[Federal Register Volume 72, Number 67 (Monday, April 9, 2007)]
[Rules and Regulations]
[Pages 17362-17367]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6530]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. AMS-FV-07-0027; FV07-989-1 IFR]


Raisins Produced From Grapes Grown in California; Final Free and 
Reserve Percentages for 2006-07 Crop Natural (sun-dried) Seedless 
Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule establishes final volume regulation percentages for 
2006-07 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 locally administered by the Raisin Administrative 
Committee (Committee). The volume regulation percentages are 90 percent 
free and 10 percent reserve. The percentages are intended to help 
stabilize raisin supplies and prices, and strengthen market conditions.

DATES: Effective April 10, 2007. The volume regulation percentages 
apply to acquisitions of NS raisins from the 2006-07 crop until the 
reserve raisins from that crop are disposed of under the marketing 
order. Comments received by June 8, 2007, 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, 
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 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.regulations.gov.

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: 
<a href="/cdn-cgi/l/email-protection#97c5f8e4f2b9d6f0e2f6eef8d7e2e4f3f6b9f0f8e1"><span class="__cf_email__" data-cfemail="f2a09d8197dcb39587938b9db287819693dc959d84">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#b2f9c7c0c69cf9dbdfdfd7def2c7c1d6d39cd5ddc4"><span class="__cf_email__" data-cfemail="9bd0eee9efb5d0f2f6f6fef7dbeee8fffab5fcf4ed">[email protected]</span></a>.
    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: <a href="/cdn-cgi/l/email-protection#e6ac879fc8a1938394848394a693958287c8818990"><span class="__cf_email__" data-cfemail="eda78c94c3aa98889f8f889fad989e898cc38a829b">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 989, both as amended (7 CFR part 989), 
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 rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the order provisions now in effect, final free 
and reserve percentages may be established for raisins acquired by 
handlers during the crop year. This rule establishes final free and 
reserve percentages for NS raisins for the 2006-07 crop year, which 
began August 1, 2006, and ends July 31, 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 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

[[Page 17363]]

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 rule establishes final volume regulation percentages for 2006-
07 crop NS raisins covered under the order. The volume regulation 
percentages are 90 percent free and 10 percent reserve. Free tonnage 
raisins may be sold by handlers to any market. Reserve raisins must be 
held in a pool for the account of the Committee and are disposed of 
through various programs authorized under the order. For example, 
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; or 
disposed of in other outlets not competitive with those for free 
tonnage raisins, such as government purchase, distilleries, or animal 
feed.
    The volume regulation percentages are intended to help stabilize 
raisin supplies and prices, and strengthen market conditions. The 
Committee unanimously recommended final percentages for NS raisins on 
November 21, 2006, and on January 23, 2007.

Computation of Trade Demands

    Section 989.54 of the order prescribes procedures and time frames 
to be followed in establishing volume regulation. This includes 
methodology used to calculate percentages. Pursuant to Sec.  989.54(a) 
of the order, the Committee met on August 15, 2006, to review shipment 
and inventory data, and other matters relating to the supplies of 
raisins of all varietal types. The Committee computed a trade demand 
for each varietal type for which a free tonnage percentage might be 
recommended. Trade demand is computed using a formula specified in the 
order and, for each varietal type, is equal to 90 percent of the prior 
year's shipments of free tonnage and reserve tonnage raisins sold for 
free use into all market outlets, adjusted by subtracting the carryin 
on August 1 of the current crop year, and adding the desirable carryout 
at the end of that crop year. As specified in Sec.  989.154(a), the 
desirable carryout for NS raisins shall equal the total shipments of 
free tonnage during August and September for each of the past 5 crop 
years, converted to a natural condition basis, dropping the high and 
low figures, and dividing the remaining sum by three, or 60,000 natural 
condition tons, whichever is higher. For all other varietal types, the 
desirable carryout shall equal the total shipments of free tonnage 
during August, September and one-half of October for each of the past 5 
crop years, converted to a natural condition basis, dropping the high 
and low figures, and dividing the remaining sum by three. In accordance 
with these provisions, the Committee computed and announced the 2006-07 
trade demand for NS raisins at 219,870 tons as shown below.

