[Federal Register Volume 61, Number 38 (Monday, February 26, 1996)]
[Rules and Regulations]
[Pages 7067-7069]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4180]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 989
[FV96-989-1IFR]
Raisins Produced From Grapes Grown in California; Final Free and
Reserve Percentages for the 1995-96 Crop Year for Natural (Sun-Dried)
Seedless, Zante Currant, and Other Seedless Raisins
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Interim final rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: This interim final rule establishes final free and reserve
percentages for 1995-96 crop Natural (sun-dried) Seedless (NS), Zante
Currant (ZC), and Other Seedless (OS) raisins. The percentages are 79
percent free and 21 percent reserve, 70 percent free and 30 percent
reserve, and 51 percent free and 49 percent reserve for NS, ZC, and OS
raisins, respectively. 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 unanimously recommended by the Raisin Administrative Committee
(Committee), the body which locally administers the marketing order.
DATES: This interim final rule becomes effective February 26, 1996, and
applies to all NS, ZC, and OS raisins acquired from the beginning of
the 1995-96 crop year. Comments which are received by March 27, 1996
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,
P.O. 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.
[[Page 7068]]
FOR FURTHER INFORMATION CONTACT: Richard P. 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 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 NS, ZC, and OS
raisins for the 1995-96 crop year, beginning August 1, 1995, through
July 31, 1996. 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 production 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. 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 NS, ZC, and OS 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 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 section 989.54(a) of the order, the Committee, which is
responsible for local administration of the order, met on August 15,
1995, 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 section 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 fourth
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
1995-96 trade demands of 257,314 tons, 2,208 tons, and 1,047 tons for
NS, ZC, and OS raisins, respectively.
As required under section 989.54(b) of the order, the Committee met
on October 3, 1995, and computed and announced preliminary crop
estimates and preliminary free and reserve percentages for NS and ZC
raisins which released 65 percent of the trade demand since the field
prices had not
[[Page 7069]]
been established, and 85 percent of the trade demand for OS raisins
because the field price had been established. The preliminary crop
estimates and preliminary free and reserve percentages were as follows:
335,118 tons, 50 percent free, and 50 percent reserve for NS raisins;
3,696 tons, 39 percent free, and 61 percent reserve for ZC raisins; and
2,197 tons, 40 percent free, and 60 percent reserve for OS raisins. The
Committee authorized the Committee staff to modify the preliminary
percentages to release 85 percent of the trade demand when the field
prices were established for NS and ZC raisins. The preliminary
percentages for NS and ZC raisins were adjusted soon thereafter to 65
percent free, 35 percent reserve, and 51 percent free and 49 percent
reserve, respectively.
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,
Sultana, Muscat, and Monukka raisins. It determined that the supplies
of these varietal types would be less than or close enough to the
computed trade demands for each variety, and that volume control
percentages would not be necessary to maintain market stability for
these varietal types.
On January 12, 1996, the Committee recommended final percentages of
79 percent free, 21 percent reserve for NS raisins; 70 percent free, 30
percent reserve for ZC raisins; and 51 percent free, 49 percent reserve
for OS raisins.
Pursuant to section 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. The Committee also
computed interim free and reserve percentages at the January 12, 1996,
meeting.
Interim percentages were announced as 78.75 percent free, 21.25
percent reserve for NS raisins; 69.75 percent free, 30.25 percent
reserve for ZC raisins; and 50.75 percent free, 49.25 percent reserve
for OS raisins. That action released most, but not all, of the computed
trade demand for NS, ZC, and OS raisins.
Under section 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 1995-96 production of NS raisins
is 325,808 tons. Dividing the computed trade demand of 257,314 tons by
the final estimate of production results in a final free percentage of
79 percent and a final reserve percentage of 21 percent for NS raisins.
The Committee's final estimate of 1995-96 production of ZC raisins
is 3,158 tons. Dividing the computed trade demand of 2,208 tons by the
final estimate of production results in a final free percentage of 70
percent and a final reserve percentage of 30 percent for ZC raisins.
The Committee's final estimate of 1995-96 production of OS raisins
is 2,048 tons. Dividing the computed trade demand of 1,047 tons by the
final estimate of production results in a final free percentage of 51
percent and a final reserve percentage of 49 percent for OS raisins.
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 1995-96 crop year apply to
all NS, ZC, and OS raisins acquired from the beginning of that crop
year; (2) handlers are currently marketing 1995-96 crop raisins of
these varietal types and this action should be taken promptly to
achieve the intended purpose of making the full trade demand quantities
computed by the Committee available to handlers; (3) handlers are aware
of this action, which was unanimously 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 989.249 is added to Subpart--Supplementary Regulations
to read as follows:
Note: This section will not appear in the annual Code of Federal
Regulations.
Sec. 989.249 Final free and reserve percentages for the 1995-96 crop
year.
The final percentages for standard Natural (sun-dried) Seedless,
Zante Currant, and Other Seedless raisins acquired by handlers during
the crop year beginning on August 1, 1995, which shall be free tonnage
and reserve tonnage, respectively, are designated as follows:
------------------------------------------------------------------------
Free Reserve
Varietal type percentage percentage
------------------------------------------------------------------------
Natural (sun-dried) Seedless.................... 79 21
Zante Currant................................... 70 30
Other Seedless.................................. 51 49
------------------------------------------------------------------------
Dated: February 20, 1996.
Sharon Bomer Lauritsen,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 96-4180 Filed 2-23-96; 8:45 am]
BILLING CODE 3410-02-P
