1678 Federal Register / Vol. 72, No. 9 / Tuesday, January 16, 2007 / Proposed Rules 

plan accordingly. The rulemaking 

process requires USDA to provide 

adequate notice to interested parties and 

opportunity for comment. Steps are 

taken to complete this process 

efficiently. 

Seventeen comments were received in 

opposition. Some of the commenters 

expressed the belief that the portions of 

the production area where cranberry 

production has not dramatically 

changed over the past ten years should 

not be subject to volume controls, when 

implemented. Also, they believe that 

handlers who can sell all of the fruit 

they acquire should be exempted from 

volume controls. The commenters 

believe that only handlers with an 

oversupply of cranberries should be 

regulated. Similar opposing comments 

were from growers in the State of 

Oregon. Most urged that volume 

regulation not be invoked and, if it is, 

producers in Oregon should be exempt. 

The commenters believe that Oregon 

growers suffered financially when 

volume regulations were implemented 

in 2000–01 and 2001–02 because 

Oregon cranberry farms are small and 

do not significantly impact the overall 

supply. In addition, they would like the 

marketing order rescinded to end the 

negative impacts on production for 

small producers in small production 

areas. 

Modifications to the volume 

regulation provisions were considered 

during the most recent cranberry 

amendment proceeding. Many changes 

were made to improve the process to the 

benefit of producers and handlers and 

were supported in a producer 

referendum. Any additional 

modifications, including providing 

exemptions, would require further 

amendment to the order. 

Marketing order issues and programs 

are discussed at public meetings, and all 

interested persons are allowed to 

express their views. All comments are 

considered in the decision making 

process by the Committee and USDA 

before any program changes are 

implemented. 

In considering the order’s complexity, 

AMS has determined that the marketing 

order is not unduly complex. 

During the review, the order was also 

checked for duplication and overlap 

with other regulations. AMS did not 

identify any relevant Federal rules, or 

State and local regulations that 

duplicate, overlap, or conflict with the 

marketing order for cranberries. 

As stated previously, the order was 

established in 1962. During this time, 

AMS and the cranberry industry have 

continuously monitored marketing 

operations. Changes in regulations have 

been implemented to reflect current 

industry operating practices, and to 

solve marketing problems as they occur. 

The goal of these evaluations is to 

assure that the marketing order and the 

regulations implemented under it fit the 

needs of the industry and are consistent 

with the Act. 

The Committee meets whenever 

needed, but at least bi-annually, to 

discuss the marketing order and the 

various regulations issued thereunder, 

and to determine if, or what, changes 

may be necessary to reflect current 

industry practices. As a result, 

regulatory changes have been made 

numerous times over the years to 

address industry operation changes and 

to improve program administration. In 

2002, the Committee made several 

recommendations to improve the order’s 

volume control provisions. Amendment 

hearings were held in several parts of 

the cranberry production area to receive 

evidence regarding the Committee’s 

recommendations. A referendum was 

held in December 2004 to determine 

producer and processor support for the 

proposed amendments. The proposed 

amendments were favored by both 

producers and processors voting in the 

referendum. 

Accordingly, AMS has determined 

that the cranberry marketing order 

should be continued. The marketing 

order was established to help the 

cranberry industry work with USDA to 

solve marketing problems. The 

marketing order regulations on volume 

control, research and promotional 

activities, and reporting requirements 

continue to be beneficial to producers, 

handlers, and consumers. AMS will 

continue to work with the cranberry 

industry in maintaining an effective 

program. 

Dated: January 9, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–424 Filed 1–12–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 929 

[Docket No. AMS–FV–06–0174; FV06–929–

1 PR] 

Cranberries Grown in the States of 

Massachusetts, et al.; Increased 

Assessment Rate 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule would increase the 

assessment rate established for the 

Cranberry Marketing Committee 

(Committee) for the 2006–2007 fiscal 

year and subsequent fiscal years from 

$0.18 to $0.28 per barrel. Authorization 

to assess cranberry handlers enables the 

Committee to incur expenses that are 

reasonable and necessary to administer 

the program. The Committee locally 

administers the marketing order which 

regulates the handling of cranberries 

grown in the States of Massachusetts, 

Rhode Island, Connecticut, New Jersey, 

Wisconsin, Michigan, Minnesota, 

Oregon, Washington, and Long Island in 

the State of New York. The fiscal year 

began September 1, 2006, and ends 

August 31, 2007. The assessment rate 

will remain in effect indefinitely unless 

modified, suspended, or terminated. 

