Rule2026-10378
Onions Grown in South Texas; Temporary Suspension of Continuance Referendum
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Published
May 26, 2026
Effective
May 26, 2026
Issuing agencies
Agriculture DepartmentAgricultural Marketing Service
Abstract
This interim final rule temporarily suspends the continuance referendum requirement under the Federal marketing order for South Texas onions. The continuance referendum scheduled for 2026 overlaps with the formal rulemaking process to amend the marketing order that the Agricultural Marketing Service (AMS) commenced via a notice of hearing published on January 23, 2026. This suspension delays the enforcement of the continuance referendum requirement to give precedence to the formal rulemaking process, which may include a producer referendum. In addition, if the marketing order is amended, this temporary suspension provides industry time to operate under the amended marketing order before the next scheduled continuance referendum.
Full Text
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<title>Federal Register, Volume 91 Issue 100 (Tuesday, May 26, 2026)</title>
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[Federal Register Volume 91, Number 100 (Tuesday, May 26, 2026)]
[Rules and Regulations]
[Pages 30483-30485]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10378]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
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Federal Register / Vol. 91, No. 100 / Tuesday, May 26, 2026 / Rules
and Regulations
[[Page 30483]]
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 959
[Doc. No. AMS-SC-25-0815]
Onions Grown in South Texas; Temporary Suspension of Continuance
Referendum
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: This interim final rule temporarily suspends the continuance
referendum requirement under the Federal marketing order for South
Texas onions. The continuance referendum scheduled for 2026 overlaps
with the formal rulemaking process to amend the marketing order that
the Agricultural Marketing Service (AMS) commenced via a notice of
hearing published on January 23, 2026. This suspension delays the
enforcement of the continuance referendum requirement to give
precedence to the formal rulemaking process, which may include a
producer referendum. In addition, if the marketing order is amended,
this temporary suspension provides industry time to operate under the
amended marketing order before the next scheduled continuance
referendum.
DATES: Effective May 26, 2026, 7 CFR 959.84(d) is stayed through
January 1, 2032. Comments received by June 25, 2026, will be considered
prior to issuance of a final rule.
ADDRESSES: Interested persons are invited to submit written comments
concerning this rule. Comments must be sent to the Docket Clerk, Market
Development Division, Specialty Crops Program, AMS, USDA, 1400
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237. Comments
can also be submitted to the Docket Clerk electronically by email:
<a href="/cdn-cgi/l/email-protection#93def2e1f8f6e7fafdf4dce1f7f6e1d0fcfefef6fde7d3e6e0f7f2bdf4fce5"><span class="__cf_email__" data-cfemail="0944687b626c7d60676e467b6d6c7b4a6664646c677d497c7a6d68276e667f">[email protected]</span></a> or via the internet at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Comments should reference the document number and
the date and page number of this issue of the Federal Register.
Comments submitted in response to this rule will be included in the
record and will be made available to the public and can be viewed on
at: <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Please be advised that public comments
are posted to <a href="http://regulations.gov">regulations.gov</a> without change.
FOR FURTHER INFORMATION CONTACT: Taylor Johnson, Marketing Specialist,
or Matthew Pavone, Branch Chief, Rulemaking Services Branch, Market
Development Division, Specialty Crops Program, AMS, 1400 Independence
Avenue SW, Stop 0237, Washington, DC 20250-0237; telephone: (202) 720-
2491, or email: <a href="/cdn-cgi/l/email-protection#a7eac6d5ccc2d3cec9c0e8d5c3c2d5e4c8cacac2c9d3e7d2d4c3c689c0c8d1"><span class="__cf_email__" data-cfemail="0d406c7f66687964636a427f69687f4e6260606863794d787e696c236a627b">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553,
amends regulations issued to carry out a marketing order as defined in
7 CFR 900.2(j). This rule is issued under the Agricultural Marketing
Agreement Act of 1937, as amended (7 U.S.C. 601-674) (the Act), and
Marketing Order No. 959 (7 CFR part 959) (the Order), which regulates
the handling of onions grown in South Texas. The South Texas Onion
Committee (Committee) locally administers the Order and is comprised of
producers and handlers of onions operating within the production area.
This action is exempt from the Office of Management and Budget
(OMB) review process required by Executive Order 12866. This rule
amends existing Marketing Order No. 959, as amended (7 CFR part 959),
which regulates the handling of onions grown in South Texas, and is
necessary for the continued operation of Marketing Order No. 959.
Additionally, this action is exempt from the requirements of Executive
Order 14192, ``Unleashing Prosperity Through Deregulation,'' pursuant
to section 5(c).
