26344 Federal Register / Vol. 60, No. 95 / Wednesday, May 17, 1995 / Rules and Regulations

7 CFR Part 989

[FV95–989–2IFR]

Raisins Produced From Grapes Grown

in California; Final Free and Reserve

Percentages for the 1994–95 Crop Year

for Natural (Sun-Dried) Seedless

Raisins

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This interim final rule invites

comments on the establishment of final

free and reserve percentages for 1994–95

crop Natural (sun-dried) Seedless

raisins. The percentages are 77 percent

free and 23 percent reserve. These

percentages are intended to stabilize

supplies and prices and to help counter

the destabilizing effects of the

burdensome oversupply situation facing

the raisin industry. This rule was

recommended by the Raisin

Administrative Committee (Committee),

the body which locally administers the

marketing order.

DATES: This interim final rule becomes

effective May 17, 1995, and applies to

all Natural (sun-dried) Seedless raisins

acquired from the beginning of the

1994–95 crop year. Comments which

are received by June 16, 1995, will be

considered prior to any finalization of

this interim final rule.

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, PO Box 96456,

Washington, DC 20090–6456, or faxed

to 202–720–5698. 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:

Richard Van Diest, Marketing Specialist,

California Marketing Field Office, Fruit

and Vegetable Division, AMS, USDA,

2202 Monterey Street, suite 102B,

Fresno, California 93721; telephone:

209–487–5901 or Mark A. Slupek,

Marketing Specialist, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, room

2523–S, PO Box 96456, Washington, DC

20090–6456; telephone: 202–205–2830.

SUPPLEMENTARY INFORMATION: This

interim final rule is issued under

marketing agreement and Order No. 989

(7 CFR part 989), both as amended,

regulating the handling of raisins

produced from grapes grown in

California, hereinafter referred to as the

‘‘order.’’ The order is effective under the

Agricultural Marketing Agreement Act

of 1937, as amended (7 U.S.C. 601–674),

hereinafter referred to as the ‘‘Act.’’

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This interim final rule has been

reviewed under Executive Order 12778,

Civil Justice Reform. Under the

marketing order provisions now in

effect, final free and reserve percentages

may be established for raisins acquired

by handlers during the crop year. This

rule establishes final free and reserve

percentages for Natural (sun-dried)

Seedless raisins for the 1994–95 crop

year, beginning August 1, 1994, through

July 31, 1995. This interim final rule

will 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/her principal

place of business, has jurisdiction in

equity to review the Secretary’s ruling

on the petition, provided a bill in equity

is filed not later than 20 days after the

date of the entry of the ruling.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Administrator of the Agricultural

Marketing Service (AMS) has

considered the economic impact of this

action on small entities.

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 20 handlers

of California raisins who are subject to

regulation under the raisin marketing

order, and approximately 4,500

producers in the regulated area. Small

agricultural service firms have been

defined by the Small Business

Administration (13 CFR 121.601) as

those whose annual receipts (from all

sources) are less than $5,000,000, and

small agricultural producers are defined

as those having annual receipts of less

than $500,000. No more than eight

handlers, and a majority of producers, of

California raisins may be classified as

small entities. Twelve of the 20 handlers

subject to regulation have annual sales

estimated to be at least $5,000,000, and

the remaining eight handlers have sales

less than $5,000,000, excluding receipts

from any other sources.

The order prescribes procedures for

computing trade demands and

preliminary and final percentages that

establish the amount of raisins that can

be marketed throughout the season. The

regulations apply to all handlers of

California raisins. Raisins in the free

percentage category may be shipped

immediately to any market, while

reserve raisins must be held by handlers

in a reserve pool for the account of the

Committee, which is responsible for

local administration of the order. Under

the order, reserve raisins may be: Sold

at a later date by the Committee to

handlers for free use; used in diversion

programs; exported to authorized

countries; carried over as a hedge

against a short crop the following year;

or disposed of in other outlets

noncompetitive with those for free

tonnage raisins.