DATES: Comments must be received by 

February 15, 2007. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this action. Comments must 

be sent to the Docket Clerk, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW., STOP 

0237, Washington, DC 20250–0237; Fax: 

(202) 720–8938, E-mail: 

moabdocket.clerk@usda.gov; or Internet: 

http://www.regulations.gov. All 

comments should reference the docket 

number and the date and page number 

of this issue of the Federal Register and 

will be made available for public 

inspection in the Office of the Docket 

Clerk during regular business hours or 

can be viewed at: http://www.ams/ 

usda.gov/fv/moab/html. 

FOR FURTHER INFORMATION CONTACT: 

Patricia A. Petrella or Kenneth G. 

Johnson, DC Marketing Field Office, 

Fruit and Vegetable Programs, AMS, 

USDA, Unit 155, 4700 River Road, 

Riverdale, Maryland 20737; telephone: 

(301) 734–5243, Fax: (301) 734–5275, or 

E-mail at Patricia.Petrella@usda.gov or 

Kenneth.Johnson@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 rule 

is issued under Marketing Agreement 

and Order No. 929, as amended (7 CFR 

part 929), regulating the handling of 

cranberries produced in the States of 

Massachusetts, Rhode Island, 


ycherry on PROD1PC64 with PROPOSALS
Federal Register / Vol. 72, No. 9 / Tuesday, January 16, 2007 / Proposed Rules 1679 

Connecticut, New Jersey, Wisconsin, 

Michigan, Minnesota, Oregon, 

Washington, and Long Island in the 

State of New York, 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 rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. Under the marketing order now 

in effect, cranberries are subject to 

assessments. Funds to administer the 

order are derived from such 

assessments. It is intended that the 

assessment rate as proposed herein 

would be applicable to all assessable 

cranberries beginning September 1, 

2006, and continue until amended, 

suspended, or terminated. This 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 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. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing the 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 the 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 rule would increase the 

assessment rate established for the 

2006–2007 and subsequent fiscal years 

from $0.18 to $0.28 per pound of 

cranberries. 

The cranberry marketing order 

provides authority for the Committee, 

with approval of USDA, to formulate an 

annual budget of expenses and collect 

assessments from handlers to administer 

the program. The members of the 

Committee are producers and handlers 

of cranberries. They are familiar with 

the Committee’s needs and with the 

costs for goods and services in their 

local area and are thus in a position to 

formulate an appropriate budget and 

assessment rate. The assessment rate is 

formulated and discussed in a public 

meeting. Thus, all directly affected 

persons have an opportunity to 

participate and provide input. 

Authority to fix the rate of assessment 

to be paid by each handler and to collect 

such assessment appears in § 929.41 of 

the order. In addition, § 929.45 of the 

order provides that the Committee, with 

the approval of the USDA, may establish 

or provide for the establishment of 

production research, marketing 

research, and market development 

projects designed to assist, improve, or 

promote the marketing, distribution, 

consumption, or efficient production of 

cranberries. The expense of such 

projects is paid from funds collected 

pursuant to § 929.41 (Assessments), or 

from such other funds as approved by 

the USDA. 

For the 2001–2002 fiscal year, the 

Committee recommended, and USDA 

approved, an assessment rate of $0.18 

per barrel of cranberries handled that 

would continue in effect from fiscal 

period to fiscal period unless modified, 

suspended, or terminated by USDA 

upon recommendation and information 

submitted by the Committee or other 

information available to USDA. 

The Committee met on August 28, 

2006, and recommended 2006–2007 

expenditures of $3,522,062 and an 

assessment rate of $0.28 per pound of 

cranberries. The Committee passed the 

assessment rate increase by a vote of 12 

to 2. Those not supporting the 

recommendation wanted a lesser 

increase. In comparison, last year’s 

budgeted expenses were $2,612,265. 

The assessment rate of $0.28 is $0.10 

higher than the rate currently in effect. 

The Committee recommended the 

$0.10 per barrel increase to cover 

increased costs. The Committee has 

expanded its contributions to the export 

market development program from 

$50,000 in 1999 to $480,000 in 2006. 

The Committee has increased funding of 

the export market development program 

as target markets have expanded from 

two in 1999 (Japan and Germany), to 

five in 2006 (Japan, Germany, Mexico, 

France and Australia) with contingency 

plans to expand activities regionally 

within Europe and in South Korea. 

