Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations 15641 

§ 318.60(c). Therefore, in the final rule, 

we should have also included an 

exception for ‘‘Subpart—Sand, Soil, or 

Earth, with Plants from Territories and 

Districts’’ in § 318.13–1(b). We are 

correcting that error in this technical 

amendment. 

List of Subjects in 7 CFR Part 318 

Cotton, Cottonseeds, Fruits, Guam, 

Hawaii, Plant diseases and pests, Puerto 

Rico, Quarantine, Transportation, 

Vegetables, Virgin Islands. 

■ Accordingly, we are amending 7 CFR 

part 318 as follows: 

PART 318—STATE OF HAWAII AND 

TERRITORIES QUARANTINE NOTICES 

■ 1. The authority citation for part 318 

continues to read as follows: 

Authority: 7 U.S.C. 7701–7772 and 7781– 

7786; 7 CFR 2.22, 2.80, and 371.3. 

■ 2. In § 318.13–1, paragraph (b) is 

amended by adding the words ‘‘and 

‘‘Subpart—Sand, Soil, or Earth, with 

Plants from Territories and Districts’’’’ 

after the word ‘‘Products’’’’. 

Done in Washington, DC, this 1st day of 

April 2009. 

Kevin Shea, 

Acting Administrator, Animal and Plant 

Health Inspection Service. 

[FR Doc. E9–7845 Filed 4–6–09; 8:45 am] 

BILLING CODE 3410–34–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Parts 905 and 944 

[Doc. No. AMS–FV–09–0002; FV09–905–1 

IFR] 

Oranges, Grapefruit, Tangerines and 

Tangelos Grown in Florida and 

Imported Grapefruit; Relaxation of Size 

Requirements for Grapefruit 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Interim final rule with request 

for comments. 

SUMMARY: This rule relaxes the 

minimum size requirement for white 

seedless grapefruit grown in Florida and 

for white seedless grapefruit imported 

into the United States for the fresh 

market. The Citrus Administrative 

Committee (Committee) which locally 

administers the marketing order for 

oranges, grapefruit, tangerines, and 

tangelos grown in Florida (order) 

recommended this change for Florida 

grapefruit. The corresponding change in 

the import regulation is required under 

section 8e of the Agricultural Marketing 

Agreement Act of 1937. This rule 

relaxes the minimum size requirement 

for domestic shipments, making it the 

same as required for export shipments. 

This change is expected to maximize 

fresh white seedless grapefruit 

shipments and provide greater 

flexibility to handlers. 

DATES: Effective April 8, 2009; 

comments received by June 8, 2009 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 Administration Branch, Fruit and 

Vegetable Programs, 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 the 

comments will be made public on the 

Internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Doris Jamieson, Marketing Specialist, or 

Christian D. Nissen, Regional Manager, 

Southeast Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 325–8793, or e-mail: 

Doris.Jamieson@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jay Guerber, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA, 1400 Independence 

Avenue, SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or e-mail: 

Jay.Guerber@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under Marketing Agreement 

No. 84 and Marketing Order No. 905, 

both 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.’’ 

This rule is also issued under section 

8e of the Act, which provides that 

whenever certain specified 

commodities, including grapefruit, are 

regulated under a Federal marketing 

order, imports of these commodities 

into the United States are prohibited 

unless they meet the same or 

comparable grade, size, quality, or 

maturity requirements as those in effect 

for the domestically produced 

commodities. 

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. This rule will 

not preempt any State or local laws, 

regulations, or policies, unless they 

present an irreconcilable conflict with 

this rule. 

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. 

There are no administrative 

procedures which must be exhausted 

prior to any judicial challenge to the 

provisions of import regulations issued 

under section 8e of the Act. 

This rule relaxes the minimum size 

requirement for white seedless 

grapefruit grown in Florida and for 

white seedless grapefruit imported into 

the United States for the fresh market. 

This rule relaxes the minimum size 

requirement for shipments to the 48 

contiguous States and the District of 

Columbia so the minimum size 

requirement is the same for both the 

domestic and export markets. This 

change is expected to maximize fresh 

white seedless grapefruit shipments and 

provide greater flexibility to handlers. 

The Committee met on December 16, 

15642 Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations 

2008, and unanimously recommended 

this change. 

Section 905.52 of the order provides 

authority to establish grade and size 

requirements for Florida citrus. Section 

905.306 of the order specifies, in part, 

the minimum size requirements for 

Florida citrus. Such requirements for 

domestic shipments are specified in 

§ 905.306 in Table I of paragraph (a). 

Minimum grade and size requirements 

for white seedless grapefruit imported 

into the United States are currently in 

effect under § 944.106. 

The current minimum size 

requirement for domestic shipments of 

white seedless grapefruit is 39⁄16 inches. 

