99-16508. Cranberries Grown in the States of Massachusetts, et al.; Temporary Suspension of a Provision on Producer Continuance Referenda Under the Cranberry Marketing Order  

  • [Federal Register Volume 64, Number 124 (Tuesday, June 29, 1999)]
    [Rules and Regulations]
    [Pages 34705-34707]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-16508]
    
    
    
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    Federal Register / Vol. 64, No. 124 / Tuesday, June 29, 1999 / Rules 
    and Regulations
    
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    DEPARTMENT OF AGRICULTURE
    
    Agricultural Marketing Service
    
    7 CFR Part 929
    
    [Docket No. FV99-929-1 FIR]
    
    
    Cranberries Grown in the States of Massachusetts, et al.; 
    Temporary Suspension of a Provision on Producer Continuance Referenda 
    Under the Cranberry Marketing Order
    
    AGENCY: Agricultural Marketing Service, USDA.
    
    ACTION: Final rule.
    
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    SUMMARY: The Department of Agriculture (Department) is adopting, as a 
    final rule, without change, the provisions of an interim final rule 
    which temporarily suspended an order provision requiring a producer 
    continuance referendum to be conducted on the marketing order during 
    the month of May 1999. The industry currently is experiencing unsettled 
    marketing conditions due to a surplus of product. The temporary delay 
    in holding the continuance referendum is allowing the Cranberry 
    Marketing Committee (Committee) to finalize the development of a plan 
    to improve the marketing situation, hold producer meetings throughout 
    the production area to update them on the situation, and begin 
    implementing the plan.
    
    EFFECTIVE DATE: July 29, 1999.
    
    FOR FURTHER INFORMATION CONTACT: Patricia A. Petrella or Kenneth G. 
    Johnson, Marketing Order Administration Branch, F&V, AMS, USDA, room 
    2530-S, P.O. Box 96456, Washington, DC 20090-6456, telephone: (202) 
    720-2491; Fax: (202) 720-5698 or Anne M. Dec, Marketing Order 
    Administration Branch, Fruit and Vegetable Programs, AMS, USDA, room 
    2525-S, P.O. Box 96456, Washington, DC 20090-6456; telephone: (202) 
    720-2491; Fax: (202) 720-5698. Small businesses may request information 
    on compliance with this regulation or obtain a guide on complying with 
    fruit, vegetable, and specialty crop marketing agreements and orders by 
    contacting Jay Guerber, Marketing Order Administration Branch, Fruit 
    and Vegetable Programs, AMS, USDA, P.O. Box 96456, room 2525-S, 
    Washington, DC 20090-6456; telephone (202) 720-2491; Fax: (202) 720-
    5698; or E-mail: Jay.Guerber@usda.gov. You may also view the marketing 
    agreements and orders small business compliance guide at the following 
    website: http://www.ams.usda.gov/fv/moab.html.
    
    SUPPLEMENTARY INFORMATION: This rule is issued under Marketing Order 
    No. 929, as amended (7 CFR part 929), regulating the handling of 
    cranberries grown in 10 States. 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 is issuing this rule in conformance with Executive 
    Order 12866.
        This rule has been reviewed under Executive order 12988, Civil 
    Justice Reform. This rule is not intended to have retroactive effect. 
    This 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 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 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 or her 
    principal place of business, has jurisdiction to review the Secretary's 
    ruling on the petition, provided an action is filed not later than 20 
    days after the date of the entry of the ruling.
        The action temporarily suspended a provision in Sec. 929.69(d) of 
    the order which specifies the month and year when a continuance 
    referendum should be conducted to determine if producers favor 
    continuance of the cranberry marketing order. This action was 
    unanimously recommended by the Committee at its March 15, 1999, 
    meeting.
        Section 929.69(d) of the order provides that the Secretary shall 
    conduct a referendum during the month of May 1975 to ascertain whether 
    continuance of the order is favored by the producers, and that the 
    Secretary shall conduct such a referendum during the month of May of 
    every fourth year thereafter. The next continuance referendum was 
    scheduled to be conducted in May 1999. The last continuance referendum 
    was held in May 1995.
        Section 929.69(b) of the order authorizes the Secretary to 
    terminate or suspend the operation of any or all of the provisions of 
    this part whenever the Secretary finds that such provisions do not tend 
    to effectuate the declared policy of the Act.
        At its March 15, 1999, meeting, the Committee recommended delaying 
    the May 1999 referendum because the cranberry industry currently is 
    experiencing significant marketing problems. Over the last few months, 
    inventories of cranberry juice have been at record levels and producer 
    prices have dropped significantly.
        The Committee reported that, over the last five years, the industry 
    has enjoyed increasing demand for cranberry products, primarily due to 
    the success of numerous cranberry juice based beverages. However, such 
    success has attracted additional production. With increased production 
    and a leveling of demand, carry-out stocks of cranberry juice and juice 
    products are at record levels and are predicted to increase 
    significantly over the next few years. The Committee reported that 
    carryout stocks at the end of August were approximately 1.2 million 
    (mill.) barrels (bbls) in 1997, 2.1 mill. bbls in 1998, and are 
    projected to be 2.7 and 3.2 mill. bbls in 1999 and 2000, respectively. 
    The Committee also reported that, in recent months, producer prices 
    have responded to this surplus by dropping from $70-80/barrel to $38/
    barrel.
        The Committee plans a series of producer meetings throughout the 
    10-State production area to inform producers about positive actions 
    being
    
