This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

8817 

Vol. 80, No. 33 

Thursday, February 19, 2015 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 930 

[Doc. No. AMS–FV–14–0077; FV14–930–2 

PR] 

Tart Cherries Grown in the States of 

Michigan, et al.; Free and Restricted 

Percentages for the 2014–15 Crop Year 

for Tart Cherries 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Proposed rule. 

SUMMARY: This proposed rule would 

implement a recommendation from the 

Cherry Industry Administrative Board 

(Board) to establish free and restricted 

percentages for the 2014–15 crop year 

under the marketing order for tart 

cherries grown in the states of Michigan, 

New York, Pennsylvania, Oregon, Utah, 

Washington, and Wisconsin (order). The 

Board locally administers the marketing 

order and is comprised of producers and 

handlers of tart cherries operating 

within the production area. This action 

would establish the proportion of tart 

cherries from the 2014 crop which may 

be handled in commercial outlets at 80 

percent free and 20 percent restricted. In 

addition, this action would increase the 

carry-out volume of fruit to 50 million 

pounds for this season. These 

percentages should stabilize marketing 

conditions by adjusting supply to meet 

market demand and help improve 

grower returns. 

DATES: Comments must be received by 

March 23, 2015. 

ADDRESSES: Interested persons are 

invited to submit written comments 

concerning this proposal. Comments 

must be sent to the Docket Clerk, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

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 

document 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. All comments 

submitted in response to this proposal 

will be included in the record and will 

be made available to the public. Please 

be advised that the identity of the 

individuals or entities submitting the 

comments will be made public on the 

internet at the address provided above. 

FOR FURTHER INFORMATION CONTACT: 

Jennie M. Varela, Marketing Specialist, 

or Christian D. Nissen, Regional 

Director, Southeast Marketing Field 

Office, Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA; Telephone: (863) 324– 

3375, Fax: (863) 291–8614, or Email: 

Jennie.Varela@ams.usda.gov or 

Christian.Nissen@ams.usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Jeffrey Smutny, 

Marketing Order and Agreement 

Division, Fruit and Vegetable Program, 

AMS, USDA, 1400 Independence 

Avenue SW., STOP 0237, Washington, 

DC 20250–0237; Telephone: (202) 720– 

2491, Fax: (202) 720–8938, or Email: 

Jeffrey.Smutney@ams.usda.gov. 

SUPPLEMENTARY INFORMATION: This 

proposal is issued under Marketing 

Agreement and Order No. 930, both as 

amended (7 CFR part 930), regulating 

the handling of tart cherries produced in 

the States of Michigan, New York, 

Pennsylvania, Oregon, Utah, 

Washington and Wisconsin, hereinafter 

referred to as the ‘‘order.’’ The order is 

effective under the Agricultural 

Marketing Agreement Act of 1937, as 

amended (7 U.S.C. 601–674), hereinafter 

referred to as the ‘‘Act.’’ 

The Department of Agriculture 

(USDA) is issuing this proposed rule in 

conformance with Executive Orders 

12866, 13563, and 13175. 

This proposal has been reviewed 

under Executive Order 12988, Civil 

Justice Reform. Under the order 

provisions now in effect, free and 

restricted percentages may be 

established for tart cherries handled 

during the crop year. This proposed rule 

would establish free and restricted 

percentages for tart cherries for the 

2014–15 crop year, beginning July 1, 

2014, through June 30, 2015. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

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

handler subject to an order may file 

with USDA a petition stating that the 

order, any provision of the order, or any 

obligation imposed in connection with 

the order is not in accordance with law 

and request a modification of the order 

or to be exempted therefrom. A handler 

is afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

not later than 20 days after the date of 

the entry of the ruling. 

This proposed rule invites comments 

on the establishment of free and 

restricted percentages for the 2014–15 

crop year. This action would establish 

the proportion of tart cherries from the 

2014 crop which may be handled in 

commercial outlets at 80 percent free 

and 20 percent restricted. In addition, 

this action would increase the carry-out 

volume of fruit to 50 million pounds for 

calculation purposes for this season. 