                         Computed Trade Demands
                        [Natural condition tons]
------------------------------------------------------------------------
                                                              NS raisins
------------------------------------------------------------------------
Prior year's shipments.....................................      301,460
Multiplied by 90 percent...................................         0.90
Equals adjusted base.......................................      271,314
Minus carryin inventory....................................      111,444
Plus desirable carryout....................................       60,000
Equals computed NS trade Demand............................      219,870
------------------------------------------------------------------------

Computation of Preliminary Volume Regulation Percentages

    Section 989.54(b) of the order requires that the Committee 
announce, on or before October 5, preliminary crop estimates and 
determine whether volume regulation is warranted for the varietal types 
for which it computed a trade demand. That section allows the Committee 
to extend the October 5 date up to 5 business days if warranted by a 
late crop.
    The Committee met on September 6, 2006, and announced preliminary 
percentages for Zante Currant (ZC) raisins. They met again on October 
4, 2006, and announced preliminary percentages and a preliminary crop 
estimate for NS raisins of 259,557 tons, which is about 21 percent 
lower than the 10-year average of 327,410 tons. NS raisins are the 
major varietal type of California raisin. Adding the carryin inventory 
of 111,444 tons to the 259,557-ton crop estimate resulted in a total 
available supply of 371,001 tons, which was significantly higher (169 
percent) than the 219,870-ton trade demand. Thus, the Committee 
determined that volume regulation for NS raisins was warranted. The 
Committee announced preliminary free and reserve percentages for NS 
raisins, which released 85 percent of the computed trade demand since a 
minimum field price (price paid by handlers to producers for their free 
tonnage raisins) had been established. The preliminary percentages were 
72 percent free and 28 percent reserve.
    In addition, preliminary percentages were also announced for Dipped 
Seedless, Golden Seedless, and Other Seedless raisins. It was 
ultimately determined at Committee meetings held on November 21, 2006, 
and January 23, 2007, that volume regulation was only warranted for NS 
raisins. As in past seasons, the Committee submitted its marketing 
policy to USDA for review.

Computation of Final Volume Regulation Percentages

    Pursuant to Sec.  989.54(c), at its November 21, 2006, meeting, the 
Committee announced interim percentages for NS raisins to release 
slightly less than the full trade demand. Based on a revised NS crop 
estimate of 244,300 tons (down from the October estimate of 259,557 
tons), interim percentages for NS raisins were announced at 89.75 
percent free and 10.25 percent reserve.
    Pursuant to Sec.  989.54(d), the Committee also recommended final 
percentages at its November 21, 2006, meeting to release the full trade 
demands for NS raisins. Final percentages were recommended at 90 
percent free and 10 percent reserve. The Committee's calculations and 
determinations to arrive at final percentages for NS raisins are shown 
in the table below:

                   Final Volume Regulation Percentages
                        [Natural condition tons]
------------------------------------------------------------------------
                                                              NS raisins
------------------------------------------------------------------------
Trade demand...............................................      219,870
Divided by crop estimate...................................      244,300
Equals the free percentage.................................        90.00
100 minus free percentage equals the reserve percentage....        10.00
------------------------------------------------------------------------

    By the week ending February 3, 2007, data showed that deliveries of 
NS raisins exceeded the Committee's crop estimate of 244,300 tons. By 
that date deliveries totaled 262,477 tons. Thus, deliveries are likely 
to be at least 18,000 tons higher than estimated by the Committee 
during the fall. Based on this, the Committee's recommendation will 
provide handlers 6.2 percent more raisins than would be provided if a 
262,477 ton estimate had been used, but the additional tonnage is not 
expected to result in disorderly marketing conditions.
    In addition, USDA's ``Guidelines for Fruit, Vegetable, and 
Specialty Crop Marketing Orders'' (Guidelines) specify that 110 percent 
of recent years' sales should be made available to primary markets each 
season for marketing orders utilizing reserve pool authority.

