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16976 Federal Register / Vol. 71, No.

65 / Wednesday, April 5, 2006 / Rules and Regulations

DEPARTMENT OF AGRICULTURE Avenue, SW., STOP 0237, Washington, This final rule continues in effect the
DC 20250–0237; Telephone: (202) 720– action modifying the way a handler’s
Agricultural Marketing Service 2491, Fax: (202)720–8938, or E-mail: average week is determined if crop
Jay.Guerber@usda.gov. conditions limit shipments from any of
7 CFR Part 905 the three prior seasons. However, this
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement final rule amends the interim final rule
[Docket No. FV05–905–2 FIR]
No. 84 and Marketing Order No. 905, by removing the weekly percentages
Oranges, Grapefruit, Tangerines, and both as amended (7 CFR part 905), established for the first 22 weeks of the
Tangelos Grown in Florida; Modifying regulating the handling of oranges, 2005–2006 season which began
Procedures and Establishing September 19, 2005. At a meeting held
grapefruit, tangerines, and tangelos
Regulations To Limit Shipments of November 3, 2005, the Committee voted
grown in Florida, hereinafter referred to
Small Sizes of Red Seedless Grapefruit 11 in favor and 7 opposed to remove the
as the ‘‘order.’’ The order is effective
weekly percentages following the crop
under the Agricultural Marketing
AGENCY: Agricultural Marketing Service, losses sustained from Hurricane Wilma.
Agreement Act of 1937, as amended (7
USDA. Those opposed believed that the
U.S.C. 601–674), hereinafter referred to
ACTION: Final rule. percentages should continue in spite of
as the ‘‘Act.’’
the crop losses. This action provides
USDA is issuing this rule in
SUMMARY: The Department of more red seedless grapefruit for
conformance with Executive Order
Agriculture (USDA) is adopting, as a shipment to the fresh fruit market.
12866.
final rule, with changes, an interim final While the Committee recommended the
This rule has been reviewed under
rule limiting the volume of sizes 48 and removal of the weekly percentages, the
Executive Order 12988, Civil Justice
56 red seedless grapefruit entering the Committee also voted unanimously to
Reform. This rule is not intended to
fresh market and changing the maintain the reporting requirement for
have retroactive effect. This rule will
procedures used for this purpose under small sizes so that it could obtain a
not preempt any State or local laws,
the marketing order for oranges, clearer picture of market behavior
regulations, or policies, unless they
grapefruit, tangerines, and tangelos following two consecutive years of crop
present an irreconcilable conflict with
grown in Florida (order). The order is damage and losses caused by adverse
this rule. weather.
administered locally by the Citrus
The Act provides that administrative Section 905.52 of the order provides
Administrative Committee (Committee).
proceedings must be exhausted before authority to limit shipments of any
This rule continues in effect the action
parties may file suit in court. Under grade or size, or both, of any variety of
modifying the way a handler’s average
section 608c(15)(A) of the Act, any Florida citrus. Such limitations may
week is determined if crop conditions
handler subject to an order may file restrict the shipment of a portion of a
limit shipments from any of the three
with USDA a petition stating that the specified grade or size of a variety.
prior seasons. However, this final rule
order, any provision of the order, or any Under such a limitation, the quantity of
amends the interim final rule by
obligation imposed in connection with such grade or size a handler may ship
removing the weekly percentages
the order is not in accordance with law during a particular week is established
established for the first 22 weeks of the
and request a modification of the order as a percentage of the total shipments of
2005–2006 season which began
or to be exempted therefrom. A handler such variety shipped by that handler
September 19, 2005, while maintaining
is afforded the opportunity for a hearing during a prior period, established by the
the reporting requirement for small-
on the petition. After the hearing USDA Committee and approved by USDA.
