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Federal Register / Vol. 86, No. 148 / Thursday, August 5, 2021 / Proposed Rules
of the program is no longer favored by industry producers. Consequently, USDA is considering termination of the Order. Corresponding changes would also be made to sections of the requirements for onions imported into the United States.
Marketing Orders provide industries with tools to assist producers and handlers in addressing challenges facing the industry. These tools include:
Establishing minimum grade, size, quality, and maturity requirements, setting size, capacity, weight, dimensions or pack of the containers, collecting and publish market information useful to growers and handlers, conducting research and promotions, and establishing volume control requirements. Each Marketing Order is different, with the industries deciding the authorities needed and the scope of their Marketing Order.
Marketing Orders are approved by producers through referenda and regulate handlers to ensure compliance with all requirements. The authority of a Marketing Order allows each industry to create a local administrative committee that is made up of growers and/or handlers that work collectively to solve industry problems.
Establishing minimum grade, size, quality, and maturity requirements aims to stabilize market conditions for fresh fruit and vegetables. The goal of these requirements is to help balance consumer demands for high quality products and in turn provide better returns to producers for producing and delivering more consistent, quality products to the market. They are also expected to promote repeat consumer purchases and increase demand for a high-quality product.
The Order has been in effect since 1961 and provides the South Texas onion industry with authority for grade, size, quality, pack, and container regulations, research, and promotion programs, as well as authority for inspection requirements. The Order also authorizes reporting and recordkeeping functions required for the operation of the Order. The Order is locally administered by the Committee and is funded by assessments imposed on handlers.
As this change would terminate the Order and all the rules and regulations issued thereunder, the perceived benefits correlated with the Order would be lost. However, there would also be savings by eliminating costs associated with the Order, which include the payment of assessments and costs related to inspection.
A review of the referendum results shows that producers failed to reach the
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necessary threshold for the vote to pass by either vote or by volume as specified in the Order, indicating the benefits of the program no longer outweigh the costs to handlers and producers.
Although marketing order requirements are applied to handlers, the costs of such requirements are often passed on to producers. Termination of the Order, and the resulting regulatory relaxation, could therefore be expected to reduce costs for both producers and handlers.
Pursuant to section 8e of the Act, this action would also modify the onion import regulation 7 CFR 980.117. That regulation currently specifies grade, size, quality, and maturity requirements based on those requirements established under Marketing Order 959. With this change, those requirements would no longer be in effect from March 10
through June 4 of the marketing year.
While this change could benefit importers through a reduction in costs, the loss of grade and size requirements both from the domestic production as well as the imported product could negatively impact the onion market.
An alternative to this action would be to maintain the Order and its current provisions. However, the Order requires that a continuance referendum be conducted every sixth year to determine industry support for the program. The results of a recently held producer continuance referendum on the Texas onion program indicated a lack of producer support, indicating that the Order no longer meets the needs of producers and handlers. Therefore, this alternative was rejected, and USDA is considering terminating the Order.
This proposed rule is intended to solicit input and other available information from interested parties on whether the Order should be terminated. USDA will evaluate all available information prior to making a final determination on this matter.
In accordance with the Paperwork Reduction Act of 1995 44 U.S.C.
Chapter 35, the Orders information collection requirements have been previously approved by OMB and assigned OMB No. 05810178 Vegetable and Specialty Crops. Termination of the Order, and the reporting requirements prescribed therein, would reduce the reporting burden on South Texas onion handlers by an estimated 1.83 hours per handler. Handlers would no longer be required to file forms with the Committee, which is expected to reduce industry expenses. This rule would not impose any additional reporting or recordkeeping requirements on either small or large onion handlers.
As with all Federal marketing order programs, reports and forms are
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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.
The producer referendum was well publicized in the production area, and referendum ballots were mailed to all known producers. As such, producers of South Texas onions had an opportunity to indicate their continued support for the Order. Further, interested persons are invited to submit comments on this proposed rule, including the regulatory and information collection impacts of this proposed 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/
rules-regulations/moa/small-businesses.
Any questions about the compliance guide should be sent to Richard Lower at the previously mentioned address in the FOR FURTHER INFORMATION CONTACT
section.
In accordance with section 8e of the Act, the United States Trade Representative has concurred with the issuance of this proposed rule.
This rule invites comments on the proposed termination of Marketing Order 959, which regulates the handling of onions grown in South Texas. A 60day comment period is provided to allow interested persons to respond to this proposal. All comments timely received will be considered before a final determination is made on this matter. Termination of the Order provisions would become effective only after a 60-day notification to Congress as required by law.
List of Subjects 7 CFR Part 959
Marketing agreements, Onions, Reporting and recordkeeping requirements.
7 CFR Part 980
Food grades and standards, Imports, Marketing agreements, Onions, Potatoes, Tomatoes.
For the reasons set forth in the preamble, 7 CFR part 959 is proposed to be removed and 7 CFR part 980 is proposed to be amended as follows:

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