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[Federal Register: April 30, 2010 (Volume 75, Number 83)]
[Proposed Rules]               
[Page 22707-22710]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30ap10-14]                         

========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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[[Page 22707]]

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 51

[Doc. No. AMS-FV-08-0023]

 
United States Standards for Grades of Potatoes

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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

SUMMARY: This proposed rule would revise the United States Standards 
for Grades of Potatoes which were issued under the Agricultural 
Marketing Act of 1946. The Agricultural Marketing Service (AMS) is 
proposing to amend the similar varietal characteristic requirement to 
allow mixed colors and/or types of potatoes when designated as a mixed 
or specialty pack.
    Additionally, AMS is proposing to add restrictive tolerances for 
permanent defects in the en route/at destination tolerances, and also 
remove the unneeded definition for injury and clarify the scoring guide 
for sprouts.
    AMS also proposes to add table numbers to the definitions of 
``Damage,'' ``Serious Damage,'' and ``External Defects,'' amend table 
headings, replace omitted language in the definition for bruising, and 
amend language in the tolerance section to ensure soft rot tolerances 
are applied correctly.
    The purpose of this revision is to update and revise the standards 
to more accurately represent today's marketing practices and to clarify 
existing language.

DATES: Comments must be received by June 1, 2010.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this proposal. Comments must be sent to the Standardization 
and Training Section, Fresh Products Branch, Fruit and Vegetable 
Programs, Agricultural Marketing Service, U.S. Department of 
Agriculture, National Training and Development Center, Riverside 
Business Park, 100 Riverside Parkway, Suite 101, Fredericksburg, VA 
22406; Fax (540) 361-1199, or on the web at: www.regulations.gov. 
Comments should make reference to the date and page number of this 
issue of the Federal Register and will be made available for public 
inspection in the above office during regular business hours. Comments 
can also be viewed on the www.regulations.gov Web site. The current 
United States Standards for Grades of Potatoes, along with the proposed 
changes, will be available either through the address cited above or by 
accessing the AMS, Fresh Products Branch Web site at: http://www.ams.usda.gov/freshinspection.

FOR FURTHER INFORMATION CONTACT: Dr. Carl Newell, at the above address 
or call (540) 361-1120.

SUPPLEMENTARY INFORMATION:

Executive Order 12866 and 12988

    The Office of Management and Budget has waived the review process 
required by Executive Order 12866 for this action. This rule has been 
reviewed under Executive Order 12988, Civil Justice Reform. This action 
is not intended to have retroactive effect. There are no administrative 
procedures which must be exhausted prior to any judicial challenge to 
the provisions of the rule.

Regulatory Flexibility Act and Paperwork Reduction Act

    Pursuant to the requirements set forth in the Regulatory 
Flexibility Act (RFA) (5 U.S.C. 601-612) and in the Paperwork Reduction 
Act (PRA), AMS has considered the economic impact of the proposed 
actions on small entities. 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. Accordingly, AMS has prepared this initial regulatory 
flexibility analysis. Interested parties are invited to submit 
information on the regulatory and informational impacts of these 
actions on small businesses.
    This rule revises the U.S. Standards for Grades of Potatoes that 
were issued under the Agricultural Marketing Act of 1946 (7 U.S.C. 
1621-1627). Standards issued under the 1946 Act are voluntary.
    Small agricultural service firms, which include handlers and 
importers, have been defined by the Small Business Administration (SBA) 
(13 CFR 121.201) as those having annual receipts of less than 
$7,000,000, and small agricultural producers are defined as those 
having annual receipts of less than $750,000. Using annual data from 
the National Agricultural Statistics Service (NASS), the average potato 
crop value for 2006-2008 was $3.482 billion. Dividing that figure by 
15,014 farms yields an average potato crop value per farm of just under 
$232,000. Since this is well under the SBA threshold of annual receipts 
of $750,000, it can be concluded that the majority of these producers 
may be classified as small entities. Furthermore, there are 
approximately 180 handlers of potatoes and approximately 168 importers 
of potatoes that may be classified as small entities and may be 
affected by this rule.
    Additional evidence comes from examining the Agricultural Census 
acreage breakdown closely. Out of a total of 15,014 potato farms in 
2007, 19 percent were less than 10 acres and 66 percent were less than 
100 acres. An estimate of the number of acres that it would take to 
produce a crop valued at $750,000 can be made by dividing the 2006-08 
average crop value of $3.482 billion by the three-year average bearing 
acres of 1.097 million, yielding an average potato revenue per acre 
estimate of $3,174. Dividing $750,000 by $3,174 shows that farms with 
236 acres received at least the average price in 2006-08 producing 
crops valued at $750,000 or more, and would therefore be considered 
large potato farms under the SBA definition. Looking at farm numbers 
for additional census size categories shows that 11,718 potato farms 
(78 percent) are under 220 acres and 11,994 (80 percent) are less than 
260 acres. Since a farm with 236 acres of potatoes falls within this 
range, it can be concluded that the proportion of small potato farms 
under the SBA definition is between 78 and 80 percent of all U.S. 
potato farms.
    The effects of this rule are not expected to be disproportionately 
greater or smaller for small handlers, producers, or importers than for 
larger entities. The proposed changes are to amend the similar varietal 
characteristic requirement, add restrictive tolerances for permanent 
defects in the enroute/at