sized red seedless grapefruit. The
would rule on the petition. Section 905.153 of the regulations
Committee voted to remove the weekly The Act provides that the district
percentages following the crop losses specifies procedures for limiting the
court of the United States in any district volume of small red seedless grapefruit
from Hurricane Wilma. This action in which the handler is an inhabitant,
should provide more red seedless entering the fresh market. These
or has his or her principal place of procedures specify that the Committee
grapefruit for shipment to the fresh fruit business, has jurisdiction to review
market. may recommend that only a certain
USDA’s ruling on the petition, provided percentage of sizes 48 and 56 red
DATES: Effective Date: May 5, 2006. an action is filed not later than 20 days seedless grapefruit can be made
FOR FURTHER INFORMATION CONTACT: after the date of the entry of the ruling. available for fresh shipment for any
Doris Jamieson, Southeast Marketing This rule finalizes, with changes, an week or weeks during the regulatory
Field Office, Marketing Order interim final rule published in the period. The regulation period is 22
Administration Branch, Fruit and Federal Register on September 14, 2005 weeks long and begins the third Monday
Vegetable Programs, AMS, USDA; (70 FR 54235). That rule modified the in September. Under such a limitation,
Telephone: (863) 324–3375, Fax: (863) procedures used to limit the volume of the recommended percentage is applied
325–8793; or George Kelhart, Technical sizes 48 (39⁄16 inches minimum to each handler’s average week to
Advisor, Marketing Order diameter) and 56 (35⁄16 inches minimum determine the quantity of sizes 48 and
Administration Branch, Fruit and diameter) red seedless grapefruit 56 red seedless grapefruit the handler
Vegetable Programs, AMS, USDA, 1400 entering the fresh market under the may ship. The average week constitutes
Independence Avenue, SW., STOP order. It provided that if crop conditions the prior period specified in § 905.52.
0237, Washington, DC 20250–0237; limit shipments from any of the three Therefore, an average week is calculated
Telephone: (202) 720–2491, Fax: (202) prior seasons, a prior season or seasons for each handler.
720–8938. can be substituted in the three-season Prior to the issuance of the interim
Small businesses may request average. It also instituted weekly final rule, an average week had to be
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information on complying with this percentages for the first 22 weeks of the calculated using the immediately
regulation by contacting Jay Guerber, 2005–2006 season beginning September preceding three seasons. The interim
Marketing Order Administration 19, 2005. The Committee unanimously final rule added provisions to § 905.153
Branch, Fruit and Vegetable Programs, recommended these actions at a meeting providing that if crop conditions limit
AMS, USDA, 1400 Independence held on May 10, 2005. shipments from any of the three prior

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Federal Register / Vol. 71, No. 65 / Wednesday, April 5, 2006 / Rules and Regulations 16977

seasons, a prior season or seasons can be This is turn would decrease a handler’s At its November 3, 2005, meeting, the
used for computing the three-season allotment of small grapefruit sizes. Committee discussed the percentage of
average. Including the 2004–05 season in base size rule which went into effect on
An average week is calculated by calculations would have reduced the September 19, 2005. The percentage of
adding the total red seedless grapefruit total base available to the industry by size regulation helps reduce the
shipments by a handler during the 33- more than 20 percent. However, the detrimental market effects of small-sized
week period beginning the third impact on individual handlers could red seedless grapefruit over-supplies.
Monday in September for the have been as great as reducing their base With the substantial reduction of the red
immediately preceding three seasons. by a third. Therefore, the Committee seedless grapefruit crop due to the
This total was divided by three to voted unanimously to change § 905.153 impact of the hurricanes, the Committee
establish an average season, and then to exclude the 2004–05 season when believes that a percentage size
divided by the 33 weeks in a season to calculating a handler’s average week for regulation for 2005–06 is not needed. In
derive the average week. When the the 2005–06 regulation season. fact, the Committee believes there may
Committee utilizes the provisions of To accommodate this be an insufficient amount of fruit to
§ 905.153 and establishes percentages recommendation and provide a method supply demand. Because of the impact
for the regulatory period, a handler’s to handle similar situations should they of the storms, there are less large-sized
average week is multiplied by the occur during future seasons, this rule red seedless grapefruit available for the
applicable percentage to establish that amends § 905.153 to provide that should 2005–06 season, so more of the smaller
handler’s allotment for shipping small shipments from any or all of the sizes will be needed to supply consumer
red seedless grapefruit during that immediately preceding three seasons be demand. Consequently, the reasons for
particular week. limited because of crop conditions, the regulating the amount of small red
Committee could use a prior season or seedless grapefruit entering the fresh
In 2004, the major grapefruit growing
seasons when determining the three- market during the 2005–06 season are
regions in Florida suffered significant
season average for the purpose of no longer applicable.
