This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

36211 

Vol. 87, No. 116 

Thursday, June 16, 2022 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 925 

[Doc. No.: AMS–SC–21–0049; SC21–925–2] 

Amendments to the Marketing Order of 

Grapes Grown in Southeastern 

California 

AGENCY: Agricultural Marketing Service, 

USDA. 

ACTION: Final rule. 

SUMMARY: This final rule amends 

Marketing Order No. 925, which 

regulates the handling of grapes grown 

in a designated area of southeastern 

California. The amendments change the 

California Desert Grape Administrative 

Committee’s (Committee) size, and its 

quorum and voting requirements. 

DATES: Effective July 18, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Pushpa Kathir, Marketing Specialist, 

Rulemaking Services Branch, Market 

Development Division, Specialty Crops 

Program, AMS, USDA, 1400 

Independence Avenue SW, Stop 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, 

Pushpa.Kathir@usda.gov. 

Small businesses may request 

information on complying with this 

regulation by contacting Richard Lower, 

Market Development Division, Specialty 

Crops Program, AMS, USDA, 1400 

Independence Avenue SW, STOP 0237, 

Washington, DC 20250–0237; 

Telephone: (202) 720–2491, or Email: 

Richard.Lower@usda.gov. 

SUPPLEMENTARY INFORMATION: This 

action, pursuant to 5 U.S.C. 553, 

finalizes amendments to regulations 

issued to carry out a marketing order as 

defined in 7 CFR 900.2(j). This final rule 

is issued under Marketing Order No. 

925, as amended (7 CFR part 925), 

regulating the handling of grapes grown 

in a designated area of southeastern 

California. Part 925 (referred to as 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 

Committee locally administers the 

Order and is comprised of grape 

producers and handlers operating 

within the area of production, and a 

public member. 

Section 8c(17) of the Act (7 U.S.C 

608c (17)) and the applicable rules of 

practice and procedure governing the 

formulation of marketing agreements 

and orders (7 CFR part 900) authorize 

amendment of the Order through this 

informal rulemaking action. 

The Department of Agriculture 

(USDA) is issuing this final rule in 

conformance with Executive Orders 

12866 and 13563. Executive Orders 

12866 and 13563 direct agencies to 

assess all costs and benefits of available 

regulatory alternatives and, if regulation 

is necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts and equity). 

Executive Order 13563 emphasizes the 

importance of quantifying both costs 

and benefits, reducing costs, 

harmonizing rules, and promoting 

flexibility. This action falls within a 

category of regulatory actions that the 

Office of Management and Budget 

(OMB) exempted from Executive Order 

12866 review. 

In addition, this final rule has been 

reviewed under Executive Order 

13175—Consultation and Coordination 

with Indian Tribal Governments, which 

requires agencies to consider whether 

their rulemaking actions would have 

tribal implications. The Agriculture 

Marketing Service (AMS) has 

determined this final rule is unlikely to 

have substantial direct effects on one or 

more Indian tribes, on the relationship 

between the Federal Government and 

Indian tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian tribes. 

This rule has been reviewed under 

Executive Order 12988, Civil Justice 

Reform. This rule is not intended to 

have retroactive effect. This rule shall 

not be deemed to preclude, preempt, or 

supersede any State program covering 

grapes grown in a designated area of 

southeastern California. 

The Act provides that administrative 

proceedings must be exhausted before 

parties may file suit in court. Under 

section 8c(15)(A) of the Act (7 U.S.C. 

608 (15)(A)), any handler subject to an 

order may file with USDA a petition 

stating that the order, any provision of 

the order, or any obligation imposed in 

connection with the order is not in 

accordance with law and request a 

modification of the order or to be 

exempted therefrom. A handler is 

afforded the opportunity for a hearing 

on the petition. After the hearing, USDA 

would rule on the petition. The Act 

provides that the district court of the 

United States in any district in which 

the handler is an inhabitant, or has his 

or her principal place of business, has 

jurisdiction to review USDA’s ruling on 

the petition, provided an action is filed 

no later than 20 days after the date of 

entry of the ruling. 