This rule relaxes the minimum size 

requirement from 39⁄16 inches (size 48) 

to 35⁄16 inches (size 56). 

Currently, white seedless grapefruit 

shipped to the domestic market must 

meet a more restrictive minimum size 

requirement than fruit shipped to the 

export market. The more restrictive size 

requirement for domestic shipments 

was established in response to market 

preference for larger sized fruit and to 

help maintain better grower prices for 

the larger sizes. The industry believed 

that absent the larger minimum size 

requirement the domestic market would 

be oversupplied with small sized, 

lower-priced fruit, which would reduce 

the price for the larger sizes. Conversely, 

the export market favored the smaller 

sized fruit. Therefore, establishing the 

different minimum size requirements 

satisfied both markets. 

However, over the last decade, the 

total supply of white seedless grapefruit 

has declined. Total production of white 

seedless grapefruit grown in Florida 

during the 1999–2000 season was 

approximately 20,510,000 13⁄5 bushel 

boxes compared to 8,539,000 boxes 

produced during the 2007–08 season. 

This represents a 58 percent decrease in 

Florida white seedless grapefruit 

production from 1999 to 2008. 

Shipments of fresh white seedless 

grapefruit have also been declining. 

Since the 1999–2000 season, fresh 

shipments have declined by more than 

70 percent. During the 2007–08 season, 

domestic shipments of white seedless 

grapefruit accounted for only one 

percent of total fresh grapefruit 

shipments. The export markets have 

traditionally been good markets for size 

56 white seedless grapefruit. However, 

fresh shipments of white seedless 

grapefruit to export markets have also 

declined. 

With the changes in supply and 

demand, the Committee believes the 

larger minimum size requirement for 

domestic shipments is no longer 

needed. Further, Committee members 

agreed that with the demand for white 

seedless grapefruit declining, handlers 

need to be able to ship fruit to 

whichever markets become available. 

However, the different minimum size 

requirements for domestic and export 

markets have presented problems for 

handlers trying to take advantage of 

available markets. Fruit packed for the 

export market cannot be shipped to the 

domestic market without first being 

repacked to ensure it meets the more 

restrictive size requirements. Repacking 

the fruit is a cost burden on handlers 

and reduces returns to growers. 

Consequently, the Committee 

recommended that the minimum size 

requirement for domestic shipments of 

white seedless grapefruit be relaxed 

from size 48 to size 56. This change 

makes the minimum size requirement 

the same for both the domestic and 

export markets. Having the same 

minimum size requirement for both 

domestic and export shipments will 

make it easier to move fruit to available 

markets without having to repack fruit 

to meet the differing size requirements. 

This reduces costs and provides greater 

flexibility for handlers. In addition, this 

change makes more fruit available for 

shipment to the domestic market 

helping to maximize fresh shipments, 

which may increase grower returns. 

Section 8e of the Act provides that 

when certain domestically produced 

commodities, including grapefruit, are 

regulated under a Federal marketing 

order, imports of that commodity must 

met the same or comparable grade, size, 

quality, and maturity requirements. 

Since this rule changes the minimum 

size requirement under the domestic 

handling regulations, a corresponding 

change to the import regulations must 

also be made. 

Minimum grade and size 

requirements for grapefruit imported 

into the United States are currently in 

effect under § 944.106. This change 

relaxes the minimum size requirement 

for imported white seedless grapefruit 

from 39⁄16 inches (size 48) to 35⁄16 inches 

(size 56). The relaxation in the 

minimum size requirement also has a 

beneficial impact for importers of white 

seedless grapefruit. This change allows 

size 56 white seedless grapefruit to be 

shipped to the United States increasing 

the amount of fruit available for 

shipment to the fresh market, thus 

benefiting importers. 

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 

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 approximately 40 Florida 

grapefruit handlers subject to regulation 

under the marketing order and about 

8,000 citrus producers in the production 

area. There are approximately 10 

grapefruit importers. Small agricultural 

service firms, which include grapefruit 

handlers and importers, 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 whose annual receipts are less 

than $750,000 (13 CFR 121.201). 

According to industry and Committee 

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

fresh Florida white seedless grapefruit 

during the 2007–08 season was $10.30 

per 4⁄5-bushel carton, and total fresh 

shipments were around 3.3 million 

cartons. Based on the average f.o.b. 

price, a majority of Florida white 

seedless grapefruit handlers could be 

considered small businesses under 

SBA’s definition. In addition, based on 

production and grower prices reported 

by the National Agricultural Statistics 

Service and the total number of Florida 

citrus producers, the average annual 

producer revenue is less than $750,000. 

Information from the Foreign 

Agricultural Service, USDA, indicates 

that the dollar value of imported fresh 

grapefruit ranged from approximately 

$2.14 million in 2006 to $2.06 million 

in 2008. Using these values, all 

importers would have annual receipts of 

less than $7 million for grapefruit. 

