[Federal Register Volume 88, Number 236 (Monday, December 11, 2023)]
[Rules and Regulations]
[Pages 85819-85824]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27095]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 88, No. 236 / Monday, December 11, 2023 / 
Rules and Regulations

[[Page 85819]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Doc. No. AMS-SC-23-0062]


Raisins Produced From Grapes Grown in California; Temporary 
Relaxation of Substandard and Maturity Dockage Requirements

AGENCY: Agricultural Marketing Service, Department of Agriculture 
(USDA).

ACTION: Interim rule.

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SUMMARY: This rule temporarily changes the substandard and maturity 
dockage requirements for raisins covered under the Federal marketing 
order for raisins produced from grapes grown in California (Order). For 
the 2023-2024 crop year, the minimum requirements for substandard and 
maturity dockage in the marketing order's handling regulations will be 
relaxed to accommodate raisins adversely impacted by severe weather 
conditions.

DATES: Effective on December 12, 2023. Comments which are received by 
February 9, 2024, will be considered prior to the issuance of any final 
rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, Market 
Development Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; Fax: 
(202) 720-8938; or via internet at: https://www.regulations.gov. 
Comments should reference the document number and the date and page 
number of this issue of the Federal Register. All comments submitted in 
response to this rule will be included in the record and will be made 
available to the public on the internet at the address provided above. 
Please be advised that the identity of the individuals or entities 
submitting the comments will be made public.

FOR FURTHER INFORMATION CONTACT: Jeremy Sasselli, Marketing Specialist, 
or Gary Olson, Chief, West Region Branch, Market Development Division, 
Specialty Crops Program, AMS, USDA; Telephone: (559) 487-5901 or Email: 
<a href="/cdn-cgi/l/email-protection#b6fcd3c4d3dbcf98e5d7c5c5d3dadadff6c3c5d2d798d1d9c0"><span class="__cf_email__" data-cfemail="42082730272f3b6c11233131272e2e2b02373126236c252d34">[email protected]</span></a> or <a href="/cdn-cgi/l/email-protection#753214070c315b3a19061a1b35000611145b121a03"><span class="__cf_email__" data-cfemail="266147545f6208694a554948665355424708414950">[email protected]</span></a>.
    Small businesses may request information on complying with this 
regulation by contacting Richard Lower, Assistant to the Director, 
Market Development Division, Specialty Crops Program, AMS, USDA, 1400 
Independence Avenue SW, STOP 0237, Washington, DC 20250-0237; 
Telephone: (202) 720-8085, or Email: <a href="/cdn-cgi/l/email-protection#0b596268636a796f2547647c6e794b7e786f6a256c647d"><span class="__cf_email__" data-cfemail="580a313b30392a3c7614372f3d2a182d2b3c39763f372e">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This action, pursuant to 5 U.S.C. 553, 
amends regulations issued to carry out a marketing order as defined in 
7 CFR 900.2(j). This rule is issued under Marketing Agreement and Order 
No. 989, both as amended (7 CFR part 989), hereinafter referred to as 
the ``Order,'' and the applicable provisions of the Agricultural 
Marketing Agreement Act of 1937, as amended (7 U.S.C. 601-674), 
hereinafter referred to as the ``Act.'' The Committee locally 
administers the Order and is comprised of growers and handlers of 
raisins operating within the area of production, and a public member.
    The Agricultural Marketing Service (AMS) is issuing this rule in 
conformance with Executive Orders 12866, 13563, and 14094. Executive 
Orders 12866, 13563, and 14094 direct agencies to assess costs and 
benefits of available regulatory alternatives and, if regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety 
effects, distributive impacts, and equity). Executive Order 13563 
emphasizes the importance of quantifying both costs and benefits, 
reducing costs, harmonizing rules, and promoting flexibility. Executive 
Order 14094 directs agencies to conduct proactive outreach to engage 
interested and affected parties through a variety of means, such as 
through field offices, and alternative platforms and media. This action 
falls within a category of regulatory actions that the Office of 
Management and Budget (OMB) exempted from Executive Order 12866 review.
    This rule has been reviewed under Executive Order 13175--
Consultation and Coordination with Indian Tribal Governments, which 
requires agencies to consider whether their rulemaking actions would 
have tribal implications. AMS has determined that this rule is unlikely 
to have substantial direct effects on one or more Indian tribes, on the 
relationship between the Federal Government and Indian tribes, or on 
the distribution of power and responsibilities between the Federal 
Government and Indian tribes.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have a retroactive effect.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Department of 
Agriculture (USDA) a petition stating that the order, any provision of 
the order, or any obligation imposed in connection with the order is 
not in accordance with law and request a modification of the order or 
to be exempted therefrom. Such handler is afforded the opportunity for 
a hearing on the petition. After the hearing, USDA would rule on the 
petition. The Act provides that the district court of the United States 
in any district in which the handler is an inhabitant, or has his or 
her principal place of business, has jurisdiction to review USDA's 
ruling on the petition, provided an action is filed no later than 20 
days after the date of the entry of the ruling.
    This interim rule temporarily relaxes the substandard and maturity 
dockage minimum requirements for incoming raisins covered under the 
Order for the 2023-2024 crop year. Section 989.58 requires natural 
condition raisins that do not meet the minimum requirements must be 
returned by handlers to producers, reconditioned by handlers at the 
producers' expense, or disposed of in a non-normal outlet such as 
animal feed at a much-reduced producer price. Provided, that handlers 
may acquire natural condition raisins which exceed the tolerance 
established for maturity under a weight dockage system. Under the 
Order, handlers acquire raisins from producers under a weight dockage 
system and adjust the creditable fruit weight acquired according to the

