Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / Rules and Regulations 54343 

available through the Internet by USDA 

and the Office of the Federal Register. 

That rule provided for a 15-day 

comment period which ended on 

August 22, 2007. One comment 

supporting the rule was received. The 

commenter concurred that this action 

helps to maintain the integrity of the 

order. 

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. 

After consideration of all relevant 

materials presented, including the 

Committee’s recommendation, and 

other information, it is found that 

finalizing this interim final rule, 

without change, as published in the 

Federal Register (72 FR 44029, August 

7, 2007), will tend to effectuate the 

declared policy of the Act. 

List of Subjects in 7 CFR Part 989 

Grapes, Marketing agreements, 

Raisins, Reporting and recordkeeping 

requirements. 

PART 989—RAISINS PRODUCED 

FROM GRAPES GROWN IN 

CALIFORNIA 

■ Accordingly, the interim final rule 

amending 7 CFR part 989 which was 

published at 72 FR 44029 on August 7, 

2007, is adopted as a final rule without 

change. 

Dated: September 19, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–18794 Filed 9–24–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 989 

[Docket No. AMS–FV–07–0071; FV07–989–

2 FR] 

Raisins Produced From Grapes Grown 

in California; Use of Estimated Trade 

Demand To Compute Volume 

Regulation Percentages 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule provides for use of 

an estimated trade demand figure to 

compute volume regulation percentages 

for 2007–08 crop Natural (sun-dried) 

Seedless (NS) raisins covered under the 

Federal marketing order for California 

raisins (order). The order regulates the 

handling of raisins produced from 

grapes grown in California and is 

administered locally by the Raisin 

Administrative Committee (Committee). 

This rule provides parameters for 

implementing volume regulation for 

2007–08 crop NS raisins, if supplies are 

short, for the purposes of maintaining a 

portion of the industry’s export markets 

and stabilizing the domestic market. 

EFFECTIVE DATE: September 26, 2007. 

FOR FURTHER INFORMATION CONTACT: Rose 

M. Aguayo, Marketing Specialist, or 

Kurt J. Kimmel, Regional Manager, 

California Marketing Field Office, 

Marketing Order Administration 

Branch, Fruit and Vegetable Programs, 

AMS, USDA; Telephone: (559) 487–

5901, Fax: (559) 487–5906, or E-mail: 

Rose.Aguayo@usda.gov or 

Kurt.Kimmel@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 final 

rule is issued under Marketing 

Agreement and Order No. 989 (7 CFR 

part 989), both as amended, regulating 

the handling of raisins produced from 

grapes grown in California, 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.’’

The Department of Agriculture 

(USDA) is issuing this rule in 

conformance with Executive Order 

12866. 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is applicable to 

the 2007–08 crop year, which began on 

August 1, 2007, and runs through July 

31, 2008. This final 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 final rule provides for use of an 

estimated trade demand figure to 

compute volume regulation percentages 

for 2007–08 crop NS raisins covered 

under the order. This rule provides 

parameters for implementing volume 

regulation for 2007–08 crop NS raisins, 

if supplies are short, for the purposes of 

maintaining a portion of the industry’s 

export markets and stabilizing the 

domestic market. This action was 

unanimously recommended by the 

Committee at a meeting on April 12, 

2007. 

Volume Regulation Authority 

The order provides authority for 

volume regulation designed to promote 

orderly marketing conditions, stabilize 

prices and supplies, and improve 

producer returns. When volume 

regulation is in effect, a certain 

percentage of the California raisin crop 

may be sold by handlers to any market 

(free tonnage), while the remaining 

percentage must be held by handlers in 

a reserve pool (reserve) for the account 

of the Committee. Reserve raisins are 

disposed of through certain programs 

authorized under the order. For 

instance, reserve raisins may be sold by 

the Committee to handlers for free use 

or to replace part of the free tonnage 

raisins they exported; used in diversion 

programs; carried over as a hedge 

against a short crop the following year; 

or disposed of in other outlets not 

competitive with those for free tonnage 

raisins, such as government purchase, 

distilleries, or animal feed. Net proceeds 

from sales of reserve raisins are 

distributed to the reserve pool’s equity 

holders, primarily producers. 

