Federal Register / Vol. 88, No. 195 / Wednesday, October 11, 2023 / Proposed Rules 70379 

concerning an individual from the 

Authority, the General Counsel, the IG, 

or the Panel under false pretenses will 

be subject to criminal prosecution under 

5 U.S.C. 552a(i)(3), which provides that 

such person shall be guilty of a 

misdemeanor and fined not more than 

$5,000. 

§ 2412.15 Exemptions. 

(a) Files of FLRA’s Office of Inspector 

General (OIG) compiled for the purpose 

of a criminal investigation and for 

related purposes. Pursuant to 5 U.S.C. 

552a(j)(2), the FLRA hereby exempts the 

system of records entitled ‘‘FLRA/OIG– 

1, Office of Inspector General 

Investigative Files,’’ insofar as it 

consists of information compiled for the 

purposes of a criminal investigation or 

for other purposes within the scope of 

5 U.S.C. 552a(j)(2), from the application 

of 5 U.S.C. 552a, except for 5 U.S.C. 

552a(b), (c)(1) and (2), (e)(4)(A) through 

(F), (e)(6), (7), (9), (10), (11) and (i). 

(b) OIG files compiled for other law 

enforcement purposes. Pursuant to 5 

U.S.C. 552a(k)(2), the FLRA hereby 

exempts the system of records entitled 

‘‘FLRA/OIG–1, Office of Inspector 

General Investigative Files,’’ insofar as it 

consists of information compiled for law 

enforcement purposes other than 

material within the scope of 5 U.S.C. 

552a(j)(2), from the application of 5 

U.S.C. 552a, (c)(3), (d), (e)(1), (e)(4)(G), 

(H), and (I), and (f). 

Dated: October 4, 2023. 

Thomas Tso, 

Solicitor. 

[FR Doc. 2023–22439 Filed 10–10–23; 8:45 am] 

BILLING CODE 7627–01–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 51 

[Doc. No. AMS–SC–21–0039] 

U.S. Grade Standards for Pecans in the 

Shell and Shelled Pecans 

AGENCY: Agricultural Marketing Service, 

Department of Agriculture (USDA). 

ACTION: Proposed rule. 

SUMMARY: The Agricultural Marketing 

Service (AMS) is proposing to revise the 

U.S. Standards for Grades of Pecans in 

the Shell and the U.S. Standards for 

Grades of Shelled Pecans by replacing 

the current grades with U.S. Extra 

Fancy, U.S. Fancy, U.S. Choice, and 

U.S. Standard grades. The proposal also 

includes updating terminology, 

definitions, and defect scoring guides. 

DATES: Comments must be submitted on 

or before December 11, 2023. 

ADDRESSES: Interested persons are 

invited to submit comments to the 

Standardization Branch, Specialty Crops 

Inspection Division, Specialty Crops 

Program, Agricultural Marketing 

Service, U.S. Department of Agriculture, 

National Training and Development 

Center; 100 Riverside Parkway, Suite 

101; Fredericksburg, Virginia 22406; fax: 

(540) 361–1199, or via the internet at: 

https://www.regulations.gov. Comments 

should reference the date and page 

numbers of this issue of the Federal 

Register. All comments submitted in 

response to this proposed rule will 

become a part of the public record and 

be made available to the public 

including any personal information 

provided at https:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Olivia L. Banks at the address above, or 

by phone (540) 361–1120; fax (540) 361– 

1199; or email SCIStandards@usda.gov. 

Copies of the proposed U.S. Standards 

for Grades of Pecans in the Shell and 

U.S. Standards for Grades of Shelled 

Pecans are available on the internet at 

https://www.regulations.gov. Copies of 

the current U.S. Standards for Grades of 

Pecans in the Shell and U.S. Standards 

of Grades of Shelled Pecans are 

available at https://www.ams.usda.gov/ 

grades-standards/nuts. 

SUPPLEMENTARY INFORMATION: This 

proposed action, pursuant to 5 U.S.C. 

553, would amend regulations at 7 CFR 

part 51 issued under the Agricultural 

Marketing Act of 1946 (7 U.S.C. 1621– 

1627), as amended. These revisions do 

not affect the Federal marketing order, 

7 CFR part 986, (Marketing Order 986) 

issued under the Agricultural Marketing 

Agreement Act of 1937 (7 U.S.C. 601– 

674) or applicable imports. 

Executive Orders 12866, 13563, and 

14094 

The Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with Executive Orders 

12866, 13563, and 14094. Executive 

Orders 12866 and 13563 direct agencies 

to assess all costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety effects, distributive impacts, 

and equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

14094 reaffirms, supplements, and 

updates Executive Order 12866 and 

further directs agencies to solicit and 

consider input from a wide range of 

affected and interested parties through a 

variety of means. This proposed action 

falls within a category of regulatory 

actions that the Office of Management 

and Budget (OMB) has exempted from 

review under Executive Order 12866. 

Executive Order 13175 

This proposed rule has been reviewed 

under Executive Order 13175— 

Consultation and Coordination with 

Indian Tribal Governments, which 

requires agencies to consider whether 

their rulemaking actions would have 

tribal implications. 

AMS has determined that this 

proposed rule is unlikely to have 

substantial direct effects on one or more 

Indian tribes, on the relationship 

between the Federal Government and 

Indian tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian tribes. 

Executive Order 12988 

This proposed rule has been reviewed 

under Executive Order 12988—Civil 

Justice Reform. This proposed action is 

not intended to have retroactive effect. 

There are no administrative procedures 

that must be exhausted prior to any 

judicial challenge to the provisions of 

this rule. 

Background 

AMS continually reviews fruit and 

vegetable grade standards to ensure 

their usefulness to the industry and to 

modernize language. 

On June 12, 2020, the American Pecan 

Council (APC) petitioned AMS to revise 

the U.S. Standards for Grades of Pecans 

in the Shell and the U.S. Standards for 

Grades of Shelled Pecans (standards). 

The APC was established by, and is 

regulated under, the Federal marketing 

order for the pecan industry, Marketing 

Order 986, and represents all 15 major 

U.S. pecan-growing states. 

The APC noted that the pecan 

standards have not been substantially 

updated since 1969 and the terminology 

of the standards no longer reflects 

current industry descriptions and 

practices. The National Pecan Shellers 

Association (NPSA) directed the 

initiative to update the standards for the 

APC. The APC voted unanimously to 

submit their proposed revisions to the 

USDA. AMS and the APC have since 

collaborated to refine the proposed 

revisions. 

The changes to the standards would 

replace current grades with new ones, 

revise scoring guides for defects, create 

new sizes, and revise definitions. The 


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1North American Industry Classification System 

(NAICS) Code 111335. 

2 Version December 2022 size standards. 

3NAICS Code 115114. 

4Economic Surveys Annual Business Survey: 

Statistics for Employer Firms by Industry, Sex, 

Ethnicity, Race, and Veteran Status for the U.S., 

State, Metro Areas, Counties, and Places: 2017. 

two current grades for pecans in the 

shell are U.S. No. 1 and U.S. No. 2. The 

six current grades for shelled pecans are 

U.S. No. 1 Halves, U.S. No. 1 Halves and 

Pieces, U.S. No. 1 Pieces, U.S. 

Commercial Halves, U.S. Commercial 

Halves and Pieces, and U.S. Commercial 

Pieces. AMS proposes to revise both 

standards by replacing the current 

grades with U.S. Extra Fancy, U.S. 

Fancy, U.S. Choice, and U.S. Standard 

grades. These proposed changes 

represent current industry descriptions 

and practices. 

The proposed revisions would not 

affect Marketing Order 986 or applicable 

imports since there are no grade, size, or 

quality standards currently applied 

under the marketing order. 

The first proposed rule was published 

in the Federal Register of June 1, 2022 

(87 FR 33064), inviting comments on 

proposed revisions to the U.S. 

Standards for Grades of Pecans in the 

Shell and the U.S. Standards for Grades 

of Shelled Pecans. The public was 

invited to review and comment on the 

proposed rule, which was to be 

accompanied by copies of the proposed 

standards, on https://

www.regulations.gov. On June 28, 2022, 

AMS noted that the proposed U.S. 

Standards for Grades of Pecans in the 

Shell and the U.S. Standards for Grades 

of Shelled Pecans failed to upload to 

https://www.regulations.gov, and the 

supporting documents were uploaded to 

https://www.regulations.gov on that 

date. To provide all interested persons 

a full 60-day comment period to view 

copies of the proposed standards and 

facilitate review of the proposed rule, 

AMS extended the public comment 

period by 30 days (87 FR 48091) to 

September 7, 2022. In an effort to 

pursue clarification, and based on the 

feedback USDA received during the 

comment period, Specialty Crop 

Inspection Division (SCI) invited 

interested parties to meet on February 

28, 2023, and May 2, 2023, to provide 

an opportunity to clarify language and 

discuss specific sections of the proposed 

standards to ensure there are no 

misinterpretations on how any proposed 

language would be applied before 

moving forward with this rulemaking. 

This proposed rule also includes 

additional changes to align with 

updated Code of Federal Regulations 

formatting requirements and to correct 

errors that were made in the printing of 

the previous proposed rule in the 

Federal Register. 

Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), AMS has considered 

the economic impact of this proposed 

rule on small entities. Accordingly, 

AMS has prepared this regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

that small businesses will not be unduly 

or disproportionately burdened. 

The Small Business Administration 

(SBA) defines small growers engaging in 

tree nut farming 1 as those having 

annual receipts of no more than $3.75 

million (13 CFR 121.201).2 Handlers, 

which can be defined as those engaging 

in postharvest crop activities (except 

cotton-ginning),3 have a small business 

size standard of annual receipts not 

exceeding $34 million, per the SBA (13 

CFR 121.201).2

In the 2017 Census of Agriculture, the 

most recent to date, the National 

Agricultural Statistics Service (NASS) 

reports that of the 19,008 pecan farms 

counted nationwide, 440 of them had 

annual sales valued at $1 million or 

more. This means that 18,568 pecan 

farms, or 98 percent of the census, had 

annual receipts of less than $1 million. 

As the threshold for meeting the 

definition of a small business, per the 

SBA, is $3.75 million, nearly four times 

the $1 million maximum reported by 

NASS, the portion of pecan farms that 

may be considered small by the SBA 

standard is likely even higher than 98 

percent. 

