[Federal Register Volume 64, Number 118 (Monday, June 21, 1999)]
[Rules and Regulations]
[Pages 33005-33009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15625]



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 Rules and Regulations
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  Federal Register / Vol. 64, No. 118 / Monday, June 21, 1999 / Rules 
and Regulations  

[[Page 33005]]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 930

[Docket No. FV99-930-1 FIR]


Tart Cherries Grown in the States of Michigan, et al.; Additional 
Option for Handler Diversion and Receipt of Diversion Credits

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting, as a 
final rule, with a change, the provisions of an interim final rule 
adding a method of handler diversion to the regulations under the 
Federal tart cherry marketing order (order). Handlers handling cherries 
harvested in a regulated district may fulfill any restricted percentage 
requirement when volume regulation is in effect by diverting cherries 
or cherry products rather than by placing them in an inventory reserve. 
Under this additional method, handlers are allowed to obtain diversion 
certificates when marketable finished tart cherry products owned by 
them are accidentally destroyed. In addition, this rule continues in 
effect the removal of a paragraph in the regulations which limited 
diversion credit for exempted products to one million pounds each crop 
year. The order regulates the handling of tart cherries grown in the 
States of Michigan, New York, Pennsylvania, Oregon, Utah, Washington, 
and Wisconsin and is administered locally by the Cherry Industry 
Administrative Board (Board).

EFFECTIVE DATE: June 22, 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. 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.G[email protected]. 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 
Agreement and Order No. 930 (7 CFR part 930) regulating the handling of 
tart cherries grown in the States of Michigan, New York, Pennsylvania, 
Oregon, Utah, Washington, and Wisconsin, hereinafter referred to as the 
``order.'' This 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 or USDA) is issuing this 
rule in conformance with Executive Order 12866.
    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. This rule continues to allow handlers to obtain 
diversion credit for finished marketable tart cherry products owned by 
them which are accidentally destroyed during the 1998-99 crop year 
(July 1, 1998, through June 30, 1999), and subsequent crop years. It 
also continues the removal of a provision from the regulation which 
limited diversion credit for exempted products to one million pounds 
for each crop year. 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.
    This rule continues in effect an additional method of handler 
diversion involving marketable finished tart cherry products which are 
accidentally destroyed. Handler diversion is authorized under section 
930.59 of the order and, when volume regulation is in effect, handlers 
may fulfill restricted percentage requirements by diverting cherries or 
cherry products. Volume regulation is intended to help the tart cherry 
industry stabilize supplies and prices in years of excess production. 
The volume regulation provisions of the order provide for a combination 
of processor owned inventory reserves and grower or handler diversion 
of excess tart cherries. Reserve cherries may be released for sale into 
commercial outlets when the current crop is not expected to fill 
demand. Under certain circumstances, such cherries may also be used for 
charity, experimental purposes, nonhuman use, and other approved 
purposes.
    Section 930.59(b) of the order provides for the designation of 
allowable forms of handler diversion. These include: Uses exempt under 
section 930.62; contributions to a Board approved food bank or other 
approved charitable organization; acquisitions of grower diversion 
certificates that have been issued in accordance with section 930.58; 
or other uses, including diversion by destruction of the cherries at 
the handler's facilities as provided for in section 930.59(c).
    Section 930.159 of the rules and regulations under the order allows 
handlers to divert cherries by destruction of the cherries at the 
handler's facility. At-plant diversion of cherries takes place at the 
handler's facility prior to placing cherries into the processing line. 
This is to ensure that the cherries diverted were not simply an 
undesirable or unmarketable product of processing. The additional 
method for

[[Page 33006]]