[[Page 85820]]

percentage of substandard raisins in the lot and/or the percentage of 
raisins that fall below certain levels of maturity in the lot. Handler 
payments to producers, and the payment of handler assessments, are 
based on the creditable weight of raisins acquired by handlers. Due to 
unusual crop conditions created by extreme weather events which 
adversely affected the growing conditions of California raisin grape 
vines, producers and handlers in the industry are seeing a relatively 
high percentage of the 2023-2024 crop year deliveries of raisins fall 
outside the minimum requirements of the substandard and maturity 
dockage system. The situation is the result of unforeseen environmental 
factors that are showing effects on raisin grapes now after harvest and 
drying. The temporary relaxation of the substandard and maturity 
requirements effectuated by this interim rule is expected to mitigate 
the disruption of the marketing of California raisins caused by adverse 
environmental conditions on the California raisin industry and provide 
a cost savings for producers by reducing reconditioning and 
reinspection costs.
    Prior to the 2022-2023 winter, the raisin growing region in 
California suffered multiple years of extreme drought, which had long-
term detrimental effects on California grape vineyards. Further, over 
the course of the 2022-2023 winter, temperatures across California were 
colder than average, rainfall in the San Joaquin Valley exceeded normal 
levels, and snowfall in the Sierra Nevada greatly exceeded normal 
levels, leading to one of the largest snowpacks on record. 
Additionally, in 2023 a series of intense storms brought rain onto the 
record snowpack, causing rapid snowmelt which had disastrous flooding 
effects in parts of the San Joaquin Valley, including the historic 
filling of the Tulare Lake Basin. However, the full effect of such 
severe weather conditions on raisin grape production only became 
apparent to producers when dehydrators began their grape dehydrating 
activities in mid to late August 2023.
    During its October 5, 2023, meeting, the Committee determined that 
rain and cold temperatures into late spring and early summer delayed 
crop maturity and that record rain and snowmelt created exceptionally 
high humidity levels throughout the production area, causing some bunch 
rot and mildew issues. In addition, hurricane Hillary perpetuated these 
conditions at the end of August 2023 by bringing unseasonal and 
substantial rainfall throughout the raisin growing region. The crop was 
also late by at least three weeks, and temperatures in September and 
into October were below average, which extended the raisin drying 
period and has delayed deliveries to handlers. Thus, raisins delivered 
to handlers by producers are failing to meet the Order's minimum 
requirements. This is evident by incoming inspections reported to the 
Committee since the beginning of the 2023-2024 crop year (August 1) 
having shown an increase of approximately 160 percent in off-grade 
natural condition raisins over the average of the past 4 years (29.1 
percent versus 11.2 percent). All other varieties of raisins have also 
shown a 155 percent increase in off-grade over the previous 4-year 
average (26.0 percent versus 10.2 percent). Relaxing the limits for the 
2023-2024 crop year will reduce the number of failing lots of raisins 
that must either be returned by handlers to producers, reconditioned by 
handlers at the producers' expense, or disposed of through non-normal 
outlets. This rule will provide cost savings to producers by minimizing 
reconditioning and reinspection costs and avoid further delays 
affecting producer deliveries in the 2023-2024 crop year. The Committee 
unanimously recommended this action during its October 5, 2023, 
meeting.
    Section 989.58(a) of the Order provides authority for the 
establishment of incoming grade, quality, and condition requirements 
for natural condition raisins that are delivered from producers to 
handlers. This section also contains authority for handlers to acquire 
natural condition raisins which fall outside the tolerance established 
for maturity, which includes substandard raisins, under a weight 
dockage system.
    Section 989.701 of the Order establishes the minimum grade and 
condition standards for natural condition raisins. Product that does 
not meet those requirements is considered substandard. Handlers may 
acquire product that is determined to be substandard under a weight 
dockage system. The regulations delineating the Order's weight dockage 
system are contained in Sec. Sec.  989.212 and 989.213. Under those 
provisions, handler acquisitions of raisins, and payments to producers 
for such raisins, are adjusted according to the percentage of 
substandard raisins in each lot and/or the percentage of raisins that 
fall below certain levels of maturity of each lot. Product that does 
not meet the minimum requirements under the weight dockage system is 
considered off-grade and must be returned to producers, reconditioned, 
or disposed of in an eligible non-normal market outlet that does not 
compete with standard raisins.

