[Federal Register Volume 64, Number 15 (Monday, January 25, 1999)]
[Proposed Rules]
[Pages 3660-3664]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1609]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 64, No. 15 / Monday, January 25, 1999 / 
Proposed Rules  

[[Page 3660]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 993

[Docket No. FV99-993-2 PR]


Dried Prunes Produced in California; Undersized Regulation for 
the 1999-2000 Crop Year

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Proposed rule.

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SUMMARY: This rule invites comments on changes to the undersized prune 
regulation for dried prunes received by handlers from producers and 
dehydrators under Marketing Order No. 993 for the 1999-2000 crop year. 
The marketing order regulates the handling of dried prunes produced in 
California and is administered locally by the Prune Marketing Committee 
(Committee). This rule would remove the smallest, least desirable of 
the marketable size dried prunes produced in California from human 
consumption outlets, and allow handlers to dispose of the undersized 
prunes in such outlets as livestock feed. The Committee estimated that 
this rule would reduce the excess of dried prunes by approximately 
6,700 tons, while leaving sufficient prunes to fulfill foreign and 
domestic trade demand.

DATES: Comments received by April 15, 1999, will be considered prior to 
issuance of a final rule.

ADDRESSES: Interested persons are invited to submit written comments 
concerning this rule. Comments must be sent to the Docket Clerk, Fruit 
and Vegetable Programs, AMS, USDA, room 2525-S, P.O. Box 96456, 
Washington, DC 20090-6456; Fax: (202) 205-6632 or E-mail: moabdocket_
[email protected]. All comments should reference the docket number and the 
date and page number of this issue of the Federal Register and will be 
available for public inspection in the Office of the Docket Clerk 
during regular business hours.

FOR FURTHER INFORMATION CONTACT: Richard P. Van Diest, Marketing 
Specialist, California Marketing Field Office, Fruit and Vegetable 
Programs, AMS, USDA, 2202 Monterey Street, suite 102B, Fresno, 
California 93721; telephone: (559) 487-5901, Fax: (559) 487-5906; or 
George Kelhart, Technical Advisor, 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) 
205-6632. 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, room 2525-S, P.O. Box 96456, Washington DC 20090-
6456; telephone: (202) 720-2491, Fax: (202) 205-6632, or E-Mail: 
Jay__N__G[email protected]. You may view the marketing agreement and 
order small business compliance guide at the following web site: http:/
/www.ams.usda.gov/fv/moab.html.

SUPPLEMENTARY INFORMATION: This rule is issued under Marketing 
Agreement and Order No. 993, both as amended (7 CFR part 993), 
regulating the handling of dried prunes produced in California, 
hereinafter referred to as the ``order.'' The marketing agreement and 
order are 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 rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule is not intended to have retroactive effect. 
This proposal would 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.
    This proposal invites comments on changes to the undersized 
regulation in Sec. 993.49(c) of the prune marketing order for the 1999-
2000 crop year for volume control purposes. The regulation removes 
prunes passing through specified screen openings. For French prunes, 
the screen opening would be increased from \23/32\ to \24/32\ of an 
inch in diameter, and for non-French prunes, the opening would be 
increased from \28/32\ to \30/32\ of an inch in diameter. This rule 
would remove the smallest, least desirable of the marketable size dried 
prunes produced in California from human consumption outlets. The rule 
would be in effect from August 1, 1999, through July 31, 2000, and was 
unanimously recommended by the Committee at a December 1, 1998, 
meeting.
    Section 993.19b of the prune marketing order defines undersized 
prunes as prunes which pass freely through a round opening of a 
specified diameter. Section 993.49(c) of the prune marketing order 
establishes an undersized regulation of \23/32\ of an inch for French 
prunes and \28/32\ of an inch for non-French prunes. These diameter 
openings have been in effect for quality control purposes. Section 
993.49(c) also provides that the Secretary upon a recommendation of the 
Committee may establish larger openings for undersized dried prunes 
whenever it is determined that supply conditions for a crop year 
warrant such regulation. Section 993.50(g) states in part: ``No handler 
shall ship or otherwise dispose of, for human consumption, the quantity 
of prunes determined by the inspection service pursuant to 
Sec. 993.49(c) to be undersized prunes*  *  *.'' Pursuant to 
Sec. 993.52, minimum standards, pack specifications, including the 
openings prescribed in Sec. 993.49(c), may be modified by the 
Secretary, on the basis