This action should stabilize marketing 

conditions by adjusting supply to meet 

market demand and help improve 

grower returns. The change in carry-out 

was recommended by the Board at a 

meeting on June 26, 2014, and the final 

percentages were recommended by the 

Board at a meeting on September 11, 

2014. 

Section 930.51(a) of the order 

provides authority to regulate volume 

by designating free and restricted 

percentages for any tart cherries 

acquired by handlers in a given crop 

year. Section 930.50 prescribes 

procedures for computing an optimum 

supply based on sales history and for 

calculating these free and restricted 

percentages. Free percentage volume 

may be shipped to any market, while 

restricted percentage volume must be 

held by handlers in a primary or 

secondary reserve, or be diverted or 

used for exempt purposes as prescribed 

in §§ 930.159 and 930.162 of the 

regulations. These activities include, in 

part, the development of new products, 

sales into new markets, the 


asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
8818 Federal Register / Vol. 80, No. 33 / Thursday, February 19, 2015 / Proposed Rules 

development of export markets, and 

charitable contributions. 

Under § 930.52, only those districts 

with an annual average production of at 

least six million pounds are subject to 

regulation and any district producing a 

crop which is less than 50 percent of its 

annual average is exempt. The regulated 

districts for the 2014–2015 crop year 

would be: District 1—Northern 

Michigan; District 2—Central Michigan; 

District 3—Southern Michigan; District 

4—New York; District 7—Utah; District 

8—Washington; and District 9— 

Wisconsin. Districts 5 and 6 (Oregon 

and Pennsylvania, respectively) would 

not be regulated for the 2014–15 season. 

Demand for tart cherries and tart 

cherry products tend to be relatively 

stable from year to year. Conversely, 

annual tart cherry production can vary 

greatly. In addition, tart cherries are 

processed and can be stored and carried 

over from crop year to crop year, further 

impacting supply. As a result, supply 

and demand for tart cherries are rarely 

in balance. 

Because demand for tart cherries is 

inelastic, total sales volume is not very 

responsive to changes in price. 

However, prices are very sensitive to 

changes in supply. As such, an 

oversupply of cherries would have a 

sharp negative effect on prices, driving 

down grower returns. The Board, aware 

of this economic relationship, focuses 

on using the volume control provisions 

in the order to balance supply and 

demand to stabilize industry returns. 

Pursuant to § 930.50 of the order, the 

Board meets on or about July 1 to review 

sales data, inventory data, current crop 

forecasts and market conditions for the 

upcoming season and, if necessary, to 

recommend preliminary free and 

restricted percentages if anticipated 

supply would exceed demand. After 

harvest is complete, but no later than 

September 15, the Board meets again to 

update their calculations using actual 

production data, consider any necessary 

adjustments to the preliminary 

percentages, and determine if final free 

and restricted percentages should be 

recommended to the Secretary. 

The Board uses sales history, 

inventory, and production data to 

determine whether there is a surplus, 

and if so, how much volume should be 

restricted to maintain optimum supply. 

The optimum supply represents the 

desirable volume of tart cherries that 

should be available for sale in the 

coming crop year. Optimum supply is 

defined as the average free sales of the 

prior three years plus desirable carryout inventory. Desirable carry-out is the 

amount of fruit needed by the industry 

to be carried into the succeeding crop 

year to meet marketing demand until 

the new crop is available. Desirable 

carry-out is set by the Board after 

considering market circumstances and 

needs. Section 930.50(a) specifies that 

desirable carry-out can range from zero 

to a maximum of 20 million pounds, but 

also authorizes the Board to establish an 

alternative carry-out figure with the 

approval of the Secretary. 

After the Board determines optimum 

supply and desirable carry-out, it must 

examine the current year’s available 

volume to determine whether there is an 

oversupply situation. Available volume 

includes carry-in inventory (any 

inventory available at the beginning of 

the season) along with that season’s 

production. If production is greater than 

the optimum supply minus carry-in, the 

difference is considered surplus. This 

surplus tonnage is divided by the sum 

of production in the regulated districts 

to reach a restricted percentage. This 

percentage must be held in reserve or 

used for approved diversion activities, 

such as exports. 

