```

[Federal Register Volume 79, Number 128 (Thursday, July 3, 2014)]
[Rules and Regulations]
[Pages 37928-37930]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15594]

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 906

[Doc. No. AMS-FV-14-0015; FV14-906-2 FIR]

Oranges and Grapefruit Grown in Lower Rio Grande Valley in Texas; 
Change in Size and Grade Requirements for Grapefruit

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Affirmation of interim rule as final rule.

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

SUMMARY: The Department of Agriculture (USDA) is adopting, as a final 
rule, without change, an interim rule that relaxed the minimum size and 
grade requirements prescribed for grapefruit under the marketing order 
for oranges and grapefruit grown the Lower Rio Grande Valley in Texas 
(order). The interim rule relaxed the minimum size requirement for 
grapefruit from 3-5/16 inches to 3 inches in diameter and reduced the 
minimum grade requirement for small-sized grapefruit. This rule 
provides additional grapefruit to meet market demand, helping to 
maximize fresh shipments.

DATES: Effective July 7, 2014.

FOR FURTHER INFORMATION CONTACT: Doris Jamieson, Marketing Specialist, 
or Christian D. Nissen, Regional Director, Southeast Marketing Field 
Office, Marketing Order and Agreement Division, Fruit and Vegetable 
Program, AMS, USDA; Telephone: (863) 324-3375, Fax: (863) 325-8793, or 
Email: Doris.Jamieson@ams.usda.gov or Christian.Nissen@ams.usda.gov.
    Small businesses may obtain information on complying with this and 
other marketing order and agreement 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-

[[Page 37929]]

2491, Fax: (202) 720-8938, or Email: Jeffrey.Smutny@ams.usda.gov.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 906, as amended (7 CFR part 906), regulating 
the handling of oranges and grapefruit grown in the Lower Rio Grande 
Valley in Texas, hereinafter referred to as the ``order.'' The order is 
effective under the Agricultural Marketing Agreement Act of 1937, as 
amended (7 U.S.C. 601-674), hereinafter referred to as the ``Act.''
    USDA is issuing this rule in conformance with Executive Orders 
12866, 13563, and 13175.
    The handling of oranges and grapefruit grown in the Lower Rio 
Grande Valley in Texas is regulated by 7 CFR part 906. Prior to this 
change, the minimum size requirement for grapefruit was 3-5/16 inches 
in diameter (size 56) and size 56 fruit had to meet a minimum grade of 
a U.S. No. 1. The Texas Valley Citrus Committee (Committee) believes 
there is a shortage of fruit available to supply the fresh fruit 
market, which the Texas citrus growers and handlers should fill. The 
Committee also recognized that consumers are now showing a preference 
for smaller-sized fruit. The Committee believes relaxing the 
requirements makes more fruit available to fill the market shortfall 
and provides smaller-sized fruit to meet consumer demand. Therefore, 
this rule continues in effect the rule that relaxed the minimum size 
requirement for grapefruit from 3-5/16 inches (size 56) to 3 inches 
(size 64) in diameter and relaxed the minimum grade for a size 56, 
establishing a minimum grade of ``Texas Choice'' for both size 56 and 
size 64 grapefruit.
    In an interim rule published in the Federal Register on February 
28, 2014, and effective March 1, 2014, (79 FR 11295, Doc. No. AMS-FV-
14-0015, FV14-906-2 IR), Sec.  906.356 was amended by changing the 
minimum size requirement for grapefruit from 3-5/16 inches (size 56) to 
3 inches (size 64) in diameter. Section 906.340 was also revised by 
adding size 64 to the available pack sizes for grapefruit listed under 
Table II, and by adding language concerning pack and sizing 
requirements as appropriate. In addition, this rule changed the minimum 
grade requirement for size 56 fruit from a U.S. No. 1 to a ``Texas 
Choice'' and established the minimum grade for a size 64 as a ``Texas 
Choice.''

