[Federal Register Volume 63, Number 13 (Wednesday, January 21, 1998)]
[Proposed Rules]
[Pages 3048-3052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1429]


      
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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. 63, No. 13 / Wednesday, January 21, 1998 / 
Proposed Rules

[[Page 3048]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 930

[Docket No. FV97-930-6 PR]


Tart Cherries Grown in the States of Michigan, et al.; Final Free 
and Restricted Percentages for the 1997-98 Crop Year for Tart Cherries

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This proposal invites comments on the establishment of final 
free and restricted percentages for the 1997-98 crop year. The 
percentages are 55 percent free and 45 percent restricted. These 
percentages would establish the proportion of cherries from the 1997 
crop which may be handled in normal commercial outlets and are intended 
to stabilize supplies and prices, and strengthen market conditions. 
This proposed rule would also establish the date by which restricted 
percentage obligations must be satisfied and a 30-day grace period. 
This rule was recommended by the Cherry Industry Administrative Board 
(Board), which locally administers the marketing order. The free and 
restricted percentages in this proposal would not apply to handlers in 
the districts of Southwest Michigan, Oregon, Pennsylvania, Washington 
and Wisconsin.

DATES: Comments must be received by February 5, 1998.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this action. Comments must be sent in triplicate to the 
Docket Clerk, Fruit and Vegetable Division, AMS, USDA, room 2525-S, 
P.O. Box 96456, Washington, DC 20090-6456; Fax: (202) 720-5698. All 
comments should reference the docket number and the date and page 
number of this issue of the Federal Register and will be made available 
for public inspection in the Office of the Docket Clerk during regular 
business hours.

FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella or Kenneth G. 
Johnson, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-
6456; telephone: (202) 720-2491. Small businesses may request 
information on compliance with this regulation by contacting: Jay 
Guerber, Marketing Order Administration Branch, Fruit and Vegetable 
Division, AMS, USDA, P.O. Box 96456, room 2525-S, Washington, DC 20090-
6456; telephone: (202) 720-2491; Fax: (202) 720-5698.

SUPPLEMENTARY INFORMATION: This proposal is issued under marketing 
agreement and Order No. 930 (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 rule in 
conformance with Executive Order 12866.
    This proposal has been reviewed under Executive Order 12988, Civil 
Justice Reform. Under the marketing order provisions now in effect, 
final free and restricted percentages may be established for tart 
cherries handled by handlers during the crop year. This rule 
establishes final free and restricted percentages for tart cherries for 
the 1997-98 crop year, July 1, 1997, through June 30, 1998. This rule 
would not preempt any State or local laws, regulations, or policies, 
unless they present an irreconcilable conflict with this rule.
    The Act provides that administrative proceedings must be exhausted 
before parties may file suit in court. Under section 608c(15)(A) of the 
Act, any handler subject to an order may file with the Secretary 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 requesting a modification of the order or to be exempt 
therefrom. Such handler is afforded the opportunity for a hearing on 
the petition. After the hearing, the Secretary would rule on the 
petition. The Act provides that the district court of the United States 
in any district in which the handler is an inhabitant, or has his or 
her principal place of business, has jurisdiction in equity to review 
the Secretary's ruling on the petition, provided an action is filed not 
later than 20 days after the date of the entry of the ruling.
    The order prescribes procedures for computing an optimum supply and 
preliminary and final percentages that establish the amount of tart 
cherries that can be marketed throughout the season. Regulations 
setting free and restricted percentages apply to all handlers of tart 
cherries that are in the regulated districts. Tart cherries in the free 
percentage category may be marketed, while restricted percentage 
cherries must be held by handlers in a primary or secondary reserve, or 
be diverted in accordance with section 930.59. The regulated Districts 
for this season are: District one--Northern Michigan; District two--
Central Michigan; District four--New York; and District seven--Utah. 
Districts three, five, six, eight and nine (Southwest Michigan, Oregon, 
Pennsylvania, Washington, and Wisconsin, respectively) would not be 
regulated for the 1997-98 season.
    The order prescribes under section 930.52 that the districts to be 
regulated shall be those districts in which the average annual 
production of cherries over the prior three years has exceeded 15 
million pounds. Districts not meeting the 15 million pound requirement 
would not be regulated. Therefore, for this season, handlers in the 
districts of Oregon, Pennsylvania, Washington, and Wisconsin would not 
be subject to volume regulation. In addition, Southwest Michigan 
handlers would not be subject to volume regulation this season because 
their estimated production fell below 50 percent of the average annual 
processed production in that district in the previous five years. 
Section 930.52(d) of the order provides that when this occurs that 
district would be exempt from any volume regulation if, in that year, a 
restricted percentage is established. Southwest Michigan's tart cherry 
production was subjected to a freeze during early bud development that 
reduced its crop yield for the 1997 season.
    Section 930.50(a) describes procedures for computing an optimum

