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[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]
[Rules and Regulations]
[Pages 58663-58664]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23239]

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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 905

[Doc. No. AMS-FV-14-0041; FV14-905-2 FIR]

Oranges, Grapefruit, Tangerines, and Tangelos Grown in Florida; 
Relaxing Grade Requirements on Valencia and Other Late Type Oranges

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that changed the minimum grade 
requirements prescribed under the marketing order for oranges, 
grapefruit, tangerines, and tangelos grown in Florida (order). The 
interim rule reduced 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 provides additional Valencia and other late type 
oranges for late season markets, helping to maximize fresh shipments.

DATES: Effective October 1, 2014.

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 obtain information on complying with this and 
other marketing order regulations by viewing a guide at the following 
Web site: http://www.ams.usda.gov/MarketingOrdersSmallBusinessGuide; or 
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.
    The handling of oranges, grapefruit, tangerines, and tangelos grown 
in Florida is regulated by 7 CFR part 905. Prior to this change, the 
minimum grade requirement for Valencia and other late type oranges was 
a U.S. No. 1 from August 1 through June 14 each season and a U.S. No. 2 
external/U.S. No. 1 internal from June 15 through July 31 each season. 
The Committee reviewed the effects of a temporary grade change for the 
2012-13 season and concluded that the change had provided handlers the 
opportunity to sell additional fruit without affecting overall consumer 
demand for Valencia and other late type oranges. Consequently, the 
Committee recommended continuing the relaxation in the minimum grade 
for the 2013-14 season and subsequent seasons. Therefore, this rule 
continues in effect the rule that reduced 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.
    In an interim rule published in the Federal Register on May 28, 
2014, and effective on May 23, 2014, (79 FR 30439, Doc. No. AMS-FV-14-
0041, FV14-905-2 IR), Sec.  905.306 was amended by changing the minimum 
grade requirement for Valencia and other late

[[Page 58664]]

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.

Final 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 final 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 continues in effect the action that reduced the grade 
requirements for Valencia and other late type oranges prescribed under 
the order. This rule reduces the minimum grade requirements of Valencia 
and other late type oranges 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. 
Authority for these changes is provided in Sec.  905.52.
    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 through August 31 makes 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 provides an outlet for fruit that may otherwise go 
unharvested. This allows more fruit to be shipped to the fresh market 
and increases 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.
    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. 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.
    Comments on the interim rule were required to be received on or 
before July 28, 2014. No comments were received. Therefore, for the 
reasons given in the interim rule, we are adopting the interim rule as 
a final rule, without change.
    To view the interim rule, go to: http://www.regulations.gov/#!documentDetail;D=AMS-FV-14-0041-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; the 
Paperwork Reduction Act (4 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).
    After consideration of all relevant material presented, it is found 
that finalizing the interim rule, without change, as published in the 
Federal Register (79 FR 30439, May 28, 2014) will tend to effectuate 
the declared policy of the Act.

List of Subjects in 7 CFR Part 905

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements, Tangelos, Tangerines.

PART 905--ORANGES, GRAPEFRUIT, TANGERINES, AND TANGELOS GROWN IN 
FLORIDA

0
Accordingly, the interim rule that amended 7 CFR part 905 and that was 
published at 79 FR 30439 on May 28, 2014, is adopted as a final rule, 
without change.

    Dated: September 24, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-23239 Filed 9-29-14; 8:45 am]
BILLING CODE 3410-02-P
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