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
Federal Register / Vol. 60, No. 95 / Wednesday, May 17, 1995 / Rules and Regulations 26347

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 trade demand 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 of the order, the

Committee 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 787 tons for Other Seedless raisins.

Section 989.54 of the order also

authorizes the Committee to consider

factors which pertain to the marketing

of raisins, including an estimated trade

demand which differs from the

computed trade demand. At its August

15, 1994, meeting, the Committee

computed a trade demand of 500 tons

for Zante Currants. The Committee,

however, determined that anticipated

changes in the market conditions for

Zante Currants warranted an estimated

trade demand substantially higher than

this.

Entering this season, the California

raisin industry was carrying a very large

supply of 1992–93 and 1993–94 crop

Zante Currants and projected a record

production in 1994–95. The Committee

recommended actions to help handlers

sell their tonnage at prices competitive

with other currant prices in domestic

and export markets. Because of these

actions, the Committee believed that the

computed trade demand was

insufficient and decided to calculate its

percentages based on an estimated trade

demand of 2,200 tons.

When the Committee met on October

5, 1994, the field price for Zante

Currants had been established, but the

field price for Other Seedless raisins

had not. Section 989.54(b) of the order

requires the Committee to compute

percentages which release 85 percent of

the trade demand for varieties for which

field prices have been established and

65 percent for varieties which have not.

Thus, when the Committee met on that

date, it computed and announced

preliminary crop estimates and

preliminary free and reserve percentages

for Zante Currant and Other Seedless

raisins which released 85 percent and

65 percent of the trade demands,

respectively. The preliminary crop

estimates and preliminary free and

reserve percentages were as follows:

6,074 tons, 31 percent free and 69

percent reserve for Zante Currants; and

4,073 tons, 13 percent free and 87

percent reserve for Other Seedless

Raisins. The Committee also authorized

the Committee staff to increase the

preliminary percentages to release 85

percent of the trade demands for varietal

types without established field prices

when the field prices were established.

For Other Seedless raisins, the

preliminary percentages were adjusted

soon thereafter to 16 percent free and 84

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, Sultana,

Muscat, Monukka, and Golden Seedless

raisins. On January 12, 1995, the

Committee decided that volume control

percentages only were warranted for

Zante Currant, Other Seedless, and

Natural (sun-dried) Seedless raisins.

The Committee delayed announcing

final percentages for Natural (sun-dried)

Seedless raisins until more shipment

and production information was

available. 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. Thus, volume control

percentages would not be necessary to

maintain market stability.

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 both Zante

Currant and Other Seedless raisins of

39.75 percent free and 60.25 percent

reserve were computed and announced

on January 12, 1995. That action

released most, but not all, of the

computed trade demand for Zante

Currant and Other 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 estimates, as of

January 12, 1995, of 1994–95 production

of Zante Currant and Other Seedless

raisins were 5,507 and 1,973 tons,

respectively. For Zante Currants,

dividing the estimated trade demand of

2,200 tons by the final estimate of

production results in a final free

percentage of 40 percent and a final

reserve percentage of 60 percent. For

Other Seedless raisins, dividing the

computed trade demand of 787 tons by

the final estimate of production results

in a final free percentage of 40 percent

and a final reserve percentage of 60

percent.

The free and reserve percentages

established by the interim final rule,

and continued in effect, without

changes, by this rule, 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

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

finalizing the interim final rule, without

change, as published in the Federal

Register on March 7, 1995 (60 FR

12403), will tend to effectuate the

declared policy of the Act.
26348 Federal Register / Vol. 60, No. 95 / Wednesday, May 17, 1995 / Rules and Regulations

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 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. Accordingly, the interim final rule

adding § 989.247, which was published

at 60 FR 12403 on March 7, 1995, is

adopted as a final rule without change.

Dated: May 11, 1995.

Terry C. Long,

Acting Deputy Director, Fruit and Vegetable

Division.

[FR Doc. 95–12147 Filed 5–16–95; 8:45 am]

BILLING CODE 3410–02–P

7 CFR Part 998

[Docket No. FV95–998–1IFR]

Expenses, Assessment Rate, and

Indemnification Reserve for Marketing

Agreement No. 146 Regulating the

Quality of Domestically Produced

Peanuts

AGENCY: Agricultural Marketing Service,

USDA.

ACTION: Interim final rule with request

for comments.