Section 1504 of the Food, 

Conservation, and Energy Act of 2008 

(2008 Farm Bill) (Pub. L. 110–246) 

amended section 8c(17) of the Act, 

which in turn required the addition of 

supplemental rules of practice to 7 CFR 

part 900 (73 FR 49307; August 21, 

2008). The amendment of section 8c(17) 

of the Act and the supplemental rules of 

practice authorize the use of informal 

rulemaking (5 U.S.C. 553) to amend 

Federal fruit, vegetable, and nut 

marketing agreements and orders. USDA 

may use informal rulemaking to amend 

marketing orders depending upon the 

nature and complexity of the proposed 

amendments, the potential regulatory 

and economic impacts on affected 

entities, and any other relevant matters. 

AMS has considered the nature and 

complexity of the amendments, the 

potential regulatory and economic 

impacts on affected entities, and other 

relevant matters, and determined that 

amending the Order as proposed by the 

Committee could appropriately be 

accomplished through informal 

rulemaking. 

The Committee unanimously 

recommended the amendments 

following deliberations at the public 

meeting held on April 13, 2021. This 

final rule will amend the Order by 

changing the Committee’s size, as well 

as its quorum and voting requirements. 

AMS published the initial proposed 

rule in the Federal Register on August 

13, 2021 (86 FR 44644) to solicit 

comments on the proposals. After 

reviewing the comments, AMS 

republished the proposed rule without 


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36212 Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Rules and Regulations 

change along with the referendum order 

in the Federal Register on January 25, 

2022 (87 FR 3699). That document 

directed that a referendum among grape 

producers in southeastern California be 

conducted February 14, 2022, through 

March 4, 2022, to determine whether 

they favored the proposals. To become 

effective, the amendments had to be 

approved by either two-thirds of the 

producers voting in the referendum or 

by those representing at least two-thirds 

of the volume of table grapes produced 

by those voting in the referendum. 

The results of the referendum show 

that 100 percent of the eligible 

producers who voted and 100 percent of 

the volume voted favored both 

amendments. Thus, both amendments 

were passed and will change the 

Committee’s size, and quorum and 

voting requirements. 

Final Regulatory Flexibility Analysis 

Pursuant to requirements set forth in 

the Regulatory Flexibility Act (RFA) (5 

U.S.C. 601–612), AMS has considered 

the economic impact of this final rule 

on small entities. Accordingly, AMS has 

prepared this final regulatory flexibility 

analysis. 

The purpose of the RFA is to fit 

regulatory actions to the scale of 

businesses subject to such actions so 

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 behalf. 

Small agricultural producers have 

been defined by the Small Business 

Administration (SBA) (13 CFR 121.201) 

as those having annual receipts of no 

more than $1,000,000. Small 

agricultural service firms (handlers) are 

defined as those with annual receipts of 

no more than $30,000,000. 

The Committee reports that there are 

18 producers and 10 handlers of table 

grapes in the marketing order 

production region. The Committee 

packout reports show that average 

annual packout for 2018 through 2020 

was 3.2127 million 18-pound 

containers, equivalent to 28,914 tons. 

The 3-year average of California fresh 

table grape prices was $1,267 per ton. 

Multiplying quantity times price yields 

an annual average crop value estimate of 

$36.634 million. Dividing the average 

crop value estimate by the number of 

producers (18) yields an average crop 

value per producer of $2.035 million, 

well below the SBA small farm size 

threshold of $3,500,000. Therefore, 

using the estimated prices, packout 

volume, and number of producers, and 

assuming a normal bell-curve 

distribution of receipts among 

producers, AMS estimates the majority 

of producers would qualify as small 

businesses under the SBA definition. 

Dividing the average crop value of 

$36.634 million by the number of 

handers (10) yields a per-handler 

estimate of $3.663 million, well below 

the SBA small business threshold of 

$30,000,000 in annual receipts. 

However, that computation measures 

handler annual receipts using producerlevel crop value data, since AMS is 

unable to locate an estimate of a hander 

margin. A range of handler margin 

estimates would be 30 to 40 percent 

above the grower price. Applying those 

two percentages, a range of handler 

annual receipts estimates would be $4.8 

to $5.1 million, still well below 

$30,000,000. Therefore, using these 

estimated prices, utilization volume, 

handler margin estimates and number of 

handlers, and assuming a normal bellcurve distribution of receipts among 

handlers, AMS estimates that the 

majority of handlers would meet the 

SBA definition of small businesses. 