Section 989.54 of the order prescribes 

procedures and time frames to be 

followed in establishing volume 

regulation for each crop year, which 

runs from August 1 through July 31. The 

Committee must meet by August 15 to 

review data regarding raisin supplies. At 

that time, the Committee computes a 

trade demand for each varietal type of 

raisins for which a free tonnage 

percentage might be recommended. 


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Trade demand is equal to 90 percent of 

the prior year’s domestic and export 

shipments, adjusted by subtracting 

carryin inventory from the prior year 

and adding a desirable carryout 

inventory for the end of the current 

year. 

By October 5, the Committee must 

announce preliminary crop estimates 

and determine whether volume 

regulation is warranted for the varietal 

types for which it computed trade 

demands. Preliminary volume 

regulation percentages are then 

computed to release 85 percent of the 

computed trade demand if a field price 

has been established or 65 percent of the 

trade demand if no field price has been 

established. Field price is the price that 

handlers pay for raisins from producers. 

By February 15, the Committee must 

recommend final free and reserve 

percentages that will tend to release the 

full trade demand. 

The order also requires that, when 

volume regulation is in effect, two offers 

of reserve raisins must be made 

available to handlers for free use. These 

offers are known as the ‘‘10 plus 10’’

offers. Each offer consists of a quantity 

of reserve raisins equal to 10 percent of 

the prior year’s shipments. The order 

also specifies that ‘‘10 plus 10’’ raisins 

must be sold to handlers at the current 

field price plus a 3 percent surcharge 

and Committee costs. 

Development of Export Markets 

With the exception of 11 crop years, 

volume regulation has been utilized for 

NS raisins since the order’s inception in 

1949. The procedures for determining 

volume regulation percentages have 

been modified over the years to address 

the industry’s needs. In the past, volume 

regulation has been utilized primarily to 

help the industry manage an oversupply 

of raisins. Through the use of various 

marketing programs operated through 

reserve pools and other promotional 

activities, the industry has also 

developed its export markets. 

Between 1980 and 1985, exports of 

California NS raisins averaged about 26 

percent (53,700 packed tons, or raisins 

which have been processed) of the 

industry’s total NS raisin shipments 

(207,600 packed tons, excluding 

government purchases) per year. During 

the last nine years (1997–2005) these 

exports averaged about 37 percent 

(105,000 packed tons) of the industry’s 

total NS raisin shipments (282,000 

packed tons, excluding government 

purchases) per year. 

Export Replacement Offer 

One market development program 

operated through reserve pools, the 

Export Replacement Offer (ERO), has 

helped U.S. raisins to be price 

competitive in export markets. Prices in 

export markets are generally lower than 

the domestic market. The ERO began in 

the early 1980s as a ‘‘raisin-back’’

program whereby handlers who 

exported California raisins could 

purchase, at a reduced price, reserve 

raisins for free use. This effectively 

blended down the cost of the raisins 

that were exported. The NS raisin ERO 

was changed to a ‘‘cash-back’’ program 

in 1996 whereby handlers could receive 

cash from the reserve pool for export 

shipments. 

The NS ERO operated as a ‘‘cash 

back’’ program in all years since then, 

except for 2000, 2001, and a portion of 

2002. During 2002 both ‘‘cash back’’ and 

‘‘raisin back’’ programs were 

implemented. Financing for the cashback ERO program has been primarily 

from the Committee’s ‘‘10 plus 10’’ sales 

of reserve raisins. Under the 2002, 2003, 

2004, and 2005 cash-back ERO programs 

an average of $39.7 million of reserve 

pool funds per year were utilized to 

support the export of about 103,000 

packed tons of NS raisins annually. 

Current Industry Situation—Declining 

Production 

Raisin deliveries reached an all time 

high in 2000–01 at 432,616 natural 

condition tons. Deliveries for the 

subsequent two years (2001–02 and 

2002–03) remained high at 377,328 and 

388,010 natural conditions tons, 

respectively. Producer prices dropped 

dramatically during these years of high 

production. In the years to follow, grape 

production declined because of poor 

grower returns in the wine and raisin 

segments of the industry. Raisin 

deliveries for the 2003–04 through the 

2005–06 crop year averaged 293,750 

natural condition tons. Deliveries for the 

recently completed 2006–07 crop year 

fell to 282,999 natural condition tons. 

Since 2000, about 40,000 producing 

acres of grape vines have been removed 

in favor of other crops, which have 

provided higher returns. 

