Proposed Rule2026-01351
Marketing Order for Onions Grown in South Texas (M.O. No. 959); Hearing
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 23, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
Notice is hereby given of a public hearing to receive evidence on proposals recommended by the South Texas Onion Committee (Committee) to amend Federal Marketing Order No. 959 (Order). The proposed amendments would lower the threshold for continuance referenda; expand research and promotion authority to include marketing promotion and paid advertising; add authority to accept voluntary contributions; and increase committee size by one seat to include a public member. The Agricultural Marketing Service (AMS) also proposes to make additional changes to the Order as may be necessary to conform to any amendatory changes that result from the hearing.
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 15 (Friday, January 23, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 15 (Friday, January 23, 2026)]
[Proposed Rules]
[Pages 2880-2882]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01351]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 91, No. 15 / Friday, January 23, 2026 /
Proposed Rules
[[Page 2880]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[Doc. No. AMS-SC-24-0070; 25-J-0088]
Marketing Order for Onions Grown in South Texas (M.O. No. 959);
Hearing
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Notification of hearing on proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: Notice is hereby given of a public hearing to receive evidence
on proposals recommended by the South Texas Onion Committee (Committee)
to amend Federal Marketing Order No. 959 (Order). The proposed
amendments would lower the threshold for continuance referenda; expand
research and promotion authority to include marketing promotion and
paid advertising; add authority to accept voluntary contributions; and
increase committee size by one seat to include a public member. The
Agricultural Marketing Service (AMS) also proposes to make additional
changes to the Order as may be necessary to conform to any amendatory
changes that result from the hearing.
DATES: The hearing will be held February 3-4, 2026, from 9:00 a.m. to
5:00 p.m. Central Standard Time (CST) and, if deemed necessary by the
presiding administrative law judge, will continue until any other such
time or day as determined by the judge.
ADDRESSES: The hearing will be held at the Mission Event Center, 200 N
Shary Rd., Mission, TX 78572.
FOR FURTHER INFORMATION CONTACT: Christy Pankey, Marketing Specialist,
or Matthew Pavone, Chief, Rulemaking Services Branch, Market
Development Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, Stop 0237, Washington, DC 20250-0237;
Telephone: (202) 720-8085, or Email: <a href="/cdn-cgi/l/email-protection#a3e0cbd1cad0d7da8df3c2cdc8c6dae3d6d0c7c28dc4ccd5"><span class="__cf_email__" data-cfemail="4b08233922383f32651b2a25202e320b3e382f2a652c243d">[email protected]</span></a> or
<a href="/cdn-cgi/l/email-protection#c588a4b1b1ada0b2eb95a4b3aaaba085b0b6a1a4eba2aab3"><span class="__cf_email__" data-cfemail="0c416d787864697b225c6d7a6362694c797f686d226b637a">[email protected]</span></a>. Persons requiring a sign language interpreter
or special accommodations should contact Christian D. Nissen, Chief,
Southeast Region Branch, Market Development Division, Specialty Crops
Program, AMS, USDA; Telephone: (863) 324-3375, or
<a href="/cdn-cgi/l/email-protection#f1b2998398828598909fdfbf988282949fb184829590df969e87"><span class="__cf_email__" data-cfemail="3073584259434459515e1e7e594343555e70454354511e575f46">[email protected]</span></a> a minimum of three days before the start of
the hearing.
SUPPLEMENTARY INFORMATION: This administrative action is instituted
pursuant to the Agricultural Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601-674) (the Act), and the applicable rules of
practice and procedure governing amendments to marketing agreements and
orders (7 CFR part 900). This action is governed by the provisions of
sections 556 and 557 of title 5 of the United States Code and,
therefore, is excluded from the requirements of Executive Order 12866
and 13563. Notice of this rulemaking action was provided to Tribal
governments through the Department of Agriculture's (USDA) Office of
Tribal Relations.
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) seeks to
ensure that within the statutory authority of a program, the regulatory
and informational requirements are tailored to the size and nature of
small businesses. Interested persons are invited to present evidence at
the hearing on the possible regulatory and informational impacts of the
proposals on small businesses.
The amendments proposed herein have been reviewed under Executive
Order 12988, Civil Justice Reform. They are not intended to have
retroactive effect.
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 the 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. 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 no later than 20 days
after the date of the entry of the ruling.
The South Texas Onion Committee (Committee) is established under
provisions of the Federal Marketing Order No. 959 (Order) which
regulates the handling of onions grown in South Texas. The Order
stipulates that the Committee may recommend to the Secretary amendments
to the Order, and subject to USDA's approval, shall establish rules and
procedures as may be necessary to accomplish the purposes of the Act
and the efficient administration of the Order.
On October 30, 2024, the Committee submitted to USDA four proposals
that would: lower the threshold for continuance referenda from two-
thirds to a simple majority; expand research and promotion authority to
include marketing promotion and paid advertising; add authority to
accept voluntary contributions; and increase committee size by one seat
to include a public member. The Committee voted unanimously on the
above proposed amendments at its August 19, 2024, and October 23, 2025,
meeting.
