[Federal Register Volume 66, Number 148 (Wednesday, August 1, 2001)]
[Rules and Regulations]
[Pages 39623-39628]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19263]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV01-989-3 IFR]


Raisins Produced From Grapes Grown in California; Final Free and 
Reserve Percentages for 2000-01 Crop Natural (Sun-Dried) Seedless and 
Zante Currant Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with respect for comments.

-----------------------------------------------------------------------

SUMMARY: This rule establishes final volume regulation percentages for 
2000-01 crop Natural (sun-dried) Seedless raisins (Naturals) and Zante 
Currant raisins (Zantes) covered under the Federal marketing order for 
California raisins (order). The order regulates the handling of raisins 
produced from grapes grown in California and is locally administered by 
the Raisin Administrative Committee (Committee). The volume regulation 
percentages are 53 percent free and 47 percent reserve for Naturals, 
and 83 percent free and 17 percent reserve for Zantes. The percentages 
are intended to help stabilize raisin supplies and prices, and 
strengthen market conditions.

DATES: Effective date: August 2, 2001. Comments received by August 31, 
2001 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, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA, room 2525-S, P.O. Box 96456, Washington, DC 20090-6456; Fax: 
(202) 720-8938, or E-mail: moab.docket [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 made available for public 
inspection in the Office of the Docket Clerk during regular business 
hours, or can be viewed at: http://www.ams.usda.gov/fv/moab.html.

FOR FURTHER INFORMATION CONTACT: Maureen T. Pello, Senior Marketing 
Specialist, California Marketing Field Office, Marketing Order 
Administration Branch, 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) 720-8938.
    Small businesses may request information on complying with this 
regulation 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) 720-8938, or E-mail: [email protected].

SUPPLEMENTARY INFORMATION: This 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 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. Under the order provisions now in effect, final free 
and reserve percentages may be established for raisins acquired by 
handlers during the

[[Page 39624]]

crop year. This rule establishes final free and reserve percentages for 
naturals and Zantes for the 2000-01 crop year, which began August 1, 
2000, and ends July 31, 2001. 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. 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 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 establishes final volume regulation percentages for 2000-
01 crop Naturals and Zantes covered under the order. The volume 
regulation percentages are 53 percent free and 47 percent reserve for 
Naturals and 83 percent free and 17 percent reserve for Zantes. Free 
tonnage raisins may be sold by handlers to any market. Reserve raisins 
must be held in a pool for the account of the Committee and are 
disposed of through various programs authorized under the order. For 
example, reserve raisins may be sold by the Committee to handlers for 
free use or to replace part of the free tonnage raisins they exported; 
used in diversion programs; carried over as a hedge against a short 
crop; or disposed of in other outlets not competitive with those for 
free tonnage raisins, such as government purchase, distilleries, or 
animal feed.
    The volume regulation percentages are intended to help stabilize 
raisin supplies and prices, and strengthen market conditions. Final 
percentages were unanimously recommended by the Committee on January 
12, 2001.

Computation of Trade Demands

    Section 989.54 of the order prescribes procedures and time frames 
to be followed in establishing volume regulation. This includes 
methodology used to calculate percentages. Pursuant to Sec. 989.54(a) 
of the order, the Committee met on August 15, 2000, 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. Trade demand is computed using a formula specified in the 
order and, for each varietal type, is equal to 90 percent of the prior 
year's shipments of free tonnage and reserve tonnage raisins sold for 
free use into all market outlets, adjusted by subtracting the carryin 
on August 1 of the current crop year, and adding the desirable carryout 
at the end of that crop year. As specified in Sec. 989.154(a), the 
desirable carryout for each varietal type is equal to a 5-year rolling 
average, dropping the high and low figures, of free tonnage shipments 
during the months of August, September, and October. In accordance with 
these provisions, the Committee computed and announced 2000-01 trade 
demands for Naturals and Zantes at 233,344 tons and 4,290 tons, 
respectively, as shown below.