The Committee is concerned that the 

2007–08 crop may be short because of 

grape vine removals over the last several 

years and an April frost. As a result, 

volume regulation may not be warranted 

based on the order’s computed trade 

demand formula. If no 2007–08 reserve 

were established, the industry would 

not be able to continue the ERO program 

and support its export sales. The 

Committee is concerned that the 

industry could lose a significant 

portion, perhaps 50 percent, of its 

export markets. Further, handlers who 

could not sell their raisins in export 

may sell their raisins domestically. 

Annual domestic shipments of NS 

raisins for the past 9 years have 

averaged about 177,000 packed tons. 

The Committee is concerned that 

additional raisins sold into the domestic 

market could create instability. 

Thus, the Committee formed a 

working group to review this issue and 

consider options to continue to support 

its export sales while maintaining 

stability in the domestic market. After 

its meeting on February 1, 2007, the 

working group presented its 

recommendation to the subcommittee, 

and then, in turn, to the Committee. At 

a meeting on April 12, 2007, the 

Committee unanimously recommended 

using an estimated trade demand rather 

than a computed trade demand to 

calculate the 2007–08 NS raisin crop 

volume regulation percentages, if the 

crop size falls within certain 

parameters. Section 989.154(b) of the 

order’s administrative rules and 

regulations is revised accordingly by 

replacing ‘‘1999–2000’’ with ‘‘2007–08’’

and ‘‘235,000’’ with ‘‘215,000.’’

Implementing Volume Regulation If 

Supplies Are Short To Maintain the 

ERO 

Section 989.54(e) contains a list of 

factors that the Committee must 

consider when computing volume 

regulation percentages. Factor (4) states 

that the Committee must consider, if 

different than the computed trade 

demand, the estimated trade demand for 

raisins in free tonnage outlets. The 

Committee recommended using an 

estimated trade demand figure for 2007–

08 crop NS raisins, which is a figure 

different than the computed trade 

demand, to compute volume regulation 

percentages to create a reserve if 

supplies are short. This will allow the 

Committee to continue its ERO program, 

thereby maintaining a portion of its 

export sales and stabilizing the domestic 

market. 

Specifically, the Committee 

recommended that an estimated trade 

demand be utilized to compute 

preliminary, interim, and final free and 

reserve percentages for 2007–08 crop NS 

raisins if the crop estimate is equal to, 

less than, or no more than 10 percent 

greater than the trade demand as 

computed according to the formula 

specified in § 989.54(a) of the order. If 

an estimated trade demand figure is 

utilized, the final reserve percentage 

will be no more than 10 percent. 

Finally, volume regulation will not be 

implemented if the 2007–08 crop 

estimate is below 215,000 natural 

condition tons. 


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Crop Estimate Below 215,000 Tons—No 

Regulation 

To illustrate how this would work, 

the Committee met on August 14, 2007, 

and computed a trade demand for 2007–

08 NS raisins of 232,822 natural 

condition tons. The Committee must 

meet by October 5 to announce a NS 

crop estimate and determine whether 

volume regulation is warranted. If the 

2007–08 crop estimate is under 215,000 

natural condition tons, volume 

regulation will not be recommended. 

With a crop of 215,000 natural 

condition tons, and 105,430 natural 

condition tons of NS raisins carried 

forward from the 2006–07 crop year, a 

supply of about 320,430 natural 

condition tons of raisins would be 

available for the 2007–08 crop year. As 

previously mentioned, annual NS raisin 

shipments average about 282,000 

packed tons (about 300,000 natural 

condition tons), excluding government 

purchases. 

With an available supply of only 

320,430 natural condition tons of NS 

raisins, the Committee believes that the 

industry’s first priority would be to 

satisfy the needs of the domestic market, 

which absorbs annually an average of 

about 177,000 packed tons (188,000 

natural condition tons). Assuming that 

188,000 natural condition tons were 

shipped domestically, the Committee 

estimates that, with no ERO program to 

help U.S. raisins be price competitive in 

export markets, the industry would 

export about half of its usual tonnage, or 

about 56,000 natural condition tons. 

The remaining 76,430 natural condition 

tons would likely be held in inventory 

for the following 2008–09 crop year. 

Annual carryout inventory for NS 

raisins for the past 9 years has averaged 

about 108,000 natural condition tons. 