After reviewing the proposals and other information submitted by
the Committee, USDA has decided to schedule this matter for a public
hearing. Testimony is invited on the following proposals or appropriate
alternatives or modifications to such proposals summarized below. These
proposals submitted by the Committee have not received the approval of
USDA.
Proposal 1--Lower Threshold for Continuance Referendum
The Committee recommended lowering the continuance referendum
threshold, which periodically measures whether continuation of the
Order is favored by producers. If this threshold is not met during the
referendum, Sec. 959.84 (d) governs that USDA would consider
termination. Under the current Order, USDA would consider termination
if less than two-thirds of voting producers favor continuance. The
Committee is proposing to reduce the threshold to a simple majority,
measured by both number and volume, for continuance. USDA would then
consider termination if continuance is not favored by a majority of
voting producers representing a majority of the volume instead of the
current two-thirds threshold. The Committee
[[Page 2881]]
recommended this proposal after determining that meeting the current
two-thirds requirement has become increasingly difficult due to a
decline in the number of producers and handlers in industry and
believes that a simple majority should be sufficient to demonstrate
support for continuing the Order. They further believe that lowering
the threshold would better reflect current industry makeup and help
strengthen the voice of small producers. This proposal would lower the
voting threshold for continuance referenda from at least two-thirds to
a simple majority. The amendment proposed is as follows:
<bullet> Revise Sec. 959.84 (d) to lower the threshold for the
continuance referendum from at least two-thirds to a simple majority,
measured by both number and volume.
Proposal 2--Add Marketing Promotion Authority, Including Paid
Advertising
Under the current Order, the Committee has authority to conduct
production and market research, and development projects. The Committee
is proposing to expand its authority to include both marketing
promotion and paid advertising activities. The Committee believes this
expansion would broaden brand recognition, increasing both sales and
consumer demand. This proposal would expand research and development
authority to include marketing promotion and paid advertising. The
amendment proposed is as follows:
<bullet> Revise Sec. 959.48 to add marketing promotion, including
paid advertisement, and to provide that funds collected under the
marketing order may be used to finance research and development and
marketing promotion activities.
Proposal 3--Add Contribution Authority
The Committee is proposing to add the authority to accept voluntary
contributions to help fund research and promotional activities. Under
the current Order, the Committee does not have this authority. The
Committee believes that adding contribution authority would provide
greater resources, in addition to assessments, for promotional
activities, and promotional related research, which would positively
impact producer returns. This proposal would add the authority to
accept voluntary contributions free from any encumbrances or
restrictions from the donor. The amendments proposed are as follows:
<bullet> Add Sec. 959.44 to establish the authority to accept
voluntary contributions.
Proposal 4--Add a Public Member
The Committee recommended adding a public member and alternate
seat, after determining that, due to the decline in the number of
producers and handlers, Committee members are often the same from year
to year, resulting in decreased participation and fewer new ideas. To
address this, the Committee is proposing to increase the Committee size
by one seat, to include a public member and their alternate. The
Committee believes adding a public member will bring an outside
perspective, generate new ideas, and provide input that can strengthen
and improve the South Texas onion industry. This proposal would
increase Committee size from 13 to 14 members and alternates. The
amendment proposed is as follows:
<bullet> Add a public member seat to Sec. 959.22. Corresponding
changes would also amend Sec. Sec. 959.26, 959.27, 959.31.
In addition to the proposed amendments submitted by the Committee,
AMS proposes to make any such conforming changes to the Order as may be
necessary to conform to any amendment that may result from the
proposals, or to correct minor inconsistencies and typographical
errors.
USDA will oversee this formal rulemaking proceeding. The issuance
of this notice of public hearing is the first of several steps in the
amendatory rulemaking process, including the issuance of a Recommended
Decision, public comment period, Secretary's Decision, and if the prior
steps prove favorable, a producer referendum.
At the hearing, interested persons may provide testimony in support
of or in opposition to the proposed amendments. Interested persons are
invited to testify and provide information on the possible regulatory
impacts of the proposed amendments on small businesses.
Interested persons will also be provided the opportunity to file
briefs in support of or in opposition to the proposed amendments after
the hearing, as well as file exceptions to any Recommended Decision
that may be issued. Finally, any proposed amendments may be required to
be approved in a producer referendum before they can be implemented.
USDA will hold the public hearing for the purposes of: (i)
receiving evidence about the economic and marketing conditions which
relate to the proposed amendments of the Order; (ii) determining
whether there is a need for the proposed amendments to the Order; (iii)
determining if there are alternatives to the proposed amendments or
duplicates of the proposed amendments; and (iv) determining whether the
proposed amendments or appropriate modifications thereof will tend to
effectuate the declared policy of the Act.
In accordance with 7 CFR 900.4(d), the hearing will be held in
person, with limited virtual testimony permitted at USDA's discretion.
Interested persons must submit a written request to participate
virtually to <a href="/cdn-cgi/l/email-protection#81c2e9f3e8f2f5e8e0efafcfe8f2f2e4efc1f4f2e5e0afe6eef7"><span class="__cf_email__" data-cfemail="47042f352e34332e262969092e34342229073234232669202831">[email protected]</span></a> at least three days prior to the
beginning of the hearing.