[[Page 3049]]

supply for each crop year. The Board must meet on or about July 1 to 
review sales data, inventory data, current crop forecasts and market 
conditions in order to establish an optimum supply level for the crop 
year. The optimum supply is calculated as 100 percent of the average 
sales of the prior three years to which shall be added a desirable 
carryout inventory not to exceed 20 million pounds or such other amount 
as the Board, with the approval of the Secretary may establish. The 
optimum supply represents the desirable volume of tart cherries that 
should be available for sale in the coming crop year. This optimum 
supply volume shall be announced by the Board in accordance with 
section 930.50(h).
    The order also provides that on or about July 1 of each crop year, 
the Board should establish a preliminary free market tonnage percentage 
based on the optimum supply formula. To calculate such percentage the 
Board should deduct the carryin inventory to determine the tonnage 
requirements (adjusted to raw product equivalent--the actual weight of 
cherries handled to process into cherry products) for the current crop 
year which will be subtracted by the current year USDA crop forecast. 
If the resulting number is positive, this would represent the estimated 
over-production which would need to be the restricted percentage 
tonnage. This restricted percentage tonnage would then be divided by 
the sum of the USDA crop forecast for the regulated districts to obtain 
the percentages for the regulated districts. If the resulting quotient 
is 100 percent or more, the Board should establish a preliminary free 
market tonnage percentage of 100 percent. If the quotient is less than 
100 percent, the Board should establish a preliminary restricted 
tonnage percentage equivalent to the quotient, rounded to the nearest 
whole number, with the compliment being the preliminary free tonnage 
percentage.
    The Board met on June 26-27, 1997, and computed, for the 1997-98 
crop year, an optimum supply of 247 million pounds. This number was 
calculated by using 270 million pounds for the average three year sales 
figure and subtracting 23 million pounds for exports that could have 
received diversion credit. The Board recommended that the carryout 
figure be zero pounds. The Board calculated preliminary free and 
restricted percentages as follows: The optimum supply was 247 million 
pounds; a 70 million pound carryin subtracted from that yielded a 
tonnage requirement for the current crop year of 177 million pounds. 
The tonnage requirement for the current crop year was subtracted from 
the USDA crop estimate of 242 million pounds, resulting in an estimated 
restricted percentage tonnage of 65 million pounds of tart cherries. 
The estimated restricted percentage tonnage was divided by the USDA 
crop estimate for the regulated districts of 192 million pounds which 
resulted in 66 percent free and 34 percent restricted for the 1997-98 
season. The Board recommended these percentages by a 17 to 1 vote. No 
reason was provided for the one dissenting vote. The Board recommended 
the percentages and announced them to the industry as required by the 
order.
    The preliminary percentages were based on the USDA production 
estimate and the following supply and demand information for the 1997-
98 crop year:

------------------------------------------------------------------------
                                                             Millions of
                                                                pounds  
------------------------------------------------------------------------
                   Optimum Supply Formula                               
                                                                        
(1) Average sales of the prior three years.................          270
(2) Plus carryout..........................................            0
(3) Less amount for exports that would have received                    
 diversion credit..........................................           23
(4) Optimum Supply calculated by the Board at the June                  
 meeting...................................................          247
                                                                        
                  Preliminary Percentages                               
                                                                        
(5) Less carryin as of July 1, 1997........................           70
(6) Tonnage requirement for current crop year..............          177
(7) USDA crop estimate.....................................          242
(8) Estimated restricted percentage tonnage (item 7 minus               
 item 6)...................................................           65
(9) USDA crop estimate for regulated districts.............          192
------------------------------------------------------------------------