While this rule may restrict the

amount of Natural (sun-dried) Seedless

raisins that enter domestic markets,

final free and reserve percentages are

intended to lessen the impact of the

oversupply situation facing the industry

and promote stronger marketing

conditions, thus stabilizing prices and

supplies and improving grower returns.

In addition to the quantity of raisins

released under the preliminary

percentages and the final percentages,

the order specifies methods to make

available additional raisins to handlers

by requiring sales of reserve pool raisins

for use as free tonnage raisins under ‘‘10

plus 10’’ offers, and authorizing sales of

reserve raisins under certain conditions.

The Department’s ‘‘Guidelines for

Fruit, Vegetable, and Specialty Crop

Marketing Orders’’ specifies 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 is met by the establishment of a

final percentage which releases 100

percent of the computed trade demand
Federal Register / Vol. 60, No. 95 / Wednesday, May 17, 1995 / Rules and Regulations 26345

and the additional release of reserve

raisins to handlers under ‘‘10 plus 10’’

offers. The ‘‘10 plus 10’’ offers are two

simultaneous offers of reserve pool

raisins which are made available to

handlers each season. For each such

offer, a quantity of raisins equal to 10

percent of the prior year’s shipments is

made available for free use.

Pursuant to § 989.54(a) of the order,

the Committee, which is responsible for

local administration of the order, met on

August 15, 1994, to review shipment

and inventory data, and other matters

relating to the supplies of raisins of all

varietal types. The Committee computed

a trade demand for each varietal type for

which a free tonnage percentage might

be recommended. The trade demand is

90 percent of the prior year’s shipments

of free tonnage and reserve tonnage

raisins sold for free use for each varietal

type into all market outlets, adjusted by

subtracting the carryin of each varietal

type on August 1 of the current crop

year and by adding to the trade demand

the desirable carryout for each varietal

type at the end of that crop year. As

specified in § 989.154, the desirable

carryout for each varietal type shall be

equal to the shipments of free tonnage

raisins of the prior crop year during the

months of August, September, and one

half of October. If the prior year’s

shipments are limited because of crop

conditions, the total shipments during

that period of time during one of the

three years preceding the prior crop year

may be used. In accordance with these

provisions, the Committee computed

and announced a 1994–95 trade demand

of 294,422 tons for Natural (sun-dried)

Seedless raisins.

As required under § 989.54(b) of the

order, the Committee met on October 5,

1994, and computed and announced a

preliminary crop estimate and

preliminary free and reserve percentages

for Natural (sun-dried) Seedless raisins

which released 65 percent of the trade

demand since the field price had not

been established. The preliminary crop

estimate and preliminary free and

reserve percentages were as follows:

404,677 tons, and 47 percent free and 53

percent reserve. The Committee

authorized the Committee staff to

modify the preliminary percentages to

release 85 percent of the trade demand

when the field price was established.

The preliminary percentages for Natural

(sun-dried) Seedless raisins were

adjusted soon thereafter to 62 percent

free and 38 percent reserve.

Also at that meeting, the Committee

computed and announced preliminary

crop estimates and preliminary free and

reserve percentages for Dipped Seedless,

Oleate and Related Seedless, Golden

Seedless, Zante Currant, Sultana,

Muscat, Monukka, and Other Seedless

raisins. On January 12, 1995, the

Committee determined that volume

control percentages only were

warranted for Zante Currant, Other

Seedless, and Natural (sun-dried)

Seedless raisins, and it recommended

final percentages of 40 percent free and

60 percent reserve for both Zante

Currant and Other Seedless raisins. It

determined that the supplies of the

other varietal types would be less than

or close enough to the computed trade

demands for each of these varietals. In

view of these factors, volume control

percentages would not be necessary to

maintain market stability for the other

varietal types.

Pursuant to § 989.54(c), the

Committee may adopt interim free and

reserve percentages. Interim percentages

may release less than the computed

trade demand for each varietal type.

Interim percentages for Natural (sundried) Seedless raisins of 75 percent free

and 25 percent reserve were computed

and announced on January 15, 1995.

That action released most, but not all, of

the computed trade demand for Natural

(sun-dried) Seedless raisins.