[[Page 3661]]

of a recommendation of the Committee or other information.
    Pursuant to the authority in Sec. 993.52 of the order, Sec. 993.400 
modifies the undersized openings prescribed in Sec. 993.49(c) to permit 
undersized regulations using openings of \23/32\ or \24/32\ of an inch 
for French prunes, and \28/32\ or \30/32\ of an inch for non-French 
prunes.
    During the 1974-75 and 1977-78 crop years, the undersized prune 
regulation was established by the Department at \23/32\ of an inch in 
diameter for French prunes and \28/32\ of an inch in diameter for non-
French prunes. These diameter openings were established in 
Secs. 993.401 and 993.404, respectively (39 FR 32733; September 11, 
1974; and 42 FR 49802; September 28, 1977). In addition, the Committee 
recommended and the Department established volume regulation 
percentages during the 1974-75 crop year with an undersized regulation 
at the aforementioned \23/32\ and \28/32\ inch diameter screen sizes. 
During the 1975-76 and 1976-77 crop years, the undersized prune 
regulation was established at \24/32\ of an inch for French prunes, and 
\30/32\ of an inch for non-French prunes. These diameter openings were 
established in Secs. 993.402 and 993.403 respectively (40 FR 42530, 
September 15, 1975 and 41 FR 37306, September 3, 1976). The prune 
industry had an excess supply of prunes, particularly small size 
prunes. Rather than recommending volume regulation percentages for the 
1975-76, 1976-77 and 1977-78 crop years, the Committee recommended the 
establishment of an undersized prune regulation applicable to all 
prunes received by handlers from producers and dehydrators during each 
of those crop years.
    The objective of the undersized regulations during each of those 
crop years was to preclude the use of small prunes in manufactured 
prune products, such as juice and concentrate. Handlers could not 
market undersized prunes for human consumption, but could dispose of 
them in nonhuman outlets such as livestock feed.
    With these experiences as a basis, the marketing order was amended 
on August 1, 1982, establishing the continuing quality-related 
regulation for undersized French and non-French prunes under 
Sec. 993.49(c). That regulation has removed from the marketable supply 
those prunes which are not desirable for use in prune products.
    As in the 1970's, the prune industry is currently experiencing an 
excess supply of prunes, particularly in the smaller sizes. During the 
1998-99 crop year, the undersized prune regulation was established at 
\24/32\ of an inch for French prunes, and \30/32\ of an inch for non-
French prunes. These diameter openings were established in Sec. 993.405 
(63 FR 20058, April 23, 1998). At its meeting on December 1, 1998, the 
Committee recognized that the 1998-99 prune crop is about 50% of the 
normal size; however, with the large inventories and anticipated large 
1999-2000 prune crop, the Committee unanimously recommended continuing 
with volume controls for the 1999-2000 crop year by proposing an 
undersized prune regulation at \24/32\ of an inch in diameter for 
French prunes and \30/32\ of an inch in diameter for non-French prunes. 
This regulation would be in effect from August 1, 1999, through July 
31, 2000.
    The Committee estimated that there will be an excess of about 
18,700 natural condition tons of dried prunes as of July 31, 1999. This 
proposed rule would continue to remove primarily small sized prunes 
from human consumption channels, consistent with the undersized 
regulation that was implemented for the 1998-99 crop year. It is 
estimated that approximately 6,700 natural condition tons of small 
prunes would be removed from human consumption channels during the 
1999-2000 crop year. This would leave sufficient prunes to fill 
domestic and foreign trade demand during the 1999-2000 crop year, and 