According to the Committee, cranberries 

and cranberry products going into 

export markets have steadily increased 

from 10 percent of the annual cranberry 

production during the 1999–2000 fiscal 

period to approximately 24 percent of 

the annual production in the 2005–2006 

fiscal period. 

In order to expand and maintain 

activities within the target markets, the 

Committee has used funds from its 

reserve account to meet the costs of 

educating consumers and the trade 

industry. 

Since the last increase published in 

the Federal Register on February 14, 

2002, at 67 FR 6843, the assessment rate 

has not been increased to compensate 

for increases in the costs of goods and 

services, costs contributable to 

increasing the Committee membership 

and to pay back funds taken from the 

reserve for the expanding export market 

development program. As a result, the 

reserve has continued to decrease until 

it is at a point where the Committee is 

unable to meet the order’s reserve 

funding requirements or balance its 

budget without an increase in 

assessments and/or cutback in program 

activities. The Committee recommended 

the assessment rate increase to continue 

to expand the generic export market 

development program and have 

sufficient funding to meet its 

operational expenses. Without this 

increase, the Committee would have to 

curtail expansion of the export market 

development program. 

All cranberry handlers regulated 

under the marketing order would pay 

the proposed assessment rate. However, 

certain organic handlers may be exempt 

from paying assessments for market 

promotion activities pursuant to 7 CFR 

900.700. 

The major expenditures 

recommended by the Committee for the 

2006–2007 fiscal year include $500,000 

for domestic promotion, $480,000 for 

export promotion, $154,116 for 

personnel, $103,500 for meetings, and 

$107,527 for administrative expenses. 

Budgeted expenses for major items in 

2005–2006 were $488,225 for domestic 

promotion, $147,420 for personnel, 

$105,500 for meetings, and $116,542 for 

administrative expenses. The 

Committee recommended an increased 

assessment rate to generate larger 

revenue to meet its operational and 

export promotion expenses and keep its 

reserves at an acceptable level. 

In deriving the recommended 

assessment rate, the Committee 

determined assessable cranberry 

production for the upcoming fiscal 

period at 6,506,000 barrels. Therefore, 

total assessment income for the 2006–

2007 fiscal year is estimated at 

$1,821,680 (6,506,000 barrels × $0.28). 

This amount plus $1,767,600 from 

USDA’s Foreign Agricultural Service’s 

Market Access Program and adequate 

funds in the reserve and interest income 

would be adequate to cover budgeted 

expenses. Funds in the reserve 

(approximately $541,122) would be kept 

within the approximately one fiscal 

period’s expenses as recommended by 


ycherry on PROD1PC64 with PROPOSALS
1680 Federal Register / Vol. 72, No. 9 / Tuesday, January 16, 2007 / Proposed Rules 

the Committee consistent with 

§ 929.42(a) of the order. 

The assessment rate established in 

this rule would continue in effect 

indefinitely unless modified, 

suspended, or terminated by USDA 

upon recommendation and other 

information submitted by the 

Committee or other available 

information. 

Although the assessment rate would 

be effective for an indefinite period, the 

Committee would continue to meet 

prior to or during each fiscal period to 

recommend a budget of expenses and 

consider recommendations for 

modification of the assessment rate. The 

dates and times of Committee meetings 

are available from the Committee or the 

USDA. Committee meetings are open to 

the public and interested persons may 

express their views at these meetings. 

USDA will evaluate Committee 

recommendations and other available 

information to determine whether 

modification of the assessment rate is 

needed. Further rulemaking would be 

undertaken as necessary. The 

Committee’s 2006–2007 budget and 

those for subsequent fiscal periods 

would be reviewed and, as appropriate, 

approved by the USDA. 

Initial 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 

initial 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 thereunder, are unique in 

that they are brought about through 

group action of essentially small entities 

acting on their own behalf. Thus, both 

statutes have small entity orientation 

and compatibility. 

There are approximately 50 handlers 

of cranberries who are subject to 

regulation under the cranberry 

marketing order and approximately 

1250 producers of cranberries in the 

regulated area. Small agricultural 

service firms, which includes handlers, 

are defined by the Small Business 

Administration (13 CFR 121.201) as 

those having annual receipts of less than 

$6,500,000, and small agricultural 

producers are defined as those having 

annual receipts of less than $750,000. 

The majority of producers and handlers 

of cranberries under the order are 

considered small entities under SBA’s 

standards. 