    [[Page 34706]]
    
    undertaken by the Committee to help strengthen marketing conditions. 
    Some of these actions include proposing amendments to the order, and 
    filing an application with the Department's Foreign Agricultural 
    Service for Market Access Program funds to help the industry further 
    develop export markets for cranberries and cranberry products. The 
    industry also is working with Congress on amendments to the Act to 
    include reporting requirements for processors and importers, and adding 
    cranberries to the list of commodities with the authority to establish 
    marketing research projects, including paid advertising, to more 
    effectively promote cranberries and cranberry products.
        The Committee believes that a temporary delay in holding the 
    continuance referendum provided time for its actions to help stabilize 
    the current marketing situation. The Committee further believes that 
    holding a continuance referendum in May 1999, given the current 
    unsettled marketing situation, would not have provided a true indicator 
    of support for and the value of the order.
        Pursuant to Sec. 929.69(b), the interim final rule suspended 
    provisions in Sec. 929.69(d) to postpone the May 1999 continuance 
    referendum under the cranberry marketing order. The Department 
    currently plans to conduct a producer continuance referendum in May 
    2000. However, a final decision on holding that referendum will not be 
    made until the spring of 2000. The Committee traditionally meets each 
    year during the months of February or March to assess the current 
    marketing situation and prospects for the upcoming season. The 
    Committee's assessment of marketing conditions at that time will be 
    used in making the final decision. In accordance with Sec. 929.69(d) of 
    the order, a continuance referendum is required to be held in May 2003.
    
    The Regulatory Flexibility Act and Effects on Small Businesses
    
        Pursuant to requirements set forth in the Regulatory Flexibility 
    Act (RFA), AMS has considered the economic impact of this action 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 
    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 the 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 cranberries who are subject 
    to regulation under the order and approximately 1,100 producers of 
    cranberries in the regulated area. Small agricultural service firms, 
    which include handlers, have been defined by the Small Business 
    Administration (13 CFR 121.601) as those having annual receipts of less 
    than $5,000,000, and small agricultural producers are defined as those 
    having annual receipts of less than $500,000. The majority of handlers 
    and producers of cranberries may be classified as small entities.
        The interim final rule temporarily suspended a provision in the 
    order requiring a producer referendum to be held in May 1999 to 
    determine whether producers favor continuance of the order.
        Section 929.69(d) of the order provides that the Secretary shall 
    conduct a referendum during the month of May 1975 to ascertain whether 
    continuance of the order is favored by the producers, and that the 
    Secretary shall conduct such a referendum during the month of May of 
    every fourth year thereafter. The next continuance referendum was 
    scheduled to be conducted in May 1999. The last continuance referendum 
    was held in May 1995.
        Section 929.69(b) of the order authorizes the Secretary to 
    terminate or suspend the operation of any or all of the provisions of 
    this part whenever the Secretary finds that such provisions do not tend 
    to effectuate the declared policy of the Act.
        At its March 15, 1999, meeting, the Committee recommended delaying 
    the May 1999 referendum because the cranberry industry currently is 
    experiencing significant marketing problems. Over the last few months, 
    inventories of cranberry juice have been at record levels and producer 
    prices have dropped significantly.
        The Committee reported that, over the last five years, the industry 
    has enjoyed increasing demand for cranberry products, primarily due to 
    the success of numerous cranberry juice based beverages. However, such 
    success has attracted additional production. With increased production 
    and a leveling of demand, carry-out stocks of cranberry juice and juice 
    products are at record levels and are predicted to increase 
    significantly over the next few years. The Committee reported that 
    carryout stocks at the end of August were approximately 1.2 million 
    (mill.) barrels (bbls) in 1997, 2.1 mill. bbls in 1998, and are 
    projected to be 2.7 and 3.2 mill. bbls in 1999 and 2000, respectively. 
    The Committee also reported that, in recent months, producer prices 
    have responded to this surplus by dropping from $70-80/barrel to $38/
    barrel.
        The Committee plans a series of producer meetings throughout the 
    10-State production area to inform producers about positive actions 
    being undertaken by the Committee to help strengthen marketing 
    conditions. Some of these actions include proposing amendments to the 
    order, and filing an application with the Department's Foreign 
    Agricultural Service for Market Access Program funds to help the 
    industry further develop export markets for cranberries and cranberry 
    products. The industry also is working with Congress on amendments to 
    the Act to include reporting requirements for processors and importers, 
    and adding cranberries to the list of commodities with the authority to 
    establish marketing research projects, including paid advertising, to 
    more effectively promote cranberries and cranberry products.
        The Committee believes that a temporary delay in holding the 
    continuance referendum provided time for its actions to help stabilize 
    the current marketing situation. The Committee further believes that 
    holding a continuance referendum in May 1999, given the current 
    unsettled marketing situation, would not have provided a true indicator 
    of support for and the value of the order.
        Pursuant to Sec. 929.69(b), this action suspended provisions in 
    Sec. 929.69(d) to postpone the May 1999 continuance referendum under 
    the cranberry marketing order. The Department currently plans to 
    conduct a producer continuance referendum in May 2000. This should 
    serve as an alternative to just suspending the May 1999 continuance 
    referendum. However, a final decision on holding that referendum will 
    not be made until the spring of 2000. The Committee traditionally meets 
    each year during the months of February or March to assess the current 
    marketing situation and prospects for the upcoming season. The 
    Committee's assessment of marketing conditions at that time will be 
    used in making the final decision. In accordance with Sec. 929.69(d) of 
    the order, a continuance referendum is required to be held in May 2003.
        This action did not impose any additional recordkeeping 
    requirements on either small or large cranberry handlers. As with all 
    Federal marketing order programs, reports and forms are periodically 
    reviewed to reduce information requirements and
    
