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Rules and Regulations Federal Register

11295 

Vol. 79, No. 40 

Friday, February 28, 2014 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 906 

[Doc. No. AMS–FV–14–0015; FV14–906–2 

IR] 

Oranges and Grapefruit Grown in 

Lower Rio Grande Valley in Texas; 

Change in Size and Grade 

Requirements for Grapefruit 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule relaxes the 

minimum size and grade requirements 

currently prescribed for grapefruit under 

the marketing order for oranges and 

grapefruit grown in Lower Rio Grande 

Valley in Texas (order). The order is 

administered locally by the Texas 

Valley Citrus Committee (Committee). 

This rule relaxes the minimum size 

requirement for grapefruit from 35⁄16

inches to 3 inches in diameter and 

reduces the minimum grade 

requirement for small-sized grapefruit. 

This rule will provide additional 

grapefruit to meet market demand, 

helping to maximize fresh shipments. 

DATES: Effective March 1, 2014; 

comments received by April 29, 2014 

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: 

Doris Jamieson, 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: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

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: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 906, as amended (7 CFR 

part 906), regulating the handling of 

oranges and grapefruit grown in the 

Lower Rio Grande Valley in Texas, 

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 Orders 

12866, 13175, and 13563. 

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 relaxes the minimum size 

and grade requirements for grapefruit 

prescribed under the order. This rule 

relaxes the minimum size requirement 

for grapefruit from 35⁄16 inches to 3 

inches in diameter and reduces the 

minimum grade requirement for smallsized grapefruit. This rule will provide 

additional grapefruit to meet market 

demand and will help maximize fresh 

shipments. These changes were 

unanimously recommended by the 

Committee at a meeting on December 

11, 2013. 

Section 906.40 of the order provides, 

in part, authority to establish minimum 

grade and size requirements for Texas 

citrus. Section 906.340 of the rules and 

regulations includes Table II that 

specifies the numerical size 

designations and diameters used to 

delineate the available pack sizes for 

grapefruit. Section 906.365 specifies the 

minimum grade and size requirements 

for fresh shipments of Texas grapefruit. 

At its meeting, the Committee 

discussed the impact the recent freeze 

in California had on the citrus crop and 

agreed the freeze had reduced the 

amount of fruit available for shipment to 

the fresh market. They also discussed 

the decline in citrus production in 

Florida caused by citrus greening and 

other diseases. The Committee believes 

this creates a shortage of fruit available 

to supply the fresh fruit market, which 

the Texas citrus growers and handlers 

should fill. The Committee noted that 

additional fruit was available from the 

Texas citrus industry. However, the fruit 

is smaller in size and would not meet 

the order’s current size and grade 

requirements. The Committee also 

recognized that consumers are now 

showing a preference for smaller-sized 

fruit. The Committee believes relaxing 

the requirements would make more fruit 

available to fill the market shortfall 

caused by the decline in production 

from other growing regions and provide 

smaller-sized fruit to meet consumer 

demand. 


emcdonald on DSK67QTVN1PROD with RULES
11296 Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Rules and Regulations 

Consequently, to make more fruit 

available for shipment to the fresh 

market and to meet consumer demand, 

the Committee recommended a 

relaxation of the size and grade 

requirements for grapefruit. This rule 

changes the minimum size requirement 

for grapefruit from 35⁄16 inches (size 56) 

to 3 inches (size 64) in diameter and 

adds size 64 to the available pack sizes 

for grapefruit listed under Table II in 

§ 906.340, as well as adding language 

concerning pack and sizing 

requirements. 

Currently, fruit sized 48 (39⁄16 inches) 

and larger must meet a minimum grade 

requirement of a ‘‘Texas Choice’’ as 

defined in § 906.137 of the order, while 

size 56 fruit must meet the more 

restrictive grade of a U.S. No. 1. This 

rule relaxes the minimum grade for a 

size 56, establishing a minimum grade 

of ‘‘Texas Choice’’ for both size 56 and 

size 64 grapefruit. This makes the 

minimum grade consistent for all 

available sizes. 

The Committee believes relaxing 

these size and grade requirements will 

make more fruit available to meet 

market demand, helping to maximize 

fresh shipments and increasing returns 

to growers and handlers. 

The Committee also recommended a 

relaxation in the minimum size 

requirement for oranges covered under 

the order. This change is being 

considered under a separate action. 

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 

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 13 registered handlers of 

Texas citrus who are subject to 

regulation under the marketing order 

and approximately 150 producers of 

grapefruit in the regulated area. Small 

agricultural service firms, which 

include handlers, are defined by the 

Small Business Administration (SBA) 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 

(13 CFR 121.201). 

According to National Agricultural 

Statistics Service data, the average f.o.b. 

price for Texas grapefruit during the 

2012–13 season was $24.10 per box, and 

total fresh shipments were 

approximately 3 million boxes. Using 

the average f.o.b. price and shipment 

data, and considering a normal 

distribution, the majority of Texas 

grapefruit handlers could be considered 

small businesses under SBA’s 

definition. In addition, based on 

production data, grower prices, and the 

total number of Texas citrus growers, 

the average annual grower revenue is 

below $750,000. Thus, the majority of 

handlers and producers of grapefruit 

may be classified as small entities. 

This rule relaxes the size and grade 

requirements for grapefruit prescribed 

under the order. This rule relaxes the 

minimum size requirement for 

grapefruit from 35⁄16 inches (size 56) to 

3 inches (size 64). This action also 

relaxes the minimum grade requirement 

for size 56 fruit from a U.S. No. 1 to a 

‘‘Texas Choice’’ and establishes the 

minimum grade for a size 64 as a ‘‘Texas 

Choice.’’ These changes are expected to 

make additional fruit available for 

shipment to the fresh market, maximize 

shipments, provide additional returns to 

handlers and growers, and respond to 

consumer demand for small-sized fruit. 