damage and fruit loss from multiple
calculating a handler’s average week. As a result, the Committee
hurricanes. The official USDA crop
Under this change, the Committee will recommended removing the weekly
estimate for the 2004–05 season
meet prior to the issuance of a percentages set for the 22 weeks
reflected a 69 percent decrease from the
percentage size regulation and beginning September 19, 2005 and
previous season’s estimate. Fresh
determine which seasons are to be used ending February 19, 2006. Section
shipments of red grapefruit for the
to calculate a handler’s average week. 905.350 has been modified accordingly.
2004–05 season were reduced by more
This change gives the Committee some However, during the discussion of the
than 63 percent in comparison to the additional flexibility to account for weekly percentages, interest was
2003–04 season. Consequently, the adverse crop conditions and assists in expressed in support of maintaining the
percentage of size regulation was not providing an average reflective of a reporting requirement portion of the
utilized for the 2004–05 season. handler’s normal shipments. regulation during the 2005–06 season.
The Committee met May 10, 2005, to The interim final rule also established Committee members agreed that
consider implementing a percentage of limits on the volume of sizes 48 (39⁄16 continuing to collect shipping data on
size regulation for red seedless inches minimum diameter) and 56 (35⁄16 small sizes will provide useful
grapefruit for the 2005–06 season. inches minimum diameter) red seedless information. This information can be
During its discussions, concerns were grapefruit entering the fresh market by used by handlers in making marketing
raised regarding the impact of the 2004– instituting weekly percentages for the decisions. Even though there is a
05 season when calculating a handler’s first 22 weeks of the 2005–06 season. reduced volume of red seedless
average week. Most handlers’ shipments The rule established weekly percentages grapefruit to supply the market, flooding
reflected a significant decline in volume at 35 percent for the first six weeks the market with smaller sizes could still
for the 2004–05 season, with some (September 19, 2005 through October reduce the over all pricing of red
handlers shipping no volume at all due 30, 2005), and 25 percent for weeks grapefruit. Knowing the volume of small
to the damage sustained by their seven through 22 (October 31, 2005 sizes shipped may assist handlers in
packinghouses from the storms. The through February 19, 2006). The making decisions that prevent an
Committee believes using production Committee unanimously recommended oversupply of small sizes of red
figures from a season in which adverse this action at its May 10, 2005, meeting. grapefruit. Such decisions may help
crop conditions caused a reduction in This action is similar to those taken in stabilize the pricing for all red grapefruit
the amount of fruit produced would previous seasons. during the current season.
distort the accuracy of a handler’s In making its recommendation, the Having access to this shipping
average shipments. Committee members Committee had taken into account an information will also assist the
agreed including the 2004–05 season in anticipated reduction in shipments due Committee in maintaining yearly
the calculation of a handler’s average to the lingering effects from the statistical information on small sizes.
week would result in averages that were hurricanes the industry experienced The Committee believes this
not reflective of a handler’s average during the 2004–05 season. However, in information will be useful when
shipments. October 2005, the industry experienced considering establishing future
When a handler is fairly consistent in additional crop loss due to the effects of percentage of size regulation. Knowing
the amount of fruit shipped each season, Hurricane Wilma. Shipments of red the volume of small sizes shipped
one season of decreased volume has the seedless grapefruit for 2005–06 are now during the 2005–06 season and its
potential to drastically reduce their estimated to be 10.5 million cartons, market impact may also help the
shipment average. With the handler’s down from the 17 million originally Committee when considering
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average week based on a three-season estimated for the season. Further, the implementing percentage size regulation
average, including a season such as last new estimate is close to 12 million during other crop reduced years.