Under § 989.54(d) of the order, the

Committee is required to recommend to

the Secretary, no later than February 15

of each crop year, final free and reserve

percentages which, when applied to the

final production estimate of a varietal

type, will tend to release the full trade

demand for any varietal type.

The Committee’s final estimate of

1994–95 production of Natural (sundried) Seedless raisins is 379,972 tons.

Dividing the computed trade demand of

294,422 tons by the final estimate of

production results in a final free

percentage of 77 percent and a final

reserve percentage of 23 percent.

The free and reserve percentages

established by this interim final rule

will apply uniformly to all handlers in

the industry, whether small or large,

and there are no known additional costs

incurred by small handlers. Although

raisin markets are limited, they are

available to all handlers, regardless of

size. The stabilizing effects of the

percentages impact both small and large

handlers positively by helping them

maintain and expand markets.

Based on available information, the

Administrator of the AMS has

determined that the issuance of this

interim final rule will not have a

significant economic impact on a

substantial number of small entities.

After consideration of all relevant

information presented, including the

Committee’s recommendations and

other information, it is found that this

regulation, as hereinafter set forth, will

tend to effectuate the declared policy of

the Act.

Pursuant to 5 U.S.C. 553, it is also

found and determined that upon good

cause it is impracticable, unnecessary,

and contrary to the public interest to

give preliminary notice prior to putting

this rule into effect, and that good cause

exists for not postponing the effective

date of this rule until 30 days after

publication in the Federal Register

because: (1) The relevant provisions of

this part require that the percentages

designated herein for the 1994–95 crop

year apply to all Natural (sun-dried)

Seedless raisins acquired from the

beginning of that crop year; (2) handlers

are currently marketing 1994–95 crop

raisins of the Natural (sun-dried)

Seedless varietal type and this action

should be taken promptly to achieve the

intended purpose of making the full

trade demand quantity computed by the

Committee available to handlers; (3)

handlers are aware of this action, which

was recommended by the Committee at

an open meeting, and need no

additional time to comply with these

percentages; and (4) this interim final

rule provides a 30-day period for

written comments and all comments

received will be considered prior to

finalization of this interim final rule.

List of Subjects in 7 CFR Part 989

Grapes, Marketing agreements,

Raisins, Reporting and recordkeeping

requirements.

For the reasons set forth in the

preamble, 7 CFR part 989 is amended to

read as follows:

PART 989—RAISINS PRODUCED

FROM GRAPES GROWN IN

CALIFORNIA

1. The authority citation for 7 CFR

part 989 continues to read as follows:

Authority: 7 U.S.C. 601–674.

2. Section 989.248 is added to

Subpart—Supplementary Regulations to

read as follows:

Note: This section will not appear in the

annual Code of Federal Regulations.

§ 989.248 Final free and reserve

percentages for the 1994–95 crop year.

The final percentages for standard

Natural (sun-dried) Seedless raisins

acquired by handlers during the crop

year beginning on August 1, 1994,

which shall be free tonnage and reserve

tonnage, respectively, are designated as

follows:
26346 Federal Register / Vol. 60, No. 95 / Wednesday, May 17, 1995 / Rules and Regulations

Varietal type

Free

percentage

Reserve

percentage

Natural (sun-dried) Seedless ................................ 77 23

Dated: May 11, 1995.

Terry C. Long,

Acting Deputy Director, Fruit and Vegetable

Division.

[FR Doc. 95–12148 Filed 5–16–95; 8:45 am]

BILLING CODE 3410–02–P

7 CFR Part 989

[FV95–989–1FIR]

Raisins Produced From Grapes Grown

in California; Final Free and Reserve

Percentages for the 1994–95 Crop Year

for Zante Currant and Other Seedless

Raisins

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Final rule.

SUMMARY: The Department of

Agriculture (Department) is adopting as

a final rule, without change, the

provisions of an interim final rule

which established final free and reserve

percentages for 1994 crop Zante Currant

and Other Seedless raisins. The

percentages are 40 percent free and 60

percent reserve for each of these varietal

types. These percentages are intended to

help stabilize supplies and prices and

counter the destabilizing effects of the

burdensome oversupply situation facing

the raisin industry. This rule was

recommended by the Raisin

Administrative Committee (Committee),

which is responsible for local

administration of the marketing order.