[[Page 17364]]

This goal will be met for NS raisins by the establishment of final 
percentages, which release 100 percent of the trade demand and the 
offer of additional reserve raisins for sale to handlers under the ``10 
plus 10 offers.'' As specified in Sec.  989.54(g), the 10 plus 10 
offers are two offers of reserve pool raisins which are made available 
to handlers during each season. For each such offer, a quantity of 
reserve raisins equal to 10 percent of the prior year's shipments is 
made available for free use. Handlers may sell their 10 plus 10 raisins 
to any market.
    For NS raisins, the first 10 plus 10 offer was made in February 
2007. A total of 30,146 tons was made available to raisin handlers. The 
second 10 plus 10 offer of 20,923 tons (the balance remaining in the 
reserve pool) will be made available to handlers by July 31, 2007. 
Adding the total figure of 51,648 tons of 10 plus 10 raisins to the 
219,870 ton trade demand figure, plus the 111,444 tons of 2005-06 
carryin NS inventory, equates to 382,962 tons of natural condition 
raisins, or 360,819 tons of packed raisins, that are available to 
handlers for free use or primary markets. This is about 127 percent of 
the quantity of NS raisins shipped during the 2005-06 crop year 
(301,460 natural condition tons or 284,030 packed tons).
    In addition to the 10 plus 10 offers, Sec.  989.67(j) of the order 
provides authority for sales of reserve raisins to handlers under 
certain conditions such as a national emergency, crop failure, change 
in economic or marketing conditions, or if free tonnage shipments in 
the current crop year exceed shipments during a comparable period of 
the prior crop year. Such reserve raisins may be sold by handlers to 
any market. When implemented, the additional offers of reserve raisins 
make even more raisins available to primary markets, which is 
consistent with USDA's Guidelines.

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 issued 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 20 handlers of California raisins who are 
subject to regulation under the order and approximately 4,500 raisin 
producers in the regulated area. Small agricultural firms are defined 
by the Small Business Administration (SBA) (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. Eleven of the 20 handlers subject to regulation have annual 
sales estimated to be at least $6,500,000, and the remaining 9 handlers 
have sales less than $6,500,000. No more than 9 handlers and a majority 
of producers of California raisins may be classified as small entities.
    Since 1949, the California raisin industry has operated under a 
Federal marketing order. The order contains authority to, among other 
things, limit the portion of a given year's crop that can be marketed 
freely in any outlet by raisin handlers. This volume control mechanism 
is used to stabilize supplies and prices and strengthen market 
conditions. If the primary market (the normal domestic market) is over-
supplied with raisins, grower prices decline substantially.
    Pursuant to Sec.  989.54(d) of the order, this rule establishes 
final volume regulation percentages for 2006-07 crop NS raisins. The 
volume regulation percentages are 90 percent free and 10 percent 
reserve. Free tonnage raisins may be sold by handlers to any market. 
Reserve raisins must be held in a pool for the account of the Committee 
and are disposed of through certain programs authorized under the 
order.
    Volume regulation is warranted this season because the revised crop 
estimate of 244,300 tons combined with the carryin inventory of 111,444 
tons results in a total available supply of 355,744 tons, which is 
about 162 percent higher than the 219,870 ton trade demand.
    Handlers provide their best estimate on the amount of tonnage 
growers will deliver each crop year. By the week ending February 3, 
2007, data showed that deliveries of NS raisins exceeded the 
Committee's crop estimate of 244,300 tons by 18,177 tons. The higher 
deliveries further warrant volume regulation, as the total available 
supply is currently expected to be 373,921 tons, which is about 170 
percent higher than the 219,870 ton trade demand.
    The volume regulation procedures have helped the industry address 
its marketing problems by keeping supplies in balance with domestic and 
export market needs, and strengthening market conditions. The volume 
regulation procedures fully supply the domestic and export markets, 
provide for market expansion, and help reduce the burden of 
oversupplies in the domestic market.
    Raisin grapes are a perennial crop, so production in any year is 
dependent upon plantings made in earlier years. The sun-drying method 
of producing raisins involves considerable risk because of variable 
weather patterns.
    Even though the product and the industry are viewed as mature, the 
industry has experienced considerable change over the last several 
decades. Before the 1975-76 crop year, more than 50 percent of the 
raisins were packed and sold directly to consumers. Now, about 64 
percent of raisins are sold in bulk. This means that raisins are now 
sold to consumers mostly as an ingredient in another product such as 
cereal and baked goods. In addition, for a few years in the early 
1970's, over 50 percent of the raisin grapes were sold to the wine 
market for crushing. Since then, the percent of raisin-variety grapes 
sold to the wine industry has decreased.
    California's grapes are classified into three groups--table grapes, 
wine grapes, and raisin-variety grapes. Raisin-variety grapes are the 
most versatile of the three types. They can be marketed as fresh 
grapes, crushed for juice in the production of wine or juice 
concentrate, or dried into raisins. Annual fluctuations in the fresh 
grape, wine, and concentrate markets, as well as weather-related 
factors, cause fluctuations in raisin supply. This type of situation 
introduces a certain amount of variability into the raisin market. 
Although the size of the crop for raisin-variety grapes may be known, 
the amount dried for raisins depends on the demand for crushing. This 
makes the marketing of raisins a more difficult task. These supply 
fluctuations can result in producer price instability and disorderly 
market conditions.
    Volume regulation is helpful to the raisin industry because it 
lessens the impact of such fluctuations and contributes to orderly 
marketing. For example, producer prices for NS raisins remained fairly 
steady between the 1993-94 through the 1997-98 seasons, although 
production varied. As shown in the table below, during those years, 
production varied from a low of 272,063 tons in 1996-97 to a high of 
387,007 tons in 1993-94.
    According to Committee data, the total producer return per ton 
during those years, which includes proceeds from both free tonnage plus 
reserve pool raisins, has varied from a low of $904.60 in 1993-94 to a 
high of $1,049.20 in