Crop Estimate Between 215,000 Tons 

and 10 Percent Above the Computed 

Trade Demand—Volume Regulation 

If the 2007–08 crop estimate for NS 

raisins falls between 215,000 natural 

condition tons and 10 percent above the 

computed trade demand, the Committee 

will use an estimated trade demand 

figure to compute preliminary free and 

reserve percentages for the 2007–08 

crop. Thus, using the 232,822 natural 

condition ton computed trade demand 

figure, an estimated trade demand 

would be used to compute volume 

regulation percentages if the crop 

estimate falls between 215,000 and 

256,104.2 natural condition tons. 

The order specifies that preliminary 

percentages compute to release 85 

percent of the computed trade demand 

as free tonnage once a field price is 

established. Producers are paid the field 

price for their free tonnage. Normally, 

when preliminary percentages are 

computed, producers receive an initial 

payment from handlers for 85 percent of 

the computed trade demand (or 65 

percent of the trade demand if no field 

price has been established). Using the 

232,822 natural condition ton computed 

trade demand figure, this equates to 

197,899 natural condition tons. 

However, if an estimated trade demand 

figure were utilized to compute 

preliminary percentages, for example—

215,000 tons, producers would receive 

an initial payment from handlers for 

only 182,750 natural condition tons, or 

78.5 percent of the computed trade 

demand. 

The Committee is concerned with the 

preliminary percentage computation 

using an estimated trade demand and its 

impact on producer returns. The 

Committee wants to ensure that the 

producers receive the field price for as 

much of their crop as possible while 

still establishing a small pool of reserve 

raisins to maintain the ERO. The 

Committee must meet by February 15 to 

compute final free and reserve 

percentages. The Committee 

recommended that if an estimated trade 

demand figure is used to compute 

percentages, the final reserve percentage 

compute to equal no more than 10 

percent of the estimated crop. Producers 

will ultimately be paid the field price 

for 90 percent of their crop, or their free 

tonnage. 

The remaining 10 percent of the crop 

would be held in reserve and offered for 

sale to handlers in the ‘‘10 plus 10’’

offers. As previously described, the ‘‘10 

plus 10’’ offers are two offers of reserve 

raisins that are made available to 

handlers for free use. The order 

specifies that each offer consists of a 

quantity of reserve raisins equal to 10 

percent of the prior year’s shipments. 

This requirement would not be met if 

volume regulation were implemented 

when raisin supplies were short. 

However, all of the raisins held in 

reserve would be made available to 

handlers for free use. Handlers would 

pay the Committee for the ‘‘10 plus 10’’

raisins and that money would be 

utilized to fund a 2007–08 ERO 

program. Any unused 2007–08 reserve 

pool funds could be used to initiate a 

2008–09 ERO program or to make a 

grower payment to the 2007–08 reserve 

pool growers. 

Crop Estimate More Than 10 Percent 

Above the Computed Trade Demand 

Finally, the Committee recommended 

that, if the 2007–08 crop estimate is 

more than 10 percent greater than the 

computed trade demand (or above 

256,104.2 natural condition tons), the 

computed trade demand of 232,822 

natural condition tons will be utilized to 

compute volume regulation percentages. 

Under this scenario, enough raisins 

(over 23,000 natural condition tons) 

would be available in reserve to 

continue the ERO program. 

It is anticipated that allowing the use 

of an estimated trade demand figure to 

compute volume regulation percentages 

for 2007–08 crop NS raisins if supplies 

are short will assist the industry in 

maintaining a portion of its export 

markets and stabilize the domestic 

market. If the crop estimate is below 

215,000 natural condition tons, no 

volume regulation will be implemented. 

If this occurs, it is anticipated that 

domestic market needs would be met, 

while export markets would likely not 

be satisfied. 

However, if the crop falls between 

215,000 natural condition tons and 

256,104.2 tons, establishing a small 

reserve pool would allow the industry 

to not only satisfy the needs of the 

domestic market, but also maintain a 

portion of its export sales, which now 

account for about 37 percent of the 

industry’s annual shipments. By 

maintaining an ERO program, even at a 

reduced level, exporters could continue 

to be price competitive and sell their 

raisins abroad. The domestic market 

would remain stable because it would 

not have to absorb any additional raisins 

that handlers could not afford to sell in 

export markets. 

