[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
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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