Tolerances for Substandard Raisins

    Section 989.701 of the Order's regulations specifies the minimum 
quality requirements for natural condition raisins. Lots of raisins may 
contain a maximum percentage, depending on varietal type, of 
substandard raisins (raisins that show development less than that 
characteristic of raisins prepared from fairly well-matured grapes). 
Specifically, lots of Natural (sun-dried) Seedless, Monukka, Other 
Seedless, Dipped Seedless, Oleate and Related Seedless, Other Seedless-
Sulfured, and Golden Seedless raisins may contain no more than 5 
percent, by weight, of substandard raisins. Lots of Muscat, Sultana, 
and Zante Currant raisins may contain no more than 12 percent, by 
weight, of substandard raisins.

Dockage System for Substandard Raisins

    Section 989.212 provides that handlers may acquire, under an 
agreement with a producer, raisins that fall outside the tolerance for 
substandard raisins specified in Sec.  989.701. Specifically, handlers 
may acquire any lot of Natural (sun-dried) Seedless, Golden Seedless, 
Dipped Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured 
raisins which contain from 5.1 through 17.0 percent, by weight, of 
substandard raisins under a weight dockage system. A handler may also 
acquire, subject to prior agreement, any lot of Muscat (including other 
raisins with seeds), Sultana, and Zante Currant raisins containing from 
12.1 through 20.0 percent, by weight, of substandard raisins under a 
weight dockage system. The creditable weight of each lot of raisins 
acquired by handlers under the substandard dockage system is obtained 
by multiplying the applicable net weight of the lot of raisins by the 
applicable dockage factor from the tables in Sec.  989.212. The dockage 
factor reduces the weight of the raisin lot by an amount approximating 
the weight of the raisins needed to be removed for the remainder of the 
lot to meet minimum grade requirements after processing and packing. 
The weight determined in this manner represents the creditable weight 
of the raisins which is used as a basis for applicable handler 
assessments and handler payments to producers for product received. 
However, those raisins failing to meet the established substandard 
tolerance levels (17.0 or 20.0 percent, depending on varietal type) 
must be returned to the producer or

