42006 Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations 

Watch Officer Logs Records system of 

records notice (SORN) was published 

concurrently in the Federal Register, 

March 8, 2011, 76 FR 12609, and 

comments were invited on both the 

NPRM and SORN. 

Public Comments 

No comments were received on the 

NPRM or SORN. The Department will 

implement the rulemaking as proposed. 

List of Subjects in 6 CFR Part 5 

Freedom of information; Privacy. 

For the reasons stated in the 

preamble, DHS amends Chapter I of 

Title 6, Code of Federal Regulations, as 

follows: 

PART 5—DISCLOSURE OF RECORDS 

AND INFORMATION 

■ 1. The authority citation for Part 5 

continues to read as follows: 

Authority: 6 U.S.C. 101 et seq.; Public Law 

107–296, 116 Stat. 2135; 5 U.S.C. 301. 

Subpart A also issued under 5 U.S.C. 552. 

Subpart B also issued under 5 U.S.C. 552a. 

■ 2. Add at the end of Appendix C to 

Part 5, the following new paragraph 

‘‘57’’: 

Appendix C to Part 5—DHS Systems of 

Records Exempt From the Privacy Act 

* * * * * 

57. The DHS/OPS–002 National Operations 

Center Tracker and Senior Watch Officer 

Logs Records System of Records consists of 

electronic and paper records and will be used 

by DHS and its components. The DHS/OPS– 

002 National Operations Center Tracker and 

Senior Watch Officer Logs Records System of 

Records is a repository of information held 

by DHS in connection with its several and 

varied missions and functions, including, but 

not limited to the enforcement of civil and 

criminal laws; investigations, inquiries, and 

proceedings there under; national security 

and intelligence activities; and protection of 

the President of the U.S. or other individuals 

pursuant to Section 3056 and 3056A of Title 

18. The DHS/OPS–002 National Operations 

Center Tracker and Senior Watch Officer 

Logs Records System of Records contains 

information that is collected by, on behalf of, 

in support of, or in cooperation with DHS 

and its components and may contain 

personally identifiable information collected 

by other federal, state, local, tribal, foreign, 

or international government agencies. The 

Secretary of Homeland Security is exempting 

this system from the following provisions of 

the Privacy Act, subject to limitations set 

forth in 5 U.S.C. 552a(c)(3); (d); (e)(1), 

(e)(4)(G), (e)(4)(H), (e)(4)(I); and (f) pursuant 

to 5 U.S.C. 552a(k)(1), (k)(2), and (k)(3). 

Exemptions from these particular subsections 

are justified, on a case-by-case basis to be 

determined at the time a request is made, for 

the following reasons: 

(a) From subsection (c)(3) (Accounting for 

Disclosures) because release of the 

accounting of disclosures could alert the 

subject of an investigation of an actual or 

potential criminal, civil, or regulatory 

violation to the existence of that investigation 

and reveal investigative interest on the part 

of DHS as well as the recipient agency. 

Disclosure of the accounting would therefore 

present a serious impediment to law 

enforcement efforts and/or efforts to preserve 

national security. Disclosure of the 

accounting would also permit the individual 

who is the subject of a record to impede the 

investigation, to tamper with witnesses or 

evidence, and to avoid detection or 

apprehension, which would undermine the 

entire investigative process. 

(b) From subsection (d) (Access to Records) 

because access to the records contained in 

this system of records could inform the 

subject of an investigation of an actual or 

potential criminal, civil, or regulatory 

violation to the existence of that investigation 

and reveal investigative interest on the part 

of DHS or another agency. Access to the 

records could permit the individual who is 

the subject of a record to impede the 

investigation, to tamper with witnesses or 

evidence, and to avoid detection or 

apprehension. Amendment of the records 

could interfere with ongoing investigations 

and law enforcement activities and would 

impose an unreasonable administrative 

burden by requiring investigations to be 

continually reinvestigated. In addition, 

permitting access and amendment to such 

information could disclose security-sensitive 

information that could be detrimental to 

homeland security. 

(c) From subsection (e)(1) (Relevancy and 

Necessity of Information) because in the 

course of investigations into potential 

violations of federal law, the accuracy of 

information obtained or introduced 

occasionally may be unclear, or the 

information may not be strictly relevant or 

necessary to a specific investigation. In the 

interests of effective law enforcement, it is 

appropriate to retain all information that may 

aid in establishing patterns of unlawful 

activity. 

