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contains regulatory documents having general

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Rules and Regulations Federal Register

30439 

Vol. 79, No. 102 

Wednesday, May 28, 2014 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 905 

[Doc. No. AMS–FV–14–0041; FV14–905–2 

IR] 

Oranges, Grapefruit, Tangerines, and 

Tangelos Grown in Florida; Relaxing 

Grade Requirements on Valencia and 

Other Late Type Oranges 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: This rule changes the 

minimum grade requirements currently 

prescribed under the marketing order 

for oranges, grapefruit, tangerines, and 

tangelos grown in Florida (order). The 

order is administered locally by the 

Citrus Administrative Committee 

(Committee). This rule reduces the 

minimum grade requirement for 

Valencia and other late type oranges 

shipped to interstate markets from a 

U.S. No. 1 to a U.S. No. 1 Golden from 

May 15 through June 14 each season 

and to a U.S. No. 2 external/U.S. No. 1 

internal from June 15 through August 31 

each season. This rule will provide 

additional Valencia and other late type 

oranges for late season markets, helping 

to maximize fresh shipments. 

DATES: Effective May 23, 2014; 

comments received by July 28, 2014 will 

be considered prior to issuance of a final 

rule. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order and Agreement Division, Fruit 

and Vegetable Program, AMS, USDA, 

1400 Independence Avenue SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938; or Internet: http://

www.regulations.gov. All comments 

should reference the document number 

and the date and page number of this 

issue of the Federal Register and will be 

made available for public inspection in 

the Office of the Docket Clerk during 

regular business hours, or can be viewed 

at: http://www.regulations.gov. All 

comments submitted in response to this 

rule will be included in the record and 

will be made available to the public. 

Please be advised that the identity of the 

individuals or entities submitting 

comments will be made public on the 

internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Corey E. Elliott, Marketing Specialist, or 

Christian D. Nissen, Regional Director, 

Southeast Marketing Field Office, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or Email: 

Corey.Elliott@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

905, as amended (7 CFR part 905), 

regulating the handling of oranges, 

grapefruit, tangerines, and tangelos 

grown in Florida, hereinafter referred to 

as the ‘‘order.’’ The order is effective 

under the Agricultural Marketing 

Agreement Act of 1937, as amended (7 

U.S.C. 601–674), hereinafter referred to 

as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

12866, 13563, and 13175. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

This rule changes the minimum grade 

requirement for Valencia and other late 

type oranges shipped to interstate 

markets from a U.S. No. 1 to a U.S. No. 

1 Golden from May 15 to June 14 each 

season and to a U.S. No. 2 external/U.S. 

No. 1 internal from June 15 to August 

31 each season. This rule will provide 

additional Valencia and other late type 

oranges for late season markets and will 

help maximize fresh shipments. The 

Committee unanimously recommended 

these changes at a meeting on April 3, 

2014. 

Section 905.52 of the order provides, 

in part, authority to establish minimum 

grade requirements for Florida citrus. 

Section 905.306 of the order’s rules and 

regulations specifies the minimum 

grade requirements for different 

varieties of fresh Florida citrus. Such 

requirements for domestic shipments 

are specified in Table I of § 905.306(a). 

The characteristics of these grades are 

specified in the U.S. Standards for 

Grades of Florida Oranges and Tangelos 

(7 CFR 51.1140 through 51.1179). 

Last season, the Committee 

recommended relaxing grade and size 

requirements for the last part of the 

season. The purpose of this change was 

to make additional Valencia and other 

late type oranges available to supply 

potential late season markets. The 

Committee made this recommendation 

as it was difficult to supply late season 

markets due to the limited volume of 

fruit remaining after May 15 that would 

meet the then-current size and grade 

requirements. In a rulemaking action (78 

FR 52079, as corrected at 79 FR 19461), 

the minimum size requirement for 

Valencia and other late type oranges 

shipped to interstate markets was 

reduced from 28⁄16 inches to 24⁄16 inches 

from May 15 through August 31 each 

season. This action also reduced the 

minimum grade requirement for 

Valencia and other late type oranges 

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30440 Federal Register / Vol. 79, No. 102 / Wednesday, May 28, 2014 / Rules and Regulations 

shipped to interstate markets from a 

U.S. No. 1 to a U.S. No. 1 Golden from 

May 15, 2013, to June 14, 2013, and to 

a U.S. No. 2 external/U.S. No. 1 internal 

from June 15, 2013, to August 31, 2013. 

At its April 2014 meeting, the 

Committee discussed the effects of the 

2012–13 season rulemaking change. The 

Committee concluded that the 

temporary grade change had provided 

handlers the opportunity to sell 

additional fruit without affecting overall 

consumer demand for Valencia and 

other late type oranges. The Committee 

approximated that the industry had 

benefited from an additional $500,000 

in sales as a result of the change. 