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 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 23 handlers 

of California raisins who are subject to 

regulation under the order and 

approximately 4,000 raisin producers in 

the regulated area. Small agricultural 

service firms have been defined by the 

Small Business Administration (13 CFR 

121.201) as those having annual receipts 

of less than $6,500,000, and small 


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54346 Federal Register / Vol. 72, No. 185 / Tuesday, September 25, 2007 / Rules and Regulations 

agricultural producers are defined as 

those having annual receipts of less than 

$750,000. No more than 10 handlers, 

and a majority of producers, of 

California raisins may be classified as 

small entities. Thirteen of the 23 

handlers subject to regulation have 

annual sales estimated to be at least 

$6,500,000, and the remaining 10 

handlers have sales less than 

$6,500,000. 

This rule revises § 989.154(b) of the 

order’s administrative rules and 

regulations by changing the parameters 

for using an estimated trade demand 

figure specified in § 989.54(e)(4) of the 

order to compute volume regulation 

percentages for 2007–08 crop NS 

raisins. Section 989.154(b) provides 

guidelines for the use of volume 

regulation if 2007–08 NS raisin supplies 

are short for the purposes of 

maintaining a portion of the industry’s 

export markets and stabilizing the 

domestic market. 

Regarding the impact of the action on 

producers and handlers, if an estimated 

trade demand figure is used to compute 

volume regulation percentages, the final 

reserve percentage would compute to no 

more than 10 percent. Producers would 

thus be paid the field price for at least 

90 percent of their crop, but would not 

be paid the field price for about 10 

percent of their crop that would go into 

a reserve pool. The field price for NS 

raisins for the past 5 years has averaged 

$1,073 per ton. Handlers in turn would 

purchase 90 percent of their raisins 

directly from producers at the field 

price, but would have to buy remaining 

raisins out of the reserve pool at a 

higher price (field price plus 3 percent 

and Committee costs). The ‘‘10 plus 10’’

price of NS reserve raisins has averaged 

about $100 higher than the field price 

for the past 9 years, or $1,173 per ton. 

Proceeds from the ‘‘10 plus 10’’ sales 

would be used to support export sales. 

While there may be some initial costs 

for both producers and handlers, the 

long term benefits of this action far 

outweigh the costs. The Committee 

believes that with no reserve pool, and 

hence, no ERO program, export sales 

would decline dramatically, perhaps up 

to 50 percent. Handlers would likely 

sell into the domestic market raisins 

that they were unable to sell into lower 

priced export markets. Additional NS 

raisins sold into the domestic market, 

which typically absorbs about 177,000 

packed tons, could create instability. 

The industry would likely lose a 

substantial portion of its export markets, 

which now account for about 37 percent 

(105,000 packed tons) of the industry’s 

annual shipments (282,000 packed 

tons), excluding government purchases). 

Committee members have also 

commented that, once export markets 

were lost, it would be difficult and 

costly for the industry to recover those 

sales. Raisins are mostly used as an 

ingredient in baked goods, cereals, and 

snacks. Typically, buyers want reliable 

suppliers from year to year and are 

generally reluctant to find alternative 

ingredients or sources. In turn, once 

buyers change sources, they may not 

switch back. 

Export markets for raisins are highly 

competitive. The U.S. and Turkey are 

the world’s leading producers of raisins. 

Turkey exports approximately 80 

percent of its total production, and 

represents an alternative product source 

for raisin buyers. 

Maintaining the industry’s export 

markets will help the industry 

maximize its 2007–08 total shipments of 

NS raisins and prevent handlers from 

carrying forward large quantities of 

inventory into the 2008–09 crop year. If 

the industry is unable to maximize its 

2007–08 shipments of NS raisins, 

carryin inventory could be high, which 

would result in a lower computed trade 

demand figure for the 2008–09 crop 

year. A lower trade demand would 

lower the free tonnage percentage. Since 

NS raisin producers are paid 

significantly more for their free tonnage 

than for reserve tonnage, a lower free 

tonnage percentage could reduce returns 

to producers. Projected reduced 2008–

09 returns to producers, coupled with 

the risks of rain and labor shortages 

during harvest, may influence producers 

to ‘‘go green,’’ or sell their raisin-variety 

grapes to the fresh-grape, wine, or juice 

concentrate markets. Additional 

supplies to those outlets could 

potentially reduce ‘‘green’’ returns as 

well. 