handler diversion for finished tart cherry products accidentally 
destroyed should not be confused with at-plant diversion.
    The Board unanimously recommended that handlers should receive 
diversion credit when marketable, finished cherry products are 
accidentally destroyed. For the purposes of this rule, products will be 
considered destroyed if they sustain damage which renders them 
unacceptable for use in normal market channels. For example, finished, 
marketable cherry products could be accidentally destroyed in a fire, 
explosion, or through freezer malfunction. To receive diversion credit 
under this added option, the Board recommended that the cherry products 
must: (1) Be owned by the handler at the time of accidental 
destruction; (2) be a marketable product at the time of processing; (3) 
be included in the handler's end of the year handler plan; and (4) have 
been assigned a Raw Product Equivalent (RPE) by the handler to 
determine the volume of cherries. In addition, the accidental 
destruction, as well as the disposition of the now unmarketable cherry 
product, must be verified by either a USDA inspector or Board agent or 
employee. For the purpose of proper control and oversight, the measures 
recommended by the Board are considered appropriate.
    At the Board meeting, there was a discussion that accidents may 
occur at a handler's facility after the processing of cherries has 
taken place. Freezers have collapsed and malfunctioned rendering the 
finished product unmarketable. The Board noted that one of the goals of 
the volume regulation program is to control the flow of marketable 
fruit in the marketplace. Therefore, it was the Board's recommendation 
that finished marketable products accidentally destroyed should be 
allowed diversion credit.
    Handlers wishing to obtain diversion certificates for finished tart 
cherry products owned by them which are accidentally destroyed must 
allow the disposition of the destroyed product to take place under the 
supervision of USDA's Processed Products Branch inspectors or a Board 
agent or employee. This will allow the Board to verify that the 
accidentally destroyed finished product was unmarketable and that it 
was disposed of properly.
    Once diversion is satisfactorily accomplished, handlers receive 
diversion certificates from the Board stating the weight of cherries 
diverted. Such diversion certificates can be used to satisfy handlers' 
restricted percentage obligations.
    In addition, this rule continues in effect the removal of a 
paragraph in the regulations which limited diversion credit for 
exempted products to one million pounds each crop year. Prior to the 
issuance of the interim final rule, section 930.159 provided for 
diversion credit of up to one million pounds of exempted products each 
crop year. Exempted products include products used in new product 
development and new market development. Exempted products also include 
those that were used to expand the use of new or different products or 
the sales of existing products, or those that are exported to countries 
other than Canada, Mexico, and Japan, but such cherry products do not 
include juice or juice concentrate.
    The supplementary information in the rulemaking which implemented 
section 930.159 on January 6, 1998, (63 FR 399; interim final rule) and 
April 22, 1998, (63 FR 20012; final rule), stated that during its 
deliberations, the Board discussed its view that allowing diversion 
credit for exempt uses would provide adequate flexibility for 
individual handlers to ship cherries. The Board, however, recommended 
providing some restriction on the absolute volume of such allowable 
diversions until more experience with the program had been obtained, 
and that restriction was set at one million pounds. The one million 
pound limit for exempted product did not apply to those products 
receiving export diversions for the 1997-98 season. The Board continued 
reviewing the issue of what limits, if any, to impose on exempted 
products.
    During the 1997 season, 2.7 million pounds of exempted products for 
new market and product development received diversion credit. In recent 
seasons, sales to export markets have risen dramatically. In 1997, 
export sales of 61.1 million pounds represented 379 percent of 1994 
sales (16.1 million pounds). There was also an increase in export sales 
to those destinations exempt from volume regulation (countries other 
than Canada, Japan, and Mexico), rising from 12.2 million pounds to 
48.7 million pounds. In view of the dynamics taking place in the cherry 
industry, and particularly the expanding markets and opportunities, the 
Board did not believe that the one million pound exemption should be 
continued. The removal of the one million pound limitation on exempted 
products should continue to encourage the further development of new 
markets and new tart cherry products. Therefore, the removal of section 
930.159(f) continues in effect.

The Regulatory Flexibility Act and Effects on Small Businesses

    The Agricultural Marketing Service (AMS) has considered the 
economic impact of this action on small entities and has prepared this 
final regulatory flexibility analysis. The Regulatory Flexibility Act 
(RFA) allows AMS to certify that regulations do not have a significant 
economic impact on a substantial number of small entities. However, as 
a matter of general policy, AMS' Fruit and Vegetable Programs 
(Programs) no longer opts for such certification, but rather performs 
regulatory flexibility analyses for any rulemaking that would generate 
the interest of a significant number of small entities. Performing such 
analyses shifts the Programs' efforts from determining whether 
regulatory flexibility analyses are required to the consideration of 
regulatory options and economic or regulatory impacts.
    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 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 40 handlers of tart cherries who are 
subject to regulation under the order and approximately 900 producers 
of tart cherries in the regulated area. Small agricultural service 
firms, which includes 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 tart cherries may be classified as small entities.
    The principal demand for tart cherries is in the form of processed 
products. Tart cherries are dried, frozen, canned, juiced, and pureed. 
During the period 1993/94 through 1997/98, approximately 89 percent of 
the U.S. tart cherry crop, or 281.1 million pounds, was processed 
annually. Of the 281.1 million pounds of tart cherries processed, 63 
percent were frozen, 25 percent were canned, and 4 percent were 
utilized for juice. The remaining 8 percent were dried or assembled 
into juice packs.
    The Board reported that for the 1997-98 crop year handlers received 
export diversion certificates for 48.7 million