[[Page 85821]]

reconditioned by the handler (at the producer's expense) to bring the 
lot up to acceptable quality standards or disposed of in an eligible 
non-normal market outlet that does not compete with standard raisins.
    Because of the adverse crop conditions described above, the 
industry producers and handlers are dealing with a relatively high 
percentage of the 2023 crop (marketed over the 2023-2024 crop year) 
that is falling outside the limits of the substandard dockage systems 
when delivered to handlers. Further, the Committee has reported that, 
to date, approximately 29.1 percent of natural condition raisins 
delivered to handlers, and approximately 26.0 percent of all other 
varieties of raisins, have been off-grade, requiring reworking or 
disposition into non-normal market outlets. In comparison, the average 
percentages for off-grade deliveries for the 4 years prior to the 2023-
2024 crop year shows approximately 11.2 percent and 10.2 percent, 
respectively.
    The Committee recommended that the allowable maximum percentage of 
substandard raisins in producer deliveries that can be acquired under 
the dockage system be increased, from 17.0 to 21.0 percent for Natural 
(sun-dried) Seedless, Golden Seedless, Dipped Seedless, Monukka, Other 
Seedless, and Other Seedless-Sulfured raisins, and from 20.0 to 25.0 
percent for Muscat (including other raisins with seeds), Sultana, and 
Zante Currant raisins. Lots containing more than 21.0 or 25.0 percent, 
depending on varietal type, of substandard raisins will be considered 
off-grade and require reconditioning before they can be acquired by 
handlers. This rule makes appropriate changes to Sec.  989.212 to 
incorporate the Committee's recommendations. The changes will apply for 
the 2023-2024 crop year only.
    Increasing the percentage allowed for substandard raisins in 
incoming fruit is expected to reduce the number of failed lots of 
raisins returned by handlers to producers or reconditioned by handers 
at the producers' expense or disposed of in a non-normal outlet such as 
animal feed at a much-reduced producer price. Under the relaxation, 
handlers will be able to acquire more lots of raisins upon first 
inspection and not experience the potential delay of waiting for 
failing lots to be reconditioned. The ability to acquire more raisins 
upon first inspection will help handlers better meet the needs of the 
market and save producers the cost of reconditioning and reinspecting 
failed fruit that would otherwise have passed incoming inspections and 
be received by handlers.

Tolerance for Maturity

    Section 989.701 of the Order's regulations specifies that lots of 
certain varietal types of natural condition raisins must contain a 
minimum percentage of raisins that are well-matured or reasonably well-
matured. Specifically, lots of Natural (sun-dried) Seedless, Golden 
Seedless, Dipped Seedless, Monukka, Other Seedless, and Other Seedless-
Sulfured raisins must contain at least 50 percent, by weight, of 
raisins that are well-matured or reasonable well-matured, or what is 
commonly referred to by the industry as the ``B or better'' maturity 
standard.