This rule has been reviewed under Executive Order 13175,
``Consultation and Coordination with Indian Tribal Governments,'' which
requires Federal agencies to consider whether their rulemaking actions
would have tribal implications. AMS has determined that this rule is
unlikely to have substantial direct effects on one or more Indian
Tribes, on the relationship between the Federal Government and Indian
Tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian Tribes.
This rule has been reviewed under Executive Order 12988, ``Civil
Justice Reform.'' This rule is 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 U.S. Department
of Agriculture (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. Such 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 no later than 20
days after the date of the entry of the ruling.
This rule temporarily suspends the continuance referendum
requirement under Sec. 959.84(d). On October 30, 2024, the Committee
recommended amending the marketing order through formal rulemaking and,
in a separate request on November 18, 2025, recommended the suspension
of the continuance referendum scheduled to occur in 2026. The Committee
unanimously voted to postpone the continuance referendum as it believes
conducting two referenda within a few months of each other could create
unnecessary confusion amongst voting producers. In addition, the
Committee desires postponement to allow industry time to evaluate the
proposed amendments, if implemented, prior to the next continuance
referendum.
Section 959.84(b) states that the Secretary shall terminate or
suspend the operation of any or all provisions of the Order, whenever
the Secretary finds that such provisions do not tend to effectuate the
declared policy of the Act. Section 959.84(d) specifies the Secretary
shall conduct a referendum every six years to ascertain whether
continuance of the Order is favored by producers. AMS last conducted a
continuance
[[Page 30484]]
referendum in 2020. By this requirement, the timing of the next
continuance referendum is scheduled to occur in 2026. AMS identifies
this period as the same period when the formal rulemaking proceeding
will occur, which includes a public hearing and may include a producer
referendum. In view of the anticipated time necessary to complete the
formal rulemaking action and the likelihood of an amendatory referendum
being conducted within several months of the scheduled continuance
referendum, AMS determined that the continuance referendum requirement
should be temporarily suspended to minimize confusion among voters.
Secondly, AMS determined that conducting a continuance referendum
during the same period when the formal rulemaking is expected to occur
would not allow the industry time to fully consider the impact of
potentially new amendments to the Order. For this reason, the
continuance referendum requirement would not tend to effectuate the
declared policy of the Act for that period of time, and therefore, AMS
has determined not to conduct the continuance referendum at the time
required by the Order.
Alternatively, AMS considered the possibility to conduct a
continuance referendum immediately after the conclusion of the formal
rulemaking. However, this timing would still result in multiple
referenda occurring within the same several month period, which may
cause voter confusion, and producers would have limited time to
evaluate any potential results of the amendatory process before voting
on the continuance of the Order. To address these concerns, AMS
determined that the temporary suspension of the continuance referendum
requirement should extend until January 1, 2032, which is on course
with the original structure of the timeframe under the Order as
discussed in Sec. 959.84(d). This temporary suspension would provide
industry and the Committee time to assess the benefits of any potential
amendments resulting from the formal rulemaking prior to the next
continuance referendum, it would prevent voter confusion, and it would
maintain the structure of the continuance timetable in the Order.
This rule temporarily suspends the continuance referendum
requirement under Sec. 959.84(d). The next scheduled continuance
referendum will be conducted in 2032.
Although this rule is immediately effective, a 30-day comment
period is provided to allow interested persons to respond to this
interim rule. AMS will consider all written comments received prior to
the issuance of a final rule.
Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of
this rule on small entities. Accordingly, AMS prepared this regulatory
flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
businesses that are subject to such actions so that small businesses
will not be unduly or disproportionately burdened. Marketing orders
issued pursuant to the Act are unique in that they are brought about
through group action of typically small entities acting on their own
behalf.
There are approximately 65 producers of onions operating within the
regulated production area. In addition, there are approximately 25
onion handlers subject to regulation under the Order. At the time this
analysis was prepared, the Small Business Administration (SBA) defined
small agricultural producers as those having annual receipts equal to
or less than $3,750,000 (North American Industry Classification System
(NAICS) code 111219, Other Vegetable (except Potato) and Melon
Farming). Small agricultural service firms are defined as those having
annual receipts of equal to or less than $34,000,000 million (NAICS
code 115114, Postharvest Crop Activities) (13 CFR 121.201).
Based on data from the National Agricultural Statistics Service
(NASS) and the Committee, the average price producers received for
South Texas onions during the 2024 season was approximately $15.75 per
50-pound container or equivalent, with total shipments of around 3.46
million 50-pound containers or equivalents. Using the average price
producers received and shipment information, the number of producers,
and assuming a normal distribution, the majority of producers have
estimated average annual receipts significantly less than $3.75 million
($15.75 multiplied by 3.46 million 50-pound containers or equivalents
equals $54,495,000, divided by 65 producers equals $838,385 per
producer).