The Board met on June 26, 2014, and 

computed an optimum supply of 218 

million pounds for the 2014–15 crop 

year using the average of free sales for 

the three previous seasons and a 

desirable carry-out of 20 million 

pounds. The Board then subtracted the 

estimated carry-in of 81 million pounds 

from the optimum supply to calculate 

the production needed from the 2014– 

15 crop to meet optimum supply. This 

number, 137 million pounds, was 

subtracted from USDA’s estimated 

2014–15 production of 264 million 

pounds to calculate a surplus of 127 

million pounds of tart cherries. The 

surplus minus the market growth factor 

was then divided by the expected 

production in the regulated districts 

(261 million pounds) to reach a 

preliminary restricted percentage of 41 

percent for the 2014–15 crop year. 

In discussing the calculations, 

industry participants commented that a 

carry-out of 20 million pounds would 

not meet their needs at the end of the 

season before the new crop is available. 

To address that concern, the Board 

recommended increasing the desirable 

carry-out to 50 million pounds for the 

2014–2015 season. This change 

increased the optimum supply to 248 

million pounds, reducing the surplus to 

97 million pounds. 

The Board also discussed whether the 

three-year average was an accurate 

estimate of supply needed for the 

coming season considering the 

substantial loss of supply in 2012 due 

to weather. Including the use of 

reserves, sales in 2012–13 reached only 

123 million pounds, nearly 100 million 

pounds less than 2013–14 sales. Using 

data from earlier seasons, the Board 

agreed that 250 million pounds of free 

supply is needed in a typical season and 

voted to make an economic adjustment 

of 52 million pounds to reach that level. 

In addition, USDA’s ‘‘Guidelines for 

Fruit, Vegetable, and Specialty Crop 

Marketing Orders’’ specify that 110 

percent of recent years’ sales should be 

made available to primary markets each 

season before recommendations for 

volume regulation are approved. This 

requirement is codified in § 930.50(g) of 

the order, which specifies that in years 

when restricted percentages are 

established, the Board shall make 

available tonnage equivalent to an 

additional 10 percent of the average 

sales of the prior three years for market 

expansion (market growth factor). The 

Board complied with this requirement 

by adding 20 million pounds (198 

million times 10 percent, rounded) to 

the free supply. 

The economic adjustment and market 

growth factor further reduced the 

preliminary surplus to 25 million 

pounds. After these adjustments, the 

preliminary restricted percentage was 

recalculated as 10 percent (25 million 

pounds divided by 261 million pounds). 

The Board met again on September 

11, 2014, to consider establishing final 

volume regulation percentages for the 

2014–15 season. The final percentages 

are based on the Board’s reported 

production figures and the supply and 

demand information available in 

September. The total production for the 

2014–15 season was 297.7 million 

pounds, 34 million pounds above 

USDA’s June estimate. In addition, 

growers diverted 0.2 million pounds in 

the orchard, leaving 297.5 million 

pounds available to market. Using the 

actual production numbers, and 

accounting for the recommended 

increase in desirable carry-out and 

economic adjustment, as well as the 

market growth factor, the restricted 

percentage was recalculated. 

The Board subtracted the carry-in 

figure used in June of 81 million pounds 

from the optimum supply of 248 million 

pounds to determine 167 million 

pounds of 2014–15 production would 

be necessary to reach optimum supply. 

The Board subtracted the 167 million 

pounds from the actual production of 

298 million pounds, resulting in a 

surplus of 131 million pounds of tart 

cherries. The surplus was then reduced 

by subtracting the economic adjustment 

of 52 million pounds and the market 

growth factor of 20 million pounds, 

resulting in an adjusted surplus of 59 

million pounds. The Board then divided 

this final surplus by the actual 


asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
Federal Register / Vol. 80, No. 33 / Thursday, February 19, 2015 / Proposed Rules 8819 

production in the regulated districts 

(295 million pounds) to calculate a 

restricted percentage of 20 percent with 

a corresponding free percentage of 80 

percent for the 2014–15 crop year, as 

outlined in the following table: 

Millions of 

pounds 

Final Calculations: 