                                                                        
                  Percentages                       Free      Restricted
(10) Preliminary percentages (item 8 divided                            
 by item 9) x 100.............................           66           34
------------------------------------------------------------------------

The Board may adjust the estimated crop production as the actual pack 
is realized and interim percentages may be announced between July 1 and 
September 15 of the crop year.
    Section 930.50(d) of the order requires the Board to meet no later 
than September 15 to recommend final free and restricted percentages to 
the Secretary. The Board met on September 11-12, 1997, and recommended 
final free and restricted percentages of 55 and 45, respectively. At 
that time, the Board had available actual production amounts to review 
and made the necessary adjustments to the percentages. The Board used a 
revised optimum supply figure of 270 million pounds for its final 
percentage calculations because it was determined that exports of 23 
million pounds should not have been deducted from the average sales 
figure.
    A 70 million pound carryin was subtracted from the optimum supply, 
which yields a tonnage requirement for the current crop year of 200 
million pounds. The actual production reported by the Board was 284 
pounds, a 42 million pound increase from the USDA crop estimate. The 
increase in the crop was due to very favorable growing conditions in 
portions of the State of Michigan this season. Subtracted from the 
Board reported production is the tonnage required for the current crop 
year (200 million pounds) which results in an 84 million pound surplus. 
An adjustment for changed economic conditions of 23 million pounds was 
added to the surplus, pursuant to section 930.50(f). This adjustment is 
discussed later in this document. This yielded a total surplus of 107 
million pounds of tart cherries. The free and restricted percentages 
would only apply to those handlers in regulated districts. Therefore, 
the percentages would be calculated by dividing the restricted tonnage 
volume by the regulated districts' production. The total surplus

[[Page 3050]]

of 107 million pounds is divided by the 239 million pound volume of 
tart cherries produced in the regulated districts. This results in a 45 
percent restricted percentage and a corresponding 55 percent free 
percentage for those districts that would be regulated.
    Section 930.51(d) provides that the Board, with the approval of the 
Secretary, shall develop rules and regulations which shall provide 
guidelines for handlers in complying with any restricted tonnage 
requirements, including but not limited to, a grace period of at least 
30 days to segregate and appropriately document any tonnage they wish 
to place in the inventory reserve and to assemble any applicable 
diversion certificates. A previous rulemaking action published in the 
Federal Register on January 6, 1998, [63 FR 399], provided such 
guidelines. However, that action did not establish a date by which 
restricted tonnage requirements must be satisfied or a 30-day grace 
period. This rule proposes to require that restricted tonnage 
obligations must be met when this proposed rule becomes final with a 
30-day grace period added to that date.
    The final percentages are based on the Board's reported production 
figures and the following supply and demand information for the 1997-98 
crop year:

------------------------------------------------------------------------
                                                             Millions of
                                                                pounds  
------------------------------------------------------------------------
                   Optimum Supply Formula                               
                                                                        
(1) Average sales of the prior three years.................          270
(2) Plus carryout..........................................            0
(3) Optimum Supply calculated by the Board at the September             
 meeting...................................................          270
                                                                        
                     Final Percentages                                  
                                                                        
(4) Less carryin as of July 1, 1997........................           70
(5) Tonnage required current crop year.....................          200
(6) Board reported production..............................          284
(7) Surplus (item 6 minus item 5)..........................           84
                                                                        
              Modification to Marketing Policy                          
                                                                        
(8) Economic adjustment to surplus.........................           23
(9) Adjusted surplus (item 7 plus item 8)..................          107
(10) Production in regulated districts.....................          239
------------------------------------------------------------------------


                                                                        
                  Percentages                       Free      Restricted
(11) Final Percentages (item 9 divided by item                          
 10) x 100....................................           55           45
------------------------------------------------------------------------