[[Page 22708]]

destination tolerances, remove the definition for injury, and clarify 
the scoring guides for sprouts. Additionally, AMS proposes to add table 
numbers to the definitions of ``Damage,'' ``Serious Damage,'' and 
``External Defects,'' amend table headings, replace omitted language in 
the definition for bruising, and amend the tolerance section to ensure 
soft rot tolerances are applied correctly. These proposed actions would 
make the standard more consistent and uniform with marketing trends and 
practices. These proposed actions will not impose any additional 
reporting or recordkeeping requirements on either small or large potato 
producers, handlers, or importers.
    USDA has not identified any Federal rules that duplicate, overlap, 
or conflict with this rule. However, there are marketing programs which 
regulate the handling of potatoes under 7 CFR parts 945-948 and 953. 
Potatoes under a marketing order have to meet certain requirements set 
forth in the grade standards. In addition, potatoes are subject to 
section 8e import requirements under the Agricultural Marketing Act of 
1937, as amended (7 U.S.C. 601-674) which requires imported potatoes to 
meet grade, size, and quality under the applicable marketing order.
    Alternatives to this proposed rule (7 CFR part 980) were 
considered, including the option to issue the rule. However, the need 
for revision has increased as a result of changing market 
characteristics, and the proposal represents input from the potato 
industry.