    [[Page 34707]]
    
    duplication by industry and public sectors. In addition, the Department 
    has not identified any relevant Federal rules which duplicate, overlap 
    or conflict with this rule.
        In compliance with Office of Management and Budget (OMB) 
    regulations (5 CFR part 1320) which implement the Paperwork Reduction 
    Act of 1995 (44 U.S.C. Chapter 35), the information collection and 
    recordkeeping requirements imposed by Part 929 have been previously 
    approved by OMB and assigned OMB Number 0581-0103.
        Committee meetings are widely publicized throughout the cranberry 
    industry and are open to all industry members and entities (including 
    both small and large business entities) and other interested persons--
    who are encouraged to participate in the deliberations and voice their 
    opinions on topics under discussion. Like all Committee meetings, the 
    March 1999 meeting was a public meeting and all entities, both large 
    and small, were able to express their views on these issues. The 
    Committee itself is composed of eight members, of which seven members 
    are growers and one represents the public.
        The interim final rule concerning this action was published in the 
    Federal Register (64 FR 24023, May 5, 1999) with an effective date of 
    May 6, 1999, through May 31, 1999. Copies of the rule were mailed by 
    the Committee's staff to all Committee members and cranberry producers. 
    In addition, the rule was made available through the Internet by the 
    Office of the Federal Register. That rule provided for a 15-day comment 
    period which ended May 20, 1999. No comments were received.
        After consideration of all available information, and pursuant to 
    Sec. 929.69(b), it is found that the second sentence in Sec. 929.69(d) 
    does not tend to effectuate the declared policy of the Act for the 
    period specified in the interim final rule and it is temporarily 
    suspended.
    
    List of Subjects in 7 CFR Part 929
    
        Cranberries, Marketing agreements, Reporting and recordkeeping 
    requirements.
    
    PART 929--CRANBERRIES GROWN IN THE STATES OF MASSACHUSETTS, RHODE 
    ISLAND, CONNECTICUT, NEW JERSEY, WISCONSIN, MICHIGAN, MINNESOTA, 
    OREGON, WASHINGTON, AND LONG ISLAND IN THE STATE OF NEW YORK
    
        Accordingly the interim final rule amending 7 CFR part 929 which 
    was published at 64 FR 24023 on May 5, 1999, is adopted as a final rule 
    without change.
    
        Dated: June 17, 1999.
    Enrique E. Figueroa,
    Administrator, Agricultural Marketing Service.
    [FR Doc. 99-16508 Filed 6-28-99; 8:45 am]
    BILLING CODE 3410-02-P
    
    
    

Document Information

Effective Date:
7/29/1999
Published:
06/29/1999
Department:
Agricultural Marketing Service
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-16508
Dates:
July 29, 1999.
Pages:
34705-34707 (3 pages)
Docket Numbers:
Docket No. FV99-929-1 FIR
PDF File:
99-16508.pdf
CFR: (2)
7 CFR 929.69(b)
7 CFR 929.69(d)