    As previously mentioned, the Board had made an earlier 
recommendation to modify the optimum supply formula by defining average 
sales to not include exports that were granted diversion credit. 
However, it was determined that exports should not have been subtracted 
from the average sales figure. The Board thus recommended at its 
September meeting that the marketing policy be modified by 23 million 
pounds due to changes in economic conditions as provided under section 
930.50(e)(5) and (7) and (f).
    By recommending the 23 million pound modification, the Board 
believes that it will provide stability to the marketplace and the 
industry will be in a better situation for future years since new 
markets will have been developed. Board members discussed at that 
meeting that, if this adjustment is not made, growers, due to an 
abundant supply of available tart cherries, could be paid less than 
their production costs, because handlers could suffer financial losses. 
Handlers might have to default or renegotiate contracts with buyers due 
to additional cherries being available on the domestic market, which 
could have a depressing impact on prices received for all tart 
cherries. These costs would likely be passed on to growers. In 
addition, the value of cherries already in inventory could be depressed 
by 20 to 50 percent due to a 23 million pound increase to an already 
abundant supply of available cherries, a result inconsistent with the 
intent of the order.
    The changes in economic conditions that caused the Board to modify 
its marketing policy are as follows: (1) the determination that export 
sales could not be subtracted from the optimum supply formula 
calculation was made late in the season; (2) handlers had made 
marketing plans, sales and sales commitments (including exports) based 
on the Board's recommendations made in March and June; and (3) prices 
received for tart cherries and tart cherry products would be severely 
impacted by an additional large volume of cherries being made available 
to the market when there is already an abundant supply of cherries.
    USDA's ``Guidelines for Fruit, Vegetable, and Specialty Crop 
Marketing Orders'' provide that 110 percent of recent years' sales 
should be made available to primary markets each season before 
recommendations for volume regulation are approved. This goal would be 
met by the establishment of a final percentage which releases 100 
percent of the optimum supply and the additional release of tart 
cherries provided under section 930.50(g). This release of tonnage, 
equal to 10 percent of the average sales of the prior three years 
sales, is made available to handlers each season. The Board will make 
such cherries available to handlers for one or more weeks during the 
crop year. Handlers can decide how much of the 10 percent release they 
would like to receive during such releases. Once released, such 
cherries are released for free use by such handler. Approximately 27 
million pounds should be made available to handlers this season in 
accordance with USDA Guidelines. This release would be made available 
to every handler and released to such handler in proportion to its 
percentage of the total regulated crop handled. If such handler does 
not take such handler's proportionate amount, such amount shall remain 
in the inventory reserve.

The Regulatory Flexibility Act and Effects on Small Businesses

    The Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities and has prepared this 
initial regulatory flexibility analysis. The Regulatory Flexibility Act 
(RFA) would allow AMS to certify that regulations do not have a 
significant economic impact on a substantial number of small entities.

[[Page 3051]]