An alternative to the proposed action 

was considered by the industry. As 

previously mentioned, the Committee 

formed a working group to address its 

concerns. The working group 

considered utilizing the computed trade 

demand formula in the order and 

utilizing about $7.5 million of available 

funds of the 2005–06 reserve pool and 

about 20,000 tons of natural condition 

raisins remaining in the 2006–07 reserve 

pool in April 2007 to fund the ERO. 

However, the Committee decided that 

sufficient assets would not be available 

to fund the 2007–08 crop NS raisin 

ERO. The Committee’s assets are not 

sufficient because there was no 2004–05 

reserve, and funds from the 2005–06 

and 2006–07 pools will ultimately fund 

the 2007–08 ERO program only until 

about March 2008. 

Thus, after much discussion, the 

working group ultimately recommended 

to the Committee using an estimated 

trade demand to compute volume 

regulation percentages if 2007–08 crop 

NS raisin supplies are short. 

This action will not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

raisin 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. 

As noted in the initial regulatory 

flexibility analysis, USDA has not 

identified any relevant Federal rules 

that duplicate, overlap or conflict with 

this final rule. 

In addition, the Committee’s working 

group meeting held on February 1, 2007, 

and the subcommittee and Committee 

meetings on April 12, 2007, were widely 

publicized throughout the raisin 

industry and all interested persons were 

invited to attend the meetings and 

participate in Committee deliberations 

on all issues. Like all Committee 

meetings, the February 1 and April 12, 

2007, meetings were public meetings 

and all entities, both large and small, 

were able to express views on this issue. 

A proposed rule concerning this 

action was published in the Federal 

Register on August 1, 2007 (72 FR 

41948). Copies of the rule were mailed 

or sent via facsimile to all Committee 

members and raisin handlers. Finally, 

the rule was made available through the 

Internet by USDA and the Office of the 

Federal Register. A 15-day comment 

period ending August 16, 2007, was 

provided to allow interested persons to 

respond to the proposal. 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. 

After consideration of all relevant 

matters presented, including the 

information and recommendation 

submitted by the Committee and other 

available information, it is hereby found 

that this rule, as hereinafter set forth, 

will tend to effectuate the declared 

policy of the Act. 


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1Section 10(d) of the FDI Act was added by 

section 111 of the Federal Deposit Insurance 

Corporation Improvement Act of 1991 (FDICIA) and 

is codified at 12 U.S.C. 1820(d). 

It is further found that good cause 

exists for not postponing the effective 

date of this rule until 30 days after 

publication in the Federal Register (5 

U.S.C. 553) because the 2007–08 crop 

year began on August 1, 2007, and this 

action must be in place by the time the 

Committee meets to consider whether 

volume regulation is warranted for 

2007–08 NS raisins (on or before 

October 5, 2007). Further, handlers are 

aware of this rule, which was 

unanimously recommended at a public 

meeting. Also, a 15-day comment period 

was provided for in the proposed rule 

and no comments were received. 

List of Subjects in 7 CFR Part 989 

Grapes, Marketing agreements, 

Raisins, Reporting and recordkeeping 

requirements. 

■ For the reasons set forth in the 

preamble, 7 CFR part 989 is amended as 

follows: 

PART 989—RAISINS PRODUCED 

FROM GRAPES GROWN IN 

CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 989 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 989.154, paragraph (b) is 

revised to read as follows: 

§ 989.154 Marketing policy computations. 

* * * * * 

(b) Estimated trade demand. Pursuant 

to § 989.54 (e)(4), estimated trade 

demand is a figure different than the 

trade demand computed according to 

the formula in § 989.54(a). The 

Committee shall use an estimated trade 

demand to compute preliminary and 

interim free and reserve percentages, or 

determine such final percentages for 

recommendation to the Secretary for 

2007–08 crop Natural (sun-dried) 

Seedless (NS) raisins if the crop 

estimate is equal to, less than, or no 

more than 10 percent greater than the 

computed trade demand: Provided, That 

the final reserve percentage computed 

using such estimated trade demand 

shall be no more than 10 percent, and 

no reserve shall be established if the 

final 2007–08 NS raisin crop estimate is 

less than 215,000 natural condition 

tons. 