(d) From subsections (e)(4)(G), (e)(4)(H), 

and (e)(4)(I) (Agency Requirements) and (f) 

(Agency Rules), because portions of this 

system are exempt from the individual access 

provisions of subsection (d) for the reasons 

noted above, and therefore DHS is not 

required to establish requirements, rules, or 

procedures with respect to such access. 

Providing notice to individuals with respect 

to existence of records pertaining to them in 

the system of records or otherwise setting up 

procedures pursuant to which individuals 

may access and view records pertaining to 

themselves in the system would undermine 

investigative efforts and reveal the identities 

of witnesses, and potential witnesses, and 

confidential informants. 

Mary Ellen Callahan, 

Chief Privacy Officer, Department of 

Homeland Security. 

[FR Doc. 2011–17939 Filed 7–15–11; 8:45 am] 

BILLING CODE 9110–09–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 989 

[Docket No. AMS–FV–11–0013; FV11–989– 

1 FR] 

Raisins Produced From Grapes Grown 

In California; Increase in Desirable 

Carryout Used To Compute Trade 

Demand 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This rule increases the 

desirable carryout used to compute the 

yearly trade demand for Natural (sundried) 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 increases the 

amount of tonnage available early in the 

season when volume regulation is 

implemented, and is expected to help 

the industry meet its market needs. 

DATES: Effective Date: July 19, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Terry Vawter, Senior Marketing 

Specialist, or Kurt J. Kimmel, Regional 

Manager, California Marketing Field 

Office, Fruit and Vegetable Programs, 

AMS, USDA, 2202 Monterey Street, 

Suite 102B, Fresno, California 93721; 

Telephone: (559) 487–5901, Fax: (559) 

487–5906; or E-mail: 

Terry.Vawter@ams.usda.gov or 

Kurt.Kimmel@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Laurel May, 

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: 

Laurel.May@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 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. 

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Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations 42007 

This final rule has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. This rule is not intended 

to have retroactive effect. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 608c(15)(A) of the Act, any 

handler subject to an order may file 

with 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 in equity 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 increases the desirable 

carryout used to compute the yearly 

trade demand for NS raisins regulated 

under the order. ‘‘Trade demand’’ is 

computed based on a formula specified 

in the order, and is used to determine 

volume regulation percentages for each 

crop year, if necessary. ‘‘Desirable 

carryout,’’ one component of this 

formula, is the amount of tonnage 

carried in from the prior crop year 

which is considered necessary to meet 

market needs, before raisins from the 

new crop year are available. 

Currently, the desirable carryout for 

NS raisins is defined as: The total 

shipments of free tonnage during 

August and September of 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. 

This rule increases the desirable 

carryout to 85,000 natural condition 

tons, with no further calculations 

required. This action was unanimously 

recommended by the committee at a 

meeting held on February 23, 2011. 

It should be noted that the desirable 

carryout for raisin varieties other than 

NS are not impacted by this change. 

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. Funds generated from sales 

of reserve raisins are also used to 

support handler sales to export markets. 

Net proceeds from sales of reserve 

raisins are ultimately distributed to the 

reserve pool’s equity holders, primarily 

producers. 

Section 989.54 of the order prescribes 

procedures to be followed in 

establishing volume regulation and 

includes methodology used to calculate 

volume regulation percentages. Trade 

demand is based on a computed formula 

specified in this section, and is also part 

of the formula used to determine 

volume regulation percentages. Trade 

demand is equal to 90 percent of the 

prior year’s shipments, adjusted by the 

carrying and desirable carryout 

inventories. 

At one time, § 989.54(a) also specified 

actual tonnages for desirable carryout 

for each varietal type regulated. 

However, in 1989, these tonnages were 

suspended from the order, and 

flexibility was added so that the 

committee could adopt other methods 

for arriving at a desirable carryout in the 

order’s rules and regulations. The 

current formula has allowed the 

committee to periodically adjust the 

desirable carryout to better reflect 

changes in marketing conditions, as 

they have since 1989, most recently in 

2000 and 2002. 

The formula for desirable carryout has 

been specified since 1989 in § 989.154. 

Initially, the formula was established so 

that desirable carryout was based on 

shipments for the first 3 months of the 

prior crop year—August, September, 

and October (the crop year runs from 

August 1 through July 31). The formula 

has been changed over the years because 

the committee believed that an 

excessive supply of raisins was 

available early in a new crop year, 

which contributed to unstable market 

conditions. 