[[Page 17365]]

1996-97. Total producer prices for the 1998-99 and 1999-2000 seasons 
increased significantly due to back-to-back short crops during those 
years. Record large crops followed and producer prices dropped 
dramatically for the 2000-01 through 2003-04 crop years, as inventories 
grew while demand stagnated. However, the producer prices were higher 
for the 2004-05 and the 2005-06 crop years, as noted below:

                    Natural Seedless Producer Prices
------------------------------------------------------------------------
                                        Deliveries
             Crop year                   (natural       Producer prices
                                     condition  tons)      (per ton)
------------------------------------------------------------------------
2005-06...........................            319,126        \1\ $998.25
2004-05...........................            265,262        \2\ 1210.00
2003-04...........................            296,864         \1\ 567.00
2002-03...........................            388,010         \1\ 491.20
2001-02...........................            377,328             650.94
2000-01...........................            432,616             603.36
1999-2000.........................            299,910           1,211.25
1998-99...........................            240,469       \2\ 1,290.00
1997-98...........................            382,448             946.52
1996-97...........................            272,063           1,049.20
1995-96...........................            325,911           1,007.19
1994-95...........................            378,427             928.27
1993-94...........................            387,007             904.60
------------------------------------------------------------------------
\1\ Return-to-date, reserve pool still open.
\2\ No volume regulation.