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 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are 13 registered handlers of Texas citrus who are subject to 
regulation under the marketing order and approximately 150 producers of 
grapefruit in the regulated area. Small agricultural service firms, 
which include handlers, are defined by the Small Business 
Administration (SBA) as those having annual receipts of less than 
$7,000,000, and small agricultural producers are defined as those 
having annual receipts of less than $750,000 (13 CFR 121.201).
    According to National Agricultural Statistics Service data, the 
average f.o.b. price for Texas grapefruit during the 2012-13 season was 
$24.10 per box, and total fresh shipments were approximately 3 million 
boxes. Using the average f.o.b. price and shipment data, and 
considering a normal distribution, the majority of Texas grapefruit 
handlers could be considered small businesses under SBA's definition. 
In addition, based on production data, grower prices, and the total 
number of Texas citrus growers, the average annual grower revenue is 
below $750,000. Thus, the majority of handlers and producers of 
grapefruit may be classified as small entities.
    This rule continues in effect the action that relaxed the size and 
grade requirements for grapefruit prescribed under the order. This rule 
relaxes the minimum size requirement for grapefruit from 3\5/16\ inches 
(size 56) to 3 inches (size 64). This action also relaxes the minimum 
grade requirement for size 56 fruit from a U.S. No. 1 to a ``Texas 
Choice'' and establishes the minimum grade for size 64 as a ``Texas 
Choice.'' These changes make additional fruit available for shipment to 
the fresh market, maximize shipments, provide additional returns to 
handlers and growers, and respond to consumer demand for small-sized 
fruit. This rule amends the provisions in Sec. Sec.  906.340 and 
906.356. Authority for these changes is provided in Sec.  906.40.
    This action is not expected to increase costs associated with the 
order's requirements. Rather, it is anticipated that this action will 
have a beneficial impact. Reducing size and grade requirements makes 
additional fruit available for shipment to the fresh market. The 
Committee believes that this provides additional fruit to fill a 
shortage in the fresh market and provides the opportunity to fulfill a 
growing consumer demand for smaller sized fruit. This action also 
provides an outlet for fruit that may otherwise go unharvested, 
maximizing fresh shipments and increasing returns to handlers and 
growers. The benefits of this rule are expected to be equally available 
to all fresh grapefruit growers and handlers, regardless of their size.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the order's information collection requirements have been 
previously approved by the Office of Management and Budget (OMB) and 
assigned OMB No. 0581-0189, Generic Fruit Crops. No changes in those 
requirements as a result of this action are necessary. Should any 
changes become necessary, they would be submitted to OMB for approval.
    This rule will not impose any additional reporting or recordkeeping 
requirements on either small or large Texas citrus handlers. As with 
all Federal marketing order programs, reports and forms are 
periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies. In addition, USDA 
has not identified any relevant Federal rules that duplicate, overlap 
or conflict with this rule.
    Further, the Committee's meeting was widely publicized throughout 
the Texas citrus industry and all interested persons were invited to 
attend the meeting and participate in Committee deliberations. Like all 
Committee meetings, the December 11, 2013, meeting was a public meeting 
and all entities, both large and small, were able to express their 
views on this issue.
    Comments on the interim rule were required to be received on or 
before April 29, 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-14-0015-0001.
    This action also affirms information contained in the interim rule 
concerning Executive Orders 12866, 12988, 13175, and 13563; the 
Paperwork Reduction Act (44 U.S.C. Chapter 35); and the E-Gov Act (44 
U.S.C. 101).

[[Page 37930]]

    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 11295, February 28, 2014) will tend to 
effectuate the declared policy of the Act.

List of Subjects in 7 CFR Part 906

    Grapefruit, Marketing agreements, Oranges, Reporting and 
recordkeeping requirements.
    Accordingly, the interim rule that amended 7 CFR part 906 and was 
published at 79 FR 11295 on February 28, 2014, is adopted as a final 
rule, without change.

    Dated: June 27, 2014.
Rex A. Barnes,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2014-15594 Filed 7-2-14; 8:45 am]
BILLING CODE 3410-02-P
```