According to the Census Bureau, there 

were 910 firms classified as those 

engaging in postharvest crop activities 

(except cotton-ginning) in 2017. Total 

sales for all 910 firms was valued at 

more than $6.4 billion. The Census 

Bureau survey 4 which yielded these 

results for 2017 is the most recent to 

date. The APC estimates that there are 

115 handlers subject to regulation under 

Marketing Order 986. Of these, the APC 

estimates that 9 handlers have annual 

sales exceeding $34 million, thus 

surpassing the threshold of a small 

business as defined by the SBA. This 

means that 106 handlers, or 92 percent 

of the total, had annual receipts not 

exceeding $34 million and would, 

therefore, be designated as small per the 

SBA definition. 

Food grading standards provide 

important quality information to buyers 

and sellers that contribute to the 

efficient marketing of agricultural 

commodities. Because the proposed 

revisions of the standards represent 

current industry grading practices, these 

changes will not require any significant 

changes in grower or handler business 

operations nor any significant industry 

educational effort. As the standards are 

voluntary, handlers are not required to 

use the new terms or make any changes. 

Neither large nor small handlers will 

incur additional costs. No small 

businesses will be unduly or 

disproportionately burdened. 

Comments 

The first proposed rule was published 

in the Federal Register of June 1, 2022 

(87 FR 33064), inviting comments on 

proposed revisions to the U.S. 

Standards for Grades of Pecans in the 

Shell and the U.S. Standards for Grades 

of Shelled Pecans. The public was 

invited to review the two proposed 

standards in their entirety online and 

comment on the proposed rule. Due to 

AMS technical issues, the drafts of both 

standards were not immediately 

uploaded through the Federal Register 

automated document management 

system for public viewing, resulting in 

some commenters misinterpreting that 

the two standards were being combined 

into a single standard, which was not 

AMS’s intent. On August 8, 2022, AMS 

extended the public comment period by 

30 days (87 FR 48091) to allow 

additional time for commenters to 

review both standards. The 60-day 

comment period for the proposed rule, 

lengthened by the 30-day extension 

period, ended September 7, 2022. 

AMS received comments on the 

proposed changes to the U.S. Standards 

for Grades of Pecans in the Shell and the 

U.S. Standards for Grades of Shelled 

Pecans from 34 respondents. 

Comment: Numerous comments 

stated that the two standards should not 

be combined. 

Response: Due to the technical issues 

described above, some commenters 

misinterpreted that the two standards 

were being combined into one standard, 

which was not AMS’s intent. AMS 

extended the public comment period by 

30 days to allow the public additional 

time to review and comment on the two 

separate standards once they were made 

available. 

Comment: Several comments stated 

there was no need for the standards, that 

no changes should be made to the 

current standards, that things should be 

kept simple, or that there is no need for 

inshell standards. 

Response: AMS acknowledges these 

comments. AMS pursued these 

revisions in response to the APC 

petition to revise the U.S. Standards for 


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Grades of Pecans in the Shell and the 

U.S. Standards for Grades of Shelled 

Pecans. As mentioned earlier, the APC 

represents all 15 major U.S. pecangrowing states. 

The APC noted that the pecan 

standards have not been substantially 

updated since 1969 and the terminology 

of the standards no longer reflects 

current industry descriptions and 

practices. The APC voted unanimously 

to submit their recommended revisions 

to the USDA. Based on industry input, 

AMS has determined that the standards 

continue to play an important role in 

U.S. pecan marketing and that they 

should be preserved. The APC has 

provided evidence of broad-based 

industry support from growers and 

handlers for the changes to the 

standards in the petition submitted. The 

recommended changes will modernize 

the standards to reflect current industry 

practices. Accordingly, AMS made no 

changes to this proposed rule based on 

this comment. 

Comment: Several comments stated 

that the ‘‘application of tolerances’’ 

language in § 51.1407 was not part of 

the industry’s original proposal. 

However, USDA currently uses a 100- 

count sample for certification of pecans 

for export. Based on the existing 

sampling procedures, the commenters 

acknowledged that the 100-count 

sample size would be acceptable in the 

inshell standard. 

Response: AMS acknowledges this 

was not in the original petition. AMS 

retained the current 100-count sample 

size used in the inshell standard. The 

100-count sample size is not limited to 

export as noted by the commenter. 

Accordingly, AMS made no changes to 

this proposed rule based on this 

comment. 

Comment: One commenter asked 

about sampling rates and tools used to 

select samples. In addition, they did not 

agree with the process currently used to 

determine the 10 smallest nuts out of 

100 nuts and suggested that the sample 

size should be one or two one-pound 

samples without requiring the inspector 

to pick out the 10 smallest nuts. 

Response: The petitioner did not 

recommend changes to § 51.1402—Size 

classification of the current inshell 

standards or to the sampling 

procedures. The commenter has not 

provided supporting background or 

sufficient data to justify changes to the 

sample size. Current requirements for 

any one of the classifications in Table 1 

of § 51.1404—Size classification state 

the lot must conform to both the 

specified number of nuts per pound and 

the weight of the 10 smallest nuts per 

100-nut sample. Sampling guidelines 

and tools are described in inspection 

manuals which are available at https:// 

www.ams.usda.gov/grades-standards/ 

nuts. Accordingly, AMS made no 

changes to this proposed rule based on 

this comment. 

Comment: One commenter expressed 

concern with § 51.1406—Tolerances of 

the June 2022 proposed inshell 

standards, stating that a processor could 

sell product with 12 percent of the 

kernels having serious damage and 6 

percent of the product being rancid, 

moldy, decayed, or injured by insects. 

On a 30-pound case, the standard size 

case used in commerce, that would 

mean that 3.6 pounds could be sold 

with serious defects, including rancid, 

moldy product. 

Response: AMS disagrees. The 

percentages referenced in this proposed 

section for inshell pecans are based on 

sample size by count, not container size 

by weight. These tolerances would 

apply to U.S. Extra Fancy, U.S. Fancy, 

and U.S. Choice grades, and would 

allow for 12 percent total defects for 

kernels, including not more than 7 

percent for kernels which are seriously 

damaged, provided that not more than 

6 percent are rancid, moldy, decayed, or 

injured by insects. This proposed 

restrictive tolerance limits the percent of 

rancid, moldy, or decayed pecans to 6 

percent. Accordingly, AMS made no 

changes to this proposed rule based on 

this comment. 

Comment: One commenter stated that 

they did not support the proposed 

revisions to the inshell pecan standards, 

stating that a small number of shellers 

control the market. Further, they stated 

that the revision would automatically 

put almost the entirety of the U.S. pecan 

crop in the bottom half of the quality 

grades. They additionally stated that it 

is rare that any one-pound sample of 

inshell pecans would ever be 

completely ‘‘free from damage by any 

cause,’’ and they are concerned that the 

proposed revisions will negatively 

impact U.S. pecan growers. 

Response: AMS is revising these 

voluntary standards based on a petition 

from the APC. AMS reviewed this 

request and determined it had merit. 

AMS finds that the proposed revisions 

should improve the marketing of pecans 

in the United States and internationally 

by modernizing language to more 

accurately reflect product currently 

available, including the addition of 

higher quality options to meet customer 

preferences. Regarding the concerns 

surrounding the ‘‘free from damage by 

any cause’’ language, this does not mean 

free from defects, or that any amount of 

blemishes would fail the lot. The term 

‘‘damage’’ is defined in the proposed 

inshell standards in § 51.1416. This 

section provides a listing of defects, 

including the severity and scoring 

criteria. The tolerances provided in 

§ 51.1406—Tolerances apply to U.S. 

Extra Fancy, U.S. Fancy, U.S. Choice, 

and U.S. Standard grades; are based on 

a composite sample by count, not by 

weight; and allow for percentage totals 

for defects based on the grade being 

applied. Accordingly, AMS made no 

changes to this proposed rule based on 

this comment. 

Comment: Several commenters 

indicated that the text in the June 2022 

proposed shelled standards at 

§ 51.1433(a)(3) read ‘‘No requirement for 

uniformity of kernel,’’ while it should 

have read ‘‘No requirement for 

uniformity of color.’’ 

Response: AMS recognizes this 

typographical error in the June 2022 

proposed standards and has included 

the corrected text in this proposed rule. 

Comment: Several comments 

indicated that the term ‘‘sixteenths’’ in 

the size classification for pieces should 

be removed from the June 2022 

proposed shelled standards at 

§ 51.1436(a) as all size classifications 

should be described in ‘‘sixty-fourths’’ 

of an inch. 

Response: AMS agrees with the 

removal of the ‘‘sixteenths’’ 

measurement as it was a carryover from 

the current standard. Accordingly, AMS 

has made this change in this proposed 

rule. 

Comment: Several comments noted 

the omission of language in the June 

2022 proposed shelled standards at 

§ 51.1437—Tolerances for defects 

concerning the restrictive tolerance for 

color of kernels. 

Response: AMS recognizes this 

typographical error in the June 2022 

proposed standards and has included 

the missing text in the ‘‘Extra Fancy’’ 

grade section of § 51.1437—Tolerances 

for defects of this proposed rule. 

Comment: One commenter stated that 

they did not agree with the proposed 

definitions for ‘‘half-kernel,’’ that the 

definitions as proposed would allow for 

all product to have a portion missing 

and still meet the requirements, and that 

there should be a limit to the allowable 

amount of kernels (5 percent for Extra 

Fancy and 15 percent for all other 

grades) with portions missing. 

Response: AMS disagrees with this 

comment, as the proposed definitions 

reflect current industry practices and 

have been in the standard since 1969. 

However, the terms have been updated 

in the new proposed standards to 

include definitions for both ‘‘premiere 

half-kernels’’ and ‘‘half-kernels’’ to 

differentiate between § 51.1439(a) and 


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(b) of the June 2022 proposed standard. 

For kernels failing to meet the 

definition, the tolerances in proposed 

§ 51.1437—Tolerances for defects would 

be applied. Based on clarifying 

conversation items 8 and 9, discussed 

later in this document, there has not 

been broad-based support from industry 

for adding further limitations to these 

definitions and tolerances. Accordingly, 

AMS has made the above-mentioned 

changes to this proposed rule. 

Comment: One commenter asked who 

would be performing the inspections. 

Response: The standards are 

voluntary, and inspections would 

continue to be performed by federal or 

federal-state inspectors, at the request of 

the applicant. 

Comment: One commenter asked if 

processors/shellers will be reimbursed 

for changes to boxes, literature, etc., to 

reflect the new regulations’ sizes and 

names of sizes, arguing that the cost for 

changing labels would be a hinderance 

to processors, especially small ones. 

Response: The standards are 

voluntary, provide common language to 

facilitate trade, and contain no marking 

requirements. While AMS understands 

that there may be a cost associated with 

labeling changes, industry use of grade 

and size terms is not mandated by 

USDA. Accordingly, AMS made no 

changes to this proposed rule based on 

this comment. 