All persons wishing to submit written material as evidence at the
hearing should be prepared to submit four copies of such material at
the hearing. Four copies of prepared testimony for presentation at the
hearing should also be made available. To the extent practicable, eight
additional copies of evidentiary exhibits and testimony prepared as an
exhibit should be made available to USDA representatives on the day of
appearance at the hearing. Any requests for preparation of USDA data
for this rulemaking hearing should be made at least 3 days prior to the
beginning of the hearing.
From the time the notice of hearing is issued until the issuance of
a final decision in this proceeding, USDA employees involved in the
decisional process are prohibited from discussing the merits of the
hearing issues on an ex parte basis with any person having an interest
in the proceeding. The prohibition applies to employees who are or may
reasonably be expected to be involved in the decisional process of the
proceeding in the following organizational units: Office of the
Secretary of Agriculture; Office of the Administrator, AMS; Office of
the General Counsel; and the Specialty Crops Program, AMS. Procedural
matters are not subject to the above prohibition and may be discussed
at any time.
USDA may make other such changes to the Order as necessary to
conform with amendments that may result from the hearing or correct
minor inconsistencies and typographical errors.
Testimony is invited on the recommended proposals to 7 CFR part
959, or appropriate alternatives or modifications to such proposals, as
follows:
[[Page 2882]]
List of Subjects in 7 CFR Part 959
Onions, Marketing agreements, Reporting and recordkeeping
requirements.
PART 959--ONIONS GROWN IN SOUTH TEXAS
0
1. The authority citation for part 959 continues to read as follows:
Authority: 7 U.S.C. 601-674.
0
2. Revise Sec. 959.22 to read as follows:
Sec. 959.22 Establishment and membership.
The South Texas Onion Committee, consisting of fourteen members,
eight of whom shall be producers and five of whom shall be handlers,
and one of whom shall be a public member, is hereby established. For
each member of the Committee there shall be an alternate. Producer
members, and their alternates shall not have a proprietary interest in
or be employees of a handler organization. The public member and
alternate shall not have a proprietary interest in a producer or
handler organization.
0
3. In Sec. 959.26, revise the introductory text to read as follows:
Sec. 959.26 Selection.
The Secretary shall select members and respective alternates from
districts established pursuant to Sec. 959.24 or Sec. 959.25, with
the exception of the public member and alternate member, who shall be
residents of Texas but may reside outside the production area and shall
be selected by the Secretary in his or her discretion. Selections shall
be made as follows:
* * * * *
0
4. In Sec. 959.27, add paragraph (f) to read as follows:
Sec. 959.27 Nomination.
* * * * *
(f) The producer and handler members of the committee shall
nominate the public member and alternate. Eligible producers and
handlers may suggest nominees for the public member and alternate at
meetings held to nominate members and alternates. Nominations for the
public member and alternate shall be made in accordance with the
procedures set forth in paragraph (c).
* * * * *
0
5. Revise Sec. 959.31 to read as follows:
Sec. 959.31 Alternate members.
An alternate member of the committee shall act in the place and
stead of the member for whom he is an alternate, during such member's
absence or when designated to do so by the member for whom he is an
alternate. In the event both a member of the committee and his
alternate are unable to attend a committee meeting, the member or his
alternate or the committee (in that order) may designate another
alternate from the same district and the same group (handler or grower)
to serve in such member's place and stead. Only the public member's
alternate is authorized to serve in the place and stead of the public
member. In the event of the death, removal, resignation, or
disqualification of a member, his alternate shall act for him until a
successor of such member is selected and has qualified. The committee
may request the attendance of alternates at any or all meetings,
notwithstanding the expected or actual presence of the respective
members.
0
6. Add Sec. 959.44 to read as follows:
Sec. 959.44 Contributions.
The Committee may accept voluntary contributions. Such
contributions may only be accepted if they are free from any
encumbrances or restrictions on their use and the Committee shall
retain control of their use. The Committee may receive contributions
from within and outside of the production area.
0
7. Revise Sec. 959.48 to read as follows:
Sec. 959.48 Research and development.
The committee, with approval of the Secretary, may establish or
provide for the establishment of production research, marketing
research, development projects, and marketing promotion, including paid
advertising, designed to assist, improve, or promote the marketing,
distribution, consumption, or efficient production of onions. The
expenses of such projects shall be paid from funds collected pursuant
to this part.
0
8. Revise Sec. 959.84 (d) to read as follows:
Sec. 959.84 Termination.
* * * * *
(d) The Secretary shall conduct a referendum within six years after
the effective date of this paragraph and every sixth year thereafter to
ascertain whether continuance is favored by producers. The Secretary
would consider termination of this part if continuance is not favored
by a majority of growers who, during a representative period determined
by the Secretary, have been engaged in the production of onions in the
production area.
* * * * *
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-01351 Filed 1-22-26; 8:45 am]
BILLING CODE 3410-02-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on January 23, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.