    There are essentially two broad markets for raisins--domestic and 
export. Domestic shipments have been generally increasing in recent 
years. Although domestic shipments decreased from a high of 204,805 
packed tons during the 1990-91 crop year to a low of 156,325 packed 
tons in 1999-2000, they increased from 174,117 packed tons during the 
2000-01 crop year to 186,358 tons during the 2005-06 crop year. Export 
shipments ranged from a high of 107,931 packed tons in 1991-92 to a low 
of 91,599 packed tons in the 1999-2000 crop year. Since that time, 
export shipments increased to 106,755 tons of raisins during the 2004-
05 crop year, but fell to 97,672 tons in 2005-06.
    The per capita consumption of raisins has declined from 2.07 pounds 
in 1988 to 1.44 pounds in 2005. This decrease is consistent with the 
decrease in the per capita consumption of dried fruits in general, 
which is due to the increasing availability of most types of fresh 
fruit throughout the year.
    While the overall demand for raisins has increased in two out of 
the last three years (as reflected in increased commercial shipments), 
production has been decreasing. Deliveries of NS dried raisins from 
producers to handlers reached an all-time high of 432,616 tons in the 
2000-01 crop year. This large crop was preceded by two short crop 
years; deliveries were 240,469 tons in 1998-99 and 299,910 tons in 
1999-2000. Deliveries for the 2000-01 crop year soared to a record 
level because of increased bearing acreage and yields. Deliveries for 
the 2001-02 crop year were at 377,328 tons, 388,010 tons for the 2002-
03 crop year, 296,864 for the 2003-04 crop year, and 265,262 tons for 
the 2004-05 crop year. After three crop years of high production and a 
large 2001-02 carryin inventory, the industry diverted raisin 
production to other uses or removed bearing vines. Diversions/removals 
totaled 41,000 acres in 2001; 27,000 acres in 2002; and 15,000 acres of 
vines in 2003. These actions resulted in declining deliveries of 
296,864 tons for the 2003-04 crop year and 265,262 tons for the 2004-05 
crop year. Although deliveries increased in 2005-06 to 319,126 tons, 
this may have been because fewer growers opted to contract with 
wineries, as raisin variety grapes crushed in 2005-06 decreased by 
161,000 green tons, the equivalent of over 40,000 tons of raisins.
    The order permits the industry to exercise supply control 
provisions, which allow for the establishment of free and reserve 
percentages, and establishment of a reserve pool. One of the primary 
purposes of establishing free and reserve percentages is to equilibrate 
supply and demand. If raisin markets are over-supplied with product, 
producer prices will decline.
    Raisins are generally marketed at relatively lower price levels in 
the more elastic export market than in the more inelastic domestic 
market. This results in a larger volume of raisins being marketed and 
enhances producer returns. In addition, this system allows the U.S. 
raisin industry to be more competitive in export markets.
    The reserve percentage limits what handlers can market as free 
tonnage. Data available as of February 7, 2007, showed that deliveries 
of NS raisins were at 262,477 tons. The 10 percent reserve would limit 
the total free tonnage to 236,229 natural condition tons (.90 x the 
262,477 ton crop). Adding the 236,229 ton figure with the carryin of 
111,444 tons, plus the 51,648 tons of reserve raisins that are 
available for purchase and release to handlers during the 2006-07 crop 
year under the 10 plus 10 offers, would make the total free supply 
equal to 399,321 natural condition tons.
    To assess the impact that volume control has on the prices 
producers receive for their product, a price dependent econometric 
model was estimated. This model is used to estimate producer prices 
both with and without the use of volume control. The volume control 
used by the raisin industry would result in decreased shipments to 
primary markets. Without volume control the primary market (domestic) 
could be over-supplied resulting in lower producer prices and the 
build-up of unwanted inventories.
    With volume controls, producer prices are estimated to be 
approximately $65 per ton higher than without volume controls. This 
price increase is beneficial to all producers regardless of size and 
enhances producers' total revenues in comparison to no volume control. 
Establishing a reserve allows the industry to help stabilize supplies 
in both domestic and export markets, while improving returns to 
producers.
    Free and reserve percentages are established by varietal type, and 
usually in years when the supply exceeds the trade demand by a large 
enough margin

