[Federal Register Volume 59, Number 101 (Thursday, May 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12886]


[[Page Unknown]]

[Federal Register: May 26, 1994]


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DEPARTMENT OF AGRICULTURE
7 CFR Part 989

[FV94-989-1FIR]

 

Raisins Produced From Grapes Grown in California; Final Free and 
Reserve Percentages for the 1993-94 Crop Year for Natural (Sun-Dried) 
Seedless Raisins

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 
that established final free and reserve percentages for 1993 crop 
Natural (sun-dried) Seedless raisins. The percentages are 74 percent 
free and 26 percent reserve. These percentages help stabilize supplies 
and prices and counter the destabilizing effects of the burdensome 
oversupply situation facing the raisin industry. This rule was 
unanimously recommended by the Raisin Administrative Committee 
(Committee), which is responsible for local administration of the 
marketing order.

EFFECTIVE DATE: June 27, 1994.

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 Richard Lower, 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) 720-2020.

SUPPLEMENTARY INFORMATION: This 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 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 action 
finalizes final free and reserve percentages for Natural (sun-dried) 
Seedless raisins for the 1993-94 crop year, beginning August 1, 1993, 
through July 31, 1994. This 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 5,000 producers in the regulated area. Small agricultural 
producers have been defined by the Small Business Administration [13 
CFR 121.601] as those having annual receipts of less than $500,000, and 
small agricultural service firms are defined as those whose annual 
receipts are less than $5,000,000. A majority of producers and a 
minority of handlers of California raisins may be classified as small 
entities.
    An interim final rule was published in the Federal Register on 
March 17, 1994 [59 FR 12528], with an effective date of March 17, 1994. 
That rule established final free and reserve percentages for Natural 
(sun-dried) Seedless raisins for the 1993-94 crop year. The percentages 
were established in a new section 989.246 of the rules and regulations 
in effect under the marketing order. That rule provided a 30-day 
comment period which ended April 18, 1994. No comments were received.
    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 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 16, 
1993, 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 1993-94 trade demand of 282,909 tons for Natural (sun-dried) Seedless 
raisins.
    As required under section 989.54(b) of the order, the Committee met 
on October 5, 1993, and computed and announced a preliminary crop 
estimate and preliminary free and reserve percentages for Natural (sun-
dried) Seedless raisins which released 85 percent of the trade demand 
since field prices had been established. The preliminary crop estimate 
and preliminary free and reserve percentages were as follows: 387,947 
tons, and 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 November 15, 1993, the 
Committee decided that volume control percentages only were warranted 
for Natural (sun-dried) Seedless raisins, which would remain at 62 
percent free and 38 percent reserve. 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 or could be 
substituted to relieve anticipated shortages in some size ranges of 
Natural (sun-dried) Seedless raisins used for baking. In view of these 
factors, volume control percentages would not be necessary to maintain 
market stability.
    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 73.75 percent free and 26.25 
percent reserve were computed and announced on January 13, 1994. 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 1993-94 production of Natural 
(sun-dried) Seedless raisins is 384,501 tons. Dividing the computed 
trade demand of 282,909 tons by the final estimate of production 
results in a final free percentage of 74 percent and a final reserve 
percentage of 26 percent.
    Based on available information, the Administrator of the AMS has 
determined that the issuance of this 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 finalizing the interim final rule, without change, as 
published in the Federal Register on March 17, 1994 [59 FR 12528], will 
tend to effectuate the declared policy of the Act.

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 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. Accordingly, the interim final rule adding Sec. 989.246, which 
was published at 59 FR 12528 on March 17, 1994, is adopted as a final 
rule without change.

    Dated: May 20, 1994.
Eric M. Forman,
Deputy Director, Fruit and Vegetable Division.
[FR Doc. 94-12886 Filed 5-25-94; 8:45 am]
BILLING CODE 3410-02-P