Comment: One commenter shared 

pecan size classifications used by the 

pecan industry in South Africa. 

Response: AMS acknowledges this 

comment and appreciates the 

information provided. 

Comment: One commenter, in order 

to fully understand the impact of the 

proposed changes regarding new 

nomenclature and specifications, asked 

what percentage of crop over the last 

five years would have been downgraded 

under the proposed regs, and what 

percentage would have been upgraded. 

Response: Due to the voluntary nature 

of the U.S. standards, AMS does not 

collect this data and is unable to 

provide this information. 

Comment: One commenter stated that 

they did not support the proposed 

revisions to the standards and did not 

agree with having inshell standards at 

all. They stated further that creating a 

quality standard for inshell product 

would mean that the farmer would be 

penalized for minor exterior issues 

when the actual product was the kernel 

and not the shell. 

Response: The U.S. Standards for 

Grade of Pecans in the Shell were 

originally published in 1930. This 

proposed revision does not create a new 

U.S. Standards for Grade of Pecans in 

the Shell but revises the terminology of 

the standards to correctly reflect current 

industry practices and modernizes 

language to more accurately reflect 

product currently available. Regarding 

the concerns surrounding being 

penalized for minor exterior defects, the 

standards provide a listing of defects, 

including the severity and scoring 

criteria, which does not mean the 

product must be free from defects, or 

that any amount of blemishes would fail 

the lot. Accordingly, AMS made no 

changes to this proposed rule based on 

this comment. 

Comment: One commenter stated that 

the standards should include only three 

grades instead of four. They suggested 

the first two grades be combined, as 

they are very similar. The commenter 

requested that the grading process be 

kept simple. 

Response: The proposed revisions are 

based on a petition from APC to 

modernize the standards and are 

intended to improve the marketing of 

pecans. AMS finds that the proposed 

additional grade levels should improve 

the marketing of pecans in the United 

States and internationally by allowing 

for the variation in grade level and 

including the addition of higher quality 

options to meet customer preferences. 

Accordingly, AMS made no changes to 

this proposed rule based on this 

comment. 

Comments and Issues Addressed 

During Clarifying Conversations 

After the comment period closed, 

AMS reviewed the comments received 

and, based on the complexity of the 

proposed revisions, contacted the 

petitioner, APC, for clarifying 

conversations. AMS held these 

conversations with the APC, NPSA, 

National Pecan Federation, Georgia 

Pecan Growers Association, Oklahoma 

Pecan Growers Association, Texas 

Pecan Growers Association, Western 

Pecan Growers Association, members of 

the industry, and other interested 

parties on February 28, 2023, and May 

2, 2023. Select comments received on 

the proposed rule were discussed, and 

issues were clarified and incorporated 

into the draft standards associated with 

this proposed rule. Changes based on 

these conversations are outlined below. 

1. Inshell—Loose Extraneous or Foreign 

Material 

In the June 2022 proposed rule, AMS 

proposed to retain—in proposed 

§§ 51.1400(a), 51.1401(a), 51.1402(a), 

and 51.1403(a)—the current 

requirement for all grades of inshell 

pecans that they be free of loose 

extraneous or foreign material. The 

proposed rule also retained current 

tolerances for such material for each 

grade (0.5 percent (one-half of 1 percent) 

by weight for all grades), as well as the 

current definition for the term loose 

extraneous or foreign material, which 

means loose hulls, empty broken shells, 

or any substance other than pecans in 

the shell or pecan kernels. 

Due to confusion about which 

standard the proposed requirements 

applied to, numerous commenters 

stated that tolerances for loose 

extraneous or foreign material did not 

belong in the inshell standards. On the 

other hand, one comment stated that 

limits for loose extraneous or foreign 

material should be included in the 

inshell standards so that large amounts 

of such material are not included in 

loads of inshell pecans. 

While not included in the original 

recommended language from the APC, 

‘‘Free from loose extraneous or foreign 

material’’ is a basic requirement of each 

grade and is included in the current 

standards to prevent large amounts of 

loose extraneous or foreign material 

from entering commerce. There are 

restrictive tolerances set in place to 

allow for a certain percentage of loose 

extraneous or foreign material in each 

sampled load. APC originally 

recommended adding rocks, wood, 

glass, and plastic to the definition of 

loose extraneous or foreign material. 

After discussions with the industry, 

AMS retained ‘‘Free from loose 

extraneous or foreign material’’ in the 

proposed requirements for each grade; 

retained the proposed tolerances for 

such material in inshell pecans; and 

included the recommended additional 

defects in the definition of loose 

extraneous or foreign material in this 

proposed rule. 

2. Inshell—Damage and Serious 

Damage 

In the June 2022 proposed rule, AMS 

proposed requirements pertaining to 

shell or kernel ‘‘damage by any cause’’ 

for the U.S. Extra Fancy and U.S. Fancy 

grades in §§ 51.1400 and 51.1401 and to 

shell or kernel ‘‘serious damage by any 

cause’’ for the U.S. Choice grade in 

§ 51.1402. No requirements pertaining 

to ‘‘damage’’ or ‘‘serious damage’’ 

defects were specified for shells or 

kernels for the U.S. Standard grade in 

proposed § 51.1403. The proposed rule 

further specified in § 51.1406 related 

tolerances for those defects in all four 

grades. Finally, in proposed §§ 51.1416 

and 51.1417, AMS proposed definitions 

for the defects Damage and Serious 

damage. 

AMS later determined that the 

requirements for the U.S. Choice grade 


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needed to align with those for U.S. Extra 

Fancy and U.S. Fancy grades, as they 

are grouped together, and all have the 

same ‘‘damage’’ and ‘‘serious damage’’ 

defect tolerances in § 51.1406. AMS 

further determined that it was necessary 

to revise the proposed language for the 

U.S. Standard grade in § 51.1403(h) 

references to the ‘‘Tolerances’’ section, 

proposed § 51.1406, to clarify that there 

are not increased tolerances for the U.S. 

Standard grade. 

APC’s original petition included the 

language ‘‘free from damage or serious 

damage by any cause,’’ while the June 

2022 proposed standards only specified 

‘‘free from damage by any cause’’ for 

U.S. Extra Fancy and U.S. Fancy and 

‘‘free from serious damage by any 

cause’’ for U.S. Choice. In discussions 

with AMS, the industry agreed that 

‘‘free from damage by any cause’’ is 

appropriate for the requirements of both 

the U.S. Choice and U.S. Standard 

grades in §§ 51.1402 and 51.1403, and 

that the restrictive tolerance for serious 

damage should be included in the 

‘‘Tolerances’’ in § 51.1406(a) for U.S. 

Extra Fancy, U.S. Fancy, and U.S. 

Choice grades, and (b) for U.S. Standard 

grade. Accordingly, AMS has made 

these changes in this proposed rule. 

3. Inshell—Moisture Content 

Section 51.1416 (d) of the current 

inshell standards provides that kernel 

moisture content is not a requirement, 

but can be determined upon request by 

the applicant. In the June 2022 proposed 

rule, AMS proposed to add a new 

§ 51.1420—Kernel moisture content, to 

specify that inshell pecans should have 

a moisture content of no more than 6 

percent, unless otherwise specified. 

APC originally recommended two 

different moisture content limits, one 

for domestic shipments (no more than 6 

percent) and one for international 

(import/export) shipments (no more 

than 4.5 percent). AMS coordinated 

with APC prior to publishing the June 

2022 proposed standards and presented 

options for moisture content, as there 

cannot be a more restrictive requirement 

for imported product. APC agreed that 

‘‘not more than 6 percent, unless 

otherwise specified’’ would be 

acceptable for all shipments. 

Numerous comments stated that 6 

percent moisture was too high. AMS 

discussed with the industry at the 

February and May 2023 meetings 

whether moisture content limits should 

be a requirement of grade, and what that 

moisture content limit should be. The 

industry recommended making 

moisture content limits a requirement 

for grade, and keeping the language as 

AMS proposed. Including the language 

‘‘unless otherwise specified’’ as part of 

the moisture requirement allows parties 

to stipulate varying moisture content 

limits based on intended use and 

contract specifications. This additional 

language resolves any concern about 6 

percent moisture being too high. 

Accordingly, AMS is removing 

proposed § 51.1420—Kernel moisture 

content as a standalone section, and is 

now proposing to add kernel moisture 

content of no more than 6 percent, 

unless otherwise specified, as a basic 

requirement for each grade of inshell 

pecans in §§ 51.1400(c), 51.1401(c), 

51.1402(c), and 51.1403(c). 

4. Shelled—Damage and Serious 

Damage 

In the June 2022 proposed rule, AMS 

proposed requirements pertaining to 

kernel ‘‘damage by any cause’’ for the 

U.S. Extra Fancy and U.S. Fancy grades 

in §§ 51.1430 and 51.1431, to kernel 

‘‘serious damage by any cause’’ for the 

U.S. Choice grade in § 51.1432, and no 

requirements pertaining to damage or 

serious damage for the U.S. Standard 

grade in § 51.1433. The June 2022 

proposed rule further specified in 

§ 51.1437 related tolerances for those 

defects in the four grades. Finally, in 

§§ 51.1452 and 51.1453, AMS proposed 

definitions for the defects ‘‘Damage’’ 

and ‘‘Serious damage.’’ 

AMS later determined that the 

requirements for U.S. Choice grade, in 

§ 51.1432(a)(6) needed to be revised to 

specify ‘‘Free from damage by any 

cause.’’ Further, AMS determined the 

U.S. Standard grade required the 

addition of ‘‘Free from damage by any 

cause’’ to § 51.1433(a)(6). Additionally, 

AMS needed to revise § 51.1433(a)(7) 

references to the ‘‘Tolerances for 

defects’’ (§ 51.1437), to clarify that there 

are not increased tolerances for the U.S. 

Standard grade. 

In discussions with AMS, the 

industry agreed that the language ‘‘free 

from damage by any cause’’ would be 

appropriate for the U.S. Choice and U.S. 

Standard grade requirements, and that 

§ 51.1433(a)(7) needed to be updated. 

Accordingly, AMS added ‘‘free from 

damage by any cause’’ to the U.S. 

Choice and U.S. Standard grades within 

this proposed rule. Additionally, AMS 

revised § 51.1433(a)(7) references to the 

‘‘Tolerances for defects’’ (§ 51.1437). 

5. Shelled—Pecan Weevil Larvae 

APC originally recommended that the 

presence of pecan weevil larvae be 

determined on a 30-pound sample (the 

typical size for a case of shelled pecans), 

with no larvae allowed in U.S. Extra 

Fancy, no more than 2 larvae in U.S. 