season could significantly lower the cartons under shipments for the 2003– Therefore, the Committee recommended
handler’s average week on which the 04 season, the most recent season not maintaining the reporting requirement
percentage of size regulation is based. impacted by hurricanes. for small sizes for the 2005–06 season

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16978 Federal Register / Vol. 71, No. 65 / Wednesday, April 5, 2006 / Rules and Regulations

even though percentage size regulation classified as small entities. The majority average reflective of a handler’s normal
has been discontinued. No changes to of Florida grapefruit producers may also shipments.
any provisions are needed to continue be classified as small entities. Using shipment figures from a season
these reports for the remainder of the This rule finalizes, with changes, an where adverse crop conditions reduced
2005–06 shipping season. interim final rule published in the the amount of fruit shipped would
Section 8e of the Act requires that Federal Register on September 14, 2005 distort the accuracy of a handler’s
whenever grade, size, quality, or (70 FR 54235). This rule continues in average shipments. In 2004, the major
maturity requirements are in effect for effect the action changing the grapefruit growing regions in Florida
certain commodities under a domestic procedures used to limit the volume of suffered significant damage and fruit
marketing order, including grapefruit, sizes 48 and 56 red seedless grapefruit loss from multiple hurricanes, reducing
imports of that commodity must meet entering the fresh market by modifying the official USDA crop estimate by 69
the same or comparable requirements. the way a handler’s average week is percent from the previous season. Most
This rule does not change the minimum determined. The change provides that if handlers’ shipments reflected a
grade and size requirements under the crop conditions limit shipments from significant decline in volume, with
order, only the percentages of sizes 48 any of the immediately preceding three some handlers shipping no volume at
and 56 red grapefruit that may be seasons, a prior season or seasons can be all due to the damage sustained by their
handled. Therefore, no change is used for the three-season average. In packinghouses from the adverse
necessary in the grapefruit import addition, this final rule amends the weather.
regulations as a result of this action. interim final rule by removing the With the handler’s average week
weekly percentages established under based on a three-season average,
Final Regulatory Flexibility Analysis including a season such as last season
the provisions of § 905.153 for the first
Pursuant to requirements set forth in 22 weeks of the 2005–2006 season could significantly lower the handler’s
the Regulatory Flexibility Act (RFA), the which began September 19, 2005, but average week, decreasing a handler’s
Agricultural Marketing Service (AMS) maintains the reporting requirement for allotment of small size. Including the
has considered the economic impact of small sized red seedless grapefruit. This 2004–05 season in base calculations for
this action on small entities. rule revises the provisions of §§ 905.153 the 2005–06 season would reduce the
Accordingly, AMS has prepared this and 905.350. Authority for these actions total industry base available by more
final regulatory flexibility analysis. is provided in § 905.52. In a vote of 11 than 20 percent, with the possible
The purpose of the RFA is to fit in favor and 7 opposed, and in a reduction for individual handlers being
regulatory actions to the scale of unanimous vote, the Committee voted to as much as a third.
business subject to such actions in order remove the weekly percentages and to Consequently, this change allows the
that small businesses will not be unduly maintain the reporting requirement, Committee to provide additional
or disproportionately burdened. respectively, at a meeting on November allotment in seasons following years
Marketing orders issued pursuant to the 3, 2005. Those opposed to discontinuing where the crop was reduced by adverse
Act, and the rules issued thereunder, are the percentage size regulation believed weather conditions. It allows the
unique in that they are brought about that the regulation should be continued Committee to exclude those seasons,
through group action of essentially even though the crop was significantly thus, providing an average week that
small entities acting on their own reduced by adverse weather. Those in more closely reflects a handler’s
behalf. Thus, both statutes have small favor believed that the crop was going shipments and makes additional
entity orientation and compatibility. to be so small that every acceptable allotment available.