provide an adequate carryout on July 31, 2000, for early season 
shipments until the new crop is available for shipment. According to 
the Committee, the desired inventory level to keep trade distribution 
channels full while awaiting the new crop is about 38,000 natural 
condition tons.
    In its deliberations, the Committee reviewed statistics reflecting: 
(1) a worldwide prune demand which has been relatively stable at about 
260,000 tons; (2) a worldwide oversupply that is expected to continue 
growing into the next century (estimated at 350,845 natural condition 
tons by the year 2003); (3) a continuing oversupply situation in 
California caused by increased production from increased plantings and 
higher yields per acre (between the 1990-91 and 1997-98 crop years, the 
yield ranged from 1.5 to 2.8 versus a 10 year average of 2.2 tons per 
acre); and (4) California's continued excess supply situation. The 
production of these small sizes ranged from 2,575 to 8,778 natural 
condition tons during the 1990-91 through the 1997-98 crop years. The 
Committee concluded that it had to continue utilizing supply management 
techniques to accelerate the return to a balanced supply/demand 
situation in the interest of the California dried prune industry. The 
proposed changes to the undersized regulation for the 1999-2000 crop 
year are the result of these deliberations, and the Committee's desire 
to bring supplies more in line with market needs.
    The current oversupply situation facing the California prune 
industry has been caused by four consecutive large crops (1994-95 
through 1997-98) of over 180,000 natural condition tons. Further 
burdening the oversupply situation will be large California prune crops 
over the next few years caused by new prune plantings in recent years 
and higher yields per acre. During the 1990-91 crop year, the non-
bearing acreage totaled 5,900 acres, but by 1995-96, the non-bearing 
acreage had quadrupled to more than 23,000 acres. Yields have ranged 
from 2.3 to 2.8 tons per acre over a three-year period from the 1995-96 
through the 1997-98 crop years, compared to a 10-year average of 2.2 
tons to the acre. The 1998-99 prune crop is exceptionally light, about 
50% of normal size (103,000 tons), due to the unusually cool and wet 
weather conditions caused by the weather phenomenon known as El Nino. 
Even though this year's small dried prune crop and the 1998-99 
undersized prune regulation will help reduce the existing oversupply, 
the prune supply has been outstripping demand over the past nine crop 
years. Another large crop of about 200,000 natural condition tons is 
expected for the 1999-2000 crop year, partly because of an anticipated 
increase in bearing acreage, and this will add to the continuing 
oversupply.
    Because of the oversupply situation during the 1997-98 crop year, 
producer prices for the \24/32\ of an inch in diameter French prunes 
declined to $40-50 per ton. Consequently, producers lost about $260-270 
per ton on every ton they delivered to handlers during 1997-98. The 
lower pricing of the smaller prunes continued in 1998-99, and is 
expected to continue as an incentive in future crop years to convince 
producers to produce the larger sizes needed to help the industry 
better meet the increasing market demand for larger size prunes used 
for pitted prunes.
    The 1998-99 undersized prune rule of \24/32\ of an inch for French 
prunes and \30/32\ of an inch for non-French prunes has expedited the 
reduction of small prune inventories, but more needs to be done to 
bring supplies into balance with market demand. The excess inventory on 
July 31, 1998, was 88,840 natural condition tons, and only about 2,400 
natural condition tons of dried prunes are expected to be removed from 
the 1998-99 marketable supply by the current undersized regulation. The 
Committee believes that the same