Fancy, no more than 5 larvae in U.S. 

Choice, and no limit on the number of 

larvae in U.S. Standard. AMS’s June 

2022 proposed rule contained the 

language as recommended by APC, but 

upon further review, AMS noted an 

additional sampling procedure would 

need to be established in order to 

determine compliance with this 

requirement. In discussions with AMS, 

industry agreed that the determination 

of pecan weevil larvae should be part of 

the current sampling process for pecan 

inspections and not based on an 

additional 30-pound sample, 

specifically for the presence of pecan 

weevil larvae. The industry also agreed 

that § 51.1437—Tolerances for defects 

for the U.S. Extra Fancy grade should 

remain as proposed in the June 2022 

proposed rule. Therefore, any amount of 

pecan weevil larvae found would fail a 

lot; U.S. Fancy tolerance would allow 

not more than 2 pecan weevil larvae per 

lot, provided that the tolerance for 

serious damage is not exceeded; and 

U.S. Choice tolerance would allow not 

more than 5 pecan weevil larvae per lot, 

provided that the tolerance for serious 

damage is not exceeded. Additionally, 

the number of pecan weevil larvae 

found in U.S. Fancy and U.S. Choice 

lots would be included in the tolerance 

for serious damage, not in addition to 

the serious damage tolerance. The grade 

U.S. Standard will not specify a limit for 

pecan weevil larvae, as in this case the 

lack of a specified limit does not create 

an exemption from meeting the ‘‘serious 

damage’’ tolerance, under which the 

defect ‘‘pecan weevil larvae’’ is scored. 

Accordingly, AMS has included these 

changes in this proposed rule. 

6. Shelled—Moisture Content 

The standards currently require that 

all grades of shelled pecan halves and 

pieces must be well dried, but no limits 

to moisture content are specified in the 

definition of well dried in § 51.1444. In 

the June 2022 proposed rule, AMS 

proposed to require that all four grades 

of shelled pecans be well dried. 

APC originally recommended 

including the moisture content limit as 

part of the definition of well dried, and 

AMS’s proposed standards included a 

moisture content limit as part of the 

definition but upon further review, 

AMS noted that in order to make 

moisture content limit a requirement, it 

needed to be listed in the grade 

requirements. Separation of these two 

requirements allows moisture 

requirements to be applied to the lot as 

a whole, and kernels not meeting the 

definition of well dried can be scored on 

an individual basis. Industry agreed to 

make moisture content limit a 

requirement, and that moisture should 


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be separated from the definition of well 

dried. Additionally, industry agreed to 

keep the proposed moisture content 

limit as published at not more than 4.5 

percent, unless otherwise specified. 

Under this proposed rule, moisture 

content limit would be added as a basic 

requirement of each grade (§ 51.1430 

through § 51.1433). Accordingly, AMS 

has included these changes in this 

proposed rule. 

7. Shelled—Insects as Foreign Material 

In the June 2022 proposed rule, AMS 

proposed to include ‘‘insects’’ in the 

definition of foreign material in 

§ 51.1450 of the shelled pecan 

standards, as APC originally 

recommended. However, upon further 

review, AMS determined that ‘‘insects’’ 

should be removed from the definition 

of foreign material because it would 

create conflicting requirements by 

allowing no insects as foreign material 

on one hand, and specifying a tolerance 

for serious damage, which includes 

insects, on the other. In discussions 

with AMS, industry agreed that 

‘‘insects’’ should be removed from the 

definition of foreign material in 

§ 51.1451 of the new proposed 

standards because insects would be 

covered under the tolerance for serious 

damage. Accordingly, AMS has 

included this change in this proposed 

rule. 

8. Shelled—Half-Kernel 

In the June 2022 proposed rule, AMS 

proposed two definitions for the size 

term Half-kernel—one that would apply 

to U.S. Extra Fancy grade, and one that 

would apply to all other grades. This 

coincided with APC’s original 

recommendation. However, upon 

further review, AMS determined that a 

term can only have one meaning. AMS 

determined further that the proposed 

definition of Half-kernel for all other 

grades conflicted with the proposed 

definition of Piece. 

In discussions with the industry, 

AMS suggested—and the industry 

agreed with— adding the size term 

Premier half-kernel (Premiere halves), 

which could be used only with the U.S. 

Extra Fancy grade, and with updating 

the size definition of Piece. 

Accordingly, Premier half-kernel 

(Premier halves) is defined in § 51.1439 

of this proposed rule, with tolerances 

provided in the newly proposed Table 

2 to § 51.1435. The term Half-kernel 

(Halves) is defined in § 51.1440 of this 

proposed rule. AMS also proposes a 

revised size definition of Piece in 

§ 51.1441 so that there would be no 

conflict with the proposed definition of 

Half-kernel (Halves). Accordingly, AMS 

has included these changes in this 

proposed rule. 

9. Shelled—Size Tolerances for Pieces, 

Meal, and Flour 

APC originally recommended having 

two definitions for the term half-kernel 

(as discussed in item 8 of clarifying 

conversations). With the addition of the 

new term premier halves, AMS changed 

the paragraph style format in 

§ 51.1435(d) (of the June 2022 proposed 

standards) into table style format (Table 

2 to § 51.1435) for clarity. Having two 

distinct size terms for premiere halves 

and halves allows for each size to be 

applied to the U.S. Extra Fancy grade, 

which allows for greater flexibility 

within the standard. Tolerances for U.S. 

Extra Fancy Premier Halves, U.S. Extra 

Fancy Halves, U.S. Fancy Halves, U.S. 

Choice Halves, and U.S. Standard 

Halves are shown in Table 2 to 

§ 51.1435 of this proposed rule. 

Additionally, the industry requested 

that the originally proposed tolerances 

of 5 percent for U.S. Extra Fancy 

Premier Halves (Less than 7⁄8 halfkernel) and U.S. Extra Fancy Halves 

(Less than 3⁄4 half-kernel) in Table 2 to 

§ 51.1435 be increased to 10 percent. 

Accordingly, AMS has included this 

change in this proposed rule. 

10. Shelled—Size Tolerances for Pieces 

APC originally recommended having 

the range for ‘‘topping pieces’’ be 12⁄64

inch to 8⁄64 inch and the range for 

‘‘granules’’ be 8⁄64 inch to 4⁄64 inch. The 

June 2022 proposed standards included 

this language; however, upon further 

review, AMS determined that additional 

clarifying language needed to be added 

to the restrictive tolerances for pieces in 

§ 51.1436(b)(1)–(3) to exclude topping 

pieces and granules. The industry 

agreed with these changes. Accordingly, 

AMS has included these changes in this 

proposed rule. 

11. Shelled—Color 

APC originally recommended 

including a color requirement and 

tolerances for each grade. The June 2022 

proposed standards were published 

with APC’s recommended language. 

Upon further review, AMS determined 

that the proposed tolerances for kernels 

darker than a specified color did not 

align with the minimum color for U.S. 

Extra Fancy, U.S. Fancy, and U.S. 

Standard grades. To correct this issue, 

AMS proposed to update color terms in 

the ‘‘Tolerances for defects’’ section for 

U.S. Extra Fancy (§ 51.1437(a)(4)–(5)), 

which was changed from ‘‘dark amber’’ 

to ‘‘light amber;’’ and for U.S. Fancy 

(§ 51.1437(b)(4)–(5)), from ‘‘dark amber’’ 

to ‘‘amber.’’ AMS further proposed to 

remove ‘‘dark amber or darker’’ from the 

‘‘Tolerances for defects’’ section for U.S. 

Standard (§ 51.1437(d)(3)). When 

discussing the issue with the industry, 

there was some confusion about the 

application of the USDA kernel color 

standards, PEC–MC–1, and whether it 

was a requirement of the grade. PEC– 

MC–1 illustrates the color intensities 

implied by the terms outlined in the 

‘‘Color classifications.’’ The industry 

agreed with AMS’s clarification that 

color is indeed a requirement of the 

grade and PEC–MC–1 is needed to meet 

the terminology in the ‘‘Color 

classifications’’ section of the standards. 

AMS further clarified to the industry 

that PEC–MC–1 is not used as a direct 

comparative to gauge pecan color of the 

individual kernel; rather, it is used to 

gauge the percentage of the varying 

colors of a kernel to meet the defined 

color terminology within § 51.1434— 

Color classifications of the standards. 

Accordingly, AMS has included these 

changes in this proposed rule. 

12. Inshell and Shelled—Development 

The APC petition recommended a 

range from minimum to maximum 

development of pecan kernels in U.S. 

Fancy and U.S. Choice grades. The June 

2022 proposed standards included the 

proper method for listing minimum 

kernel development requirements. AMS 

received comments opposing the 

language that was included in the June 

2022 proposed standards. AMS clarified 

that the language as published meets the 

industry’s intent for minimum kernel 

development in each grade, as there are 

unintended consequences when 

including a range in the requirements 

for the grade. The industry agreed that 

a range from minimum to maximum 

kernel development within U.S. Fancy 

and U.S. Choice grades would result in 

unintentional classification of kernels as 

defects. Accordingly, AMS will retain 

descriptive language from the June 2022 

proposed rule, which lists the minimum 

kernel development requirements of the 

grade for development. 

13. Inshell and Shelled—Rancidity 

APC’s petition explained that 

‘‘rancidity’’ refers to the tendency of the 

oil in a pecan kernel to become tainted 

as a result of oxidation or hydrolysis. 

While there is no definitive measure to 

determine rancidity, the tendency of the 

kernel to become rancid can be 

evaluated by testing the kernel’s 

peroxide and free fatty acid values. 

Peroxide values should be less than 5 

mEq/kg, and free fatty acid should be 

less than 1 percent. 

The information above was included 

as standalone definitions in the June 


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2022 proposed standards. However, 

upon further review by AMS, it was 

determined that the information would 

cause confusion and contradict the 

scoring criteria under ‘‘rancidity’’ in 

§ 51.1417(i)—Serious damage for inshell 

standards, and § 51.1453(h)—Serious 

damage for shelled standards. AMS 

suggested adding this information as a 

footnote to those paragraphs instead to 

clarify that the analysis would not be a 

requirement of grade, and that no 

analysis for rancidity would be 

performed in determination of grade. 