However, given recent worldwide 

shortages of NS raisins, a favorable 

monetary exchange rate, and the 

extremely low inventory carried in by 

the industry at the beginning of the 

2010–11 crop year, the committee 

determined that the current trade 

demand formula would not provide 

enough raisins to meet market demands 

when volume regulation is 

implemented, especially in the early 

part of the crop year when supplies can 

be tight. Thus, the committee 

recommended increasing the desirable 

carryout component of the formula. This 

change also allows desirable carryout of 

NS raisins to more accurately reflect the 

amount of NS raisins that handlers 

actually hold in inventory at the end of 

a crop year, or about 100,000 tons. 

The Committee’s Recommendation 

At a meeting on February 23, 2011, 

the committee reviewed the desirable 

carryout level. Most committee 

members believe that the supply of free 

tonnage raisins on the market has 

become tight, and the carryout balance 

has resulted in market shortages and 

missed marketing opportunities in the 

early part of the season. The following 

table illustrates handler inventories for 

NS raisins have generally been 

declining in recent years, with the 

exception of 2009–10. 

CARRYOUT INVENTORY OVER PAST

6 YEARS

[Natural condition tons] 

Crop year NS carryout 

inventory 

2010–11 ................................ 83,143 

2009–10 ................................ 126,824 

2008–09 ................................ 106,249 

2007–08 ................................ 105,430 

2006–07 ................................ 111,444 

2005–06 ................................ 114,792 

Committee staff estimated that this 

change to the desirable carryout level 

would increase the 2011–12 trade 

demand for NS raisins by 15,000 tons. 

Increasing the trade demand will 

increase the free tonnage percentage, 

making more free tonnage available to 

handlers for immediate use. The effect 

of increased free tonnage would be to 

decrease any reserve pool which might 

be established. 

NS raisins are the major commercial 

varietal type of raisin produced in 

California. With the exception of the 

1998–99, 2003–04, and 2010–11 crop 

years, volume regulation has been 

implemented for NS raisins every year 

since 1983. 

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. 

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42008 Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations 

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. Thus, both statutes have small 

entity orientation and compatibility. 

There are approximately 28 handlers 

of California raisins who are subject to 

regulation under the order and 

approximately 3,000 raisin producers in 

the regulated area. The Small Business 

Administration (13 CFR 121.201) 

defines small agricultural service firms 

as those having annual receipts of less 

than $7,000,000, and small agricultural 

producers are defined as those having 

annual receipts of less than $750,000. 

Based upon shipment data and other 

information provided by the committee, 

it may be concluded that a majority of 

producers and approximately 18 

handlers of California raisins may be 

classified as small entities. 

This rule increases the desirable 

carryout used to compute the yearly 

trade demand for raisins regulated 

under the order. ‘‘Trade demand’’ is 

computed based on a formula specified 

under § 989.54(a) of the order. It is also 

part of another formula used to 

determine volume regulation 

percentages for each crop year, if 

necessary. ‘‘Desirable carryout,’’ one 

component of this formula, is the 

amount of tonnage from the prior crop 

year needed during the first part of the 

next crop year to meet market needs, 

before new crop raisins are available. 

Currently, the desirable carryout for 

Natural (sun-dried) Seedless (NS) 

raisins is defined as: The total 

shipments of free tonnage during 

August and September of 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. 

This rule increases the desirable 

carryout to 85,000 natural condition 

tons, with no calculations required. This 

action was unanimously recommended 

by the committee at a meeting held on 

February 23, 2011. 

The desirable carryout level applies 

uniformly to all handlers in the 

industry, whether small or large, and 

there are no known additional costs 

incurred by small handlers. As 

previously mentioned, increasing the 

desirable carryout will increase the 

trade demand and free tonnage 

percentage, thus making more raisins 

available to handlers early in the season. 

This action is expected to provide more 

raisins at the beginning of each crop 

year to meet early demand, thereby 

improving market conditions at a time 

period when optimum shipments are 

advantageous—in time for the holidays. 

Holiday shipments begin in August, 

before new-crop raisins are available, 

and continue through October, and have 

traditionally been the highest shipment 

period, as buyers prepare for increased 

holiday sales of raisins and goods 

containing raisins. 