(1) Average sales of the prior three years ............................................................................................................................. 198 

(2) Plus desirable carry-out .................................................................................................................................................... 50 

(3) Optimum supply calculated by the Board ......................................................................................................................... 248 

(4) Carry-in as of July 1, 2014 ............................................................................................................................................... 81 

(5) Adjusted optimum supply (item 3 minus item 4) .............................................................................................................. 167 

(6) Board reported production ................................................................................................................................................ 298 

(7) Surplus (item 6 minus item 5) .......................................................................................................................................... 131 

(8) Total economic adjustments ............................................................................................................................................. 52 

(9) Market growth factor ......................................................................................................................................................... 20 

(10) Adjusted Surplus (item 7 minus items 8 and 9) ............................................................................................................... 59 

(11) Crop estimate for regulated districts ................................................................................................................................. 295 

Final Percentages: Percent 

Restricted (item 10 divided by item 11 × 100) ......................................................................................................................... 20 

Free (100 minus restricted percentage) ................................................................................................................................... 80 

The primary purpose of setting 

restricted percentages is an attempt to 

bring supply and demand into balance. 

If the primary market is oversupplied 

with cherries, grower prices decline 

substantially. Restricted percentages 

have benefited grower returns and 

helped stabilize the market as compared 

to those seasons prior to the 

implementation of the order. The Board 

believes the available information 

indicates that a restricted percentage 

should be established for the 2014–15 

crop year to avoid oversupplying the 

market with tart cherries. Consequently, 

based on its discussion of this issue and 

the result of the above calculations, the 

Board recommended final percentages 

of 80 percent free and 20 percent 

restricted by a vote of 16 in favor and 

2 against. 

Of the two Board members who 

opposed the recommendation, one 

stated that the industry should focus on 

sales rather than restriction and the 

other expressed concerns that some 

segments would be more impacted by 

the restriction than others. 

Regarding maximizing sales, one 

member noted that even storm-damaged 

fruit had been bought for processing, 

signaling that the processors still 

needed fruit toward the end of harvest. 

Other members, however, noted the 

extra sales some farmers experienced 

may have simply been due to gaps left 

by the areas that had damage, which 

reduced the amount of fruit available to 

fully supply their processors. 

Additionally, the economic adjustment 

and market growth factor included in 

the recommended restriction would 

make additional fruit available for sales. 

A member also noted that some 

processors, such as those making pie 

filling, are not likely to purchase excess 

fruit and would have to restrict their 

sales. Another believed this level of 

restriction would signal to the 

ingredient market that processed fruit 

may be hard to obtain. However, others 

stated that a preliminary restriction was 

announced before harvest and all 

processors, regardless of product 

segment, are familiar with the process. 

Also, though the restricted percentage 

has increased since the preliminary 

announcement in June, the total volume 

of fruit available to the market remains 

unchanged. 

Finally, there were also some 

comments regarding incorporating sales 

of imported fruit into the demand 

considerations and that rigid 

interpretation of the supply formula 

does not allow the Board to react to the 

current market conditions. As the order 

does not provide for reporting 

processing of imported fruit or 

regulating such fruit, there are no 

reliable data on the issue. Others noted 

that with the increased recommended 

carry-out, the market growth factor, and 

adjustment to the demand calculations, 

the Board has taken steps toward 

making enough fruit available to 

continue current growth and have fruit 

in reserve in case of another crop 

disaster. 

After reviewing the available data, 

and considering the concerns expressed, 

the Board determined that a 20 percent 

restriction with a carry-out volume of 50 

million pounds would meet sales needs 

and establish some reserves without 

oversupplying the market. Thus, the 

Board recommended establishing final 

percentages of 80 percent free and 20 

percent restricted. 

Initial Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), 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 

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 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 600 

producers of tart cherries in the 

regulated area and approximately 40 

handlers of tart cherries who are subject 

to regulation under the order. Small 

agricultural producers are defined by 

the Small Business Administration 

(SBA) as those having annual receipts of 

less than $750,000 and small 

agricultural service firms have been 

defined as those having annual receipts 

of less than $7,000,000 (13 CFR 

121.201). 

