    AMS is revising 7 CFR part 810, Subpart J, United States Standards 
for Soybeans to eliminate SBOC as an official factor but retain it in 
the standards as part of the definition of the class Yellow soybeans. 
AMS is also revising 7 CFR 800.86 Inspection of shiplot, unit train, 
and lash barge grain in single lots, paragraph (c)(2), by removing SBOC 
from Table 17.

List of Subjects

7 CFR Part 800

    Administrative practice and procedure, Conflict of interests, 
Exports, Freedom of information, Grains, Intergovernmental relations, 
Penalties, Reporting and recordkeeping requirements.

7 CFR Part 810

    Exports, Grain.

    For reasons set forth in the preamble, the Agricultural Marketing 
Service amends 7 CFR parts 800 and 810 as follows:

PART 800--GENERAL REGULATIONS

0
1. The authority citation for part 800 continues to read as follows:

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


0
2. Amend Sec.  800.86 by revising Table 17 to paragraph (c)(2) to read 
as follows:


Sec.  800.86  Inspection of shiplot, unit train, and lash barge grain 
in single lots.

* * * * *
    (c) * * *
    (2) * * *

                                          Table 17 to Paragraph (c)(2)
----------------------------------------------------------------------------------------------------------------
                                                                    Maximum limits of--
                                         -----------------------------------------------------------------------
                                                    Damaged kernels
                                         -----------------------------------------------------------------------
                  Grade                     Heat-damaged    Total  (percent)  Foreign Material       Splits
                                              (percent)    ------------------     (percent)         (percent)
                                         ------------------                  -----------------------------------
                                             GL       BP       GL       BP       GL       BP       GL       BP
----------------------------------------------------------------------------------------------------------------
U.S. No. 1..............................      0.2      0.2      2.0      0.8      1.0      0.2     10.0      1.6
U.S. No. 2..............................      0.5      0.3      3.0      0.9      2.0      0.3     20.0      2.2
U.S. No. 3 \1\..........................      1.0      0.5      5.0      1.2      3.0      0.4     30.0      2.5
U.S. No. 4 \2\..........................      3.0      0.9      8.0      1.5      5.0      0.5     40.0      2.7
----------------------------------------------------------------------------------------------------------------
\1\ Soybeans which are purple mottled or stained shall be graded not higher than U.S. No. 3.
\2\ Soybeans which are materially weathered shall be graded not higher than U.S. No. 4.

* * * * *

PART 810--OFFICIAL UNITED STATES STANDARDS FOR GRAIN

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

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


0
4. Amend Sec.  810.1602 by revising paragraph (a)(1), removing 
paragraph (g), and redesignating paragraph (h) as paragraph (g).
    The revisions read as follows.


Sec.  810.1602  Definition of other terms.

    (a) * * *
    (1) Yellow soybeans. Soybeans that have yellow or green seed coats 
and which, in cross section, are yellow or have a yellow tinge, and may 
include not more than 10.0 percent of soybeans of other colors. 
Soybeans of other colors are soybeans that have black or bicolored 
seedcoats, as well as soybeans that have green seedcoats and are green 
in cross section. Bicolored soybeans will have seed coats of two 
colors, one of which is brown or black, and the brown or black color 
covers 50 percent of the seed coats. The hilum of a soybean is not 
considered a part of the seed coat for this determination.
* * * * *

0
5. Revise Sec.  810.1603 to read as follows:


Sec.  810.1603  Basis of determination.

    Each determination of class, heat-damaged kernels, damaged kernels, 
and splits is made on the basis of the grain when free from foreign 
material. Other determinations not specifically provided for under the 
general provisions are made on the basis of the grain as a whole.

0
6. Revise Sec.  810.1604 to read as follows:


Sec.  810.1604  Grades and grade requirements for soybeans.

----------------------------------------------------------------------------------------------------------------
                                                                         Grades U. S. Nos.
                 Grading factors                 ---------------------------------------------------------------
                                                         1               2               3               4
----------------------------------------------------------------------------------------------------------------
                                           Maximum percent limits of:
----------------------------------------------------------------------------------------------------------------
Damaged kernels:
    Heat (part of total)........................             0.2             0.5             1.0             3.0

[[Page 45057]]

 
        Total...................................             2.0             3.0             5.0             8.0
Foreign material................................             1.0             2.0             3.0             5.0
Splits..........................................            10.0            20.0            30.0            40.0
----------------------------------------------------------------------------------------------------------------
                                            Maximum count limits of:
----------------------------------------------------------------------------------------------------------------
Other materials:
    Animal filth................................               9               9               9               9
    Castor beans................................               1               1               1               1
    Crotalaria seeds............................               2               2               2               2
    Glass.......................................               0               0               0               0
    Stones \1\..................................               3               3               3               3
    Unknown foreign substance...................               3               3               3               3
        Total \2\...............................              10              10              10              10
----------------------------------------------------------------------------------------------------------------
U.S. Sample grade are soybeans that:
(a) Do not meet the requirements for U.S. Nos. 1, 2, 3, or 4; or
(b) Have a musty, sour, or commercially objectionable foreign odor (except garlic odor); or
(c) Are heating or otherwise of distinctly low quality.
\1\ In addition to the maximum count limit, stones must exceed 0.1 percent of the sample weight.
\2\ Includes any combination of animal filth, castor beans, crotalaria seeds, glass, stones, and unknown foreign
  substances. The weight of stones is not applicable for total other material.


Melissa Bailey,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-14856 Filed 7-13-23; 8:45 am]
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