Dockage System for Maturity

    Section 989.213 provides that handlers may acquire, under an 
agreement with a producer, raisins falling outside the tolerance for 
maturity specified in Sec.  989.701. Specifically, handlers may acquire 
any lot of Natural (sun-dried) Seedless, Golden Seedless, Dipped 
Seedless, Monukka, Other Seedless, Other Seedless-Sulfured raisins 
which contain from 35.0 to 49.9 percent, by weight, of well-matured or 
reasonable well-matured raisins under a weight dockage system. The 
dockage system is applied similarly to the substandard dockage system 
previously described. The creditable weight of each lot of raisins 
acquired by handlers under the maturity dockage system is obtained by 
multiplying the applicable net weight of the lot of raisins by the 
applicable dockage factor in the tables in Sec.  989.213. The dockage 
factor reduces the weight of the raisins needed to be removed for the 
remainder of the lot to meet minimum maturity requirements after 
processing and packing. The weight determined in this manner represents 
the creditable weight of the raisins which is used as a basis for 
payment of handler assessments and handler payments to producers for 
product received. Those raisins failing to meet the maturity tolerance 
level of 35.0 percent are returned to the producer or reconditioned by 
the handler (at the producer's expense) to bring the lot up to 
acceptable quality standards. If a lot of raisins is subject to both a 
maturity and substandard dockage factor, only the highest of the two 
dockage factors is applied, as stated in Sec.  989.210(d).
    In addition, the maturity dockage system is divided into three 
categories depending on the percentage of well-matured or reasonably 
well-matured raisins in the lot. The creditable fruit weight of raisins 
delivered by producers to handlers in the first category, which 
includes lots containing between 45.0 to 49.9 percent well-matured or 
reasonably well-matured raisins, is reduced .05 percent for each 0.1 
percent the lot is below 50.0 percent down to 45.0 percent. The 
creditable fruit weight of raisins delivered by producers to handlers 
in the second category, which includes lots containing between 40.0 to 
44.9 percent well-matured or reasonably well-matured raisins, is 
reduced 0.1 percent for each 0.1 percent the lot is below 44.9 percent 
down to 40.0 percent. The creditable fruit weight of raisins delivered 
by producers to handlers in the third category, which includes lots 
containing between 35.0 to 39.9 percent well-matured or reasonably 
well-matured raisins is reduced 0.15 percent for each 0.1 percent the 
lot is below 39.9 percent down to 35.0 percent. Applicable handler 
assessments and producer payments for product received are reduced 
accordingly. Because of the adverse crop conditions described above, 
the industry predicts that a relatively high percentage of the 2023 
crop will fall below the 35.0 percent tolerance level for maturity when 
product is delivered to handlers. So far this crop year, approximately 
29.1 percent of natural condition raisins have been off-grade and 
require reconditioning to enter the market. In addition, approximately 
26.0 percent of all other varieties have been off-grade.
    The Committee recommended that the minimum allowable level for 
maturity of raisins delivered by producers that can be acquired under 
the dockage system be reduced, for the 2023-2024 crop year only, from 
35.0 to 30.0 percent under a fourth category in the regulation. The 
Committee also recommended that the creditable fruit weight of raisin 
deliveries in this fourth category created for the 2023-2024 crop year, 
or lots containing between 30.0 to 34.9 percent well-matured or 
reasonably well-matured raisins, be reduced by 0.2 percent for each 0.1 
percent the lot is below 34.9 percent down to 30.0 percent. Applicable 
handler assessments and producer payments for product received will be 
reduced accordingly. Lots containing 29.9 percent or less raisins which 
are well-matured or reasonably well-matured raisins will be considered 
off-grade and require reconditioning before they can be acquired by 
handlers. A new paragraph (e) is added to Sec.  989.213 for this fourth 
category and applies only to product handled during the 2023-2024 crop 
year.
    Similar to relaxing the requirements under the substandard dockage 
system,

[[Page 85822]]