The principal demand for cranberries 

is in the form of processed products. 

Cranberries are dried, frozen, canned, 

and juiced. During the 2001–2002 fiscal 

year through the 2005–2006 fiscal year, 

approximately 91 percent of the U.S. 

cranberry crop, or 5.4 million barrels, 

was processed annually. 

Based on National Agricultural 

Statistics Service data, acreage in the 

United States devoted to cranberry 

production has leveled off over the last 

several crop years. Bearing acres have 

declined slightly from a high of 39,600 

acres in the 2003–2004 fiscal year to 

39,100 in the 2005–2006 fiscal year. 

Wisconsin and Massachusetts lead the 

nation in cranberry acreage, with 

approximately 81 percent of the total, 

and production also at approximately 81 

percent of the total U.S. cranberry crop 

each year. 

This rule would increase the 

assessment rate established for the 

Committee and collected from handlers 

for the 2006–2007 fiscal period and 

subsequent periods from $0.18 to $0.28 

per barrel of cranberries. 

The Committee discussed continuing 

the existing assessment rate, but 

concluded that it needed the additional 

funds to devote to its export market 

development and promotion program 

and replenish its financial reserve 

which would be funded through 

assessments. 

This action would increase the 

assessment obligation imposed on 

handlers. While assessments impose 

some additional costs on handlers, the 

costs are uniform on all handlers. Some 

of the additional costs may be passed on 

to producers. However, these costs will 

be offset by the benefits derived by the 

operation of the marketing order. In 

addition, the Committee’s meeting was 

widely publicized throughout the 

cranberry industry and all interested 

persons were invited to attend the 

meeting and participate in Committee 

deliberations on all issues. Like all 

Committee meetings, all entities, both 

large and small, were able to express 

views on this issue. Finally, interested 

persons are invited to submit 

information on the regulatory and 

informational impacts of this action on 

small businesses. 

This proposed rule would impose no 

additional reporting or recordkeeping 

requirements on either small or large 

cranberry 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. 

The 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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this rule. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at the following Web site: 

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. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposed rule. Thirty days is 

deemed appropriate because: (1) The 

2006–2007 fiscal period began 

September 1, 2006, and the marketing 

order requires that the rate of 

assessment for each fiscal year apply to 

all assessable cranberries handled 

during such period; (2) the Committee 

needs to have sufficient funds to pay its 

expenses which are incurred on a 

continuous basis; and (3) handlers are 

aware of this action which was 

recommended by the Committee at a 

public meeting. 

List of Subjects in 7 CFR Part 929 

Cranberries, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, 7 CFR part 929 is proposed to 

be amended as follows: 

PART 929—CRANBERRIES GROWN IN 

THE STATES OF MASSACHUSETTS, 

RHODE ISLAND, CONNECTICUT, NEW 

JERSEY, WISCONSIN, MICHIGAN, 

MINNESOTA, OREGON, 

WASHINGTON, AND LONG ISLAND IN 

THE STATE OF NEW YORK 

1. The authority citation for 7 CFR 

part 929 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

2. Section 929.236 is revised to read 

as follows: 

§ 929.236 Assessment rate. 

On and after September 1, 2006, an 

assessment rate of $.28 per barrel is 

established for cranberries. 


ycherry on PROD1PC64 with PROPOSALS
Federal Register / Vol. 72, No. 9 / Tuesday, January 16, 2007 / Proposed Rules 1681 

Dated: January 10, 2007. 

Lloyd C. Day, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. E7–428 Filed 1–12–07; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Docket No. AMS–FV–06–00187; FV07–930–

1 PR] 

Tart Cherries Grown in the States of 

Michigan, et al.; Final Free and 

Restricted Percentages for the 2006–

2007 Crop Year for Tart Cherries 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This rule invites comments 

on the establishment of final free and 

restricted percentages for the 2006–2007 

crop year. The percentages are 55 

percent free and 45 percent restricted 

and will establish the proportion of 

cherries from the 2006 crop which may 

be handled in commercial outlets. The 

percentages are intended to stabilize 

supplies and prices, and strengthen 

market conditions. The percentages 

were recommended by the Cherry 

Industry Administrative Board (Board), 

the body that locally administers the 

marketing order. The marketing order 

regulates the handling of tart cherries 

grown in the States of Michigan, New 

York, Pennsylvania, Oregon, Utah, 

Washington, and Wisconsin. 