There are approximately 75 handlers piece of fruit was needed to meet market In October 2005, the grapefruit
of Florida grapefruit who are subject to needs. industry suffered severe crop damage
regulation under the marketing order The first action in this rule revises the from the impact of Hurricane Wilma.
and approximately 11,000 growers of procedures in § 905.153 used in The Committee had taken into account
citrus in the regulated area. Small implementing percentage size an anticipated reduction in shipments
agricultural service firms, including regulations for small red seedless due to the lingering effects from the
handlers, are defined by the Small grapefruit under the order. These hurricanes the industry experienced
Business Administration (SBA) as those procedures will be applied uniformly during the 2004–05 season. However,
having annual receipts of less than for all handlers regardless of size. This following Hurricane Wilma, shipments
$6,000,000, and small agricultural action is not expected to decrease the of red seedless grapefruit for 2005–06
producers are defined as those having overall consumption of red seedless are now estimated to be 10.5 million
annual receipts of less than $750,000 grapefruit or result in any additional cartons, down from the 17 million
(13 CFR 121.201). costs for the industry. originally estimated for the season.
Based on industry and Committee Prior to this change, a handler’s Further, the new estimate is close to 12
data, the average annual f.o.b. price for average week, which is used as a base million cartons under shipments for the
fresh Florida red seedless grapefruit during percentage of size regulation, 2003–04 season, the most recent season
during the 2003–04 season was was calculated using the immediately not impacted by hurricanes. With the
approximately $7.58 per 4⁄5-bushel preceding three seasons. This change substantial reduction in the red seedless
carton, and total fresh shipments for the provides that should shipments from grapefruit crop due to the impact of the
2003–04 season are estimated at 24.7 any or all of the three prior seasons be hurricanes, the Committee believes a
million cartons of red grapefruit. limited because of adverse crop percentage size regulation for 2005–06
Approximately 25 percent of all conditions, the Committee could use a is not needed. Consequently, the
handlers handled 75 percent of Florida’s prior season or seasons when Committee voted to remove the weekly
grapefruit shipments. Using the average determining the three-season average for percentages. This action will not create
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f.o.b. price, at least 80 percent of the the purpose of calculating a handler’s any additional costs for growers or
grapefruit handlers could be considered average week. This change provides the handlers.
small businesses under the SBA Committee with some additional While voting to remove the weekly
definition. Therefore, the majority of flexibility to account for adverse crop percentages, Committee members agreed
Florida grapefruit handlers may be conditions and assists in providing an that continuing to collect shipping data

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Federal Register / Vol. 71, No. 65 / Wednesday, April 5, 2006 / Rules and Regulations 16979

on small sizes will provide useful requirements and duplication by After consideration of all relevant
information. The information can be industry and public sectors. material presented, including the
used by handlers in making marketing AMS is committed to compliance Committee’s recommendation, and
decisions, and may help stabilize the with the Government Paperwork other information, it is found that
pricing for all red seedless grapefruit. Elimination Act (GPEA), which requires finalizing the interim final rule, with a
Also, having access to this shipping Government agencies in general to change, as published in the Federal
information will assist the Committee in provide the public the option of Register (70 FR 54235, September 14,
maintaining yearly statistical submitting information or transacting 2005) will tend to effectuate the
information on small sizes. The business electronically to the maximum declared policy of the Act.
Committee believes this information extent possible.
In addition, as noted in the initial List of Subjects in 7 CFR Part 905
will be useful when considering
establishing future percentage of size regulatory flexibility analysis, USDA Grapefruit, Marketing agreements,
regulation. Knowing the volume of has not identified any relevant Federal Oranges, Reporting and recordkeeping
small sizes shipped during the 2005–06 rules that duplicate, overlap or conflict requirements, Tangelos, Tangerines.