The industry agreed to removing the 

rancidity definition from the June 2022 

proposed standards at § 51.1419 and 

§ 51.1453, and to adding a footnote to 

‘‘rancidity’’ as a serious defect, 

indicating industry methods of 

determination. This method would 

allow AMS to provide the informative 

language desired by the industry 

without causing any confusion on how 

rancidity is scored. Accordingly, AMS is 

retaining the defect ‘‘rancidity,’’ which 

shows how rancidity is scored when 

pecans are distinctly rancid to taste in 

paragraph (i) of proposed § 51.1417— 

Serious damage in the standards for 

inshell pecans, and in paragraph (h) of 

proposed § 51.1453—Serious damage in 

the standards for shelled pecans; 

removing industry’s methods of 

determination for rancidity as a 

standalone section in the June 2022 

proposed rule; and adding a footnote to 

‘‘rancidity’’ as a serious damage defect, 

to indicate industry’s methods of 

determination within this proposed 

rule. 

14. Inshell and Shelled—Undeveloped 

APC originally recommended a 

definition for the term undeveloped in 

the standards for inshell pecans to 

clarify that undeveloped kernels have 

practically no food value, or are blank 

(complete shell containing no kernel). 

AMS included this description as a 

serious damage defect in § 51.1417(j) of 

the proposed rule. ‘‘Undeveloped 

kernel’’ was also listed as a serious 

damage defect in the standards for 

shelled pecans in proposed § 51.1452, 

but included no further description. 

Upon further review, AMS 

determined that the inclusion of 

‘‘undeveloped kernels’’ as a serious 

damage defect for shelled pecans 

created a conflict with the proposed 

definition of poorly developed (where 

the kernel is full-meated in less than 25 

percent of its width and length) and 

asked for industry input on the 

definition of undeveloped kernels for 

the inshell standard. 

The industry determined that there 

was no need for the term 

‘‘undeveloped’’ in the shelled pecan 

standard, and further stated that the 

definition needed to be modified for the 

inshell standards to mean undeveloped 

kernels which are blank (complete shell 

containing no kernel). 

AMS agrees that these revisions 

would provide greater clarity and 

accordingly has revised the proposed 

definition of undeveloped kernel in the 

list of serious damage defects for inshell 

pecans in § 51.1417(j) to mean 

undeveloped kernels which are blank 

(complete shell containing no kernel). 

Under this proposed rule, undeveloped 

kernels would be scored as serious 

damage in all grades of inshelled 

pecans. For shelled pecans, the term 

‘‘undeveloped kernel’’ is not included 

in the ‘‘serious damage’’ defect listing. 

Kernel development would only be 

scored as damage in all grades of shelled 

pecans. 

15. Inshell and Shelled—Housekeeping 

Upon further review of the standards, 

it was determined that additional minor 

housekeeping edits were needed for 

both standards. The additional proposed 

edits are in line with edits that have 

been made to other recently revised 

standards, and the industry agreed that 

the edits are acceptable. Those edits are 

as follows: 

Inshell pecan standards: Removal of 

metric conversions throughout the 

standard. These conversions were not 

accurate and are rarely utilized. 

Shelled pecan standards: Removal of 

metric conversion table. This standard 

did not contain any metric conversions; 

therefore, the table is unnecessary. 

Accordingly, AMS has included these 

changes in this proposed rule. 

USDA has determined that this rule is 

consistent with and would effectuate 

the purpose of the Agricultural 

Marketing Act of 1946. Therefore, this 

rule proposes to revise the voluntary 

U.S. Standards for Grades of Pecans in 

the Shell and the U.S. Standards for 

Grades of Shelled Pecans issued under 

the Agricultural Marketing Act of 1946. 

List of Subjects in 7 CFR Part 51 

Food grades and standards, Fruits, 

Nuts, Reporting and recordkeeping 

requirements, Vegetables. 

For reasons set forth in the preamble, 

the Agricultural Marketing Service 

proposes to amend 7 CFR part 51 as 

follows: 

PART 51—FRESH FRUITS, 

VEGETABLES, AND OTHER 

PRODUCTS (INSPECTION, 

CERTIFICATION, AND STANDARDS 

■ 1. The authority citation for part 51 

continues to read as follows: 

Authority: 7 U.S.C. 1621–1627. 

■ 2. Revise Subpart M—United States 

Standards for Grades of Pecans in the 

Shell to read as follows: 

Subpart M—United States Standards 

for Grades of Pecans in the Shell 

Sec. 

Grades 

§ 51.1400 U.S. Extra Fancy. 

§ 51.1401 U.S. Fancy. 

§ 51.1402 U.S. Choice. 

§ 51.1403 U.S. Standard. 

Size Classification 

§ 51.1404 Size classification. 

Kernel Color Classification 

§ 51.1405 Kernel color classification. 

Tolerances 

§ 51.1406 Tolerances. 

Application of Tolerances 

§ 51.1407 Application of tolerances. 

Sample for Grade or Size Determination 

§ 51.1408 Sample for grade or size 

determination. 

Definitions 

§ 51.1409 Loose extraneous or foreign 

material. 

§ 51.1410 Well cured. 

§ 51.1411 Well developed. 

§ 51.1412 Fairly well developed. 

§ 51.1413 Poorly developed. 

§ 51.1414 Uniform in color. 

§ 51.1415 Fairly uniform in color. 

§ 51.1416 Damage. 

§ 51.1417 Serious damage. 

§ 51.1418 Inedible kernels. 

Subpart M—United States Standards 

for Grades of Pecans in the Shell 

Grades 

§ 51.1400 U.S. Extra Fancy. 

‘‘U.S. Extra Fancy’’ consists of pecans 

in the shell which meet the following 

requirements: 

(a) Free from loose extraneous or 

foreign material. 

(b) Shells are: 

(1) Uniform in color; and 

(2) Free from damage by any cause. 

(c) Kernels are: 

(1) Well developed; 

(2) Well cured; 

(3) Moisture content shall be not more 

than 6 percent, unless otherwise 

specified; 

(4) Uniform in color and not darker 

than ‘‘light;’’ and 


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(5) Free from damage by any cause. 

(d) For tolerances see § 51.1406. 

§ 51.1401 U.S. Fancy. 

‘‘U.S. Fancy’’ consists of pecans in the 

shell which meet the following 

requirements: 

(a) Free from loose extraneous or 

foreign material. 

(b) Shells are: 

(1) Uniform in color; and 

(2) Free from damage by any cause. 

(c) Kernels are: 

(1) Fairly well developed; 

(2) Well cured; 

(3) Moisture content shall be not more 

than 6 percent, unless otherwise 

specified; 

(4) Uniform in color; 

(5) Not darker than ‘‘light amber,’’ 

unless specified to a lighter color 

classification; and 

(6) Free from damage by any cause. 

(d) For tolerances see § 51.1406. 

§ 51.1402 U.S. Choice. 

‘‘U.S. Choice’’ consists of pecans in 

the shell which meet the following 

requirements: 

(a) Free from loose extraneous or 

foreign material. 

(b) Shells are: 

(1) Fairly uniform in color; and 

(2) Free from damage by any cause. 

(c) Kernels are: 

(1) Not poorly developed; 

(2) Well cured; 

(3) Moisture content shall be not more 

than 6 percent, unless otherwise 

specified; 

(4) Fairly uniform in color; 

(5) Not darker than ‘‘amber,’’ unless 

specified to a lighter color classification; 

and 

(6) Free from damage by any cause. 

(d) For tolerances see § 51.1406. 

§ 51.1403 U.S. Standard. 

‘‘U.S. Standard’’ consists of pecans in 

the shell which meet the following 

requirements: 

(a) Free from loose extraneous or 

foreign material; 

(b) Kernels well cured; 

(c) Moisture content shall be not more 

than 6 percent, unless otherwise 

specified; 

(d) No requirement for fullness of 

kernel; 

(e) No requirement for uniformity of 

color of shells or kernels; 

(f) May contain kernels that are ‘‘dark 

amber’’ or darker, unless specified to a 

lighter color classification; and 

(g) Shells and kernels are free from 

damage by any cause. 

(h) For tolerances see § 51.1406. 

Size Classification 

§ 51.1404 Size classification. 

Size of pecans may be specified in 

connection with the grade in accordance 

with one of the following classifications. 

To meet the requirements for any one of 

the classifications in Table 1 to this 

section, the lot must conform to both the 

specified number of nuts per pound and 

the weight of the 10 smallest nuts per 

100-nut sample. 

TABLE 1 TO § 51.1404 

Size classification Number of nuts per pound Minimum weight of the 10 smallest nuts per 

100-nut sample 

Jumbo .............................................. 55 or less ....................................... In each classification, the 10 smallest nuts per 100 must weigh at 

least 7% of the total weight of the 100-nut sample. 

Extra Large ...................................... 56 to 63.

Large ............................................... 64 to 77.

Medium ............................................ 78 to 100.

Small ............................................... 101 or more.

Kernel Color Classification 

§ 51.1405 Kernel color classification. 

(a) The skin color of the pecan kernels 

are described in terms of the color 

classifications provided in this section. 

When specified to a lighter color 

classification, that color may be used to 

describe the lot in connection with the 

grade. 

(1) Light means that the kernel is 

mostly golden color or lighter, with not 

more than 25 percent of the surface 

darker than golden, and none of the 

surface darker than light brown. 

(2) Light amber means that more than 

25 percent of the kernel is light brown, 

with not more than 25 percent of the 

surface darker than light brown, none of 

which is darker than medium brown. 

(3) Amber means that more than 25 

percent of the kernel is medium brown, 

with not more than 25 percent of the 

surface darker than medium brown, 

none of which is darker than dark 

brown (very dark brown or blackishbrown discoloration). 

(4) Dark amber means that more than 

25 percent of the kernel is dark brown, 

with not more than 25 percent of the 

surface darker than dark brown (very 

dark brown or blackish-brown 

discoloration). 

(b) U.S. Department of Agriculture 

kernel color standards, PEC–MC–1, 

illustrate the color intensities implied 

by the terms ‘‘golden,’’ ‘‘light brown,’’ 

‘‘medium brown,’’ and ‘‘dark brown’’ 

referred to in paragraph (a) of this 

section. The color standards are 

available at https://www.ams.usda.gov/ 

grades-standards. 

Tolerances 

§ 51.1406 Tolerances. 

In order to allow for variations 

incident to proper grading and handling 

in each of the foregoing grades, the 

following tolerances are provided as 

specified: 

(a) U.S. Extra Fancy, U.S. Fancy, and 

U.S. Choice grades: 

(1) For shell defects, by count: 5 

percent for pecans with damaged shells, 

including therein not more than 2 

percent for shells which are seriously 

damaged. 

(2) For kernel defects, by count: 12 

percent for pecans with kernels which 

fail to meet the requirements for the 

grade or any specified color 

classification, including therein not 

more than 7 percent for kernels which 

are seriously damaged: Provided, That 

not more than 6 percent shall be 

allowed for kernels which are rancid, 

moldy, decayed, or injured by insects: 

Provided further, That included in this 

6 percent tolerance not more than 0.5 

percent (one-half of 1 percent) shall be 

allowed for pecans with live insects 

inside the shell. 