AMS has determined that the 

amendments, as effectuated by this final 

rule, will not have a significant impact 

on a substantial number of small 

businesses. Rather, large and small 

entities alike are expected to benefit 

from the Committee’s improved ability 

to address important issues of interest to 

all on a timely basis. The reduced 

number of seats on the Committee, and 

the reduced quorum and voting 

requirements, will not require any 

significant changes in producer or 

handler business operations, and no 

significant industry educational effort 

will be needed. Producers and handlers, 

large and small alike, will incur no 

additional costs. No small businesses 

will be unduly or disproportionately 

burdened. 

The amendments to the California 

desert grape marketing order reduces 

the number of member and alternate 

seats on the California Desert Grape 

Administrative Committee from 12 to 10 

and reduces the quorum and voting 

requirements from 8 to 6 members. The 

amendments are necessary to reflect the 

industry’s consolidation. Since the 

promulgation of the marketing order in 

1980, the California desert grape 

industry has lost roughly 55 percent of 

its producers and 58 percent of the 

registered handlers. No economic 

impact is expected from these 

amendments because they will not 

establish any new regulatory 

requirements on handlers, nor will they 

have any assessment or funding 

implications. There will be no change in 

financial costs, reporting, or 

recordkeeping requirements as a result 

of this action. 

Alternatives to this action, including 

making no changes at this time, were 

considered by the Committee. Due to 

changes in the industry, AMS believes 

the action is justified and necessary to 

ensure the Committee’s ability to locally 

administer the program. Reducing the 

size of the Committee will enable it to 

satisfy membership and quorum 

requirements fully, thereby ensuring a 

more efficient and orderly flow of 

business. 

Paperwork Reduction Act 

In accordance with the Paperwork 

Reduction Act of 1995 (44 U.S.C. 

Chapter 35), the Order’s information 

collection requirements have been 

previously approved by OMB and 

assigned OMB No. 0581–0189, Fruit 

Crops. No changes in those 

requirements are necessary because of 

this action. Should any changes become 

necessary, they would be submitted to 

OMB for approval. 

This action will impose no additional 

reporting or recordkeeping requirements 

on either small or large grape handlers 

in southeastern California. As with all 

Federal marketing order programs, 

reports and forms are periodically 

reviewed to reduce information 

requirements and duplication by 

industry and public-sector agencies. 

AMS is committed to complying with 

the E-Government Act, to promote the 

use of the internet and other 

information technologies to provide 

increased opportunities for citizen 

access to Government information and 

services, and for other purposes. 

USDA has not identified any relevant 

Federal rules that duplicate, overlap, or 

conflict with this action. 

The Committee’s meetings are widely 

publicized throughout the southeastern 

California table grape production area. 

All interested persons are invited to 

attend the meetings and encouraged to 

participate in Committee deliberations 

on all issues. Like all Committee 

meetings, the April 13, 2021, meeting 

was public, and all entities, both large 

and small, were encouraged to express 

their views on the proposals. 

A proposed rule concerning this 

action was published in the Federal 

Register on August 13, 2021 (86 FR 

44644). Copies of the rule were mailed 

to all table grapes handlers in 

southeastern California. The proposed 

rule was made available through the 

internet by USDA and the Office of the 

Federal Register. A 60-day comment 

period ending October 12, 2021, was 

provided to allow interested persons to 


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Federal Register / Vol. 87, No. 116 / Thursday, June 16, 2022 / Rules and Regulations 36213 

respond to the proposal. Two comments 

were received during the comment 

period, both of which were in support 

of the proposed amendments. However, 

one commentor was concerned that the 

restructuring of the Committee might 

limit the participation of interested 

parties in the industry. Further, the 

commentor suggested adding a 

requirement for periodic review of the 

Committee structure to the regulations. 

A proposed rule and referendum 

order were then published on January 

25, 2022 (87 FR 3699). That document 

directed that a referendum among table 

grape producers in southeastern 

California be conducted during the 

period of February 14, 2022, through 

March 4, 2022, to determine whether 

they favored the proposed amendments 

to the Order. To become effective, the 

amendments had to be approved by at 

least two-thirds of the growers voting, or 

two-thirds of the volume of table grapes 

represented by voters in the referendum. 

The results show that 100 percent of the 

eligible producers who voted and 100 

percent of the volume voted favored 

both amendments. 

The producer vote met the 

requirement of being favored by twothirds of the producers voting, or by 

two-thirds of the volume voted in the 

referendum for both amendments. Both 

amendments were passed. 