Authority for these changes is provided 

in § 906.40. This rule amends the 

provisions in §§ 906.340 and 906.365. 

The Committee unanimously 

recommended these changes at its 

December 11, 2013, meeting. 

This rule is not expected to increase 

costs associated with the order’s 

requirements. Rather, it is anticipated 

that this action will have a beneficial 

impact. Reducing size and grade 

requirements will make additional fruit 

available for shipment to the fresh 

market. The Committee believes this 

will provide additional fruit to fill the 

shortage caused by the reduced amount 

of fruit available from other growing 

regions and will provide the 

opportunity to fulfill growing consumer 

demand for smaller-sized fruit. This 

action will also provide an outlet for 

fruit that may otherwise go unharvested, 

maximizing fresh shipments and 

increasing returns to handlers and 

growers. The benefits of this rule are 

expected to be equally available to all 

fresh grapefruit growers and handlers, 

regardless of their size. 

An alternative to this action would be 

to maintain the current minimum 

requirements for domestic shipments of 

grapefruit. However, leaving the 

requirements unchanged would not 

make any additional fruit available nor 

would it provide smaller-sized fruit to 

meet consumer demand. Therefore, this 

alternative was rejected. 

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 

Texas 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’s meeting was 

widely publicized throughout the Texas 

citrus industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations. Like all Committee 

meetings, the December 11, 2013, 

meeting was a public meeting and 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: http://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 size and grade requirements 

currently prescribed for grapefruit under 

the marketing order for oranges and 

grapefruit grown in Lower Rio Grande 

Valley in Texas. Any comments 

received will be considered prior to 

finalization of this rule. 


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Federal Register / Vol. 79, No. 40 / Friday, February 28, 2014 / Rules and Regulations 11297 

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) The shipping season for 

grapefruit has already started; (2) this 

action relaxes current size and grade 

requirements; (3) the Committee 

unanimously recommended this change 

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 906 

Grapefruit, Marketing agreements, 

Oranges, Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 906 is amended as 

follows: 

PART 906—ORANGES AND 

GRAPEFRUIT GROWN IN LOWER RIO 

GRANDE VALLEY IN TEXAS 

■ 1. The authority citation for 7 CFR 

part 906 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. In § 906.340, paragraph (a)(2)(ii)(A) 

and Table II—Grapefruit are revised to 

read as follows: 

§ 906.340 Container, pack, and container 

marking regulations. 

(a) * * * 

(2) * * * 

(ii) * * * 

(A) Grapefruit, when packed in any 

carton, bag, or other container, shall be 

sized in accordance with the sizes in the 

following Table II, except as otherwise 

provided in the regulations issued 

pursuant to this part, and meet the 

requirements of standard pack; and, 

when in containers not packed 

according to a definite pattern, shall be 

sized in accordance with the sizes in 

Table II: Provided, That the packing 

tolerances in the U.S. Standards for 

Grades of Grapefruit (Texas and States 

other than Florida, California, and 

Arizona), shall apply to fruit so packed. 

All fruit packed to size 64 in the 

following Table II shall be sized in 

accordance with the sizes in Table II but 

need not otherwise meet the 

requirements of standard pack: 

Provided, That they meet the same 

tolerances for off-size and pack as 

defined in the U.S. Standards for Grades 

of Grapefruit (Texas and States other 

than Florida, California, and Arizona). 

TABLE II—GRAPEFRUIT

[

7⁄10 Bushel carton] 

Pack size/ 

number of 

grapefruit 

Diameter in inches 

Minimum Maximum 

18 ...................... 415⁄16 59⁄16

23 ...................... 45⁄16 5 

27 ...................... 42⁄16 412⁄16

32 ...................... 315⁄16 48⁄16

36 ...................... 313⁄16 45⁄16

40 ...................... 310⁄16 42⁄16

48 ...................... 39⁄16 314⁄16

56 ...................... 35⁄16 310⁄16

64 ...................... 3 38⁄16

* * * * * 

■ 3. In § 906.365, paragraph (a)(4) is 

revised to read as follows: 

§ 906.365 Texas Orange and Grapefruit 

Regulation 34. 

(a) * * * 

(4) Such grapefruit are at least pack 

size 64 with a minimum diameter of 3 

inches. 

* * * * * 

Dated: February 26, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–04596 Filed 2–27–14; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 906 and 944 

[Doc. No. AMS–FV–14–0009; FV14–906–1 

IR] 

Oranges and Grapefruit Grown in 

Lower Rio Grande Valley in Texas and 

Imported Oranges; Change in Size 

Requirements for Oranges 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule relaxes the 

minimum size currently prescribed for 

oranges under the marketing order for 

oranges and grapefruit grown in Lower 

Rio Grande Valley in Texas (order). The 

order is administered locally by the 

Texas Valley Citrus Committee 

(Committee). The corresponding change 

in the orange import regulation is 

required under section 8e of the 

Agricultural Marketing Agreement Act 

of 1937. This rule relaxes the minimum 

size requirement for oranges from 2–6/ 

16 inches to 2–3/16 inches in diameter. 

This rule will provide additional 

oranges to meet market demand, helping 

to maximize fresh shipments. 

DATES: Effective March 1, 2014; 

comments received by April 29, 2014 

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: 

Doris Jamieson, 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: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

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: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

and Order No. 906, as amended (7 CFR 

Part 906), regulating the handling of 

oranges and grapefruit grown in the 

Lower Rio Grande Valley in Texas, 

hereinafter referred to as the ‘‘order.’’ 

The order is effective under the 

Agricultural Marketing Agreement Act 


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