(3) For loose extraneous or foreign 

material, by weight: 0.5 percent (onehalf of 1 percent). 

(b) U.S. Standard grade: 

(1) For shell defects, by count: 10 

percent for pecans with damaged shells, 

including therein not more than 3 

percent for shells which are seriously 

damaged. 

(2) For kernel defects, by count: 30 

percent for pecans with kernels which 

fail to meet the requirements for the 

grade or any specified color 

classification, including therein not 


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more than 10 percent for kernels which 

are seriously damaged: Provided, That 

not more than 7 percent shall be 

allowed for kernels which are rancid, 

moldy, decayed, or injured by insects: 

Provided further, That included in this 

7 percent tolerance not more than 0.5 

percent (one-half of 1 percent) shall be 

allowed for pecans with live insects 

inside the shell. 

(3) For loose extraneous or foreign 

material, by weight: 0.5 percent (onehalf of 1 percent). 

Application of Tolerances 

§ 51.1407 Application of tolerances. 

Individual 100-count samples shall 

have not more than one and one-half 

times a specified tolerance of 5 percent 

or more and not more than double a 

tolerance of less than 5 percent, except 

that at least one pecan which is 

seriously damaged by live insects inside 

the shell is permitted: Provided, That 

the averages for the entire lot are within 

the tolerances specified for the grade. 

Sample for Grade or Size 

Determination 

§ 51.1408 Sample for grade or size 

determination. 

Each sample shall consist of 100 

pecans. The individual sample shall be 

drawn at random from a sufficient 

number of packages to form a 100-count 

composite sample. The number of such 

individual 100-count samples drawn for 

grade or size determination will vary 

with the size of the lot. When 

practicable, at point of packaging the 

sample may be obtained from the 

grading belt after sorting has been 

completed. 

Definitions 

§ 51.1409 Loose extraneous or foreign 

material. 

Loose extraneous or foreign material 

means loose hulls, empty broken shells, 

rocks, wood, glass, plastic, or any 

substance other than pecans in the shell 

or pecan kernels. 

§ 51.1410 Well cured. 

Well cured means the kernel separates 

freely from the shell, breaks cleanly 

when bent without splintering, 

shattering, or loosening the skin; and 

the kernel appears to be in good 

shipping or storage condition as to 

moisture content. 

§ 51.1411 Well developed. 

Well developed means that the kernel 

is full-meated throughout its width and 

length. 

§ 51.1412 Fairly well developed. 

Fairly well developed means that the 

kernel is full-meated in over 50 percent 

of its width and length. 

§ 51.1413 Poorly developed. 

Poorly developed means that the 

kernel is full-meated in less than 25 

percent of its width and length. 

§ 51.1414 Uniform in color. 

Uniform in color means that the shells 

do not show sufficient variation in color 

to detract from the general appearance 

of the lot and that 95 percent or more 

of the kernels in the lot have skin color 

within the range of one or two color 

classifications. 

§ 51.1415 Fairly uniform in color. 

Fairly uniform in color means that the 

shells do not show sufficient variation 

in color to materially detract from the 

general appearance of the lot and that 85 

percent or more of the kernels in the lot 

have skin color within the range of one 

or two color classifications. 

§ 51.1416 Damage. 

Damage means any specific defect 

described in this section; or an equally 

objectionable variation of any one of 

these defects, or any other defect, or any 

combination of defects, which 

materially detracts from the appearance 

or the edible or marketing quality of the 

individual pecan or the general 

appearance of the pecans in the lot. The 

following defects shall be considered as 

damage: 

(a) Adhering hull material or dark 

stains affecting an aggregate of more 

than 5 percent of the surface of the 

individual shell; 

(b) Adhering material from inside the 

shell when firmly attached to more than 

one-third of the outer surface of the 

kernel and contrasting in color with the 

skin of the kernel; 

(c) Broken shells when any portion of 

the shell is missing; 

(d) Internal flesh discoloration of a 

medium shade of gray or brown 

extending more than one-fourth inch 

lengthwise beneath the center ridge, or 

any equally objectionable amount in 

other portions of the kernel; or lesser 

areas of dark discoloration affecting the 

appearance to an equal or greater extent; 

(e) Kernels which are dark amber in 

color; 

(f) Kernels which are not well cured; 

(g) Kernel spots when more than one 

dark spot is present on either half of the 

kernel, or when any such spot is more 

than one-eighth inch in greatest 

dimension; 

(h) Poorly developed kernels; 

(i) Shriveling when the surface of the 

kernel is very conspicuously wrinkled; 

and 

(j) Split or cracked shells when the 

shell is spread apart or will spread upon 

application of slight pressure. 

§ 51.1417 Serious damage. 

Serious damage means any specific 

defect described in this section; or an 

equally objectionable variation of any 

one of these defects, or any other defect, 

or any combination of defects, which 

seriously detracts from the appearance 

or the edible or marketing quality of the 

individual pecan. The following defects 

shall be considered as serious damage: 

(a) Adhering hull material or dark 

stains affecting an aggregate of more 

than 20 percent of the individual shell; 

(b) Broken shells when the missing 

portion of shell is greater in area than 

a circle one-fourth inch in diameter; 

(c) Dark discoloration of the skin 

which is darker than dark amber over 

more than 25 percent of the surface of 

the kernel; 

(d) Decay affecting any portion of the 

kernel; 

(e) Insects, web, frass, or the kernel 

shows distinct evidence of insect 

feeding on the kernel; 

(f) Internal flesh discoloration of a 

dark shade extending more than onethird the length of the kernel beneath 

the ridge, or an equally objectionable 

amount of dark discoloration in other 

portions of the kernel; 

(g) Kernel spots when more than three 

dark spots on either half of the kernel, 

or when any spot or the aggregate of two 

or more spots on one of the halves of the 

kernel affects more than 10 percent of 

the surface; 

(h) Mold, on the surface or inside the 

kernel, which is plainly visible without 

magnification; 

(i) Rancidity 1 when the kernel is 

distinctly rancid to the taste. Staleness 

of flavor shall not be classed as 

rancidity; 

(j) Undeveloped kernels which are 

blank (complete shell containing no 

kernel); and 

(k) Worm holes when penetrating the 

shell. 

Note to § 51.1417(i): 

1Refers to the tendency of the oil in a 

pecan kernel to become tainted as a result of 

oxidation or hydrolysis. Industry measures to 

determine the tendency of a kernel to become 

rancid include testing the kernel’s peroxide 

and free fatty acid values. Peroxide values 

should be less than 5 mEq/kg and free fatty 

acids acid value should be less than 1 

percent. These analyses are not performed in 

determination of grade. 

§ 51.1418 Inedible kernels. 

Inedible kernels means that the kernel 

or pieces of kernels are rancid, moldy, 


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decayed, injured by insects or otherwise 

unsuitable for human consumption. 

■ 3. Revise Subpart N—United States 

Standards for Grades of Shelled Pecans 

to read as follows: 

Subpart N—United States Standards 

for Grades of Shelled Pecans 

Sec. 

Grades 

§ 51.1430 U.S. Extra Fancy. 

§ 51.1431 U.S. Fancy. 

§ 51.1432 U.S. Choice. 

§ 51.1433 U.S. Standard. 

Color Classifications 

§ 51.1434 Color classifications. 

Size Classifications 

§ 51.1435 Size classifications for halves. 

§ 51.1436 Size classifications for pieces. 

Tolerances for Defects 

§ 51.1437 Tolerances for defects. 

Applications of Standards 

§ 51.1438 Application of standards. 

Definitions 

§ 51.1439 Premier half-kernel (Premier 

halves). 

§ 51.1440 Half-kernel (Halves). 

§ 51.1441 Piece. 

§ 51.1442 Meal and flour. 

§ 51.1443 Well dried. 

§ 51.1444 Well developed. 

§ 51.1445 Fairly well developed. 

§ 51.1446 Poorly developed. 

§ 51.1447 Uniform in color. 

§ 51.1448 Fairly uniform in color. 

§ 51.1449 Uniform in size. 

§ 51.1450 Fairly uniform in size. 

§ 51.1451 Foreign material. 

§ 51.1452 Damage. 

§ 51.1453 Serious damage. 

Subpart N—United States Standards 

for Grades of Shelled Pecans 

Grades 

§ 51.1430 U.S. Extra Fancy. 

‘‘U.S. Extra Fancy’’ consists of pecan 

kernels which meet the following 

requirements: 

(a) For quality: 

(1) Well dried; 

(2) Moisture content shall not be more 

than 4.5 percent, unless otherwise 

specified; 

(3) Well developed; 

(4) Uniform in color; 

(5) Not darker than ‘‘light;’’ 

(6) Free from damage by any cause; 

and 

(7) Comply with tolerances for defects 

(see § 51.1437). 

(b) For size: 

(1) Uniform in size; and 

(2) Conform to size classification or 

count specified. 

§ 51.1431 U.S. Fancy. 

‘‘U.S. Fancy’’ consists of pecan 

kernels which meet the following 

requirements: 

(a) For quality: 

(1) Well dried; 

(2) Moisture content shall not be more 

than 4.5 percent, unless otherwise 

specified; 

(3) Fairly well developed; 

(4) Uniform in color; 

(5) Not darker than ‘‘light amber,’’ 

unless specified to a lighter color 

classification; 

(6) Free from damage by any cause; 

and 

(7) Comply with tolerances for defects 

(see § 51.1437). 

(b) For size: 

(1) Uniform in size; and 

(2) Conform to size classification or 

count specified. 

§ 51.1432 U.S. Choice. 

‘‘U.S. Choice’’ consists of pecan 

kernels which meet the following 

requirements: 

(a) For quality: 

(1) Well dried; 

(2) Moisture content shall not be more 

than 4.5 percent, unless otherwise 

specified; 

(3) Not poorly developed; 

(4) Fairly uniform in color; 

(5) Not darker than ‘‘amber,’’ unless 

specified to a lighter color classification; 

(6) Free from damage by any cause; 

and 

(7) Comply with tolerances for defects 

(see § 51.1437). 

(b) For size: 

(1) Fairly uniform in size; and 

(2) Conform to size classification or 

count specified. 

§ 51.1433 U.S. Standard. 