The committee has an appointed 

subcommittee, the Administrative 

Issues Subcommittee (subcommittee), 

which periodically holds public 

meetings to discuss changes to the order 

and other issues. The subcommittee met 

on February 1, 2011, and discussed 

desirable carryout, considering a 

number of alternative levels of desirable 

carryout. While there was no opposition 

to increasing the desirable carryout, 

some industry members supported 

making the NS desirable carryout 90,000 

natural condition tons, while some 

suggested that 80,000 natural condition 

tons was a good alternative. Still others 

suggested that the ideal number might 

be closer to 100,000 natural condition 

tons, in keeping with the average of the 

last several years’ actual inventory 

carried in at the beginning of the crop 

year, 106,000 natural condition tons. 

The 85,000 natural condition tons 

ultimately recommended was a 

compromise reached during 

subcommittee deliberations of the 

alternatives. 

On February 23, 2011, the 

subcommittee met again and further 

discussed desirable carryout before 

recommending to the full committee 

that the desirable carryout be increased 

for NS raisins from the current formula 

or 60,000 natural condition tons, 

whichever is greater, to simply 85,000 

natural condition tons. Ultimately, the 

full committee adopted the 

subcommittee’s recommendation, and 

unanimously recommended the change 

to USDA. 

This final rule would impose no 

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. USDA has not 

identified any relevant Federal rules 

that duplicate, overlap or conflict with 

this rule. 

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, the subcommittee’s 

meetings on February 1, 2011, and 

February 23, 2011; and the committee’s 

meeting on February 23, 2011, were 

public meetings, widely publicized 

throughout the raisin industry. All 

interested persons were invited to 

attend the meetings and encouraged to 

participate in the industry’s 

deliberations. 

A proposed rule concerning this 

action was published in the Federal 

Register on May 13, 2011 (76 FR 27921). 

Copies of the rule were provided 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 

30-day comment period ending June 13, 

2011, was provided to allow interested 

persons to respond to the proposal. 

There were two comments received 

during the comment period, both in 

support of the proposed rule. 

Accordingly, no changes will be made 

to the rule as proposed. 

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/ 

MarketingOrdersSmallBusinessGuide 

Any questions about the compliance 

guide should be sent to Laurel May at 

the previously-mentioned address in the 

FOR FURTHER INFORMATION CONTACT

section. 

After consideration of all relevant 

matters presented, including 

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. 

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 handlers are 

aware of this change, which was 

unanimously recommended at at least 

one public meeting. In addition, this 

rule needs to be in effect in time for the 

beginning of the new crop year, which 

is August 1, 2011. 

List of Subjects in 7 CFR Part 989 

Grapes, Marketing agreements, 

Raisins, Reporting and recordkeeping 

requirements. 

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Federal Register / Vol. 76, No. 137 / Monday, July 18, 2011 / Rules and Regulations 42009 

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. In § 989.154, the first sentence of 

paragraph (a) is revised to read as 

follows: 

§ 989.154 Marketing policy computations. 

(a) Desirable carryout levels. The 

desirable carryout level to be used in 

computing and announcing a crop 

year’s marketing policy for Natural (sundried) Seedless raisins shall be 85,000 

natural condition tons. 

* * * * * 

Dated: July 11, 2011. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2011–17788 Filed 7–15–11; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1210 

[Document Number AMS–FV–10–0093] 

Watermelon Research and Promotion 

Plan; Redistricting and Importer 

Representation 

AGENCY: Agricultural Marketing Service, 

USDA 

ACTION: Final rule. 

SUMMARY: This rule changes the 

boundaries of all seven districts under 

the Watermelon Research and 

Promotion Plan (Plan) to reapportion 

the producer, handler, and importer 

memberships on the National 

Watermelon Promotion Board (Board). 

In addition, the Board is adding two 

importer seats based on the quantity of 

watermelon imports in the past three 

years. These changes are based on a 

review of the production and 

assessments paid in each district and 

the amount of watermelon import 

assessments, which the Plan requires at 

least every five years. As a result of 

these changes, the importer seats will 

increase from six to eight. Therefore, the 

total Board membership will increase 

from 35 to 37 members. In addition, a 

new Code of Federal Regulation section 

is added to reflect the importer 

representation on the Board. 

DATES: Effective July 19, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Jeanette Palmer, Marketing Specialist, 

Research and Promotion Branch, Fruit 

and Vegetable Programs, AMS, U.S. 