DATES: Comments must be received by 

February 15, 2007. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this rule. Comments must be 

sent to the Docket Clerk, Marketing 

Order Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, 1400 

Independence Avenue, SW, Stop 0237, 

Washington, DC 20250–0237; Fax: (202) 

720–8938, or E-mail: 

moabdocket.clerk@usda.gov; or Internet: 

http://www.regulations.gov. Comments 

should reference the docket number and 

the date and page number of this issue 

of the Federal Register and will be 

available for public inspection in the 

Office of the Docket Clerk during regular 

business hours or can be viewed at: 

http://www.ams.usda.gov/fv/moab.html. 

FOR FURTHER INFORMATION CONTACT: 

Patricia A. Petrella or Kenneth G. 

Johnson, Marketing Order 

Administration Branch, Fruit and 

Vegetable Programs, AMS, USDA, Unit 

155, 4700 River Road, Riverdale, MD 

20737; Telephone: (301) 734–5243, or 

Fax: (301) 734–5275, or E-mail at 

Patricia.Petrella@usda.gov or 

Kenneth.Johnson@usda.gov. 

Small businesses may request 

information on complying with this 

regulation, or obtain a guide on 

complying with fruit, vegetable, and 

specialty crop marketing agreements 

and orders 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 

proposed rule is issued under Marketing 

Agreement and Order No. 930 (7 CFR 

part 930), regulating the handling of tart 

cherries produced in the States of 

Michigan, New York, Pennsylvania, 

Oregon, Utah, Washington, and 

Wisconsin, 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 

(Department) is issuing this rule in 

conformance with Executive Order 

12866. 

This proposal has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. Under the marketing 

order provisions now in effect, final free 

and restricted percentages may be 

established for tart cherries handled by 

handlers during the crop year. This rule 

establishes final free and restricted 

percentages for tart cherries for the 

2006–2007 crop year, beginning July 1, 

2006, through June 30, 2007. This 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 the Secretary 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 exempt therefrom. Such 

handler is afforded the opportunity for 

a hearing on the petition. After the 

hearing, the Secretary 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 in 

equity to review the Secretary’s ruling 

on the petition, provided an action is 

filed not later than 20 days after the date 

of the entry of the ruling. 

The order prescribes procedures for 

computing an optimum supply and 

preliminary and final percentages that 

establish the amount of tart cherries that 

can be marketed throughout the season. 

The regulations apply to all handlers of 

tart cherries that are in the regulated 

districts. Tart cherries in the free 

percentage category may be shipped 

immediately to any market, while 

restricted percentage tart cherries must 

be held by handlers in a primary or 

secondary reserve, or be diverted in 

accordance with § 930.59 of the order 

and § 930.159 of the regulations, or used 

for exempt purposes (to obtain diversion 

credit) under § 930.62 of the order and 

§ 930.162 of the regulations. The 

regulated Districts for this season are: 

District one—Northern Michigan; 

District two—Central Michigan; District 

three—Southwest Michigan; District 

four—New York; District seven—Utah; 

and District eight—Washington. 

Districts five, six and nine (Oregon, 

Pennsylvania, and Wisconsin, 

respectively) will not be regulated for 

the 2006–2007 season. 

The order prescribes under § 930.52 

that those districts to be regulated shall 

be those districts in which the average 

annual production of cherries over the 

prior three years has exceeded six 

million pounds. A district not meeting 

the six million-pound requirement shall 

not be regulated in such crop year. 

Because this requirement was not met in 

the Districts of Oregon, Pennsylvania, 

and Wisconsin, handlers in those 

districts would not be subject to volume 

regulation during the 2006–2007 crop 

year. 

Demand for tart cherries at the farm 

level is derived from the demand for tart 

cherry products at retail. Demand for 

tart cherries and tart cherry products 

tends to be relatively stable from year to 

year. The supply of tart cherries, by 

contrast, varies greatly from crop year to 

crop year. The magnitude of annual 

fluctuations in tart cherry supplies is 

one of the most pronounced for any 

agricultural commodity in the United 

States. In addition, because tart cherries 

are processed either into cans or frozen, 

they can be stored and carried over from 

crop year to crop year. This creates 

substantial coordination and marketing 

problems. The supply and demand for 

tart cherries is rarely balanced. The 

primary purpose of setting free and 

restricted percentages is to balance 

supply with demand and reduce large 

surpluses that may occur. 


ycherry on PROD1PC64 with PROPOSALS