‘‘U.S. Standard’’ consists of pecan 

kernels which meet the following 

requirements: 

(a) For quality: 

(1) Well dried; 

(2) Moisture content shall not be more 

than 4.5 percent, unless otherwise 

specified; 

(3) No requirement for fullness of 

kernel; 

(4) No requirement for uniformity of 

color; 

(5) May contain kernels ‘‘dark amber’’ 

or darker, unless specified to a lighter 

color classification; 

(6) Free from damage by any cause; 

and 

(7) Comply with tolerances for defects 

(see § 51.1437). 

(b) For size: 

(1) No uniformity in size; and 

(2) Conform to size classification or 

count specified. 

Color Classifications 

§ 51.1434 Color classifications. 

(a) The skin color of pecan kernels are 

described in terms of the color 

classifications provided in this section. 

When specified to a lighter color 

classification, that color may be used to 

describe the lot in connection with the 

grade. 

(1) Light means that the kernel is 

mostly golden color or lighter, with not 

more than 25 percent of the surface 

darker than golden, and none of the 

surface darker than light brown. 

(2) Light amber means that the kernel 

has more than 25 percent of the surface 

light brown, but not more than 25 

percent of surface darker than light 

brown, and none of the surface darker 

than medium brown. 

(3) Amber means that the kernel has 

more than 25 percent of the surface 

medium brown, but not more than 25 

percent of surface darker than medium 

brown, and none of the surface darker 

than dark brown (very dark brown or 

blackish-brown discoloration). 

(4) Dark amber means that the kernel 

has more than 25 percent of the surface 

dark brown, but not more than 25 

percent of surface darker than dark 

brown (very dark brown or blackishbrown discoloration). 

(b) U.S. Department of Agriculture 

kernel color standards, PEC–MC–1, 

illustrate the color intensities implied 

by the terms ‘‘golden,’’ ‘‘light brown,’’ 

‘‘medium brown,’’ and ‘‘dark brown’’ 

referred to in paragraph (a) of this 

section. The color standards are 

available at: https://www.ams.usda.gov/ 

grades-standards. 

Size Classifications 

§ 51.1435 Size classifications for halves. 

The size of pecan halves in a lot may 

be specified in accordance with one of 

the size classifications shown in Table 

1 to this section. 

TABLE 1 TO § 51.1435 

Size 

classification 

for halves 

Number of halves per pound 

Mammoth ....... 250 or less. 

Junior Mammoth.251–350. 

Jumbo ............ 351–450. 

Large ............. 451–550. 

Medium .......... 551–650. 

Topper ........... 651–750. 

King Topper ... 751 or more. 

In lieu of the size classifications in this 

table, the size of pecan halves in a lot may be 

specified in terms of the number of halves or a 

range of number of halves per pound. For example, ‘‘400’’ or ‘‘600–700.’’ 

(a) Halves per pound. 


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The number of halves per pound shall 

be based upon the weight of half-kernels 

after all pieces, meal and flour, shell, 

center wall, and foreign material have 

been removed. 

(b) Tolerance for count per pound. 

In order to allow for variations 

incident to proper sizing, a tolerance 

shall be permitted as follows: 

(1) When an exact number of halves 

per pound is specified, the actual count 

per pound may vary not more than 5 

percent from the specified number, and 

(2) When any size classification 

shown in Table 1 to this section or a 

range in count per pound is specified, 

no tolerance shall be allowed for counts 

outside of the specified range. 

(c) Tolerances for pieces, meal, and 

flour. 

In order to allow for variations 

incident to proper sizing and handling, 

tolerances are provided for pieces, meal, 

and flour in any lot of halves. The 

tolerances, by weight, are as shown in 

Table 2 to this section. 

TABLE 2 TO § 51.1435 

U.S. extra 

fancy premier 

halves 

(%) 

U.S. extra 

fancy halves 

(%) 

U.S. fancy 

halves 

(%) 

U.S. choice 

halves 

(%) 

U.S. standard 

halves 

(%) 

Tolerances for Pieces, Meal, and Flour: 

A. Less than 7⁄8 half-kernel ........................................... 10 ........................ ........................ ........................ ........................

B. Less than 3⁄4 half-kernel ........................................... ........................ 10 15 20 20 

C. Less than 1⁄2 half-kernel 

(included in A.—U.S. Extra Fancy Premier Halves) 

(included in B.—U.S. Extra Fancy Halves, U.S. 

Fancy Halves, U.S. Choice Halves, and U.S. Standard Halves) ................................................................ 3 3 5 5 5 

D. Less than 4/64’’ (included in C.) .............................. 1 1 1 1 1 

§ 51.1436 Size classifications for pieces. 

The size of pecan pieces in a lot may 

be specified in accordance with one of 

the size classifications shown in Table 

1 to this section. Sizes are measured 

using a round-hole screen. 

TABLE 1 TO § 51.1436 

Size classification 

Maximum diameter 

(will pass through 

round 

opening of the 

following diameter) 

Minimum diameter 

(will not pass 

through round 

opening of the 

following diameter) 

Extra-Large Pieces ............................................................................................................................... No limitation ............ 32/64 inch. 

Large Pieces ........................................................................................................................................ 32/64 inch ............... 24/64 inch. 

Halves and Pieces ............................................................................................................................... No limitation ............ 20/64 inch. 

Medium Pieces ..................................................................................................................................... 24/64 inch ............... 16/64 inch. 

Small Pieces ......................................................................................................................................... 16/64 inch ............... 12/64 inch. 

Topping Pieces ..................................................................................................................................... 12/64 inch ............... 8/64 inch. 

Granules ............................................................................................................................................... 8/64 inch ................. 4/64 inch. 

In lieu of the size classifications in this table, the size of pieces in a lot may be specified in terms of minimum diameter, or as a range described in terms of minimum and maximum diameters expressed in sixty-fourths of an inch. 

(a) Tolerances for size of pieces. 

In order to allow for variations 

incident to proper sizing, tolerances are 

provided for pieces in a lot which fail 

to meet the requirements of any size 

specified. The tolerances, by weight, are 

as follows: 

(1) U.S. Extra Fancy pieces and U.S. 

Fancy pieces: 

Not more than 15 percent of the lot 

may fall outside of the size range in 

Table 1 to this section. Further, not 

more than 1 percent of the pieces, 

excluding Topping Pieces and Granules, 

may pass through an eight sixty-fourths 

of an inch round hole screen. 

(2) U.S. Choice pieces: 

Not more than 20 percent of the lot 

may fall outside of the size range in 

Table 1 to this section. Further, not 

more than 2 percent of the pieces, 

excluding Topping Pieces and Granules, 

may pass through an eight sixty-fourths 

of an inch round hole screen. 

(3) U.S. Standard pieces: 

Not more than 25 percent of the lot 

may fall outside of the size range in 

Table 1 to this section. Further, not 

more than 2 percent of the pieces, 

excluding Topping Pieces and Granules, 

may pass through an eight sixty-fourths 

of an inch round hole screen. 

Tolerances for Defects 

§ 51.1437 Tolerances for defects. 

In order to allow for variations 

incident to proper grading and handling 

in each of the foregoing grades, the 

following tolerances, by weight, are as 

follows: 

(a) U.S. Extra Fancy grade: 

(1) No foreign material; 

(2) 0.01 percent for shell, and center 

wall; 

(3) Zero tolerance is provided for 

pecan weevil larvae; 

(4) 3 percent for portions of kernels 

which are ‘‘light amber’’ or darker color, 

or darker than any specified lighter 

color classification, but which are not 

otherwise defective; and 

(5) 3 percent for portions of kernels 

which fail to meet the remaining 

requirements of the grade, including 

therein not more than 0.50 percent (onehalf of 1 percent) for defects causing 

serious damage: Provided, That any 

unused portion of this tolerance may be 

applied to increase the tolerance for 

kernels which are ‘‘light amber’’ or 

darker color, or darker than any 

specified lighter color classification. 

(b) U.S. Fancy grade: 


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(1) No foreign material; 

(2) 0.01 percent for shell and center 

wall; 

(3) No more than 2 pecan weevil 

larvae; 

(4) 5 percent for portions of kernels 

which are ‘‘amber’’ or darker color, or 

darker than any specified lighter color 

classification, but which are not 

otherwise defective; and 

(5) 5 percent for portions of kernels 

which fail to meet the remaining 

requirements of the grade, including 

therein not more than 0.50 percent (onehalf of 1 percent) for defects causing 

serious damage, including pecan weevil 

larvae: Provided, That any unused 

portion of this tolerance may be applied 

to increase the tolerance for kernels 

which are ‘‘amber’’ or darker color, or 

darker than any specified lighter color 

classification. 

(c) U.S. Choice grade: 

(1) No foreign material; 

(2) 0.01 percent for shell and center 

wall; 

(3) No more than 5 pecan weevil 

larvae; 

(4) 15 percent for portions of kernels 

which are ‘‘dark amber’’ or darker color, 

or darker than any specified lighter 

color classification, but which are not 

otherwise defective; and 

(5) 8 percent for portions of kernels 

which fail to meet the remaining 

requirements of the grade, including 

therein not more than 1 percent for 

defects causing serious damage, 

including pecan weevil larvae. 

(d) U.S. Standard grade: 

(1) No foreign material; 

(2) 0.01 percent for shell and center 

wall; 

(3) 25 percent for portions of kernels 

which are darker than a specified color 

classification, but which are not 

otherwise defective; and 

(4) 15 percent for portions of kernels 

which fail to meet the remaining 

requirements of the grade, including 

therein not more than 1 percent for 

defects causing serious damage, 

including pecan weevil larvae. 

Application of Standards 

§ 51.1438 Application of standards. 

The grade of a lot of shelled pecans 

shall be determined on the basis of a 

composite sample drawn at random 

from containers in various locations in 

the lot. However, any identifiable 

container or number of containers in 

which the pecans are obviously of a 

quality or size materially different from 

that in the majority of containers, shall 

be considered as a separate lot, and 

shall be sampled and graded separately. 

Definitions 

§ 51.1439 Premier half-kernel (Premier 

halves). 

Premier half-kernel (Premier halves) 

means one of the separated halves of an 

entire pecan kernel with not more than 

one-eighth of its original volume 

missing, exclusive of the portion which 

formerly connected the two halves of 

the kernel. 

§ 51.1440 Half-kernel (Halves). 

Half-kernel (Halves) means one of the 

separated halves of an entire pecan 

kernel with not more than one-fourth of 

its original volume missing, exclusive of 

the portion which formerly connected 

the two halves of the kernel. 

§ 51.1441 Piece. 

Piece means a portion of a kernel 

which is less than three-fourths of a 

half-kernel, but which will not pass 

through a round opening four sixtyfourths (4/64) of an inch in diameter. 

§ 51.1442 Meal and flour. 