A small business guide on complying 

with fruit, vegetable, and specialty crop 

marketing agreements and orders may 

be viewed at: https://

www.ams.usda.gov/rules-regulations/ 

moa/small-businesses. Any questions 

about the compliance guide should be 

sent to Richard Lower at the previously 

mentioned address in the FOR FURTHER

INFORMATION CONTACT section. 

Order Amending the Order Regulating 

the Handling of Table Grapes Grown in 

Southeastern California 

Findings and Determinations 

The findings hereinafter set forth are 

supplementary to the findings and 

determinations which were previously 

made in connection with the issuance of 

Marketing Order 925; and all said 

previous findings and determinations 

are hereby ratified and affirmed, except 

insofar as such findings and 

determinations may be in conflict with 

the findings and determinations set 

forth herein. 

1. Marketing Order 925, as amended, 

and as hereby further amended and all 

the terms and conditions thereof, will 

tend to effectuate the declared policy of 

the Act; 

2. Marketing Order 925, as amended, 

and as hereby further amended, 

regulates the handling of grapes grown 

in southeastern California and is 

applicable only to persons in the 

respective classes of commercial and 

industrial activity specified in the 

Order; 

3. Marketing Order 925, as amended, 

as hereby further amended, is limited in 

application to the smallest regional 

production area, which is practicable, 

consistent with carrying out the 

declared policy of the Act, and the 

issuance of several marketing orders 

applicable to subdivisions of the 

production area would not effectively 

carry out the declared policy of the Act; 

4. Marketing Order 925, as amended, 

and as hereby further amended, 

prescribes, insofar as practicable, such 

different terms applicable to different 

parts of the production area as are 

necessary to give due recognition to the 

differences in the production and 

marketing of grapes produced or packed 

in the production area; and 

5. All handling of grapes produced or 

packed in the production area, as 

defined in Marketing Order 925, is in 

the current of interstate or foreign 

commerce, or directly burdens, 

obstructs, or affects such commerce. 

It is hereby determined that: 

1. The issuance of this amendatory 

Order, amending the aforesaid Order, is 

favored, or approved by producers 

representing at least two-thirds of the 

volume of table grapes produced by 

those voting in a referendum on the 

question of approval and who, during 

the period of January 1, 2021, through 

December 31, 2021, have been engaged 

within the production area in the 

production of such table grapes. 

2. The issuance of this amendatory 

Order advances the interests of growers 

of table grapes in the production area 

pursuant to the declared policy of the 

Act. 

Order Relative to Handling 

It is therefore ordered, that on and 

after the effective date hereof, all 

handling of grapes grown in 

Southeastern California shall be in 

conformity to, and in compliance with, 

the terms and conditions of the said 

Order as hereby proposed to be 

amended as follows: 

The provisions amending the Order 

contained in the proposed rule and 

referendum order, published in the 

Federal Register (87 FR 3699) on 

January 25, 2022, will be and are the 

terms and provisions of this order 

amending the Order and are set forth in 

full herein. 

List of Subjects in 7 CFR Part 925 

Grapes, Marketing agreements, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Agricultural Marketing 

Service is amending 7 CFR part 925 as 

follows: 

PART 925—GRAPES GROWN IN A 

DESIGNATED AREA OF 

SOUTHEASTERN CALIFORNIA 

■ 1. The authority citation for 7 CFR 

part 925 continues to read as follows: 

Authority: 7 U.S.C. 601–674. 

■ 2. In § 925.20, revise paragraph (a) to 

read as follows: 

§ 925.20 Establishment and membership. 

(a) There is hereby established a 

California Desert Grape Committee 

consisting of 10 members, each of whom 

shall have an alternate who shall have 

the same qualifications as the member. 

Four of the members and their alternates 

shall be producers, or officers or 

employees of producers (producer 

members). Four of the members and 

their alternates shall be handlers, or 

officers or employees of handlers 

(handler members). One member and 

alternate shall be either a producer or 

handler, or an officer or employee 

thereof. One member and alternate shall 

represent the public. 

* * * * * 

■ 3. In § 925.30, revise paragraph (a) to 

read as follows: 

§ 925.30 Procedure. 

(a) Six members of the committee 

shall constitute a quorum, including at 

a minimum one producer member and 

one handler member, and any action of 

the committee shall require at least six 

concurring votes; 

* * * * * 

Erin Morris, 

Associate Administrator, Agricultural 

Marketing Service. 

[FR Doc. 2022–13005 Filed 6–15–22; 8:45 am] 

BILLING CODE 3410–02–P 


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