[Federal Register: July 12, 2007 (Volume 72, Number 133)]
[Rules and Regulations]
[Page 37993-37995]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12jy07-2]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[Docket No. AMS-FV-07-0043; FV07-959-2 FIR]
Onions Grown in South Texas; Exemption of Onions for Export
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Final rule.
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SUMMARY: The Department of Agriculture (USDA) is adopting, as a final
rule, without change, an interim final rule exempting onions being
shipped to export markets from regulations prescribed under the South
Texas onion marketing order. The marketing order regulates the handling
of onions grown in South Texas, and is administered locally by the
South Texas Onion Committee (Committee). This rule continues in effect
the action that provides a special purpose shipment exemption for
onions being shipped to export markets. Under this change, onion
shipments for export will continue to be exempt from the grade, size,
quality, and inspection requirements of the marketing order.
This rule continues in effect the action that provides handlers
additional flexibility in marketing onions of different grades and
quality in various markets outside of the U.S. This change helps the
South Texas onion industry develop additional markets for its onions,
while increasing returns to producers and providing an increased supply
of onions to help satisfy a rapidly developing export market.
DATES: Effective Date: August 13, 2007.
FOR FURTHER INFORMATION CONTACT: Belinda G. Garza, Regional Manager,
Texas Marketing Field Office, Marketing Order Administration Branch,
Fruit and Vegetable Programs, AMS, USDA; Telephone: (956) 682-2833,
Fax: (956) 682-5942, or E-mail: Belinda.Garza@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@usda.gov.
SUPPLEMENTARY INFORMATION: This rule is issued under Marketing
Agreement No. 143 and Order No. 959, both as amended (7 CFR part 959),
regulating the handling of onions grown in South 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 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.
This rule, unanimously recommended by the Committee at its March
16, 2007, meeting, continues in effect the action that exempts onion
export shipments from the grade, size, quality and inspection
requirements prescribed under the South Texas onion marketing order. To
effectuate the exemption, paragraphs (e)(1) and (f) of Sec. 959.322
were modified by adding the term ``export'' to the list of authorized
special purpose shipment categories.
Section 959.52 of the order authorizes the issuance, amendment,
modification, suspension, or termination of regulations for grade,
size, quality, maturity, pack, and container for any variety of onions
grown in the production area. Section 959.53 provides that regulations
in effect pursuant to Sec. Sec. 959.42, 959.52, or 959.60 may be
modified, suspended or terminated to facilitate the handling of onions
for specified special purpose shipments, including export. Section
959.60 provides that whenever onions are regulated pursuant to Sec.
959.52, such onions must be inspected by the Federal-State Inspection
Service, and
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certified as meeting the applicable requirements of such regulations.
Section 959.322 contains the order's handling regulations and
includes provisions for grade, size, and inspection requirements, as
well as a minimum quantity exemption, certain special purpose shipment
exemptions, and experimental shipments. The handling regulations also
provide safeguards to ensure that onions being shipped for special
purposes are handled in accordance with order provisions.
The Committee meets prior to and during each season to consider
recommendations for modification, suspension, or termination of the
regulatory requirements for South Texas onions which have been issued
on a continuing basis. Committee meetings are open to the public and
interested persons may express their views at these meetings. The USDA
reviews Committee recommendations and information submitted by the
Committee and other available information, and determines whether
modification, suspension, or termination of the regulatory requirements
would tend to effectuate the declared policy of the Act.
Based on discussion at the March 16, 2007, meeting, the Committee
conveyed to USDA that there was an extremely short supply of onions in
Mexico and other countries. This shortage fueled a greater demand for
all grades of onions. The Committee indicated that there was a great
deal of interest in various foreign markets for onions of varying
grade, size, and quality. Texas producers and handlers were
characterized by the Committee as eager to supply this demand and were
thus fully in support of relaxing the handling regulations in an effort
to provide onions for the developing export markets.
The Committee also reported that the onion supply situation in
Texas was hampered by a very short onion crop--approximately 12,500
acres this year compared with approximately 18,000 acres in past
seasons--and cold weather had caused some quality issues in certain
areas of the South Texas onion production area.
By exempting onions for export from the handling regulations, this
rule continues in effect the action that provides handlers additional
flexibility in marketing onions of different grades and quality in
various markets outside of the U.S. This change helps the South Texas
onion industry develop additional markets for its onions, while
increasing returns to producers and provides an increased supply of
onions to help satisfy a rapidly developing export market.
All handlers making onion shipments for relief, charity,
processing, or experimental purposes are required to apply for and
obtain a Certificate of Privilege from the Committee to make such
shipments. Once handlers are approved for such shipments, a Report of
Special Purpose Onion Shipment form must be submitted to the Committee
for each such onion shipment in order to ensure that the shipments are
in accordance with Committee requirements. This rule continues in
effect the action that allows all shipments to export markets to also
be exempt from grade, size, quality, and inspection requirements and
tracked through the use of the Report of Special Purpose Onion Shipment
form.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA), 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. Thus, both statutes have small
entity orientation and compatibility. Small agricultural producers are
defined by the Small Business Administration (SBA) (13 CFR 121.201) as
those having annual receipts of less than $750,000. Small agricultural
service firms are defined as those with annual receipts of less than
$6,500,000.