[[Page 3662]]

undersized regulation also should be implemented during the 1999-2000 
crop year to continue reducing the inventories of small prunes, to help 
reduce the expected large 1999-2000 prune crop, and more quickly bring 
supplies in line with demand. Attainment of this goal would benefit all 
of the producers and handlers of California prunes.
    The recommended decision of June 1, 1981 (46 FR 29271) regarding 
undersized prunes states that the undersized prune regulation at the 
\23/32\ and \28/32\ inch diameter size openings would be continuous for 
the purposes of quality control even in above parity situations. It 
further states that any change (i.e., increase) in the size of those 
openings would not be for the purpose of establishing a new quality-
related minimum. Larger openings would only be applicable when supply 
conditions warranted the regulation of a larger quantity of prunes as 
undersized prunes. Thus, any regulation prescribing openings larger 
than those in Sec. 993.49(c) should not be implemented when the grower 
average price is expected to be above parity. The season average price 
received by prune growers averaged about 54 percent of parity during 
the 1993 through 1997 seasons, and is in a downward trend. As discussed 
later, the average grower price for prunes during the 1999-2000 crop 
year is not expected to be above parity, and implementation of this 
more restrictive undersized regulation would be appropriate in 
reference to parity.
    Section 8e of the Act requires that when certain domestically 
produced commodities, including prunes, are regulated under a Federal 
marketing order, imports of that commodity must meet the same or 
comparable grade, size, quality, or maturity requirements for the 
domestically produced commodity. This action would not impact the dried 
prune import regulation because the action would affect volume control, 
not quality control. The smaller diameter openings of \23/32\ of an 
inch for French prunes and \28/32\ of an inch for non-French prunes 
were implemented to improve product quality. The recommended increases 
to \24/32\ of an inch in diameter for French prunes and \30/32\ of an 
inch in diameter for non-French prunes are for purposes of volume 
control. Therefore, the increased diameters would not be applied to 
imported prunes.
    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural Marketing Service (AMS) has considered the 
economic impact of this rule on small entities. Accordingly, AMS has 
prepared this initial 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 1,250 producers of dried prunes in the 
production area and approximately 20 handlers subject to regulation 
under the marketing order. Small agricultural producers have been 
defined by the Small Business Administration (13 CFR 121.601) as those 
having annual receipts less than $500,000, and small agricultural 
service firms are defined as those whose annual receipts are less than 
$5,000,000.
    An updated industry profile shows that 8 out of 20 handlers (40%) 
shipped over $5,000,000 worth of dried prunes and could be considered 
large handlers by the Small Business Administration. Twelve of the 20 
handlers (60%) shipped under $5,000,000 worth of prunes and could be 
considered small handlers. An estimated 90 producers, or about 7% of 
the 1,250 total producers, would be considered large growers with 
annual income over $500,000. The majority of handlers and producers of 
California dried prunes may be classified as small entities.
    This proposed rule would establish an undersized prune regulation 
of \24/32\ of an inch in diameter for French prunes and \30/32\ of an 
inch in diameter for non-French prunes for the 1999-2000 crop year for 
volume control purposes. This change in regulation would result in more 
of the smaller sized prunes being classified as undersized prunes, and 
is expected to benefit producers, handlers, and consumers. Since prune 
handlers already use \24/32\ and \30/32\ grader screens, small and 
large producers and handlers would not incur extra costs to purchase 
new screen sizes. Moreover, because the quality related undersized 
regulation has been in place continuously since the early 1980's, the 
only additional cost resulting from the increased openings would be the 
disposal of additional undersized prune tonnage (about 6,700 natural 
condition tons) to nonhuman consumption outlets as required by the 
order. With the less restrictive openings, only 5,635 natural condition 
tons or 3.3 percent of the marketable production has been removed on 
average over the past eight crop years since 1990-91. The more 
restrictive openings currently in place for 1998-99 are expected to 
remove only 2,400 tons of dried prunes from the excess marketable 
supply. The Committee estimated that there will be an excess of about 
18,700 natural condition tons of dried prunes on July 31, 1999. 
Implementation of the more restrictive openings in 1999-2000 is 
expected to reduce the surplus by about 6,700 tons.
    Because the benefits and costs of the proposed action would be 
directly proportional to the quantity of \24/32\ screen French prunes 
and \30/32\ screen non-French prunes produced or handled, small 
businesses should not be disproportionately affected by the proposal. 
While variation in sugar content, prune density, and dry-away ratio 
vary from county to county, they also vary from orchard to orchard and 
season to season. In the major producing areas of the Sacramento and 
San Joaquin Valleys, which account for over 99 percent of the State's 
production, the prunes produced are homogeneous enough that the 
proposal should not be viewed as inequitable by large and small 
producers in any area of the State.
    The quantity of small prunes in a lot is not dependent on whether a 
producer or handler is small or large, but is primarily dependent on 
cultural practices, soil composition, and water costs. The cost to 
minimize the quantity of small prunes is similar for small and large 
entities. The anticipated benefits of this rule are not expected to be 
disproportionately greater or lesser for small handlers or producers 
than for larger entities. The only additional costs on producers and 
handlers expected from the increased openings would be the disposal of 
additional tonnage (now estimated to be about 6,700 tons) to nonhuman 
consumption outlets. These costs are expected to be minimal, and would 
be offset by the benefits derived by the elimination of some of the 
excess supply of small sized prunes.
    At the December 1, 1998, meeting, the Committee discussed the 
financial impact of this change on handlers and producers. Handlers and 
producers receive higher returns for the larger size prunes. Prunes 
eliminated through the implementation of this rule have very little 
value. As mentioned earlier, the current situation for these small 
sizes is quite bleak with producers losing about $260-270 on every ton 
they deliver to handlers. The 1998-99 grower field price for \24/32\ 
screen French prunes is ranging between $40 and $50 per ton, just like 
last crop year. The cost of drying a ton of such prunes is $260 per ton 
at a 4 to 1 dry-away ratio, transportation is at least $20 per ton,