According to the National 

Agricultural Statistics Service (NASS) 

and Board data, the average annual 

grower price for tart cherries during the 

2013–14 season was $0.35 per pound, 

and total shipments were around 289 

million pounds. Therefore, average 

receipts for tart cherry producers were 

around $168,800, well below the SBA 

threshold for small producers. In 2014, 

The Food Institute estimated an f.o.b. 

price of $0.96 per pound for frozen tart 


asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
8820 Federal Register / Vol. 80, No. 33 / Thursday, February 19, 2015 / Proposed Rules 

cherries, which make up the majority of 

processed tart cherries. Using this data, 

average annual handler receipts were 

about $6.9 million, which is also below 

the SBA threshold for small agricultural 

service firms. Assuming a normal 

distribution, the majority of producers 

and handlers of tart cherries may be 

classified as small entities. 

The tart cherry industry in the United 

States is characterized by wide annual 

fluctuations in production. According to 

NASS, tart cherry production in 2011 

was 232 million pounds, 85 million 

pounds in 2012, and in 2013, 

production was 294 million pounds. 

Because of these fluctuations, the 

supply and demand for tart cherries are 

rarely equal. 

Demand for tart cherries is inelastic, 

meaning changes in price have a 

minimal effect on total sales volume. 

However, prices are very sensitive to 

changes in supply, and grower prices 

vary widely in response to the large 

swings in annual supply, with prices 

ranging from a low of 7.3 cents in 1987 

to a high of 46.4 cents in 1991. 

Because of this relationship between 

supply and price, oversupplying the 

market with tart cherries would have a 

sharp negative effect on prices, driving 

down grower returns. The Board, aware 

of this economic relationship, focuses 

on using the volume control authority in 

the order in an effort to balance supply 

and demand in order to stabilize 

industry returns. This authority allows 

the industry to set free and restricted 

percentages as a way to bring supply 

and demand into balance. Free 

percentage cherries can be marketed by 

handlers to any outlet, while restricted 

percentage volume must be held by 

handlers in reserve, diverted or used for 

exempted purposes. 

This proposal would establish free 

and restricted percentages using an 

increased carry-out volume of 50 

million pounds for the 2014–15 crop 

year under the order for tart cherries. 

This action would control the supply of 

tart cherries by establishing percentages 

of 80 percent free and 20 percent 

restricted for the 2014–15 crop year. 

These percentages should stabilize 

marketing conditions by adjusting 

supply to meet market demand and help 

improve grower returns. The action 

would regulate tart cherries handled in 

Michigan, New York, Utah, Washington, 

and Wisconsin. The authority for this 

action is provided for in §§ 930.51(a) 

and 930.52 of the order. The Board 

recommended this action at a meeting 

on September 11, 2014. 

This action would result in some fruit 

being diverted from the primary 

domestic markets. However, as 

mentioned earlier, the USDA’s 

‘‘Guidelines for Fruit, Vegetable, and 

Specialty Crop Marketing Orders’’ 

specify that 110 percent of recent years’ 

sales should be made available to 

primary markets each season before 

recommendations for volume regulation 

are approved. The quantity that would 

be available under this rule is greater 

than 110 percent of the quantity 

shipped in the prior three years. 

In addition, there are secondary uses 

available for restricted fruit, including 

the development of new products, sales 

into new markets, the development of 

export markets, and being placed in 

reserve. While these alternatives may 

provide different levels of return than 

the sales to primary markets, they play 

an important role for the industry. The 

areas of new products, new markets, 

and the development of export markets 

utilize restricted fruit to develop and 

expand the markets for tart cherries. In 

2011–12, the last season there was a 

restriction, these activities accounted for 

more 39 million pounds in sales, 14 

million of which were exports. 

Placing tart cherries into reserves is 

also a key part of balancing supply and 

demand. Although the industry must 

bear the handling and storage costs for 

fruit in reserve, reserves stored in large 

crop years are used to supplement 

supplies in short crop years. The 

reserves allow the industry to mitigate 

the impact of oversupply in large crop 

years, while allowing the industry to 

maintain and supply markets in years 

where production falls below demand. 

