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Federal Register / Vol. 86, No. 153 / Thursday, August 12, 2021 / Proposed Rules
and providing customers with a better product.
According to information from the Committee, avocados declared as Guatemalan seedling have typically completed shipping before the first week in June. Considering the timing of shipments, and to ensure consumers would be receiving a quality product, the Committee recommended establishing an end date for the Guatemalan maturity requirements of June 8.
With most shipments ending before the first week in June, a June 8 end date would provide an additional week for handlers to ship any remaining avocados covered by the Guatemalan seedling requirements. Also, by having a clear end date defining where one schedule ends, and the new schedule becomes applicable, handlers could adjust their shipping dates accordingly to meet the requirements.
As a result, the Committee recommended establishing beginning and end dates for the annual maturity shipping schedule of April 16 to April 15 of the following year, with an exception for Guatemalan seedling which would extend from June 9 to June 8 of the following year. The Committee believes establishing these dates would provide clarity regarding the schedule, assist with compliance to help ensure a quality product reaches consumers, and reflect current industry practices and changes in the industry. This proposed change would only impact the maturity requirements under the Order and would make no change to the current grade requirements.
Section 8e of the Act provides that when certain domestically produced commodities, including avocados, are regulated under a Federal marketing order, imports of that commodity must meet the same or comparable grade, size, quality, and maturity requirements.
Maturity requirements for avocados imported into the United States are currently in effect under 944.31. As this rule would revise the maturity requirements for Florida avocados by establishing beginning and end dates for the annual maturity shipping schedule, a corresponding change would need to be made to the import regulations.
Imports and importers would also benefit from these proposed changes, which would establish beginning and end dates for the maturity requirements.
Clarifying the schedule and the requirements that are in place, thus helping ensure customers are receiving a quality product would be beneficial for the entire industry, including imports.

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The Hass, Fuerte, Zutano, and Edranol varieties of avocados currently are exempt from the maturity regulations and continue to be exempt under this rule. However, these varieties are not exempt from the import grade regulation, which is not being changed by this action.
Initial Regulatory Flexibility Analysis Pursuant to requirements set forth in the Regulatory Flexibility Act RFA 5
U.S.C. 601612, 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 businesses 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 325
producers of Florida avocados in the production area and 25 handlers subject to regulation under the Order. Small agricultural producers are defined by the Small Business Administration SBA as those having annual receipts less than $1,000,000, and small agricultural service firms are defined as those whose annual receipts are less than $30,000,000 13 CFR 121.201.
According to the National Agricultural Statistical Service NASS, the average grower price paid for Florida avocados during the 202021
season was $21.97 per 55-pound bushel.
Utilized production was equivalent to 624,364 55-pound bushels for a total value of over $13,718,830. Dividing the crop value by the estimated number of producers 325 yields an estimated average receipt per producer of $42,212, so the average producer would have annual receipts of less than $1,000,000.
USDA Market News reported April 2021 terminal market prices for green skinned avocados were about $36.43 per 24-pound container. Using this price and the total utilization, the total 2020
21 handler crop value is estimated at $52.1 million. Dividing this figure by the number of handlers 25 yields an estimated average annual handler receipts of slightly over $2 million, which is below the SBA threshold for small agricultural service firms.
In 2020, the Dominican Republic, Peru, Mexico, and Colombia were the major countries exporting avocado varieties other than Hass to the United
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States. In 2020, shipments of these types of avocados imported into the United States totaled around 29,630 metric tons. Of that amount, 29,133 metric tons were imported from the Dominican Republic. Information from USDAs Global Agricultural Trade System database indicates the dollar value of these avocados to be approximately $41,385,000. There are approximately 20 importers of green skin avocadoes.
Using the total value and the number of importers, the average importer would have annual receipts of less than $30
million.
Based on these estimates, the majority of Florida avocado producers and handlers, and importers may be classified as small entities.
This proposed rule would change the maturity requirements under the Order.
This action would establish April 16 to April 15 of the following year as the beginning and end dates for the annual maturity shipping schedule, with an exception for Guatemalan seedling which would run from June 9 to June 8
of the following year. This rule would provide clarity regarding the maturity schedule and dates in effect, assist with compliance to help ensure a quality product reaches consumers, and reflect current industry practices. This proposed rule would revise 915.332.
Authority for this change is provided in 915.51 and 915.52. This proposed rule would also change 944.31 in the avocado import regulation, as is required by section 8e of the Act.
This action is not expected to increase the costs associated with the Orders requirements or the avocado import regulation. Rather, it is anticipated that this action would have a beneficial impact by providing clarity regarding the maturity schedule and dates in effect, assist with compliance, and help ensure a quality product reaches consumers.
This change would provide clarity as to which schedule is in place, so producers, handlers, and importers know which maturity requirements need to be met. Establishing beginning and end dates for the maturity requirements would clearly identify when the requirements of one annual schedule end, and the new annual schedule begins. Further, having a delineation between schedules would assist with compliance by making it clear that the D dates for one schedule do not stretch to the A date of the new schedule. This would help ensure that immature avocados are not shipped early using the previous seasons D date to circumvent the requirement that avocados may not be handled prior to the A date specified for that variety.

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