Background and Proposed Rule

    A proposed rule was published in the September 22, 2006, Federal 
Register (71 FR 55356), seeking comments on possible revisions to the 
United States Standards for Grades of Potatoes. During the comment 
period, a comment was received requesting AMS give consideration to 
allow packing of mixed varieties in the U.S. No. 1 grade. While this 
change was not in the scope of that rulemaking, AMS believed the 
suggestion should be considered separately at a later time. AMS agrees 
that inserting language into the standard to allow mixed colors and/or 
types of potatoes when designated as a mixed or specialty pack would 
reflect current marketing practices. Upon further evaluation, AMS also 
believes that this revision should be applied to the U.S. No. 2 grade 
as well due to changes in the marketing of potatoes. This proposal 
would revise Sec.  51.1541 (a) and Sec.  51.1543 (a) concerning similar 
varietal characteristics by inserting ``except when designated as a 
mixed or specialty pack'' into the proposed standard to allow for mixed 
colors and/or types of potatoes when designated as a mixed or specialty 
pack.
    In addition, a March 21, 2008, rule (73 FR 15054 as corrected at 73 
FR 70885) finalized the September 26, 2006, proposed rule by adding en 
route/at destination tolerances to the U.S. No. 1 and U.S. No. 2 
grades. However, restrictive tolerances for permanent defects 
implemented in those en route/at destination tolerances were not 
included. These restrictive tolerances are necessary to ensure that 
additional permanent defects are not allowed en route or at destination 
than that allowed at shipping point. Therefore, this proposal would 
revise Sec.  51.1546 (a)(1 (ii) by adding ``Provided, That included in 
this tolerance not more than a total of 8 percent shall be allowed for 
permanent defects: And provided further, the following percentages 
shall be allowed for the defects listed:'' and revise Sec.  51.1546 
(a)(3)(ii) by adding ``Provided, That included in this tolerance not 
more than a total of 10 percent shall be allowed for permanent defects: 
And provided further, the following percentages shall be allowed for 
the defects listed:'' Further, this proposal would revise Sec.  51.1546 
(a)(1)(ii)(A) by adding ``including therein not more than 5 percent for 
permanent external defects;'' Sec.  51.1546 (a)(1)(ii)(B) by adding 
``including therein not more than 5 percent for permanent internal 
defects; and'' Sec.  51.1546 (a)(3)(ii)(A) by adding ``including 
therein not more than 6 percent for permanent external defects;'' and 
revise Sec.  51.1546 (a)(3)(ii)(B) by adding ``including therein not 
more than 6 percent for permanent internal defects; and''
    Additionally, the U.S. Extra No. 1 grade for potatoes was removed 
from the standard and therefore the definition for injury in the U.S. 
Standards for Grades of Potatoes is no longer needed. Therefore, AMS 
proposes to remove the definition for injury from Sec.  51.1559 and 
reclassify Sec.  51.1559 as ``[Reserved].''
    AMS also has determined that the current scoring guide for sprouts 
needs further clarity. Accordingly, AMS proposes to revise the language 
to help ensure that the scoring guide for sprouts is not interpreted 
incorrectly. The proposed rule would revise the scoring guide for 
damage by sprouts in Table III as follows: ``When more than 5 percent 
of the potatoes in any lot have any sprout more than \1/4\ inch in 
length at shipping point, more than \1/2\ inch in length at 
destination; or have numerous individual and/or clusters of sprouts 
which detract from the appearance of the potato.'' Similarly, AMS would 
revise the scoring guide for serious damage by sprouts in Table III as 
follows: ``When more than 10 percent of the potatoes in any lot have 
any sprout more than \1/2\ inch in length at shipping point; more than 
1 inch in length at destination; or have numerous individual and/or 
clusters of sprouts that seriously detract from the appearance of the 
potato. Serious damage by sprouts shall only be scored against the U.S. 
Commercial and U.S. No. 2 grades.''
    Further, AMS proposes to add the following language to ensure 
proper application of soft rot tolerances in the applicable tolerance 
sections:
    Sec.  51.1546 (a)(1)(i)(B): ``5 percent for internal defects; and''
    Sec.  51.1546 (a)(1)(i)(C): ``Not more than a total of 1 percent 
for potatoes which are frozen or affected by soft rot or wet breakdown. 
See Sec.  51.1547.''
    Sec.  51.1546 (a)(1)(ii)(C): ``Not more than a total of 2 percent 
for potatoes which are frozen or affected by soft rot or wet breakdown. 
See Sec.  51.1547.''
    Sec.  51.1546 (a)(2)(iii) and Sec.  51.1546 (a)(3)(i)(B): ``6 
percent for internal defects; and''
    Sec.  51.1546 (a)(2)(iv) and Sec.  51.1546 (a)(3)(i)(C): ``Not more 
than a total of 1 percent for potatoes which are frozen or affected by 
soft rot or wet breakdown. See Sec.  51.1547.''
    Sec.  51.1546 (a)(3)(ii)(C): ``Not more than 2 percent for potatoes 
which are frozen or affected by soft rot or wet breakdown. See Sec.  
51.1547.''
    AMS also proposes for clarity to add table numbers, amend table 
headings, and replace omitted language in sections: Sec.  51.1546 
(a)(2)(iii); Sec.  51.1560; Sec.  51.1561; Sec.  51.1564; and Sec.  
51.1565.
    A 30-day period is provided for interested persons to comment. This 
period is deemed appropriate in order to implement these changes, if 
adopted, as soon as possible to reflect current marketing practices. 
Accordingly, AMS proposes to amend the United States Standards for 
Grades of Potatoes as follows:

List of Subjects in 7 CFR Part 51

    Agricultural commodities, Food grades and standards, Fruits, Nuts, 
Reporting and recordkeeping requirements, Trees, Vegetables.

