[Federal Register Volume 60, Number 95 (Wednesday, May 17, 1995)]
[Rules and Regulations]
[Pages 26344-26346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12148]



[[Page 26344]]


DEPARTMENT OF AGRICULTURE

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.

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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 [[Page 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 Sec. 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 Sec. 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 Sec. 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 Sec. 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 (sun-dried) 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 Sec. 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 
(sun-dried) 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.


Sec. 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:

[[Page 26346]]
------------------------------------------------------------------------
                                                     Free       Reserve 
                  Varietal type                   percentage  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