reducing the minimum allowable level for maturity for the 2023-2024 
crop year is expected to reduce the number of failed lots of raisins 
returned by handlers to producers or reconditioned by handlers at the 
producers' expense or disposed of in non-normal outlets. Under this 
relaxation, handlers will be able to acquire more lots of raisins upon 
first inspection and not continue to experience further delay waiting 
for failed lots to be reconditioned and reinspected. The ability to 
acquire more raisins upon first inspection will help handlers better 
meet the needs of the market and save producers the cost of 
reconditioning failed fruit that would otherwise have been acquired by 
handlers under the weight dockage system. In addition, the industry has 
indicated that there is strong market demand for raisins and requiring 
a large percentage of the crop to be reconditioned and reinspected will 
hinder the handlers' ability to fulfill that demand, disrupting the 
orderly marketing of California raisins. Further, the cost of 
reconditioning and reinspection is expected to be passed on to the 
consumer. This rule will allow better movement of product through 
market channels and is expected to reduce costs for producers, 
handlers, and possibly consumers.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA) (5 U.S.C. 601-612), AMS has considered the economic impact of 
this interim rule 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 
businesses subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and the rules issued thereunder, are unique in 
that they are brought about through group action of essentially small 
entities acting on their own behalf.
    There are approximately 1,700 producers of California raisins and 
approximately 17 handlers subject to regulation under the Order. Small 
agricultural producers of raisins are defined by the Small Business 
Administration (SBA) as those having annual receipts equal to or less 
than $4.0 million (NAICS code 111332, Grape Vineyards) and small 
agricultural service firms are defined as those whose annual receipts 
are equal to or less than $34.0 million (NAICS code 115114, Postharvest 
Crop Activities) (13 CFR 121.201).
    Using USDA National Agricultural Statistics Service (NASS) data, 
the 2022 season average value of utilized production of California 
processed raisin-type grapes (most of which are dried into raisins) is 
$376.6 million. Dividing that figure by 1,700 producers yields an 
annual average revenue per producer of $221,530, well below the SBA 
large farm size threshold of $4.0 million. Therefore, in terms of 
average annual sales of processed raisin-type grapes, the majority of 
California raisin producers may be classified as small entities.
    To make a similar computation for handlers, the first step is to 
estimate a representative handler price received per pound for packaged 
raisins. Recent USDA purchases under the Commodity Procurement Program 
provide such an estimate. For the most recent raisin crop year used by 
the RAC (August 2022-July 2023) the average price paid for packaged 
raisins purchased by the USDA for feeding programs was $1.56 per pound. 
For that time period, the RAC provided a list of quantities delivered 
by handlers. When multiplied by the $1.56 price per pound, the results 
showed that 5 handlers had annual raisin receipts greater than $34.0 
million, the SBA threshold level for a large handler. The remaining 12 
handlers out of 17 are small handlers, using the SBA criterion.
    This rule relaxes the substandard and maturity dockage requirements 
specified in Sec. Sec.  989.212 and 989.213, respectively, of the 
Order's handling regulations. These sections allow handlers to acquire 
raisins from producers that do not meet the Order's minimum quality 
requirements under a weight dockage system. Under the system, handlers 
adjust their payments to producers for product received, and the 
payment of Order assessments, according to the percentage of 
substandard raisins in the lot and/or the percentage of raisins falling 
below certain levels of maturity. Because of extreme weather issues 
which adversely affected the growing conditions of the raisin grape 
vines for the 2023 crop, the industry predicts that a high percentage 
of the 2023-2024 crop year delivers by producers to handlers will 
continue to fall outside the current limits of the dockage systems in 
the handling regulations. Relaxing the minimum requirements under the 
dockage systems is expected to reduce the number of lots of raisins 
returned by handlers to producers or reconditioned by handlers at the 
producers' expense or disposed of in a non-normal outlet such as animal 
feed at a much-reduced producer price.
    Relaxing the dockage limits for the 2023-2024 crop year will allow 
handlers to acquire more lots of raisins that would otherwise fail 
specified tolerances for substandard raisins and maturity. Thus, fewer 
lots are expected to be returned to producers for reconditioning. Under 
the revised requirements, transportation costs for hauling raisins to 
and from the handler's premises, estimated at $24 per ton one way, for 
reconditioning and reinspection may be eliminated. Producers are also 
expected to save on reconditioning costs. Producer costs for 
reconditioning raisins falling below certain maturity levels (usually a 
``wash and dry'' process) are estimated at $275-$300 per ton. Producers 
may also save on reinspection costs at $15.50 per ton because more of 
their raisins will meet the relaxed incoming substandard and maturity 
requirements upon first inspection. In addition, producers whose lots 
of raisins fall into the extended dockage limits for substandard 
raisins will not have to incur $60 per ton in costs for ``dry 
reconditioning'' expenses.
    Relaxing the dockage limits may cause handlers to incur some 
additional costs; however, such costs are minimal when considering the 
alternative, that is to receive significantly less product for the 
2023-2024 crop year and to not meet market demand. Thus, the benefits 
of this rule outweigh such costs. While the incoming quality 
requirements are relaxed, the outgoing quality requirements under the 
Order will remain unchanged. The burden of removing substandard raisins 
or raisins falling below certain levels of maturity will be shifted 
from producers to handlers. However, although handlers will have to 
undertake the additional burden of cleaning up the fruit, handlers are 
better prepared than producers to manage the lower quality raisins 
efficiently and economically because they already have the processing 
equipment designed to remove the undesirable fruit. Moreover, without 
this rule handlers would likely have less fruit available to meet 
market needs.
    The Committee considered several alternatives to the recommended 
action. An Administrative Subcommittee (Subcommittee) convened on 
October 3, 2023, to discuss the current crop situation and to submit 
remediation recommendations to the full Committee. At the meeting, the 
Subcommittee discussed increasing the allowable amount of substandard 
fruit from 17.0 to 25.0 percent for Natural (sun-dried) Seedless, 
Golden Seedless, Dipped Seedless, Monukka, Other Seedless, and Other 
Seedless-Sulfured. However,