season and its market impact may also with this rule. However, red seedless ■ Accordingly, the interim final rule
help the Committee when considering grapefruit must meet the requirements amending 7 CFR part 905 which was
the implementation of percentage size as specified in the U.S. Standards for published at 70 FR 54235 on September
regulation during other crop reduced Grades of Florida Grapefruit (7 CFR 14, 2005, is adopted as a final rule with
years. Consequently, the Committee 51.760 through 51.784) issued under the the following change:
recommended maintaining the reporting Agricultural Marketing Act of 1946 (7
requirement for small sizes for the U.S.C. 1621 through 1627). PART 905—ORANGES, GRAPEFRUIT,
remainder of the 2005–06 season. As Further, the Committee’s meetings TANGERINES, AND TANGELOS
individual handlers are already were widely publicized throughout the GROWN IN FLORIDA
accustomed to reporting this citrus industry and all interested
persons were invited to attend the ■ 1. The authority citation for 7 CFR
information, continuing to report it will part 905 continues to read as follows:
meeting and participate in Committee
not create any additional costs on
deliberations. Like all Committee Authority: 7 U.S.C. 601–674.
handlers.
meetings, the May 10, 2005, and
The Committee considered several November 3, 2005, meetings were § 905.350 [Removed and reserved]
alternatives when discussing these public meetings and all entities, both ■ 2. Section 905.350 is removed and
actions. At the May 10, 2005, meeting, large and small, were able to express reserved.
one alternative discussed was their views on this issue.
maintaining the way a handler’s average Dated: March 30, 2006.
An interim final rule concerning this
week was calculated using the Lloyd C. Day,
action was published in the Federal
immediately preceding three seasons. Register on September 14, 2005. Copies Administrator, Agricultural Marketing
The Committee believes including Service.
of the rule were mailed by the
numbers from the 2004–05 season Committee’s staff to all Committee [FR Doc. 06–3237 Filed 4–4–06; 8:45 am]
would result in averages unreflective of members and Florida citrus handlers. In BILLING CODE 3410–02–P
a handler’s shipments. Therefore, this addition, the rule was made available
alternative was rejected. The Committee through the Internet by USDA and the
also considered not recommending Office of the Federal Register. That rule DEPARTMENT OF AGRICULTURE
percentage of size regulation for the provided for a 30-day comment period
2005–06 season. However, the Agricultural Marketing Service
which ended October 14, 2005. One
Committee agreed percentage of size comment was received.
regulation should be established at the 7 CFR Part 922
The commenter raised concerns about
levels recommended and then be fair trade for consumers and restraints of [Docket No. FV06–922–1 IFR]
revisited throughout the season as more trade in general. However, the
information became available. Agricultural Marketing Agreement Act Apricots Grown in Designated
Therefore, this alternative was also of 1937 and the order provisions Counties in Washington; Temporary
rejected. At the November 3, 2005, themselves provide authority to limit Suspension of Container Regulations
meeting, the Committee considered shipments of any grade or size, or both, AGENCY: Agricultural Marketing Service,
maintaining the percentages at their of any variety of Florida citrus. The USDA.
current level, or relaxing the comment has been noted. The ACTION: Interim final rule with request
percentages to allow for the shipment of Committee has recommended removing for comments.
more small sizes. However, considering the weekly percentages established for
the size of the remaining crop following the first 22 weeks of the 2005–06 SUMMARY: This rule suspends the
the damage sustained from Hurricane season, and this action implements that container regulations prescribed under
Wilma, the Committee rejected this recommendation. Therefore, no changes the Washington apricot marketing order
alternative. will be made as a result of this for the 2006 shipping season only. The
In accordance with the Paperwork comment. marketing order regulates the handling
Reduction Act of 1995 (44 U.S.C. A small business guide on complying of fresh apricots grown in designated
Chapter 35), the information collection with fruit, vegetable, and specialty crop counties in the State of Washington, and
requirements contained in this rule have marketing agreements and orders may is administered locally by the
been previously approved by the Office be viewed at: http://www.ams.usda.gov/ Washington Apricot Marketing
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of Management and Budget (OMB) and fv/moab.html. Any questions about the Committee (Committee). This relaxation
assigned OMB No. 0581–0189. As with compliance guide should be sent to Jay of the regulations provides the apricot
all Federal marketing order programs, Guerber at the previously mentioned industry with increased marketing
reports and forms are periodically address in the FOR FURTHER INFORMATION flexibility by allowing handlers to pack
reviewed to reduce information CONTACT section. and ship apricots in any size, shape, or

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