    For reasons set forth in the preamble, 7 CFR part 51 is proposed to 
be amended as follows:

PART 51--[AMENDED]

    1. The authority citation for part 51 continues to read as follows:

    Authority:  7 U.S.C. 1621-1627.

[[Page 22709]]

    2. In Sec.  51.1541, paragraph (a) is revised to read as follows:

Sec.  51.1541   U.S. No. 1.

* * * * *
    (a) Similar varietal characteristics, except when designated as a 
mixed or specialty pack;
* * * * *
    3. In Sec.  51.1543, paragraph (a) is revised to read as follows:

Sec.  51.1543   U.S. No. 2.

* * * * *
    (a) Similar varietal characteristics, except when designated as a 
mixed or specialty pack;
* * * * *
    4. In Sec.  51.1546, paragraph (a) is revised to read as follows:

Sec.  51.1546  Tolerances.

* * * * *
    (a) For defects--(1) U.S. No. 1. (i) At Shipping Point: A total of 
8 percent for potatoes in any lot which fail to meet the requirements 
for the grade: Provided, That included in this tolerance not more than 
the following percentages shall be allowed for the defects listed:
    (A) 5 percent for external defects;
    (B) 5 percent for internal defects; and
    (C) Not more than a total of 1 percent for potatoes which are 
frozen or affected by soft rot or wet breakdown. See Sec.  51.1547.
    (ii) En route or at Destination: A total of 10 percent for potatoes 
in any lot which fail to meet the requirements for the grade: Provided, 
That included in this tolerance not more than a total of 8 percent 
shall be allowed for permanent defects: And provided further, the 
following percentages shall be allowed for the defects listed:
    (A) 7 percent for external defects, including therein not more than 
5 percent for permanent external defects;
    (B) 7 percent for internal defects, including therein not more than 
5 percent for permanent internal defects; and
    (C) Not more than a total of 2 percent for potatoes which are 
frozen or affected by soft rot or wet breakdown. See Sec.  51.1547.
    (2) U.S. Commercial: A total of 20 percent for potatoes in any lot 
which fail to meet the requirements for the grade: Provided, That 
included in this tolerance not more than the following percentages 
shall be allowed for the defects listed:
    (i) 10 percent for potatoes which fail to meet the requirements for 
U.S. No. 2 grade, including therein not more than:
    (ii) 6 percent for external defects;
    (iii) 6 percent for internal defects; and
    (iv) Not more than a total of 1 percent for potatoes which are 
frozen or affected by soft rot or wet breakdown. See Sec.  51.1547.
    (3) U.S. No. 2. (i) At Shipping Point: A total of 10 percent for 
potatoes in any lot which fail to meet the requirements for the grade: 
Provided, That included in this tolerance not more than the following 
percentages shall be allowed for the defects listed:
    (A) 6 percent for external defects;
    (B) 6 percent for internal defects; and
    (C) Not more than a total of 1 percent for potatoes which are 
frozen or affected by soft rot or wet breakdown. See Sec.  51.1547.
    (ii) En route or at Destination: A total of 12 percent for potatoes 
in any lot which fail to meet the requirements for the grade: Provided, 
That included in this tolerance not more than a total of 10 percent 
shall be allowed for permanent defects: And provided further, the 
following percentages shall be allowed for the defects listed:
    (A) 8 percent for external defects, including therein not more than 
6 percent for permanent external defects;
    (B) 8 percent for internal defects, including therein not more than 
6 percent for permanent internal defects; and
    (C) Not more than a total of 2 percent for potatoes which are 
frozen or affected by soft rot or wet breakdown. See Sec.  51.1547.
* * * * *

Sec.  51.1559  [Removed and Reserved]

    5. Section 51.1559 is removed and reserved.
    6. Section 51.1560 is revised to read as follows:

Sec.  51.1560  Damage.