                         Computed Trade Demands
                        [Natural condition tons]
------------------------------------------------------------------------
                                             Naturals         Zantes
------------------------------------------------------------------------
Prior year's shipments..................         264,619           4,635
Multiplied by 90 percent................            0.90            0.90
Equals adjusted base....................         238,157           4,172
Minus carryin inventory.................          97,109           1,109
Plus desirable carryout.................          92,296           1,227
Equals computed trade demand............         233,344           4,290
------------------------------------------------------------------------

Computation of Preliminary Volume Regulation Percentages

    As required under Sec. 989.54(b) of the order, the Committee met on 
October 4, 2000, and announced a preliminary crop estimate of 427,394 
tons for Naturals. Naturals are the major varietal type of California 
raisin. This estimate was about 27 percent higher than the 10-year 
average of 336,766 tons. Combining the carrying inventory of 97,109 
with the 427,394-ton crop estimate resulted in a total available supply 
of 524,503 tons, which was significantly higher (about 125 percent) 
than the 233,344-ton trade demand. Thus, the Committee determined that 
volume regulation for Naturals was warranted. The Committee announced 
preliminary free and reserve percentages for Naturals which released 65 
percent of the computed trade demand since the field price (price paid 
by handlers to producers for their free tonnage raisins) had not yet 
been established. The preliminary percentages were 35 percent free and 
65 percent reserve.
    Also at its October 4, 2000, meeting, the Committee announced a 
preliminary crop estimate for Zantes at 4,828 tons, which is comparable 
to the 10-year average of 4,447 tons. Combining the carry-in inventory 
of 1,109 tons with the 4,828-ton crop estimate resulted in a total 
available supply of 5,937 tons. With the estimated supply about 38 
percent greater than the 4,290-ton trade demand, the Committee 
determined that volume regulation for Zantes was warranted. The 
Committee announced preliminary percentages for Zantes which released 
65 percent of the computed trade demand since field price had not yet 
been established. The preliminary percentages were 58 percent free and 
42 percent reserve.
    In addition, preliminary percentages were also announced for Dipped 
Seedless and Other Seedless raisins. The Committee ultimately 
determined that volume regulation was only warranted for Naturals and 
Zantes. As in past seasons, the Committee submitted its marketing 
policy to the Department for review.

Computation of Final Volume Regulation Percentages

    Pursuant to Sec. 989.54(c) and (d) of the order, the Committee met 
on January 12, 2001, and recommended interium percentages for Naturals 
and Zantes to release slightly less than their full trade demands. 
Specifically, interim percentages were recommended for Naturals at 
52.75 percent free and 47.25

[[Page 39625]]

percent reserve, and for Zantes at 82.75 percent free and 17.25 percent 
reserve.
    The Department reviewed the Committee's recommendation for interim 
percentages in light of unusual circumstances facing the industry this 
season. Field prices for Naturals and Zantes are negotiated between the 
Raisin Bargaining Association (RBA) and handlers, and are usually set 
in October. For the first time ever, price negotiations proceeded to 
arbitration, a process that occurred between April 30-May 2, 2001. The 
Committee's rationale for recommending interim percentages in January, 
prior to the establishment of field prices, was that the industry was 
proceeding to binding arbitration, and that field prices would be set 
through this process.
    In reviewing the Committee's recommendation regarding interim 
percentages, the Department considered the fact that volume regulation 
under the order is linked to the establishment of field prices. 
Preliminary percentages release 85 percent of the trade demand if field 
prices have been set, but only 65 percent if they have not. The order 
also permits preliminary and interim percentages to be implemented 
through announcements by the Committee, but final percentages must be 
established by the Department through informal rulemaking.
    While preliminary percentages were designed to release 65 percent 
of the trade demand until field price is set, the order does not 
contemplate and provides no contingency for the failure to set prices 
by mid-February. The rulemaking record indicates that the quantity of 
tonnage released at the 65-percent level would be sufficient to supply 
market needs through February, but does not address restrictions after 
February 15. The Department does not support marketing order 
regulations that restrict supplies to the point where market needs are 
not met. This would negatively hurt the industry as a whole. Thus, on 
March 15, 2001, the Department approved the establishment of interim 
percentages for Naturals and Zantes.
    At its January 2001 meeting, the Committee also recommended final 
percentages to release the full trade demands for Naturals and Zantes, 
once field prices were set through arbitration. Field prices were 
established on May 2, 2001. Final percentages compute to 53 percent 
free and 47 percent reserve for Naturals, and 83 percent free and 17 
percent reserve for Zantes.
    Both the interim and final percentage computations were based on 
revised crop estimates of 440,000 tons for Naturals and 5,160 tons for 
Zantes. The Committee's calculations to arrive at final percentages for 
Naturals and Zantes are shown in the table below:

                   Final Volume Regulation Percentages
                        [Natural condition tons]
------------------------------------------------------------------------
                                             Naturals         Zantes
------------------------------------------------------------------------
Trade demand............................         233,344           4,290
Divided by crop estimate................         440,000           5,160
Equals free percentage..................              53              83
100 minus free percentage equals reserve              47              17
 percentage.............................
------------------------------------------------------------------------

    In addition, the Department's ``Guidelines for Fruity, Vegetable, 
and Specialty Crop Marketing Orders'' (Guidelines) specify that 110 
percent of recent years' sales should be made available to primary 
markets each season for marketing orders utilizing reserve pool 
authority. This goal will be met for Naturals and Zantes by the 
establishment of final percentages which release 100 percent of the 
trade demand and the offer of additional reserve raisins for sale to 
handlers under the ``10 plus 10 offers.'' As specified in 
Sec. 989.54(g), the 10 plus 10 offers are two offers of reserve pool 
raisins which are made available to handlers during each season. For 
each such offer, a quantity of reserve raising equal to 10 percent of 
the prior year's shipments is made available for free use. Handlers may 
sell their 10 plus 10 raisins to any market.
    The ``10 plus 10 offers'' were held for both Naturals and Zantes in 
May 2001. For Naturals, a total of 52,924 tons was made available to 
raisin handlers. Adding the 52,924 tons of 10 plus 10 raisins to the 
233,344-ton trade demand figure, plus 97,109 tons of 1999-2000 carryin 
inventory, equates to about 383,377 tons of natural condition raisins, 
or about 359,190 tons of packed raisins, that were made available for 
free use, or to the primary market. This is 145 percent of the quantity 
of Naturals shipped during the 1999-2000 crop year (264,619 natural 
condition tons or 247,925 packed tons).
    For Zantes, about 820 tons were made available to handlers through 
10 plus 10 offers. This quantity is less than the amount specified in 
the order (927 tons). Although 927 tons were not available, all of the 
reserve raisins available were offered to handlers for free use through 
the 10 plus 10 offers. Adding the 820-tons of 10 plus 10 raisins to the 
4,290-ton trade demand figure, plus 1,109 tons of 1999-2000 carryin 
inventory equates to 6,219 tons natural condition raisins, or about 
5,540 tons of packed raisins, that were made available for free use, or 
to primary markets. This is 134 percent of the quantity of Zantes 
shipped during the 1999-2000 crop year (4,635 tons natural condition 
tons or 4,129 tons packed tons).
    In addition to the 10 plus 10 offers, Sec. 989.67(j) of the order 
provides authority for sales of reserve raisins to handlers under 
certain conditions such as a national emergency, crop failure, change 
in economic or marketing conditions, or if free tonnage shipments in 
the current crop year exceed shipments of a comparable period of the 
prior crop year. Such reserve raisins may be sold by handlers to any 
market. When implemented, the additional offers of reserve raisins make 
even more raisins available to primary markets which is consistent with 
the Department's Guidelines.

Initial Regulatory Flexibility Analysis

    Pursuant to requirements set forth in the Regulatory Flexibility 
Act (RFA), the Agricultural marketing Service (AMS) has considered the 
economic impact of this action 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 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 order and