[[Page 85823]]

many industry members felt that the 25.0 percent was too high for the 
current conditions in the market, and ultimately the Subcommittee 
approved recommending a maximum 21.0 percent allowable tolerance for 
those varieties of substandard incoming fruit. The Subcommittee also 
considered whether to maintain the dockage for maturity for percentages 
between 30 and 35 percent at 0.15 percent or to increase it. There were 
also discussions regarding revising the tolerance for mold under the 
quality requirements. The majority of the Subcommittee did not favor 
any changes for mold tolerances. Ultimately, the Subcommittee voted to 
recommend to the Committee the changes as contained herein, and the 
full Committee subsequently voted unanimously to recommend this action 
to AMS.
    The Committee's meetings are widely publicized throughout the 
production area. The raisin industry and all interested persons are 
invited to attend the meetings and participate in Committee 
deliberations on all issues. The Subcommittee meeting on October 3, 
2023, and subsequent full Committee meeting on October 5, 2023, were 
each open to the public where any interested parties was able to 
express views on this issue. In addition, interested persons are 
invited to submit comments on this interim rule, including the 
regulatory and information collection impacts of this action on small 
businesses.
    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
Chapter 35), the Order's information collection requirements have been 
previously approved by OMB and assigned OMB No. 0581-0178, Vegetable 
and Specialty Crops. No changes in those requirements are necessary as 
a result of this action. Should any changes become necessary, they 
would be submitted to OMB for approval.
    This interim rule would not impose any additional reporting or 
recordkeeping requirements on either small or large California raisin 
handlers. As with all Federal marketing order programs, reports and 
forms are periodically reviewed to reduce information requirements and 
duplication by industry and public sector agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    AMS has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this interim rule.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: 
https://www.ams.usda.gov/rules-regulations/moa/small-businesses. Any 
questions about the compliance guide should be sent to Richard Lower at 
the previously mentioned address in the FOR FURTHER INFORMATION CONTACT 
section.
    After consideration of all relevant material presented, including 
the information and recommendations submitted by the Committee and 
other available information, USDA has determined that this interim rule 
is consistent with and will effectuate the purposes of the Act.
    A 60-day comment period is provided to allow interested persons to 
respond to this interim rule. All written comments timely received will 
be considered before a final determination is made on this interim 
rule.
    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) Raisin producers are facing an unexpected hardship based 
on unusual crop conditions created by unforeseen extreme weather events 
that affected the growing conditions of grape vines, causing a high 
percentage of the 2023-2024 crop year deliveries of raisins to fall 
outside the minimum requirements of the substandard and maturity 
dockage system. The effects of the unusual combination of weather-
related issues did not show its detrimental effects on the raisin 
grapes until the harvest and drying process during mid to end of August 
2023. (2) Relaxing the limits for the 2023-2024 crop year will reduce 
the number of failing lots of raisins that must be reconditioned (or 
disposed of), thus providing relief to producers of the costs they 
would pay to recondition and reinspect and helps to avoid further 
disruptions to the orderly marketing of California raisins from the 
2023-2024 crop that are currently being delivered to handlers. (3) 
Handlers are incurring costs for storing raisins that are tagged as 
off-grade because they fail to meet the current dockage system limits. 
Handlers would, however, meet the relaxed dockage limits and are 
looking for current-year relief to these unforeseen issues. (4) 
Handlers are in immediate need of raisins to meet their seasonal market 
demand. (5) This action relaxes requirements currently in effect. (6) 
Producers and handlers are aware of this action which was unanimously 
recommended by the Committee at a public meeting on October 5, 2023, 
and need no preparation time to comply. And finally, (7) this rule 
provides a 60-day comment period and any comments 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.

    For the reasons set forth in the preamble, the Agricultural 
Marketing Service amends 7 CFR part 989 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. In Sec.  989.212, revise paragraph (a) and the notes following 
paragraphs (b) and (c) to read as follows:


Sec.  989.212  Substandard dockage.