Consequently, the Committee 

recommended continuing the relaxation 

in the minimum grade for the 2013–14 

season and subsequent seasons. 

Therefore, this rule reduces the 

minimum grade requirement for 

Valencia and other late type oranges 

shipped to interstate markets from a 

U.S. No. 1 to a U.S. No. 1 Golden from 

May 15 to June 14 each season and to 

a U.S. No. 2 external/U.S. No. 1 internal 

from June 15 to August 31 each season. 

The Committee believes that relaxing 

grade requirements will provide an 

outlet for fruit that may otherwise go 

unharvested. This will maximize fresh 

shipments by allowing more fruit to be 

shipped to the fresh market, increasing 

returns to both handlers and growers. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), the Agricultural 

Marketing Service (AMS) has 

considered the economic impact of this 

action on small entities. Accordingly, 

AMS has prepared this initial regulatory 

flexibility analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions in 

order that small businesses will not be 

unduly or disproportionately burdened. 

Marketing orders issued pursuant to the 

Act, and the rules issued thereunder, are 

unique in that they are brought about 

through group action of essentially 

small entities acting on their own 

behalf. 

There are approximately 30 Valencia 

and other late type orange handlers 

subject to regulation under the 

marketing order and approximately 750 

producers of citrus in the production 

area. Small agricultural service firms are 

defined by the Small Business 

Administration (SBA) as those whose 

annual receipts are less than $7,000,000, 

and small agricultural producers are 

defined as those having annual receipts 

less than $750,000 (13 CFR 121.201). 

Based on industry and Committee 

data, the average f.o.b. price for fresh 

Valencia and other late type oranges 

during the 2012–13 season was 

approximately $11.80 per 4⁄5 bushel 

carton, and total fresh shipments were 

approximately 3.6 million cartons. 

Using the average f.o.b. price and 

shipment data, the majority of Florida 

Valencia and other late type orange 

handlers could be considered small 

businesses under SBA’s definition. In 

addition, the average annual grower 

revenue is below $750,000 based on 

production data, grower prices as 

reported by NASS, and the total number 

of Florida citrus growers. Thus, 

assuming a normal distribution, the 

majority of Valencia and other late type 

orange handlers and producers may be 

classified as small entities. 

This rule relaxes the grade 

requirements for Valencia and other late 

type oranges prescribed under the order. 

This change will allow additional late 

season fruit to be shipped to the fresh 

market, maximizing shipments and 

providing additional returns to both 

handlers and growers. This rule revises 

§ 905.306 by reducing the minimum 

grade requirements for interstate 

shipments of Valencia and other late 

type oranges from a U.S. No. 1 to a U.S. 

No. 1 Golden from May 15 to June 14 

each season and to a U.S. No. 2 

external/U.S. No. 1 internal from June 

15 to August 31 each season. Authority 

for these changes is provided for in 

§ 905.52. These changes were 

unanimously recommended by the 

Committee at its April 3, 2014, meeting. 

This action does not impose any 

additional costs on the industry. 

However, it is anticipated that this 

action will have a beneficial impact. 

Reducing the grade requirements for 

Valencia and other late type oranges 

from May 15 to August 31 will make 

additional fruit available for shipment 

to the fresh market, providing the 

opportunity to supply late season 

markets. The Committee believes that 

relaxing the grade requirements will 

provide an outlet for fruit that may 

otherwise go unharvested. This will 

allow more fruit to be shipped to the 

fresh market and increase returns to 

both handlers and growers. The benefits 

of this rule are expected to be equally 

available to all fresh citrus growers and 

handlers, regardless of their size. 

Regarding alternatives to this action, 

the Committee considered leaving the 

current grade regulations in place but 

found that the relaxation in grade that 

was in effect for the 2012–13 season 

provided additional fruit to the fresh 

market without affecting consumer 

demand. Therefore, the Committee 

rejected this alternative. 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the order’s information 

collection requirements have been 

previously approved by the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0189, Generic 

Fruit Crops. No changes in those 

requirements as a result of this action 

are necessary. Should any changes 

become necessary, they would be 

submitted to OMB for approval. 

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

Florida citrus handlers. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public sector agencies. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

In addition, USDA has not identified 

any relevant Federal rules that 

duplicate, overlap, or conflict with this 

rule. 

Further, the Committee meeting was 

widely publicized throughout the 

Florida citrus industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations. Like all Committee 

meetings, the April 3, 2014, meeting 

was a public meeting, and all entities, 

both large and small, were able to 

express their views on this issue. 