Dated: September 20, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 07–4722 Filed 9–20–07; 1:38 pm] 

BILLING CODE 3410–02–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

12 CFR Part 4 

[Docket ID OCC–2007–00014] 

RIN 1557–AD02 

FEDERAL RESERVE SYSTEM 

12 CFR Parts 208 and 211 

[Docket No. R–1279] 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Parts 337 and 347 

RIN 3064–AD17 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

12 CFR Part 563 

[Docket ID OTS–2007–0011] 

Expanded Examination Cycle for 

Certain Small Insured Depository 

Institutions and U.S. Branches and 

Agencies of Foreign Banks 

AGENCIES: Office of the Comptroller of 

the Currency (OCC); Board of Governors 

of the Federal Reserve System (Board); 

Federal Deposit Insurance Corporation 

(FDIC); and Office of Thrift Supervision 

(OTS), Treasury. 

ACTION: Final rules. 

SUMMARY: The OCC, Board, FDIC, and 

OTS (collectively, the Agencies) are 

jointly adopting as final the interim 

rules issued on April 10, 2007, that 

implemented section 605 of the 

Financial Services Regulatory Relief Act 

of 2006 (FSRRA) and related legislation 

(collectively the Examination 

Amendments). The Examination 

Amendments permit insured depository 

institutions (institutions) that have up to 

$500 million in total assets, and that 

meet certain other criteria, to qualify for 

an 18-month (rather than 12-month) onsite examination cycle. Prior to 

enactment of FSRRA, only institutions 

with less than $250 million in total 

assets were eligible for an 18-month onsite examination cycle. The interim 

rules made parallel changes to the 

Agencies’ regulations governing the onsite examination cycle for U.S. branches 

and agencies of foreign banks (foreign 

bank offices), consistent with the 

International Banking Act of 1978 (IBA). 

In addition to implementing the changes 

in the Examination Amendments, the 

interim rules clarified when a small 

insured depository institution is 

considered ‘‘well managed’’ for 

purposes of qualifying for an 18-month 

examination cycle. 

DATES: Effective on September 25, 2007, 

the Interim Rules published on April 10, 

2007 (72 FR 17798) are adopted as final 

without change. 

FOR FURTHER INFORMATION CONTACT:

OCC: Mitchell Plave, Counsel, 

Legislative and Regulatory Activities 

Division, (202) 874–5090; Stuart E. 

Feldstein, Assistant Director, Legislative 

and Regulatory Activities, (202) 874–

5090; Fred Finke, Mid-size/Community 

Bank Supervision, (202) 874–4468; 

Patricia Roberts, Operational Risk Policy 

Analyst, (202) 874–5637. 

Board: Barbara Bouchard, Deputy 

Associate Director, (202) 452–3072, 

Mary Frances Monroe, Manager, (202) 

452–5231, or Stanley Rediger, 

Supervisory Financial Analyst, (202) 

452–2629, Division of Banking 

Supervision and Regulation; or Pamela 

G. Nardolilli, Senior Counsel, (202) 

452–3289, for the revisions to 

Regulation H, or Jon Stoloff, Senior 

Counsel, (202) 452–3269, for the 

revisions to Regulation K, Legal 

Division. For users of 

Telecommunication Device for the Deaf 

(TDD) only, contact (202) 263–4869. 

FDIC: Melinda West, Senior 

Examination Specialist, (202) 898–7221; 

Patricia A. Colohan, Senior Examination 

Specialist, (202) 898–7283; Division of 

Supervision and Consumer Protection; 

Rodney D. Ray, Counsel, (202) 898–

3556, for the revisions to 12 CFR Part 

347; Kimberly A. Stock, Senior 

Attorney, (202) 898–3815, for the 

revisions to 12 CFR Part 337; Legal 

Division. 

OTS: Robyn H. Dennis, Director, 

Operation Risk, (202) 906–5751, 

Examinations and Supervision Policy 

Office of Thrift Supervision, 1700 G 

Street, NW., Washington, DC 20552. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 10(d) of the Federal Deposit 

Insurance Act (the FDI Act) 1 generally 

requires that the appropriate Federal 

banking agency for an insured 

depository institution conduct a fullscope, on-site examination of the 

institution at least once during each 12- 

month period. Prior to enactment of 

FSRRA, section 10(d) also authorized 

the appropriate Federal banking agency 

to lengthen the on-site examination 


yshivers on PROD1PC62 with RULES