Meal and flour means fragments of 

kernels which will pass through a round 

opening four sixty-fourths (4/64) of an 

inch in diameter. 

§ 51.1443 Well dried. 

Well dried means that the portion of 

kernel is firm and crisp, not pliable, or 

leathery. 

§ 51.1444 Well developed. 

Well developed means that the kernel 

is full-meated through its width and 

length. 

§ 51.1445 Fairly well developed. 

Fairly well developed means that the 

kernel is full-meated in over 50 percent 

of its width and length. 

§ 51.1446 Poorly developed. 

Poorly developed means that the 

kernel is full-meated in less than 25 

percent of its width and length. 

§ 51.1447 Uniform in color. 

Uniform in color means that 95 

percent or more of the kernels in the lot 

have skin color within the range of one 

or two color classifications. 

§ 51.1448 Fairly uniform in color. 

Fairly uniform in color means that 85 

percent or more of the kernels in the lot 

have skin color within the range of one 

or two color classifications. 

§ 51.1449 Uniform in size. 

Uniform in size means that, in a 

representative sample of 100 halves, the 

10 smallest halves weigh not less than 

25 percent as much as the 10 largest 

halves. 

§ 51.1450 Fairly uniform in size. 

Fairly uniform in size means that, in 

a representative sample of 100 halves, 

the 10 smallest halves weigh not less 

than 50 percent as much as the 10 

largest halves. 

§ 51.1451 Foreign material. 

Foreign material includes rocks, 

wood, glass, plastic, or any similar 

material. It does not include hard shell, 

center wall, or pecan weevil larvae. 

§ 51.1452 Damage. 

Damage means any specific defect 

described in this section; or an equally 

objectionable variation of any one of 

these defects, or any other defect, or any 

combination of defects, which 

materially detracts from the appearance 

or the edible or marketing quality of the 

individual portion of the kernel or of the 

lot as a whole. The following defects 

shall be considered as damage: 

(a) Adhering material from inside the 

shell when attached to more than onefourth of the surface on one side of the 

half-kernel or piece; 

(b) Dust or dirt adhering to the kernel 

when conspicuous; 

(c) Internal flesh discoloration of a 

medium shade of gray or brown 

extending more than one-fourth the 

length of the half-kernel or piece, or 

lesser areas of dark discoloration 

affecting the appearance to an equal or 

greater extent; 

(d) Kernel which is not well dried; 

(e) Kernel which is ‘‘dark amber’’ or 

darker color; 

(f) Kernel having more than one dark 

kernel spot, or one dark kernel spot 

more than one-eighth inch in greatest 

dimension; 

(g) Poorly developed kernel; and 

(h) Shriveling when the surface of the 

kernel is very conspicuously wrinkled. 

§ 51.1453 Serious damage. 

Serious damage means any specific 

defect described in this section; or an 

equally objectionable variation of any 

one of these defects, or any other defect, 

or any combination of defects, which 

seriously detracts from the appearance 

or the edible or marketing quality of the 

individual portion of kernel or of the lot 

as a whole. The following defects shall 

be considered as serious damage: 

(a) Adhering material from inside the 

shell when attached to more than onehalf of the surface on one side of the 

half-kernel or piece; 

(b) Any plainly visible mold; 

(c) Dark kernel spots when more than 

three are on the kernel, or when any 

dark kernel spot or the aggregate of two 

or more spots affect an area of more than 

10 percent of the surface of the halfkernel or piece; 


lotter on DSK11XQN23PROD with PROPOSALS1
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1The term ‘‘bank’’ is used to mean the same thing 

as ‘‘insured depository institution’’ as defined in 

Section 3 of the FDI Act. 

2 Lessons Learned and a Framework for 

Monitoring Emerging Risks and Regulatory 

Response, GAO Report to Congress, GAO–15–365, 

June 2015; FDIC OIG Reports—Bank Failures, 

https://www.fdicoig.gov/reports-publications/bankfailures; Remarks by Martin J. Gruenberg, Chairman, 

FDIC to the American Association of Bank 

Directors, May 12, 2015, https://archive.fdic.gov/ 

view/fdic/1717; Review of the Federal Reserve’s 

Supervision and Regulation of Silicon Valley Bank, 

April 2023, https://www.federalreserve.gov/ 

publications/files/svb-review-20230428.pdf; FDIC’s 

Supervision of Signature Bank, April 2023, https:// 

www.fdic.gov/news/press-releases/2023/ 

pr23033a.pdf. 

3The FDIC report on the failure of Signature Bank 

in 2023 found that the root cause of the failure was 

poor management without adequate risk 

management practices and controls. The 

institution’s management did not prioritize good 

corporate governance practices (FDIC’s Supervision 

of Signature Bank, April 28, 2023, p. 2). The 

Federal Reserve Board’s report on the failure of 

Silicon Valley Bank also identified governance and 

risk management failures that led to the failure. 

(Review of the Federal Reserve’s Supervision and 

Regulation of Silicon Valley Bank, April 2023, p. 1). 

(d) Dark skin discoloration, darker 

than ‘‘dark brown,’’ when covering more 

than one-fourth of the surface of the 

half-kernel or piece; 

(e) Decay affecting any portion of the 

kernel; 

(f) Insects, web, or frass or any 

distinct evidence of insect feeding on 

the kernel; 

(g) Internal discoloration, which is 

dark gray, dark brown, or black and 

extends more than one-third the length 

of the half-kernel or piece; and 

(h) Rancidity 1 when the kernel is 

distinctly rancid to taste. Staleness of 

flavor shall not be classed as rancidity. 

Note to § 1453(h): 

1Refers to the tendency of the oil in a 

pecan kernel to become tainted as a result of 

oxidation or hydrolysis. Industry measures to 

determine the tendency of a kernel to become 

rancid include testing the kernel’s peroxide 

and free fatty acid values. Peroxide values 

should be less than 5 mEq/kg and free fatty 

acids acid value should be less than 1 

percent. These analyses are not performed in 

determination of grade. 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2023–22341 Filed 10–10–23; 8:45 am] 

BILLING CODE 3410–02–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 308 and 364 

RIN 3064–AF94 

Guidelines Establishing Standards for 

Corporate Governance and Risk 

Management for Covered Institutions 

With Total Consolidated Assets of $10 

Billion or More 

AGENCY: Federal Deposit Insurance 

Corporation. 

ACTION: Notice of proposed rulemaking 

and issuance of guidelines. 

SUMMARY: The Federal Deposit 

Insurance Corporation (FDIC) is seeking 

comment on proposed corporate 

governance and risk management 

guidelines (Guidelines) that would 

apply to all insured state nonmember 

banks, state-licensed insured branches 

of foreign banks, and insured state 

savings associations that are subject to 

Section 39 of the Federal Deposit 

Insurance Act (FDI Act), with total 

consolidated assets of $10 billion or 

more on or after the effective date of the 

final Guidelines. These proposed 

Guidelines would be issued as 

Appendix C to FDIC’s standards for 

safety and soundness regulations in part 

364, pursuant to Section 39 of the FDI 

Act, and would be enforceable under 

Section 39. The FDIC also proposes to 

make corresponding amendments to 

parts 308 and 364 of its regulations to 

implement the proposed Guidelines. 

DATES: Comments on the proposed 

Guidelines must be received by 

December 11, 2023. 

ADDRESSES: The FDIC encourages 

interested parties to submit written 

comments. Please include your name, 

affiliation, address, email address, and 

telephone number(s) in your comment. 

You may submit comments to the FDIC, 

identified by RIN 3064–AF94, by any of 

the following methods: 

Agency Website: https://

www.fdic.gov/resources/regulations/ 

federal-register-publications. Follow 

instructions for submitting comments 

on the FDIC’s website. 

Mail: James P. Sheesley, Assistant 

Executive Secretary, Attention: 

Comments/Legal OES (RIN 3064–AF94), 

Federal Deposit Insurance Corporation, 

550 17th Street NW, Washington, DC 

20429. 

Hand Delivered/Courier: Comments 

may be hand-delivered to the guard 

station at the rear of the 550 17th Street 

NW building (located on F Street NW) 

on business days between 7 a.m. and 5 

p.m. 

Email: comments@FDIC.gov. Include 

RIN 3064–AF94 in the subject line of 

the message. 

Public Inspection: Comments 

received, including any personal 

information provided, may be posted 

without change to https://www.fdic.gov/ 

resources/regulations/federalregisterpublications/. Commenters 

should submit only information that the 

commenter wishes to make available 

publicly. The FDIC may review, redact, 

or refrain from posting all or any portion 

of any comment that it may deem to be 

inappropriate for publication, such as 

irrelevant or obscene material. The FDIC 

may post only a single representative 

example of identical or substantially 

identical comments, and in such cases 

will generally identify the number of 

identical or substantially identical 

comments represented by the posted 

example. All comments that have been 

redacted, as well as those that have not 

been posted, that contain comments on 

the merits of this notice will be retained 

in the public comment file and will be 

considered as required under all 

applicable laws. All comments may be 

accessible under the Freedom of 

Information Act. 

FOR FURTHER INFORMATION CONTACT: 

Division of Risk Management 

Supervision: Judy E. Gross, Senior 

Policy Analyst, 202–898–7047, 

JuGross@FDIC.gov; Legal Division: 

Jennifer M. Jones, Counsel, 202–898– 

6768; Catherine Topping, Counsel, 202– 

898–3975; Nicholas A. Simons, Senior 

Attorney, 202–898–6785; Kimberly Yeh, 

Senior Attorney, 202–898–6514. 

SUPPLEMENTARY INFORMATION: 

I. Policy Objectives 

Strong corporate governance is the 

foundation for an insured depository 

institution’s safe and sound operations. 

An effective governance framework is 

necessary for an insured depository 

institution to remain profitable, 

competitive, and resilient through 

changing economic and market 

conditions. The board of directors 

serves a critical role in maintaining an 

insured depository institution’s safety 

and soundness and continued financial 

and operational resilience. 

The FDIC observed during the 2008 

financial crisis and more recent bank 1

failures in 2023 that financial 

institutions with poor corporate 

governance and risk management 

practices were more likely to fail.2

Reports reviewing the recent 2023 bank 

failures noted that poor corporate 

governance and risk management 

practices were contributing factors.3

Failures of insured depository 

institutions (IDIs) impose costs on the 

Deposit Insurance Fund (DIF) and 

negatively affect a wide variety of 

stakeholders including the institution’s 

depositors and shareholders, employees, 

customers (including consumers and 

businesses that rely on the institution’s 

services and the availability of credit), 

regulators, and the public as a whole. 

Insufficient attention and 


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