[Federal Register Volume 80, Number 33 (Thursday, February 19, 2015)]
[Proposed Rules]
[Pages 8817-8821]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-03406]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

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.

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Federal Register / Vol. 80, No. 33 / Thursday, February 19, 2015 / 
Proposed Rules

[[Page 8817]]



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: <a href="/cdn-cgi/l/email-protection#0e446b6060676b20586f7c6b626f4e6f637d207b7d6a6f20696178"><span class="__cf_email__" data-cfemail="561c3338383f3378003724333a3716373b25782325323778313920">[email protected]</span></a> or 
<a href="/cdn-cgi/l/email-protection#b9fad1cbd0cacdd0d8d797f7d0cacadcd7f9d8d4ca97cccaddd897ded6cf"><span class="__cf_email__" data-cfemail="04476c766d77706d656a2a4a6d7777616a446569772a717760652a636b72">[email protected]</span></a>.
    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: <a href="/cdn-cgi/l/email-protection#9ad0fffcfce8ffe3b4c9f7efeef4ffe3dafbf7e9b4efe9fefbb4fdf5ec"><span class="__cf_email__" data-cfemail="a1ebc4c7c7d3c4d88ff2ccd4d5cfc4d8e1c0ccd28fd4d2c5c08fc6ced7">[email protected]</span></a>.

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 
Sec. Sec.  930.159 and 930.162 of the regulations. These activities 
include, in part, the development of new products, sales into new 
markets, the

[[Page 8818]]

development of export markets, and charitable contributions.
    Under Sec.  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 Sec.  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 carry-out 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 Sec.  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

[[Page 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 x 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

[[Page 8820]]

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 
Sec. Sec.  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

[[Page 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 over-restrictive 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 carry-out 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

0
1. The authority citation for 7 CFR part 930 continues to read as 
follows:

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

0
2. Section 930.151 is added to read as follows:


Sec.  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.
0
3. Section 930.256 is added to read as follows:


Sec.  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


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