Further, storage and handling costs are 

more than offset by the increase in price 

when moving from a large crop to a 

short crop year. 

In addition, the Board recommended 

an increased carry-out of 50 million 

pounds and made a demand adjustment 

of 52 million pounds in order to make 

the regulation less restrictive. Even with 

the recommended restriction, over 300 

million pounds of fruit would be 

available to the domestic market. 

Consequently, it is not anticipated that 

this action would unduly burden 

growers or handlers. 

While this action could result in some 

additional costs to the industry, these 

costs are more than outweighed by the 

benefits. The purpose of setting 

restricted percentages is to attempt to 

bring supply and demand into balance. 

If the primary market (domestic) is 

oversupplied with cherries, grower 

prices decline substantially. Without 

volume control, the primary market 

would likely be oversupplied, resulting 

in lower grower prices. 

The three districts in Michigan, along 

with the districts in New York, Utah, 

Washington, and Wisconsin are the 

restricted areas for this crop year with 

a combined total production of 295 

million pounds. A 20 percent restriction 

means 236 million pounds would be 

available to be shipped to primary 

markets from these five states. The 236 

million pounds from the restricted 

districts, nearly 3 million pounds from 

the unrestricted districts (Oregon and 

Pennsylvania), and the 81 million 

pound carry-in inventory would make a 

total of 320 million pounds available as 

free tonnage for the primary markets. In 

comparison, the 12 percent restriction 

in 2011–2012 made just under 262 

million pounds available. 

Prior to the implementation of the 

order, grower price often did not come 

close to covering the cost of production. 

The most recent costs of production 

determined by representatives of 

Michigan State University are an 

estimated $0.33 per pound. To assess 

the impact that volume control has on 

the prices growers receive for their 

product, an econometric model has been 

developed. Based on the model, the use 

of volume control would have a positive 

impact on grower returns for this crop 

year. With volume control, grower 

prices are estimated to be approximately 

$0.03 per pound higher than without 

restrictions. 

In addition, absent volume control, 

the industry could start to build large 

amounts of unwanted inventories. 

These inventories would have a 

depressing effect on grower prices. The 

econometric model shows for every 1 

million-pound increase in carry-in 

inventories, a decrease in grower prices 

of $0.0037 per pound occurs. 

Retail demand is assumed to be 

highly inelastic, which indicates that 

changes in price do not result in 

significant changes in the quantity 

demanded. Consumer prices largely do 

not reflect fluctuations in cherry 

supplies. Therefore, this action should 

have little or no effect on consumer 

prices and should not result in a 

reduction in retail sales. 

The free and restricted percentages 

established by this rule would provide 

the market with optimum supply and 

apply uniformly to all regulated 

handlers in the industry, regardless of 

size. As the restriction represents a 

percentage of a handler’s volume, the 

costs, when applicable, are 

proportionate and should not place an 

extra burden on small entities as 

compared to large entities. 

The stabilizing effects of this action 

would benefit all handlers by helping 

them maintain and expand markets, 

despite seasonal supply fluctuations. 

Likewise, price stability positively 


asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
Federal Register / Vol. 80, No. 33 / Thursday, February 19, 2015 / Proposed Rules 8821 

impacts all growers and handlers by 

allowing them to better anticipate the 

revenues their tart cherries would 

generate. Growers and handlers, 

regardless of size, would benefit from 

the stabilizing effects of this restriction. 

In addition, the increased carry-out 

should provide processors enough 

supply to meet market needs going into 

the next season. 

The Board considered some 

alternatives in its preliminary restriction 

discussions that affected this 

recommended action. The first 

alternative concerned the average sales 

in estimating demand for the coming 

season, and the second alternative 

regarded the recommended carry-out 

figure. 

Regarding demand, the Board began 

with the actual sales average of 198 

million pounds. There was concern, 

however that this value, which 

incorporated the weather-related crop 

failure of 2012, would result in an overrestrictive calculation. After considering 

options in the range of 24 to 52 million 

pounds, the Board determined that an 

adjustment of 52 million pounds, to 

reach an average demand of 250 million 

pounds, was most appropriate for the 

industry. Thus the other alternatives 

were rejected and the Board 

recommended the 52 million pound 

economic adjustment. 