[[Page 33007]]

pounds of cherries and 7.1 million pounds were diverted at handlers' 
facilities.
    Section 930.59 of the tart cherry marketing order provides 
authority for handler diversion. Handlers handling cherries harvested 
in a regulated district may fulfill any restricted percentage 
requirement in full or in part through diversion of cherries or cherry 
products in a program approved by the Board, rather than placing 
cherries in an inventory reserve. Handlers can divert by destruction of 
the cherries at the handler's facility, making charitable donations and 
selling cherry products in exempt outlets or by redeeming grower 
diversion certificates obtained from growers who have diverted cherries 
by non-harvest, and who have been issued diversion certificates by the 
Board. This rule continues to provide for handler diversion 
certificates in cases where marketable, finished tart cherry products 
are accidentally destroyed, and thus, rendered unacceptable for the 
marketplace. Such diversion certificates can be used to satisfy the 
handler's restricted percentage obligation.
    Handler diversion options enable handlers to either place cherries 
into an inventory reserve or select the diversion option most 
advantageous to their particular business operation. The diversion 
options allow handlers to minimize processing and storage costs 
associated with meeting restricted percentage obligations. Such cost 
savings may also be passed on to growers and consumers. Thus, this 
action continues to accomplish the purposes of the order and the Act by 
providing a means of increasing grower returns and stabilizing supplies 
with demand.
    The impact of this rule will be beneficial to growers and handlers 
regardless of size. Continuing the additional diversion option will 
prevent financial hardships when marketable finished tart cherry 
products are destroyed by accident. An alternative to this rule would 
be to not grant diversion credit for such products. However, this is 
not in the best interest of the industry. The marketing order's volume 
regulation feature was designed to increase grower returns by 
stabilizing supplies with demand. Providing for handler diversion is 
one of the mechanisms employed to accomplish this goal, and this action 
broadens handler diversion options. Moreover, handlers may divert 
cherries by destroying them at their plants/facilities. Therefore, 
allowing diversion credit for products which are accidentally 
destroyed, is consistent with the overall regulatory scheme established 
by the marketing order.
    In addition, this rule continues in effect the removal of a 
paragraph in the regulations which limited diversion credit for 
exempted products to one million pounds each crop year. Previously, 
section 930.159 provided for diversion credit of up to one million 
pounds of exempted products each crop year, with the exception of 
exported products for the 1997 season. The Board had recommended 
providing some restriction on the absolute volume of exempted product 
diversions until more experience with the program had been obtained. 
The one million pound limitation for exempted products did not apply to 
diversion credit for exports for the 1997-98 season. The Board 
continued reviewing the issue of what limits, if any, to impose on 
exempted products.
    During the 1997 season, 2.7 million pounds of exempted products for 
new market and product development received diversion credit. In recent 
seasons, sales to export markets have risen dramatically. In 1997, 
export sales of 61.1 million pounds represented 379 percent of 1994 
sales (16.1 million pounds). There was also an increase in export sales 
to those destinations exempt from volume regulation (countries other 
than Canada, Japan, and Mexico), rising from 12.2 million pounds to 
48.7 million pounds. In view of the dynamics taking place in the cherry 
industry, and particularly the expanding markets and opportunities, the 
Board does not believe that the one million pound exemption should be 
continued. The removal of the one million pound limitation on exempted 
products should continue to encourage the further development of new 
markets and new tart cherry products. Therefore, continuing the removal 
of the limitation will provide more flexibility to handlers by allowing 
them to expand markets and new product opportunities.
    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 this order have been previously 
approved by OMB and assigned OMB Number 0581-0177. Included in the OMB 
approval is the Handler Reserve Plan and Final Pack Report which 
handlers must submit to utilize at-plant and exempt use diversion and 
the requirements for other reports related to handler diversion and 
handlers meeting their restricted percentage obligations. Handlers 
applying for diversion credit for marketable finished tart cherry 
products accidentally destroyed do not have to submit an additional 
Handler Plan and Pack Report to the Board. Handlers can make changes in 
their previously submitted Handler Plan and Final Pack Report to 
account for product accidentally destroyed.
    Accordingly, this rule will not impose any additional recordkeeping 
requirements on either small or large tart cherry handlers. As with all 
Federal marketing order programs, reports and forms are periodically 
reviewed to reduce information requirements and 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.
    The Board's meetings were widely publicized throughout the tart 
cherry industry and all interested persons were invited to attend them 
and participate in Board deliberations. Like all Board meetings, the 
September 1998 meeting was a public meeting and all entities, both 
large and small, were able to express their views on these issues. The 
Board itself is composed of 18 members, of which 17 members are growers 
and handlers and one represents the public. Also, the Board has a 
number of appointed committees to review marketing order issues and 
make recommendations.
    The Board considered alternatives to its recommendations. These 
included not granting diversion credit and continuing to impose 
limitations on the volume of exempted product receiving diversion 
credit. However, these alternatives were determined as not being in the 
best interest of the industry.
    An interim final rule concerning this action was published in the 
Federal Register on February 25, 1999 (64 FR 9265). Copies of the rule 
were mailed by the Board's staff to all Board members and cherry 
handlers. In addition, the rule was made available through the Internet 
by the Office of the Federal Register. That rule provided a 60-day 
comment period which ended April 26, 1999. One comment was received 
from a tart cherry association representing tart cherry growers and 
processors in the State of Oregon.
    The commenter asked several questions about the additional handler 
diversion option, and expressed the view that Board meetings are not 
well publicized. These comments are addressed below.
    The commenter first asked whether the additional diversion option 
concerning accidentally destroyed tart cherry products applied to 
cherries harvested during the Summer of 1998