There are approximately 114 producers of onions in the production
area and approximately 38 handlers subject to regulation under the
order. Most of the handlers are vertically integrated corporations
involved in producing, shipping, and marketing onions. For the 2005-06
marketing year, the industry's 38 handlers shipped onions produced on
17,694 acres with the average and median volume handled being 182,148
and 174,437 fifty-pound equivalents, respectively. In terms of
production value, total revenues for the 38 handlers were estimated to
be $44.2 million, with average and median revenues being $1.6 million
and $1.12 million, respectively.
The South Texas onion industry is characterized by producers and
handlers whose farming operations generally involve more than one
commodity, and whose income from farming operations is not exclusively
dependent on the production of onions. Alternative crops provide an
opportunity to utilize many of the same facilities and equipment not in
use when the onion production season is complete. For this reason,
typical onion producers and handlers either produce multiple crops or
alternate crops within a single year.
Based on the SBA's definition of small entities, the Committee
estimates that all of the 38 handlers regulated by the order would be
considered small entities if only their onion revenues are considered.
However, revenues from other farming enterprises could result in a
number of these handlers being above the $6,500,000 annual receipt
threshold. All of the 114 producers may be classified as small entities
based on the SBA definition if only their revenue from onions is
considered.
This rule continues in effect the action that exempts onion export
shipments from the grade, size, quality and inspection requirements
prescribed under the South Texas onion marketing order. To realize the
exemption, paragraphs (e) and (f) of Sec. 959.322 are modified by
adding the term ``export'' to the list of authorized special purpose
shipment categories.
Section 959.52 of the order authorizes the issuance of regulations
for grade, size, quality, maturity, pack, and container for any variety
of onions grown in the production area. Section 959.53 provides for the
exemption from the handling regulations certain kinds of onion
shipments, including export.
The Committee anticipates that this rule will not negatively impact
small businesses. This rule continues in effect the action that exempts
onions being shipped to export markets from the order's handling
regulations, and thus provides enhanced marketing opportunities for all
handlers, increased income for South Texas onion producers, and
increased purchasing flexibility for foreign consumers.
The Committee considered alternatives to this recommendation. One
consideration would have relaxed the minimum quality requirements of
all onion shipments, both domestic and export, from U.S. No. 1 to U.S.
No. 2. Although this option may have taken care of the export market
demands, it was rejected early in the discussion due to the problems
associated with trying to market onions that grade less than U.S. No. 1
to U.S. consumers. Also briefly considered was the option of suspending
the entire handling
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regulation, either on a temporary basis or indefinitely. The Committee
also rejected this option as being too extreme for the current
situation.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
Chapter 35), the information collection requirements that are contained
in this rule are currently approved by the Office of Management and
Budget (OMB), under OMB No. 0581-0178, Vegetable and Specialty Crops.
This rule will impose minimal additional reporting or recordkeeping
requirements, deemed to be insignificant, on both small and large onion
handlers that export onions.
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, as
noted in the initial regulatory flexibility analysis, USDA has not
identified any relevant Federal rules that duplicate, overlap or
conflict with this rule.
The 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.
The Committee's meeting was widely publicized throughout the South
Texas onion industry and all interested persons were invited to attend
the meeting and participate in Committee deliberations. Like all
Committee meetings, the March 16, 2007, meeting was a public meeting
and all entities, both large and small, were able to express their
views on this issue. Furthermore, interested persons were invited to
submit information on the regulatory and informational impacts of this
action on small businesses.
An interim final rule concerning this action was published in the
Federal Register on April 9, 2007. Copies of the rule were mailed by
the Committee's staff to all Committee members, onion handlers, and
interested persons. In addition, the rule was made available through
the Internet by USDA and the Office of the Federal Register. That rule
provided for a 60-day comment period, which ended June 8, 2007. No
comments were received.
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/fv/moab.html.
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 continues in effect the action that exempts onions for
export from the handling regulations prescribed under the South Texas
onion marketing order.
After consideration of all relevant material presented, including
the Committee's recommendation, and other information, it is found that
finalizing the interim final rule, without change, as published in the
Federal Register (72 FR 17360, April 9, 2007) will tend to effectuate
the declared policy of the Act.
List of Subjects in 7 CFR Part 959
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
PART 959--ONIONS GROWN IN SOUTH TEXAS
0
Accordingly, the interim final rule amending 7 CFR part 959 which was
published at 72 FR 17360 on April 9, 2007, is adopted as a final rule
without change.
Dated: July 9, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E7-13547 Filed 7-11-07; 8:45 am]
BILLING CODE 3410-02-P