Finally, interested persons are invited to 

submit comments on this interim rule, 

including the regulatory and 

informational impacts of this action on 

small businesses. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: http://www.ams.usda.gov/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

This rule invites comments on a 

change to the grade requirements 

currently prescribed under the Florida 

citrus marketing order. Any comments 

received will be considered prior to 

finalization of this rule. 

After consideration of all relevant 

material presented, including the 

Committee’s recommendation, and 

other information, it is found that this 

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Federal Register / Vol. 79, No. 102 / Wednesday, May 28, 2014 / Rules and Regulations 30441 

interim rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 

Pursuant to 5 U.S.C. 553, it is also 

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) This action relaxes the 

current grade requirements under the 

order; (2) these changes need to be in 

effect by May 15, 2014; (3) the 

Committee unanimously recommended 

these changes at a public meeting and 

interested parties had an opportunity to 

provide input; and (4) this rule provides 

a 60-day comment period and any 

comments received will be considered 

prior to finalization of this rule. 

List of Subjects in 7 CFR Part 905 

Grapefruit, Marketing agreements, 

Oranges, Reporting and recordkeeping 

requirements, Tangelos, Tangerines. 

For the reasons set forth in the 

preamble, 7 CFR part 905 is amended as 

follows: 

PART 905—ORANGES, GRAPEFRUIT, 

TANGERINES, AND TANGELOS 

GROWN IN FLORIDA 

■ 1. The authority citation for 7 CFR 

parts 905 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. In § 905.306, Table I in paragraph 

(a) is amended by revising the entry for 

‘‘Valencia and other late type’’ under 

‘‘Oranges’’ to read as follows: 

§ 905.306 Orange, Grapefruit, Tangerine, 

and Tangelo Regulation. 

(a) * * * 

TABLE I 

Variety Regulation period Minimum grade 

Minimum 

diameter 

(inches) 

(1) (2) (3) (4) 

*******

Valencia and other late type .................... September 1–May 14 .............................. U.S. No. 1 ............................................... 28⁄16

May 15–June 14 ..................................... U.S. No. 1 Golden ................................... 24⁄16

June 15–August 31 ................................. U.S. No. 2, External/U.S. No. 1, Internal 24⁄16

* * * * * * * 

* * * * * 

Dated: May 22, 2014. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2014–12287 Filed 5–23–14; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 920 

[Doc. No. AMS–FV–12–0008; FV12–920–1 

FR] 

Kiwifruit Grown in California; Order 

Amending Marketing Order No. 920 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule amends 

Marketing Order No. 920 (order), which 

regulates the handling of kiwifruit 

grown in California. The amendments 

were proposed by the Kiwifruit 

Administrative Committee (Committee 

or KAC), which is responsible for the 

local administration of the order. The 

five amendments will provide authority 

to recommend and conduct production 

and postharvest research, to recommend 

and conduct market research and 

development projects, to receive and 

expend voluntary contributions, to 

specify that recommendations for 

production research and market 

development be approved by eight 

members of the Committee, and to 

update provisions regarding alternate 

members’ service on the Committee. 

These amendments are intended to 

improve administration of and 

compliance with the order, as well as 

reflect current industry practices. 

DATES: This rule is effective May 29, 

2014. 

FOR FURTHER INFORMATION CONTACT: 

Melissa Schmaedick, Marketing Order 

and Agreement Division, Fruit and 

Vegetable Program, AMS, USDA, Post 

Office Box 952, Moab, UT 84532; 

Telephone: (202) 557–4783, Fax: (435) 

259–1502, or Email: 

Melissa.Schmaedick@ams.usda.gov; or, 

Michelle Sharrow, Marketing Order and 

Agreement Division, Fruit and 

Vegetable Program, AMS, USDA, 1400 

Independence Avenue SW., Stop 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–9921, Fax: (202) 

720–8938 or Email: Michelle.Sharrow@

ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutny@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Order No. 

920, as amended (7 CFR part 920), 

regulating the handling of kiwifruit 

produced in California, hereinafter 

referred to as the ‘‘order.’’ The order is 

effective under the Agricultural 

Marketing Agreement Act of 1937, as 

amended (7 U.S.C. 601–674), hereinafter 

referred to as the ‘‘Act.’’ Section 

608c(17) of the Act and the applicable 

rules of practice and procedure 

governing the formulation of marketing 

agreements and orders (7 CFR part 900) 

authorize amendments of the order 

through this informal rulemaking 

action. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Orders 

12866, 13563, and 13175. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. This rule shall 

not be deemed to preclude, preempt, or 

supersede any research and market 

development provisions of any State 

program covering California kiwifruit (7 

U.S.C. 608c(6)(I)). 

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