EFFECTIVE DATE: June 16, 1995.

FOR FURTHER INFORMATION CONTACT:

Richard Van Diest, Marketing Specialist,

California Marketing Field Office, Fruit

and Vegetable Division, AMS, USDA,

2202 Monterey Street, suite 102B,

Fresno, California 93721; telephone:

(209) 487–5901; or Mark A. Slupek,

Marketing Specialist, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, room

2523–S, P.O. Box 96456, Washington,

DC 20090–6456; telephone: 202–205–

2830.

SUPPLEMENTARY INFORMATION: This final

rule is issued under Marketing

Agreement and Order No. 989 (7 CFR

part 989), both as amended, regulating

the handling of raisins produced from

grapes grown in California, hereinafter

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

effective under the Agricultural

Marketing Agreement Act of 1937, as

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

referred to as the ‘‘Act.’’

The Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This final rule has been reviewed

under Executive Order 12778, Civil

Justice Reform. Under the marketing

order provisions now in effect, final free

and reserve percentages may be

established for raisins acquired by

handlers during the crop year. This

action finalizes final free and reserve

percentages for Zante Currant and Other

Seedless raisins for the 1994–95 crop

year, beginning August 1, 1994, through

July 31, 1995. This final rule will 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/her principal

place of business, has jurisdiction in

equity to review the Secretary’s ruling

on the petition, provided a bill in equity

is filed not later than 20 days after the

date of the entry of the ruling.

Pursuant to requirements set forth in

the Regulatory Flexibility Act (RFA), the

Administrator of the Agricultural

Marketing Service (AMS) has

considered the economic impact of this

action on small entities.

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 20 handlers

of California raisins who are subject to

regulation under the raisin marketing

order, and approximately 4,500

producers in the regulated area. Small

agricultural service firms have been

defined by the Small Business

Administration (13 CFR 121.601) as

those whose annual receipts (from all

sources) are less than $5,000,000, and

small agricultural producers are defined

as those having annual receipts of less

than $500,000. No more than eight

handlers, and a majority of producers of

California raisins, may be classified as

small entities. Twelve of the 20 handlers

subject to regulation have annual sales

estimated to be at least $5,000,000, and

the remaining eight handlers have sales

less than $5,000,000, excluding receipts

from any other sources.

An interim final rule was published

in the Federal Register on March 7,

1995 (60 FR 12403), with an effective

date of March 7, 1995. That rule

established final free and reserve

percentages for Zante Currant and Other

Seedless raisins for the 1994–95 crop

year. The percentages were established

in a new § 989.247 of the rules and

regulations in effect under the

marketing order. That rule provided a

30-day comment period which ended

April 6, 1995. No comments were

received.

The order prescribes procedures for

computing trade demands and

preliminary and final percentages that

establish the amount of raisins that can

be marketed throughout the season. The

regulations apply to all handlers of

California raisins. Raisins in the free

percentage category may be shipped

immediately to any market, while

reserve raisins must be held by handlers

in a reserve pool for the account of the

Committee, which is responsible for

local administration of the order. Under

the order, reserve raisins may be: Sold

at a later date by the Committee to

handlers for free use; used in diversion

programs; exported to authorized

countries; carried over as a hedge

against a short crop the following year;

or disposed of in other outlets

noncompetitive with those for free

tonnage raisins.

While this rule continues in effect

restrictions limiting the amount of Zante

Currant and Other Seedless raisins

entering domestic markets, final free

and reserve percentages are intended to

lessen the impact of the oversupply

situation facing the industry and

promote stronger marketing conditions,

thus stabilizing prices and supplies and

improving grower returns. In addition to

the quantity of raisins released under

the preliminary percentages and the

final percentages, the order specifies

methods to make available additional

raisins to handlers by requiring sales of

reserve pool raisins for use as free