[[Page 3663]]

and the producer assessment paid to the California Prune Board (a body 
which administers the State marketing order for promotion) is $30 per 
ton. The total cost is about $310 per ton which equates to a loss of 
about $260-270 per ton for every ton of \24/32\ screen French prunes 
produced and delivered to handlers.
    Utilizing data provided by the Committee, the Department has 
evaluated the impact of the proposed undersized regulation change upon 
producers and handlers in the industry. The analysis shows that a 
reduction in the marketable production and handler inventories would 
result in higher season-average prices which would benefit all 
producers. The removal of the smallest, least desirable of the 
marketable dried prunes produced in California from human consumption 
outlets would eliminate an estimated 6,700 tons of small-sized dried 
prunes during the 1999-2000 crop year from the marketplace. This would 
help lessen the negative marketing and pricing effects resulting from 
the excess supply situation facing the industry. California prune 
handlers reported that they held 126,485 tons of natural condition 
prunes on July 31, 1998, the end of the 1997-98 crop year. This was the 
largest year-end inventory reported since the Committee began 
collecting such statistics in 1949. The desired industry inventory 
level is based on an average 12-week supply to keep trade distribution 
channels full while awaiting new crop. Currently, it is about 38,000 
natural condition tons. This leaves an inventory surplus of over 88,000 
tons which will likely take the industry several years to market. The 
small 1998-99 prune crop and undersized regulation will help reduce the 
surplus, but the anticipated large 1999-2000 prune crop is expected to 
bring supplies further out-of-balance with demand.
    Further burdening this oversupply situation will be large 
California prune crops over the next few years caused by the new prune 
plantings of recent years and higher yields per acre. During the 1990-
91 crop year, the non-bearing acreage totaled 5,900 acres, but by 1995-
96, the non-bearing acreage had quadrupled to more than 23,000 acres. 
Yields have ranged from 2.3 to 2.8 tons per acre over a three-year 
period from the 1995-96 through the 1997-98 crop year, compared to a 
10-year average of 2.2 tons to the acre. The 1998-99 crop is expected 
to be about 50% of normal size (103,000 natural condition tons). Even 
though this year's small prune crop and the 1998-99 undersized prune 
regulation will help reduce the existing oversupply, the prune supply 
has been outstripping demand over the past nine years. In addition, the 
1999-2000 prune crop is expected to be about 200,000 tons, further 
increasing the industry's oversupply problems.
    As the marketable dried prune production and surplus prune 
inventories are reduced through this proposal, the trade should begin 
taking a position early in the season for its dried prune needs, which 
would help firm up market prices and eventually reflect a higher 
overall price to the producers. In addition, as producers implement 
improved cultural and thinning practices, the overall size of the 
prunes will get larger. As a result, producer returns would increase 
because producers will be producing less tonnage of small sized fruit 
at a $260-270 per ton loss. Instead producers will be receiving the 
higher prices paid for the larger sizes.
    For the 1993-94 through the 1997-98 crop years, the season average 
price received by the producers ranged from a high of $1,120 per ton to 
a low of $827 per ton during the 1997-98 crop year. The season average 
price received by producers during that 5-year period averaged about 54 
percent of parity. Based on available data and estimates of prices, 
production, and other economic factors, the season average producer 
price for the 1998-99 season is expected to be about $790 per ton, or 
about 41 percent of parity.
    The Committee discussed alternatives to this change, including 
making no changes to the undersized prune regulation and allowing 
market dynamics to foster prune inventory adjustments through lower 
prices on the smaller prunes. While reduced grower prices for small 
prunes are expected to contribute toward a slow reduction in dried 
prune inventories, the Committee believed that the undersized rule 