[[Page 17366]]

that the Committee believes volume regulation is necessary to maintain 
market stability. Accordingly, in assessing whether to apply volume 
regulation or, as an alternative, not to apply such regulation, it was 
determined that volume regulation is warranted this season for only one 
of the nine raisin varietal types defined under the order.
    The free and reserve percentages established by this rule release 
the full trade demand and apply uniformly to all handlers in the 
industry, regardless of size. For NS raisins, with the exception of the 
1998-99 and 2004-05 crop years, small and large raisin producers and 
handlers have been operating under volume regulation percentages every 
year since 1983-84. There are no known additional costs incurred by 
small handlers that are not incurred by large handlers. While the level 
of benefits of this rulemaking are difficult to quantify, the 
stabilizing effects of the volume regulations impact small and large 
handlers positively by helping them maintain and expand markets even 
though raisin supplies fluctuate widely from season to season. 
Likewise, price stability positively impacts small and large producers 
by allowing them to better anticipate the revenues their raisins will 
generate.
    There are some reporting, recordkeeping and other compliance 
requirements under the order. The reporting and recordkeeping burdens 
are necessary for compliance purposes and for developing statistical 
data for maintenance of the program. The requirements are the same as 
those applied in past seasons. Thus, this action imposes no additional 
reporting or recordkeeping requirements on either small or large raisin 
handlers. The forms require information which is readily available from 
handler records and which can be provided without data processing 
equipment or trained statistical staff. The information collection and 
recordkeeping requirements have been previously approved by the Office 
of Management and Budget (OMB) under OMB Control No. 0581-0178. 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.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap, or conflict with this rule.
    Further, the Committee's meetings were widely publicized throughout 
the raisin industry and all interested persons were invited to attend 
the meetings and participate in the Committee's deliberations. Like all 
Committee meetings, the August 15, 2006, September 6, 2006, October 4, 
2006, November 21, 2006, and January 23, 2007, meetings were public 
meetings and all entities, both large and small, were able to express 
their views on this issue.
    Also, the Committee has a number of appointed subcommittees to 
review certain issues and make recommendations to the Committee. The 
Committee's Reserve Sales and Marketing Subcommittee met on August 15, 
2006, September 6, 2006, October 4, 2006, November 21, 2006, and 
January 23, 2007, and discussed these issues in detail. Those meetings 
were also public meetings and both large and small entities were able 
to participate and express their views. Finally, interested persons are 
invited to submit information on the regulatory and informational 
impacts of this action on small businesses.
    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.
    This rule invites comments on the establishment of final volume 
regulation percentages for 2006-07 crop NS raisins covered under the 
order. Any comments received will be considered prior to finalization 
of this rule.
    After consideration of all relevant material 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.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and that good cause exists for not postponing the effective 
date of this rule until 30 days after publication in the Federal 
Register because: (1) The relevant provisions of this part require that 
the percentages designated herein for the 2006-07 crop year apply to 
all NS raisins acquired from the beginning of that crop year; (2) 
handlers are currently marketing their 2006-07 crop NS raisins and this 
action should be taken promptly to achieve the intended purpose of 
making the full trade demand available to handlers; (3) handlers are 
aware of this action, which was unanimously recommended at a public 
meeting, and need no additional time to comply with these percentages; 
and (4) this interim final rule provides a 60-day comment period, and 
all comments timely received will be considered prior to finalization 
of this rule.

List of Subjects in 7 CFR Part 989

    Grapes, Marketing agreements, Raisins, Reporting and recordkeeping 
requirements.

0
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

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

0
2. Section 989.257 is revised to read as follows:


Sec.  989.257  Final free and reserve percentages.

    (a) The final percentages for the respective varietal type(s) of 
raisins acquired by handlers during the crop year beginning August 1, 
which shall be free tonnage and reserve tonnage, respectively, are 
designated as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                       Free           Reserve
                   Crop year                              Varietal type             percentage      percentage
----------------------------------------------------------------------------------------------------------------
2003-2004.....................................  Natural (sun-dried) Seedless....           70              30
2005-2006.....................................  Natural (sun-dried) Seedless....           82.50           17.50
2006-2007.....................................  Natural (sun-dried) Seedless....           90              10
----------------------------------------------------------------------------------------------------------------


[[Page 17367]]

    (b) The volume regulation percentages apply to acquisitions of the 
varietal type of raisins for the applicable crop year until the reserve 
raisins for that crop are disposed of under the marketing order.

    Dated: April 3, 2007.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
 [FR Doc. E7-6530 Filed 4-6-07; 8:45 am]
BILLING CODE 3410-02-P


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