Therefore, the majority of handlers, 

producers and importers of white 

seedless grapefruit may be classified as 

small entities. 

The Bahamas, Mexico, and Israel are 

the major grapefruit producing countries 

exporting grapefruit to the United 

States. In 2008, shipments of grapefruit 

imported into the United States totaled 

14,257 metric tons. The Bahamas 

accounted for 10,362 metric tons, 2,741 

metric tons were imported from Mexico, 

and 104 metric tons arrived from Israel. 

This rule relaxes the minimum size 

requirement for white seedless 

grapefruit grown in Florida and for 

white seedless grapefruit imported into 

Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations 15643 

the United States for the fresh market. 

This rule relaxes the minimum size 

requirement for domestic shipments to 

the 48 contiguous States and the District 

of Columbia from 39⁄16 inches (size 48) 

to 35⁄16 inches (size 56) making the 

minimum size requirement the same for 

both the domestic and export markets. 

This rule also relaxes the minimum size 

requirement for imports of fresh white 

seedless grapefruit from 39⁄16 inches 

(size 48) to 35⁄16 inches (size 56). This 

change is expected to maximize fresh 

white seedless grapefruit shipments and 

provide greater flexibility to handlers. 

Authority for this action is provided in 

§ 905.52. This rule amends the 

provisions of §§ 905.306 and 944.106. 

The Committee unanimously 

recommended this change at its 

December 16, 2008, meeting. The 

change in the import regulation is 

required under section 8e of the Act. 

This action is not expected to increase 

costs associated with the order 

requirements or the grapefruit import 

regulation. Rather, this action represents 

a cost savings for handlers and has the 

potential to increase industry returns. 

This change makes the minimum size 

requirement the same for both the 

domestic and export markets. Having 

the same minimum size requirement for 

both domestic and export shipments 

will make it easier to move fruit to 

available markets without having to 

repack fruit to meet the differing size 

requirements. This reduces costs and 

provides greater flexibility for handlers. 

The Committee believes this change will 

help improve the marketing of white 

seedless grapefruit and maximize 

shipments to fresh market channels. 

The on-tree price for processed white 

seedless grapefruit for the 2007–08 

season was $0.33 per box compared to 

$10.05 per box for fruit sold to the fresh 

market. With limited returns for 

processed grapefruit, reducing the 

minimum size requirement for the 

domestic market could shift an 

additional volume of small sizes to the 

fresh market. This will help maximize 

fresh shipments and should increase 

industry returns. Importers will also 

benefit from this change, as a greater 

volume of fruit will be available for 

shipment to the United States. The 

opportunities and benefits of this rule 

are expected to be equally available to 

all grapefruit handlers, growers, and 

importers, regardless of their size. 

The only alternative to this action 

discussed by the Committee was to 

maintain the current minimum size 

requirement for domestic shipments. 

However, the Committee agreed that 

relaxing the minimum size would make 

additional white seedless grapefruit 

available for the fresh market, would 

provide more flexibility to handlers, and 

could result in better returns. Therefore, 

the alternative was rejected. 

This rule will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

grapefruit 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. 

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. 

Further, the Committee’s 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 December 16, 2008, 

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 final 

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/ 

AMSv1.0/ams.fetchTemplateData.do?

template=TemplateN&page=Marketing

OrdersSmallBusinessGuide. Any 

questions about the compliance guide 

should be sent to Jay Guerber at the 

previously mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

This rule invites comments on a 

change to the minimum size 

requirements currently prescribed under 

the Florida citrus marketing order and 

the import requirements for grapefruit. 

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 

interim final rule, as hereinafter set 

forth, will tend to effectuate the 

declared policy of the Act. 

In accordance with section 8e of the 

Act, the United States Trade 

Representative has concurred with the 

issuance of this interim final rule. 

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

found and determined upon good cause 

that it is impracticable, unnecessary, 

and contrary to the public interest to 

give preliminary notice prior to putting 

this rule into effect and that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register 

because: (1) The shipping season for 

white seedless grapefruit has already 

started; (2) this rule represents a 

relaxation of the minimum size 

requirements; (3) the Committee 

unanimously recommended this change 

at a public meeting and interested 

parties had an opportunity to provide 

input; and (4) this rule provides a 60- 

day comment period and any comments 

received will be considered prior to 

finalization of this rule. 

List of Subjects 

7 CFR Part 905 

Grapefruit, Marketing agreements, 

Oranges, Reporting and recordkeeping 

requirements, Tangelos, Tangerines. 

7 CFR Part 944 

Avocados, Food grades and standards, 

Grapefruit, Grapes, Imports, Kiwifruit, 

Limes, Olives, Oranges. 

■ For the reasons set forth in the 

preamble, 7 CFR parts 905 and 944 are 

amended as follows: 

■ 1. The authority citation for 7 CFR 

parts 905 and 944 continues to read as 

follows: 

Authority: 7 U.S.C. 601–674. 