In addition, based on data from USDA Market News and production
records from the Committee, the average price for South Texas onions
during the 2024 season was approximately $17.11 per 50-pound container
or equivalent with total shipments of around 3.46 million 50-pound
containers or equivalents shipped. Using the average price and shipment
data, handlers have average annual receipts below $34 million and could
be considered small businesses under SBA's definition ($17.11
multiplied by 3.46 million 50-pound containers or equivalents equals
$59,200,600, divided by 25 equals $2.37 million). Therefore, the
majority of handlers and producers of South Texas onions may be
classified as small entities.
On November 18, 2025, the Committee recommended that AMS postpone
the scheduled continuance referendum to avoid the referendum period
overlapping with formal rulemaking to amend the Order and any potential
confusion it would otherwise cause producers. After considering the
Committee's request, AMS determined that the scheduled continuance
referendum should be suspended while AMS conducts formal rulemaking to
amend the Order and, if effectuated, while the industry operates under
such amended Order.
Section 959.84(b) authorizes the Secretary to terminate or suspend
the operation of any or all provisions of the Order, whenever the
Secretary finds that such provisions do not tend to effectuate the
declared policy of the act.
This interim rule temporarily suspends the continuance referendum
requirement under Sec. 959.84(d) of the Federal marketing order
regulating the handling of onions grown in South Texas. The next
scheduled continuance referendum will be conducted in 2032. AMS will
consider all comments received prior to publication of a final rule in
the Federal Register.
The Committee's meetings are widely publicized throughout the
production area. The onion industry and all interested persons are
invited to attend the meetings and participate in Committee
deliberations on all issues. The meeting on November 18, 2025, at which
the Committee decided to request that AMS postpone the continuance
referendum, was open to the public and any interested parties were able
to express views on this issue. In addition, interested persons are
invited to submit comments on this interim rule.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the Order's information collection requirements have been
previously approved by OMB and assigned OMB No. 0581-0178, Vegetable
and Specialty Crops. No changes in those requirements would be
necessary as a result of this interim rule. Should any changes become
necessary, they would be submitted to OMB for approval.
This interim rule will not impose any additional reporting or
recordkeeping requirements on either small or large
[[Page 30485]]
South Texas onion handlers. 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.
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.
AMS has not identified any relevant Federal rules that duplicate,
overlap, or conflict with this interim rule.
After consideration of all relevant material presented, including
the information and recommendations submitted by the Committee and
other available information, AMS has determined that Sec. 959.84(d)
does not tend to effectuate the declared policy of the Act for the
period specified herein and should be stayed through January 1, 2032.
A 30-day comment period is provided to allow interested persons to
respond to this rule. All written comments timely received will be
considered before a final determination is made on this interim rule.
Good Cause Analysis
Pursuant to section 553(b)(B) of the Administrative Procedure Act,
notice and comment are not required prior to the issuance of a final
rule if an agency, for good cause, finds that ``notice and public
procedure thereon are impracticable, unnecessary, or contrary to the
public interest.''
AMS finds that good cause exists for this action and considers it
to be impracticable, unnecessary, and contrary to the public interest
to give preliminary notice prior to putting this rule into effect. This
rule should be implemented as soon as possible since the continuance
referendum period is scheduled to occur during this same timeframe as
the formal rulemaking process, which has already commenced. The
Committee discussed this overlap at public meetings and unanimously
recommended a suspension of the continuance referendum due to the
potential confusion among voting producers. This rule provides a
comment period and any comments received will be considered prior to
finalization of this rule.
For the reasons stated above, AMS also finds that good cause exists
for the interim rule to be effective upon publication in the Federal
Register.
List of Subjects in 7 CFR Part 959
Marketing agreements, Onions, Reporting and recordkeeping
requirements.
For the reasons set forth in the preamble, the Agricultural
Marketing Service amends 7 CFR part 959 as follows:
PART 959--ONIONS GROWN IN SOUTH TEXAS
0
1. The authority citation for 7 CFR part 959 continues to read as
follows:
Authority: 7 U.S.C. 601-674.
Sec. 959.84 [Amended]
0
2. Amend Sec. 959.84 by staying paragraph (d) from May 26, 2026,
through January 1, 2032.
Erin Morris,
Administrator, Agricultural Marketing Service.
[FR Doc. 2026-10378 Filed 5-22-26; 8:45 am]
BILLING CODE 3410-02-P
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