Regarding the carry-out value, the 

Board considered keeping this value at 

the order’s 20 million pound maximum. 

However, many noted that the industry 

now regularly carries over more volume 

than in the past to keep its expanded 

product lines supplied at the end of the 

season. One member noted that even at 

the end of the disaster season, there 

were 17 million pounds carried out. 

Another noted that the 81 million 

pound carry-in this season was seen as 

burdensome. Others were concerned 

that in addition to the previous 

adjustment, too high of a carry-out 

figure might discourage using reserves 

to protect the industry from another 

disaster. The Board considered 60 

million pounds and 30 million pounds, 

but these were considered respectively 

too large and too restrictive and thus 

were rejected. The Board then reached 

a consensus and recommended the 

Secretary increase the maximum carryout to 50 million pounds for the 2014– 

2015 season alone. 

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 the Office of 

Management and Budget (OMB) and 

assigned OMB No. 0581–0177, Tart 

Cherries Grown in the States of MI, NY, 

PA, OR, UT, WA, and WI. No changes 

in those requirements as a result of this 

action are necessary. Should any 

changes become necessary, they would 

be submitted to OMB for approval. 

This action would not impose any 

additional reporting or recordkeeping 

requirements on either small or large 

tart cherry 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. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap or 

conflict with this proposed rule. 

In addition, the Board’s meeting was 

widely publicized throughout the tart 

cherry industry and all interested 

persons were invited to attend the 

meeting and participate in Board 

deliberations on all issues. Like all 

Board meetings, the June 26, 2014, and 

September 11, 2014, meetings were 

public meetings and all entities, both 

large and small, were able to express 

views on this issue. Finally, interested 

persons are invited to submit comments 

on this proposed rule, including 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/ 

MarketingOrdersSmallBusinessGuide. 

Any questions about the compliance 

guide should be sent to Jeffrey Smutny 

at the previously mentioned address in 

the FOR FURTHER INFORMATION CONTACT

section. 

A 30-day comment period is provided 

to allow interested persons to respond 

to this proposal. Thirty days is deemed 

appropriate because this proposed rule 

would need to be in place as soon as 

possible since handlers are already 

shipping tart cherries from the 2014–15 

crop. All written comments timely 

received will be considered before a 

final determination is made on this 

matter. 

List of Subjects in 7 CFR Part 930 

Marketing agreements, Reporting and 

recordkeeping requirements, Tart 

cherries. 

For the reasons set forth in the 

preamble, 7 CFR part 930 is proposed to 

be amended as follows: 

PART 930—TART CHERRIES GROWN 

IN THE STATES OF MICHIGAN, NEW 

YORK, PENNSYLVANIA, OREGON, 

UTAH, WASHINGTON, AND 

WISCONSIN 

■ 1. The authority citation for 7 CFR 

part 930 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. Section 930.151 is added to read as 

follows: 

§ 930.151 Desirable carry-out inventory 

For the crop year beginning on July 1, 

2014, the desirable carry-out inventory, 

for the purposes of determining an 

optimum supply volume, will be 50 

million pounds. 

■ 3. Section 930.256 is added to read as 

follows: 

§ 930.256 Free and restricted percentages 

for the 2014–15 crop year. 

The percentages for tart cherries 

handled by handlers during the crop 

year beginning on July 1, 2014, which 

shall be free and restricted, respectively, 

are designated as follows: Free 

percentage, 80 percent and restricted 

percentage, 20 percent. 

Dated: February 11, 2015. 

Rex A. Barnes, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2015–03406 Filed 2–18–15; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2006–26235; Directorate 

Identifier 2006–CE–065–AD] 

RIN 2120–AA64 

Airworthiness Directives; SOCATA 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for 

SOCATA Model TBM 700 airplanes 

(type certificate previously held by 

EADS SOCATA) that would revise AD 

2007–04–13. This proposed AD results 

from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 

product. The MCAI describes the unsafe 


asabaliauskas on DSK5VPTVN1PROD with PROPOSALS