Department of Agriculture, Stop 0244, 

1400 Independence Avenue, SW., Room 

0632–S, Washington, DC 20250–0244; 

telephone: (888) 720–9917; facsimile: 

(202) 205–2800; or electronic mail: 

Jeanette.Palmer@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This rule 

is issued under the Watermelon 

Research and Promotion Plan [7 CFR 

part 1210]. The Plan is authorized under 

the Watermelon Research and 

Promotion Act (Act) [7 U.S.C. 4901– 

4916]. 

Executive Orders 12866 

The Office of Management and Budget 

has waived the review process required 

by Executive Order 12866 for this 

action. 

Executive Order 12988 

In addition, this rule has been 

reviewed under Executive Order 12988, 

Civil Justice Reform. The rule is not 

intended to have retroactive effect. 

The Act allows producers, producerpackers, handlers, and importers to file 

a written petition with the Secretary of 

Agriculture (Secretary) if they believe 

that the Plan, any provision of the Plan, 

or any obligation imposed in connection 

with the Plan, is not established in 

accordance with the law. In any 

petition, the person may request a 

modification of the Plan or an 

exemption from the Plan. The petitioner 

will have the opportunity for a hearing 

on the petition. Afterwards, an 

Administrative Law Judge (ALJ) will 

issue a decision. If the petitioner 

disagrees with the ALJ’s ruling, the 

petitioner has 30 days to appeal to the 

Judicial Officer, who will issue a ruling 

on behalf of the Secretary. If the 

petitioner disagrees with the Secretary’s 

ruling, the petitioner may file, within 20 

days, an appeal in the U.S. District 

Court for the district where the 

petitioner resides or conducts business. 

Regulatory Flexibility Act and 

Paperwork Reduction Act 

In accordance with the Regulatory 

Flexibility Act [5 U.S.C. 601–612], AMS 

has examined the economic impact of 

this rule on the small producers, 

handlers, and importers that would be 

affected by this rule. 

The Small Business Administration 

defines, in 13 CFR part 121, small 

agricultural producers as those having 

annual receipts of no more than 

$750,000 and small agricultural service 

firms (handlers and importers) as those 

having annual receipts of no more than 

$7 million. Under these definitions, the 

majority of the producers, handlers, and 

importers that would be affected by this 

rule would be considered small entities. 

Producers of less than 10 acres of 

watermelons are exempt from this 

program. Importers of less than 150,000 

pounds of watermelons per year are also 

exempt. 

USDA’s National Agricultural 

Statistics Service (NASS) data for the 

2010 crop year was about 310 

hundredweight (cwt.) of watermelons 

were produced per acre. The 2010 

grower price published by NASS was 

$12.00 per hundredweight. Thus, the 

value of watermelon production per 

acre in 2010 averaged about $3,720 (310 

cwt. × $12.00). At that average price, a 

producer would have to farm over 202 

acres to receive an annual income from 

watermelons of $750,000 ($750,000 

divided by $3,720 per acre equals 202). 

Accordingly, as previously noted, a 

majority of the watermelon producers 

would be classified as small businesses. 

Based on the Board’s data, using an 

average of freight on board (f.o.b.) price 

of $.0164 per pound and the number of 

pounds handled in 2010, none of the 

watermelon handlers had receipts over 

the $7.5 million threshold. Therefore, 

the watermelon handlers would all be 

considered small businesses. A handler 

would have to ship over 457 million 

pounds of watermelons to be considered 

large (457,317,073 times $.0164 f.o.b. 

equals $7,500,000). 

According to the Board, there are 

approximately 950 producers, 230 

handlers, and 137 importers who are 

required to pay assessments under the 

program. 

Based on the watermelon import 

assessments received for the year 2010, 

the United States imported watermelons 

worth over $260 million dollars. The 

largest imports of watermelon came 

from Mexico which accounted for 93 

percent of the total in 2010. Other 

suppliers of imported watermelon are 

Guatemala at 3 percent and Honduras at 

1 percent. The remaining 3 percent of 

imported watermelon came from 

Canada, Netherlands, Nicaragua, 

Nigeria, and Panama. 

The Board’s assessment records show 

imports for the years 2007, 2008, and 

2009 at $681,565, $783,249, and 

$742,363 respectively. Based on this 

data, the three-year average annual 

imports for watermelon total $735,725 

(2,207,177 divided by 3). This 

represents approximately 29 percent of 

the total assessments paid to the Board. 

Currently there are 6 importers on the 

Board representing 17 percent of the 

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