However, as a matter of general policy, AMS' Fruit and Vegetable 
Programs (Programs) no longer opt for such certification, but rather 
perform regulatory flexibility analyses for any rulemaking that would 
generate the interest of a significant number of small entities. 
Performing such analyses shifts the Programs' efforts from determining 
whether regulatory flexibility analyses are required to the 
consideration of regulatory options and economic or regulatory impacts.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and rules issued thereunder, are unique in that 
they are brought about through group action of essentially small 
entities acting on their own behalf. Thus, both statutes have small 
entity orientation and compatibility.
    There are approximately 40 handlers of tart cherries who are 
subject to regulation under the tart cherry marketing order and 
approximately 1,220 producers of tart cherries in the regulated area. 
Small agricultural service firms, which includes handlers, have been 
defined by the Small Business Administration (13 CFR 121.601) as those 
having annual receipts of less than $5,000,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$500,000.
    Marketing order board and subcommittee meetings are widely 
publicized in advance and are held in a location central to the 
production area. The meetings are open to all industry members and 
entities (including small business entities) and other interested 
persons--who are encouraged to participate in the deliberations and 
voice their opinions on topics under discussion. Thus, Board 
recommendations usually represent the interests of both small and large 
business entities in the industry.
    The principal demand for tart cherries is in the form of processed 
products. Tart cherries are dried, frozen, canned, juiced and pureed. 
During the period 1993/94 through 1996/97, approximately 94 percent of 
the U.S. tart cherry crop, or 285.7 million pounds, was processed 
annually. Of the 285.7 million pounds of tart cherries processed, 63 
percent was frozen, 32 percent canned and 3 percent utilized for juice. 
The remaining 2 percent was dried or assembled into juice packs.
    Based on National Agricultural Statistics Service data, acreage in 
the United States devoted to tart cherry production has been trending 
downward since the 1991/92 season. In the ten-year period, 1986/87 
through 1996/97, tart cherry area decreased from 48,180 acres, to less 
than 42,000 acres. Approximately 78 percent of domestic tart cherry 
acreage is located in four States: Michigan, New York, Utah and 
Wisconsin. Michigan leads the nation in tart cherry acreage with 65 
percent of the total. Michigan produces about 72 percent of the U.S. 
tart cherry crop each year. In 1996/97, tart cherry acreage in Michigan 
was down 2,700 acres, to 27,300.
    In crop years 1986 through 1993, tart cherry production ranged from 
a high of 359 million pounds in 1987 to a low of 189.9 million pounds 
in 1991. The price per pound to tart cherry growers ranged from a low 
of 7.3 cents in 1987 to a high of 46.4 cents in 1991. These problems of 
wide supply and price fluctuation in the tart cherry industry are 
national in scope and impact. Growers testified during the order 
promulgation process that the average prices of 12 to 17 cents per 
pound which they received during this period did not come close to 
covering the costs of production for the vast majority of tart cherry 
growers. They also testified that production costs for most growers 
range between 20 and 22 cents per pound, which is well above average 
prices received.
    As previously stated, this is the first year of operation for this 
marketing order. The industry demonstrated a need for such order during 
the order promulgation process based on the argument that large 
variations in annual tart cherry supplies and prices tend to lead to 
disorderly marketing. As a result of these fluctuations in supplies and 
prices, growers realize a smaller return for their crop. Therefore, the 
industry elected the establishment of a volume control marketing order 
to even out the wide variations in supply and thereby improve returns 
to growers. During the promulgation process, proponents testified that 
small growers and processors would have the most to gain from 
implementation of a marketing order because many such growers and 
handlers have been going out of business over most of the last eight 
years due to low tart cherry prices. They also testified that, since an 
order would help increase grower returns, this should increase the 
buffer between business success and failure because small growers and 
handlers tend to be less capitalized than larger growers and handlers.
    In discussing the possibility of marketing percentages for the 
1997-98 crop year, the Board considered: (1) The estimated and actual 
total production of tart cherries; (2) the estimated and actual size of 
the crop to be handled; (3) the expected and actual general quality of 
such cherry production; (4) the expected and actual carryover as of 
July 1 of canned and frozen cherries and other cherry products; (5) the 
expected demand conditions for cherries in different market segments; 
(6) supplies of competing commodities; (7) an analysis of economic 
factors having a bearing on the marketing of cherries; (8) the 
estimated tonnage held by handlers in primary or secondary inventory 
reserves; and (9) any estimated release of primary or secondary 
inventory reserve cherries during the crop year.
    The Board's review of these factors resulted in the computation and 
announcement in July 1997 of preliminary free and restricted 
percentages, and subsequent recommendation of interim and final 
percentages at its September meeting. At its September 1997 meeting, 
the Board recommended that the interim percentages and final 
percentages (55 percent free and 45 percent restricted) be the same 
percentages.
    The Board considered the fact that the demand for tart cherries is 
inelastic at high and low levels of production. At the extremes, 
various factors become operational. The promulgation record stated that 
when crops are very low there is limited but sufficient exclusive 
demand for cherries that can cause processor prices to double and 
grower prices to triple. In the event of large crops, there seems to be 
no price low enough to expand tart cherry sales in the marketplace 
sufficient to market the crops. This year the crop has been a large 
one.
    The Board discussed alternatives to the volume recommendation 
including not having volume regulation this season. Board members 
stated that no volume regulation would be detrimental to the tart 
cherry industry. Returns to growers would not even cover their 
production costs for this season causing some to go out of business.
    The Board also discussed not granting exemptions, and diversion 
credit for such exemptions, for exports to eligible countries 
(including juice and juice concentrate), other exempt uses, and 
charitable donations. However, the Board felt this would not be in the 
best interest of the industry or the public. The Board expressed that 
not allowing the export and other exemptions would have a detrimental 
effect on the market this season if free and restricted percentages are 
imposed. Without such exemptions and diversion credits for export 
sales, new market development and other specified uses, about 50