[[Page 33008]]

and whether such application is equitable.
    The regulation applies to finished products accidentally destroyed 
during the 1998-99 crop year (July 1, 1998, through June 30, 1999), and 
thereafter. The interim final rule was effective February 6, 1999, and 
making the rule applicable to the whole crop year is not inequitable.
    Only handlers in volume regulated districts are eligible to receive 
diversion credit. Allowing a handler to receive diversion credit for 
accidentally destroyed product satisfies part, or all, of the handler's 
restricted obligation and is consistent with the concept of volume 
regulation. The goal of volume regulation is to bring supplies in line 
with market needs, strengthen market conditions, and to increase grower 
returns.
    The commenter also asked whether handlers with insurance who were 
compensated for their accidental loss would be eligible for diversion 
credit. Under this regulation, an insurance settlement received by a 
handler for product loss or damage does not prevent the handler from 
obtaining diversion credit.
    Another issue raised by the commenter concerns the term ``handler's 
facility'' as it relates to obtaining diversion credit for product 
which is accidentally destroyed at a handler's facility. In this 
regard, the commenter raised questions about product accidentally 
destroyed while in a facility leased by a handler or in storage at a 
public cold storage warehouse. The commenter also asked whether the 
diversion credit applies to accidentally destroyed cherries before 
processing on the handler's premises, or to cherries or product 
destroyed while en route to a handler's facility. The diversion option 
in this regulation is intended to apply to finished marketable cherry 
products that are owned by a handler and are accidentally destroyed. It 
does not apply to cherries before processing which are accidentally 
destroyed.
    The interim final rule published February 25, 1999 (64 FR 9265), 
stated that finished marketable product accidentally destroyed at a 
handler's facility may be granted diversion credit. It was the Board's 
intent that diversion credit be granted for finished marketable 
product, when the product is owned by the handler at time of accidental 
destruction. The physical location of the finished product at the time 
of accidental destruction is not a determining factor. Because of the 
commenter's questions, the Department has modified the regulatory 
provisions to clarify the Board's intent. That is, handlers can receive 
diversion credit for accidentally destroyed finished marketable product 
as long as the product is owned by the handler at the time of 
destruction.
    Finally, the commenter disagreed with the statement that Board 
meetings are widely publicized throughout the tart cherry industry and 
all interested persons are invited to attend them and participate in 
Board deliberations. The commenter stated that the Board office seems 
to communicate only through the ``The Fruit Growers News'' in the 
Michigan area or through direct mail to Board participants. The 
commenter mentioned that he was a member of the Board, and did not know 
if many of the things he received from the Board office go to all 
growers or handlers or just to the Board members and alternates.
    The Board has and will continue to take appropriate action to 
provide broad notice of upcoming meetings to all handlers and Board 
members and alternate members. The Board sends meeting notices to all 
Board members and several tart cherry organizations throughout the 
production area. In fact, the Board sends a newsletter to all growers 
and handlers of record in the production area which further publicizes, 
among other things, upcoming Board meetings.
    The commenter also mentioned that participation in Board meetings 
is challenging to all growers because a majority of them are held in 
Michigan, and that travel is extremely expensive from the west coast 
and very time consuming. The commenter also stated that the Board has 
not considered holding meetings at major hub city airports that are 
more accessible, and less expensive. According to the commenter, this 
situation limits the level of involvement by, and consideration for, 
smaller industry participants, such as the small, remote, and the 
independent members of the tart cherry industry.
    On the matter of Board meeting location, the Board has to consider 
the cost of travel for all Board members because it pays travel 
expenses for all of its members. It is a considerable expense to the 
Board to hold the meetings outside of Michigan since 16 members and 
alternates of the 18 member Board are from the State of Michigan. The 
Board realizes the time spent in travel by Board members and producers 
and handlers throughout the production area. To make attendance at 
Board meetings easier while properly managing travel costs, the Board 
has made a commitment to hold the June 1999 marketing policy meeting in 
Michigan and the September 1999 marketing policy meeting in Washington. 
The Board is also considering holding meetings outside the Michigan 
districts to allow producers and handlers to attend the meetings and 
cut down on travel time for those not located in Michigan. Recently, 
producer meetings were held in Pasco, Washington and Rochester, New 
York, to inform growers about proposed amendments to the order and the 
activities of the Board.
    Based on the comments and the questions received, the limitation on 
the location of the accidental destruction is being removed. In the 
first sentence of paragraph (a), the phrase ``at a handlers' facility'' 
following the words ``by diverting cherry products accidentally 
destroyed'' is removed from this regulation. Also, removed in the first 
sentence of paragraph (d), is the phrase ``at a handler's facility'' 
following the words ``Handlers may be granted diversion credit for 
diverting finished tart cherry products accidentally destroyed''. The 
removal of the these phrases is intended to clarify the intent of the 
regulation. In addition, to clarify the period of applicability, 
wording has been added to the regulation indicating that it applies to 
finished products accidentally destroyed during the 1998-99 crop year 
(July 1, 1998, through June 30, 1999), and thereafter.
    After consideration of all relevant material presented, including 
the Board's recommendation, the comment received, and other 
information, it is found that finalizing this interim final rule, with 
modifications, as published in the Federal Register (64 FR 9265), will 
tend to effectuate the declared policy of the Act.
    Pursuant to 5 U.S.C. 553, it is also found and determined that good 
cause exists for not postponing the effective date of this rule until 
30 days after publication in the Federal Register because: (1) This 
rule continues to relax requirements by providing an additional 
opportunity for handlers to receive diversion credit and meet their 
restricted obligations; and (2) the clarifications made to the 
provisions should be effective promptly to effectively carry out this 
program.