PART 905—ORANGES, GRAPEFRUIT, 

TANGERINES, AND TANGELOS 

GROWN IN FLORIDA 

■ 2. In § 905.306, Table I in paragraph 

(a) is amended by revising the entry for 

‘‘Seedless, except red’’ under 

‘‘Grapefruit,’’ to read as follows: 

§ 905.306 Orange, Grapefruit, Tangerine 

and Tangelo Regulation. 

(a) * * * 

15644 Federal Register / Vol. 74, No. 65 / Tuesday, April 7, 2009 / Rules and Regulations 

TABLE I 

Variety Regulation period Minimum grade 

Minimum 

diameter 

(inches) 

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

* * * * * * * 

Grapefruit.

* * * * * * * 

Seedless, except red ............................... On and after 9/01/94 ............................... U.S. No. 1 ............................................... 35⁄16

* * * * * * * 

* * * * * PART 944—FRUITS; IMPORT 

REGULATIONS 

■ 3. In § 944.106, the table in paragraph 

(a) is amended by revising the entry for 

‘‘Seedless, except red’’ to read as 

follows: 

§ 944.106 Grapefruit import regulation. 

(a) * * * 

Grapefruit classification Regulation period Minimum grade 

Minimum 

diameter 

(inches) 

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

* * * * * * * 

Seedless, except red ............................... On and after 9/01/94 ............................... U.S. No. 1 ............................................... 35⁄16

* * * * * 

Dated: April 1, 2009. 

Robert C. Keeney, 

Acting Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. E9–7822 Filed 4–6–09; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Commodity Credit Corporation 

7 CFR Parts 1421 and 1434 

RIN 0560–AH87 

Marketing Assistance Loans and Loan 

Deficiency Payments 

AGENCY: Commodity Credit Corporation, 

USDA. 

ACTION: Final rule. 

SUMMARY: The Commodity Credit 

Corporation (CCC) is revising 

regulations as required by the Food, 

Conservation, and Energy Act of 2008 

(the 2008 Farm Bill) to administer the 

Marketing Assistance Loans (MAL) and 

Loan Deficiency Payments (LDP) 

programs for wheat, feed grains, 

soybeans, other oilseeds, peanuts, pulse 

crops, honey, wool and mohair. The 

2008 Farm Bill generally extends the 

existing programs with some changes 

that are implemented in this rule. The 

amendments in this rule will add large 

chickpeas, beginning with the 2009 crop 

year, to the list of pulse crops eligible 

for assistance and provide separate rates 

for long and medium grain rice 

beginning with the 2008 crop year. The 

addition of large chickpeas may increase 

the number of farmers and ranchers who 

may receive FSA and CCC program 

benefits. The amendments will also, in 

addition, to other amendments to the 

old rule and clarifications, allow 

producers to store collateral in Federally 

and State-licensed warehouses that do 

not have a CCC storage agreement, 

which may reduce redundant licensing 

costs for warehouse operators while 

allowing producers a greater choice of 

warehouses. 

DATES: Effective Date: April 6, 2009. 

FOR FURTHER INFORMATION CONTACT: Jose 

R. Gonzalez, Program Manager, 

Marketing Assistance Loans and Loan 

Deficiency Payment Programs or Tonye 

B. Gross, Program Manager, Peanut 

Program, Price Support Division, FSA/ 

USDA, STOP 0512, 1400 Independence 

Ave. SW., Washington, DC 20250–0512; 

telephone (202) 690–2534; or (202) 720– 

4319, facsimile (202) 690–3307; e-mails: 

Jose.Gonzalez@wdc.usda.gov or 

Tonye.Gross@wdc.usda.gov. Persons 

with disabilities who require alternative 

means of communication (Braille, large 

print, audio tape, etc.) should contact 

the USDA Target Center at (202) 720– 

2600 (voice and TDD). 

SUPPLEMENTARY INFORMATION: 

Background 

The 2008 Farm Bill extends MAL and 

LDP programs for the 2008 through 2012 

crop years. The 2008 Farm Bill generally 

extends the existing programs, with 

some minor changes that are 

implemented in this rule. In some cases, 

the 2008 Farm Bill gives the Secretary 

discretion to select among different 

policy options; this rule implements 

such discretionary changes. This rule 

also makes numerous housekeeping 

changes to make administrative 

improvements, correct typographical 

errors, remove expired regulations, and 

improve organization. 

Producers of eligible commodities 

that are eligible for loans can request 

MALs or LDPs on their commodities. 

MALs and LDPs are available to eligible 

producers beginning with harvest or 

shearing season and extending through 

the marketing year. MALs are 9-month 

loans with the commodity pledged as 

collateral for the loan. MALs and LDPs 

must be requested on or before the final