change was needed to expedite that reduction. With the excess tonnage 
of dried prunes, the Committee also considered establishing a reserve 
pool and diversion program to reduce the oversupply situation. These 
initiatives were not supported because they would not specifically 
eliminate the smallest, least valuable prunes which are in oversupply. 
Instead, the reserve pool and diversion program would eliminate larger 
size prunes from human consumption outlets. Reserve pools for prunes 
have historically been implemented on dried prunes regardless of the 
size of the prunes. While the marketing order also allows handlers to 
remove the larger prunes from the pool by replacing them with small 
prunes and the value difference in cash, this exchange would be 
cumbersome and expensive to administer compared to the proposal.
    Section 8e of the Act requires that when certain domestically 
produced commodities, including prunes, are regulated under a Federal 
marketing order, imports of that commodity must meet the same or 
comparable grade, size, quality, or maturity requirements for the 
domestically produced commodity. This action does not impact the dried 
prune import regulation because the action to be implemented is for 
volume control, not quality control, purposes. The smaller diameter 
openings of \23/32\ of an inch for French prunes and \28/32\ of an inch 
for non-French prunes were implemented for the purpose of improving 
product quality. The recommended increases to \24/32\ of an inch in 
diameter for French prunes and \30/32\ of an inch in diameter for non-
French prunes are for purposes of volume control.
    Therefore, the increased diameters would not be applied to imported 
prunes.
    This action would not impose any additional reporting or 
recordkeeping requirements on either small or large California dried 
prune handlers. 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.
    The Department has not identified any relevant Federal rules that 
duplicate, overlap, or conflict with this rule.
    In addition, the Committee's meeting was widely publicized 
throughout the prune industry and all interested persons were invited 
to attend the meeting and participate in Committee deliberations on all 
issues. Like all Committee meetings, the December 1, 1998, meeting was 
a public meeting and all entities, both large and small, were able to 
express views on this issue. The Committee itself is composed of 
twenty-two members, of which seven are handlers, fourteen are 
producers, and one is a public member. Moreover, the Committee and its 
Supply Management Subcommittee have been reviewing this supply 
management problem for the second year, and this proposed rule reflects 
their deliberations completely. Finally, interested persons are invited 
to submit information on the regulatory and informational impacts of 
this action on small businesses.
    The Committee has requested a comment period through April 15, 
1999, to allow interested persons to respond to this proposal. This 
longer comment period is needed to give the Committee

[[Page 3664]]

more time to observe the bloom period during the spring and industry 
shipment trends during the year and allow sufficient time to comment to 
the Department concerning any changes deemed appropriate. All written 
comments timely received will be considered before a final 
determination is made on this matter.

List of Subjects in 7 CFR Part 993

    Marketing agreements, Plums, Prunes, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 993 is 
proposed to be amended as follows:

PART 993--DRIED PRUNES PRODUCED IN CALIFORNIA

    1. The authority citation for 7 CFR part 993 continues to read as 
follows:

    Authority: 7 U.S.C. 601-674.

    Note: This section will not appear in the Code of Federal 
Regulations.

    2. A new Sec. 993.406 is added to read as follows:


Sec. 993.406  Undersized prune regulation for the 1999-2000 crop year.

    Pursuant to Secs. 993.49(c) and 993.52, an undersized prune 
regulation for the 1999-2000 crop year is hereby established. 
Undersized prunes are prunes which pass through openings as follows: 
for French prunes, \24/32\ of an inch in diameter; for non-French 
prunes, \30/32\ of an inch in diameter.

    Dated: January 19, 1999.
Robert C. Keeney,
Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-1609 Filed 1-22-99; 8:45 am]
BILLING CODE 3410-02-U