[[Page 3052]]

million pounds of cherries would not be removed from the domestic 
market this season, depressing grower returns for all cherries. The 
marketing order was designed to increase grower returns by stabilizing 
supplies with demand as well as stabilizing prices and creating a more 
orderly and predictable marketing environment. Expanding markets and 
developing new products is key to meeting this marketing order's goals.
    Not granting exemptions and diversion credit for exports to 
countries other than Canada, Mexico, and Japan was also discussed at 
Board meetings. However, the Board expressed that this recommendation 
is very important to creating stable conditions in the export 
marketplace this season and would encourage future market growth. The 
Board further stated that such action will improve returns to growers 
because of the tremendous growth in the export market this season. 
Exemptions and diversion credit have been addressed in other rulemaking 
actions.
    As mentioned earlier, 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 
available under this rule is 110 percent of the quantity shipped in the 
prior three years.
    The free and restricted percentages proposed to be established by 
this rule release the optimum supply and apply uniformly to all 
regulated handlers in the industry, regardless of size. There are no 
known additional costs incurred by small handlers that are not incurred 
by large handlers. The stabilizing effects of the percentages impact 
all handlers positively by helping them maintain and expand markets, 
despite seasonal supply fluctuations. Likewise, price stability 
positively impacts all producers by allowing them to better anticipate 
the revenues their tart cherries will generate.
    USDA has not identified any relevant Federal rules that duplicate, 
overlap, or conflict with this proposed regulation.
    While the level of benefits of this rulemaking are difficult to 
quantify, the stabilizing effects of the volume regulations impact both 
small and large handlers positively by helping them maintain markets 
even though tart cherry supplies fluctuate widely from season to 
season.
    Interested persons are invited to submit information on the 
regulatory and informational impacts of this action on small 
businesses.

Paperwork Reduction

    In compliance with Office of Management and Budget (OMB) 
regulations (5 CFR part 1320) which implement the Paperwork Reduction 
Act of 1995 (Pub. L. 104-13), the information collection and 
recordkeeping requirements have been previously approved by OMB and the 
assigned OMB Number 0581-0177.
    There are some reporting, recordkeeping and other compliance 
requirements under the marketing order. The reporting and recordkeeping 
burdens are necessary for compliance purposes and for developing 
statistical data for maintenance of the program. The forms related to 
handler diversion and handlers meeting restricted percentage 
obligations (i.e., Inventory Reserve Summary, Cherries Acquired From 
Producers, Handler Reserve Plan and Final Pack Report, and Inventory 
Location Report) have received approval by OMB. The forms require 
information which is readily available from handler records and which 
can be provided without data processing equipment or trained 
statistical staff. It was anticipated that as many as 45 handlers might 
be regulated if volume regulations are established. Many reports are 
submitted a single time each season, while some are submitted more 
frequently. In addition, the bulk of the information handlers must 
report is obtained during the normal course of their business 
operations. It would take handlers approximately 15 minutes per report 
to complete for a total of 60 minutes per handler and approximately 
2,700 minutes annually for the estimated 45 handlers. As with other, 
similar marketing order programs, reports and forms are periodically 
studied to reduce or eliminate duplicate information collection burdens 
by industry and public sector agencies. This proposed rule does not 
change those requirements.
    A 15-day comment period is provided to allow interested persons to 
respond to this proposal. Fifteen days is deemed appropriate because 
this rule needs to be in place as soon as possible since handlers are 
currently marketing 1997-98 crop tart cherries and this action should 
be taken promptly to achieve the intended purpose of making the optimum 
supply quantity computed by the Board available to handlers. 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 cheeries.

    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. A new Subpart--Supplementary Regulations consisting of 
Sec. 930.250 is added to read as follows:

    Note: This subpart will consist of handling regulations which 
will not appear in the annual Code of Federal Regulations.

Subpart--Supplementary Regulations


Sec. 930.250  Final free and restricted percentages for the 1997-98 
crop year.

    The final percentages for tart cherries handled by handlers in 
volume regulated districts during the crop year beginning on July 1, 
1997, which shall be free and restricted, respectively, are designated 
as follows: Free percentage, 55 percent and restricted percentage, 45 
percent. Restricted percentage obligations must be satisfied on or 
before the effective date of this rule. A grace period of 30 days will 
be allowed for handlers to segregate and appropriately document any 
tonnage they wish to place in the inventory reserve and to assemble any 
applicable diversion certificates.

    Dated: January 15, 1998.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 98-1429 Filed 1-20-98; 8:45 am]
BILLING CODE 3410-02-P