    (a) General. Subject to prior agreement between handler and 
tenderer, Natural (sun-dried) Seedless, Golden Seedless, Dipped 
Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured raisins 
containing from 5.1 through 17.0 percent, by weight, of substandard 
raisins may be acquired by a handler under a weight dockage system: 
Provided, That, for the 2023-2024 crop year, such raisins containing 
from 5.1 through 21.0 percent, by weight, of substandard raisins may be 
acquired by a handler under a weight dockage system. A handler may 
also, subject to prior agreement, acquire as standard raisins any lot 
of Muscat (including other raisins with seeds), Sultana, and Zante 
Currant raisins containing from 12.1 through 20.0 percent, by weight, 
of substandard raisins under a weight dockage system: Provided, That, 
for the 2023-2024 crop year, a handler may acquire such raisins 
containing from 12.1 through 25.0 percent, by weight, of substandard 
raisins under a weight dockage system. The creditable weight of each 
lot of raisins acquired under the substandard dockage system shall be 
obtained by multiplying the net weight of the lot of raisins by the 
applicable dockage factor from the appropriate dockage table prescribed 
in paragraph (b) or (c) of this section.

[[Page 85824]]

    (b) * * *

    Note to paragraph (b): Percentages in excess of the last 
percentage shown in the table shall be expressed in the same 
increments as the foregoing, and the dockage factor for each such 
increment shall be .001 less than the dockage factor for the 
preceding increment. Deliveries in excess of 17.0 percent would be 
off-grade; therefore, the dockage factor does not apply: Provided, 
That, for the 2023-2024 crop year, deliveries in excess of 21.0 
percent would be off-grade; therefore, the dockage factor does not 
apply.

    (c) * * *

    Note to paragraph (c): Percentages in excess of the last 
percentage shown in the table shall be expressed in the same 
increments as the foregoing, and the dockage factor for each 
increment shall be .001 less than the dockage factor for the 
preceding increment. Deliveries in excess of 20.0 percent would be 
off grade; therefore, the dockage factor does not apply. Provided, 
That, for the 2023-2024 crop year, deliveries in excess of 25.0 
percent would be off-grade; therefore, the dockage factor does not 
apply.


0
3. In Sec.  989.213, revise paragraph (a) and add a new paragraph (e) 
to read as follows:


Sec.  989.213  Maturity Dockage.

    (a) General. Subject to prior agreement between handler and 
tenderer, Natural (sun-dried) Seedless, Golden Seedless, Dipped 
Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured raisins 
containing from 35.0 percent through 49.9 percent, by weight, of well-
matured or reasonably well-matured raisins may be acquired by a handler 
under a weight dockage system. Provided, That, for the 2023-2024 crop 
year, such raisins containing from 30.0 through 49.9 percent, by 
weight, of well-matured or reasonably well-matured raisins may be 
acquired by a handler under a weight dockage system. The creditable 
weight of each lot of raisins acquired under the maturity dockage 
system shall be obtained by multiplying the net weight of the lot of 
raisins by the applicable dockage factor from the dockage table 
prescribed in paragraphs (b), (c), (d), and (e) of this section.
* * * * *
    (e) For the 2023-2024 crop year, maturity dockage table applicable 
to lots of Natural (sun-dried) Seedless, Golden Seedless, Dipped 
Seedless, Monukka, Other Seedless, and Other Seedless-Sulfured raisins 
which contain 30.0 percent through 34.9 percent well-matured or 
reasonably well-matured raisins:

------------------------------------------------------------------------
                                                                Dockage
       Percent well-matured or reasonably well-matured           factor
------------------------------------------------------------------------
34.9.........................................................      .8480
34.8.........................................................      .8460
34.7.........................................................      .8440
34.6.........................................................      .8420
34.5.........................................................      .8400
34.4.........................................................      .8380
------------------------------------------------------------------------


    Note to paragraph (e): Percentages less than the last percentage 
shown in the table shall be expressed in the same increments as the 
foregoing, and the dockage factor for each such increment shall be 
.002 less than the dockage factor for the preceding increment.


Erin Morris,
Associate Administrator, Agricultural Marketing Service.
[FR Doc. 2023-27095 Filed 12-8-23; 8:45 am]
BILLING CODE 3410-02-P


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