SUMMARY: This interim final rule

authorizes expenditures for

administration and indemnification,

establishes an assessment rate, and

authorizes continuation of an

indemnification reserve under

Marketing Agreement 146 (agreement)

for the 1995–96 crop year. This rule also

increases the administrative assessment

rate for the 1994–95 crop year.

Authorization of this budget enables the

Peanut Administrative Committee

(Committee) to incur operating

expenses, collect funds to pay those

expenses, and settle indemnification

claims during the 1995–96 crop year.

Authorization of the increase in the

administrative assessment rate for the

1994–95 crop year enables the

Committee to collect sufficient funds to

pay expenses projected for the

remainder of that year. Funds to

administer this program are derived

from assessments on handlers who have

signed the agreement.

DATES: Effective July 1, 1995, through

June 30, 1996 (§ 998.408) and July 1,

1994, through June 30, 1995 (§ 998.407).

Comments received by June 16, 1995,

will be considered prior to issuance of

a final rule.

ADDRESSES: Interested persons are

invited to submit written comments

concerning this rule. Comments must be

sent in triplicate to the Docket Clerk,

Fruit and Vegetable Division, AMS,

USDA, P.O. Box 96456, room 2523–S,

Washington, DC 20090–6456, FAX 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 available for public

inspection in the Office of the Docket

Clerk during regular business hours.

FOR FURTHER INFORMATION CONTACT:

Martha Sue Clark, Marketing Order

Administration Branch, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 96456, room 2523–S, Washington,

DC 20090–6456, telephone 202–720–

9918, or William G. Pimental, Southeast

Marketing Field Office, Fruit and

Vegetable Division, AMS, USDA, P.O.

Box 2276, Winter Haven, FL 33883–

2276, telephone 813–299–4770.

SUPPLEMENTARY INFORMATION: This rule

is issued under Marketing Agreement

146 (7 CFR part 998) regulating the

quality of domestically produced

peanuts. This agreement 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 U.S. Department of Agriculture

(Department) is issuing this rule in

conformance with Executive Order

12866.

This interim final rule has been

reviewed under Executive Order 12887,

Civil Justice Reform. Under the

agreement now in effect, peanut

handlers signatory to the agreement are

subject to assessments. Funds to

administer the peanut agreement

program are derived from such

assessments. This rule authorizes

expenditures and establishes an

assessment rate for the Committee for

the crop year beginning July 1, 1995,

and increases the administrative

assessment rate for the crop year which

began July 1, 1994. This rule will not

preempt any State or local laws,

regulations, or policies, unless they

present an irreconcilable conflict with

this rule. There are no administrative

procedures which must be exhausted

prior to any judicial challenge to the

provisions of this rule.

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

rule 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.

There are approximately 47,000

producers of peanuts in the 16 States

covered under the agreement, and

approximately 76 handlers regulated

under the agreement. Small agricultural

producers have been defined by the

Small Business Administration (13 CFR

121.601) as those having annual receipts

of less than $500,000, and small

agricultural service firms are defined as

those whose annual receipts are less

than $5,000,000. A majority of the

producers may be classified as small

entities, and some of the handlers

covered under the agreement are small

entities.

Under the agreement, the assessment

rate for a particular crop year applies to

all assessable tonnage handled from the

beginning of such year (i.e., July 1). An

annual budget of expenses is prepared

by the Committee and submitted to the

Department for approval. The members

of the Committee are handlers and

producers of peanuts. They are familiar

with the Committee’s needs and with

the costs for goods, services, and

personnel for program operations and,

thus, are in a position to formulate

appropriate budgets. The budgets are

formulated and discussed at industrywide meetings. Thus, all directly

affected persons have an opportunity to

provide input in recommending the

budget, assessment rate, and

indemnification reserve. The handlers

of peanuts who are directly affected

have signed the marketing agreement

authorizing the expenses that may be

incurred and the imposition of

assessments.

The assessment rate recommended by

the Committee for the 1995–96 crop

year was derived by dividing

anticipated expenses by expected

receipts and acquisitions of farmers’

stock peanuts. It applies to all assessable

peanuts received or acquired by

handlers from July 1, 1995. Because that

rate is applied to actual receipts and

acquisitions, it must be established at a

rate which will produce sufficient

income to pay the Committee’s

expenses.

The Committee met on March 23,

1995, and unanimously recommended

1995–96 crop year administrative

expenses of $1,067,500 and an

administrative assessment rate of $0.70

per net ton of assessable farmers’ stock

peanuts received or acquired by

handlers. In comparison, 1994–95 crop