    ``Damage'' means any defect, or any combination of defects, which 
materially detracts from the edible or marketing quality, or the 
internal or external appearance of the potato, or any external defect 
which cannot be removed without a loss of more than 5 percent of the 
total weight of the potato. See Tables III, IV, V and VI in Sec.  
511564 and Table VII in Sec.  51.1565.
    7. Section 51.1561 is revised to read as follows:

Sec.  51.1561  Serious damage.

    ``Serious damage'' means any defect, or any combination of defects, 
which seriously detracts from the edible or marketing quality, or the 
internal or external appearance of the potato, or any external defect 
which cannot be removed without a loss of more than 10 percent of the 
total weight of the potato. See Tables III, IV, V and VI in Sec.  
51.1564 and Table VII in Sec.  51.1565.
    8. Section 51.1564 is amended by:
    A. Amending the introductory text by removing the reference ``Table 
III'', and by adding the reference ``Tables III, IV, V and VI'', in its 
place;
    B. Amending Table III by revising the column headings; and
    C. Amending Table III by revising the entries for ``Bruises (Not 
including pressure bruise and sunken discolored areas)'' and 
``Sprouts''.
    Revisions and addition read as follows.

Sec.  51.1564  External defects.

* * * * *

                       Table III--External Defects
------------------------------------------------------------------------
           Defects                   Damage          Serious damage \1\
------------------------------------------------------------------------

                              * * * * * * *
Bruises (Not including        When removal causes   When removal causes
 pressure bruise and sunken    a loss of more than   a loss of more than
 discolored areas).            5 percent of the      10 percent of the
                               total weight of the   total weight of the
                               potato or when the    potato or when the
                               area affected is      area affected is
                               more than 5 percent   more than 10
                               of the surface in     percent of the
                               the aggregate (i.e.   surface in the
                               \3/4\ inch on a 2\1/  aggregate (i.e. 1\1/
                               2\ inch or 6 oz.      4\ inches on a 2\1/
                               potato).              2\ inch or 6 oz.
                               Correspondingly       potato).
                               lesser or greater     Correspondingly
                               areas in smaller or   lesser or greater
                               larger potatoes.      areas in smaller or
                                                     larger potatoes.

[[Page 22710]]

                              * * * * * * *
Sprouts.....................  When more than 5      When more than 10
                               percent of the        percent of the
                               potatoes in any lot   potatoes in any lot
                               have any sprout       have any sprout
                               more than \1/4\       more than \1/2\
                               inch in length at     inch in length at
                               shipping point;       shipping point;
                               more than \1/2\       more than 1 inch in
                               inch in length at     length at
                               destination; or       destination; or
                               have numerous         have numerous
                               individual and/or     individual and/or
                               clusters of sprouts   clusters of sprouts
                               which materially      which seriously
                               detract from the      detract from the
                               appearance of the     appearance of the
                               potato.               potato. Serious
                                                     damage by sprouts
                                                     shall only be
                                                     scored against the
                                                     U.S. Commercial and
                                                     U.S. No. 2 grades.

                              * * * * * * *
------------------------------------------------------------------------
\1\ The following defects are considered serious damage when present in
  any degree: 1. Freezing. 2. Late blight. 3. Ring rot. 4. Southern
  bacterial wilt. 5. Soft rot. 6. Wet breakdown.

Sec.  51.1565  [Amended]

    9. Section 51.1565 is amended by:
    A. Amending the introductory text by removing the reference ``Table 
IV'', and by adding the reference ``Table VII'', in its place; and
    B. Amending Table VII, by removing the column heading ``Damage 
Maximum allowed'' and adding the heading ``Damage Maximum Allowed'' in 
its place, and by removing the column heading ``Serious Maximum 
allowed'', and by adding the column heading ``Serious Damage Maximum 
Allowed'' in its place.

    Dated: April 22, 2010.
David R. Shipman,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 2010-9822 Filed 4-29-10; 8:45 am]
BILLING CODE 3410-02-P
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