List of Subjects in 7 CFR Part 930

    Marketing agreements, Reporting and recordkeeping requirements, 
Tart cherries.

    For the reasons set forth in the preamble, 7 CFR part 930 is 
amended as follows:

[[Page 33009]]

PART 930--TART CHERRIES GROWN IN THE STATES OF MICHIGAN, NEW YORK, 
PENNSYLVANIA, OREGON, UTAH, WASHINGTON, AND WISCONSIN

    Accordingly, the interim final rule amending 7 CFR part 930 which 
was published at 64 FR 9265 on February 25, 1999, is adopted as a final 
rule with the following change:
    1. The authority citation for 7 CFR part 930 continues to read as 
follows:

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

    2. In Sec. 930.159 paragraphs (a) and (d) are revised to read as 
follows:


Sec. 930.159  Handler diversion.

    (a) Methods of diversion. Handlers may divert cherries by redeeming 
grower diversion certificates, by destroying cherries at handlers' 
facilities (at-plant), by diverting cherry products accidentally 
destroyed, by donating cherries or cherry products to charitable 
organizations or by using cherries or cherry products for exempt 
purposes under Sec. 930.162, including export to countries other than 
Canada, Mexico and Japan. Once diversion has taken place, handlers will 
receive diversion certificates stating the weight of cherries diverted. 
Diversion credit may be used to fulfill any restricted percentage 
requirement in full or in part. Any information of a confidential and/
or proprietary nature included in this application would be held in 
confidence pursuant to Sec. 930.73 of the order.
* * * * *
    (d) Diversion of finished products. Handlers may be granted 
diversion credit for finished tart cherry products that are 
accidentally destroyed during the 1998-1999 crop year (July 1, 1998, 
through June 30, 1999), and thereafter. To receive diversion credit 
under this option the cherry products must be owned by the handler at 
the time of accidental destruction, be a marketable product at the time 
of processing, be included in the handler's end of the year handler 
plan, and have been assigned a Raw Product Equivalent (RPE) by the 
handler to determine the volume of cherries. In addition, the 
accidental destruction, and disposition of the product must be verified 
by either a USDA inspector or Board agent or employee who witnesses the 
disposition of the accidentally destroyed product. Products will be 
considered destroyed if they sustain damage which renders them 
unacceptable in normal market channels.
* * * * *
    Dated: June 14, 1999.
Eric M. Forman,
Acting Deputy Administrator, Fruit and Vegetable Programs.
[FR Doc. 99-15625 Filed 6-18-99; 8:45 am]
BILLING CODE 3410-02-P