[[Page 39626]]

approximately 4,500 raisin producers in the regulated area. Small 
agricultural service firms are defined by the Small Business 
Administration (13 CFR 121.201) 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. Thirteen of the 20 
handlers subject to regulation have annual sales estimated to be at 
least $5,000,000, and the remaining 7 handlers have sales less than 
$5,000,000, excluding receipts from any other sources. No more than 7 
handlers, and a majority of producers, of California raisins may be 
classified as small entities, excluding receipts from other sources.
    Since 1949, the California raisin industry has operated under a 
Federal marketing order. The order contains authority to, among other 
things, limit the portion of a given year's crop that can be marketed 
freely in any outlet by raisin handlers. This volume control mechanism 
is used to stabilize supplies and prices and strengthen market 
conditions.
    Pursuant to Sec. 989.54(d) of the order, this rule establishes 
final volume regulation percentages for 2000-1 crop Natural and Zante 
raisins. The volume regulation percentages are 53 percent free and 47 
percent reserve for Naturals and 83 percent free and 17 percent reserve 
for Zantes. Free tonnage raisins may be sold by handlers to any market. 
Reserve raisins must be held in a pool for the account of the Committee 
and are disposed of through certain programs authorized under the 
order.
    Volume regulation is warranted this season for Naturals because the 
final crop estimate of 440,000 tons combined with the carryin inventory 
of 97,109 tons, plus 45,275 tons of reserve raisins released to-date 
for free use through an export program, results in a total available 
supply of 582,384 tons, which is about 150 percent higher than the 
233,344-ton trade demand. Volume regulation is warranted for Zantes 
this season because the crop estimate of 5,160 tons combined with the 
carryin inventory of 1,109 tons results in a total available supply of 
6,269 tons, which is about 46 percent higher than the 4,290-ton trade 
demand.
    Many years of marketing experience led to the development of the 
current volume regulation procedures. These procedures have helped the 
industry address its marketing problems by keeping supplies in balance 
with domestic and export market needs, and strengthening market 
conditions. The current volume regulation procedures fully supply the 
domestic and export markets, provide for market expansion, and help 
prevent oversupplies in the domestic market.
    Raisin grapes are a perennial crop, so production in any year in 
dependent upon plantings made in earlier years. The sun-drying method 
of producing raisins involves considerable risk because of variable 
weather patterns.
    Even though the product and the industry are viewed as mature, the 
industry has experienced considerable change over the last several 
decades. Before the 1975-76 crop year, more than 50 percent of the 
raisins were packed and sold directly to consumers. Now, over 60 
percent of raisins are sold in bulk. This means the raisins are now 
sold to consumers mostly as an ingredient in another product such as 
cereal and baked goods. In addition, for a few years in the early 
1970's, over 50 percent of the raisin grapes were sold to the wine 
market for crushing. Since then, the percent of raisin-variety grapes 
sold to the wine industry has decreased.
    California's grapes are classified into three groups--table grapes, 
wine grapes, and raisin-variety grapes. Raisin-variety grapes are the 
most versatile of the three types. They can be marketed as fresh 
grapes, crushed for juice in the production of wine or juice 
concentrate, or dried into raisins. Annual fluctuations in the fresh 
grape, wine, and concentrate markets, as well as weather-related 
factors, cause fluctuations in raisin supply. This type of situation 
introduces a certain amount of variability into the raisin market. 
Although the size of the crop for raisin-variety grapes may be known, 
the amount dried for raisins depends on the demand for crushing. This 
makes the marketing of raisins a more difficult task. These supply 
fluctuations can result in producer price instability and disorderly 
market conditions.
    Volume regulation is helpful to the raisin industry because it 
lessens the impact of such fluctuations and contributes to orderly 
marketing. For example, producer prices for Naturals have remained 
fairly steady between the 1992-93 through the 1997-98 seasons, although 
production has varied. As shown in the table below, during those years, 
production varied from a low of 272,063 tons in 1996-97 to a high of 
387,007 tons in 1993-94, or about 42 percent. According to Committee 
data, the total producer return per ton during those years, which 
includes proceeds from both free tonnage plus reserve pool raisins, has 
varied from a low of $901 in 1992-93 to a high of $1,049 in 1996-97, or 
16 percent. Total producer prices for the past two seasons, 1998-99 and 
1999-2000, increased significantly due to back-to-back short crops 
during those years.

                    Natural Seedless Producer Prices
------------------------------------------------------------------------
                                                 Production
                                                  (natural     Producer
                   Crop year                     condition      prices
                                                   tons)
------------------------------------------------------------------------
1999-2000.....................................      299,910  \1\$1,211.2
                                                                       5
1998-99.......................................      240,469  \2\1,290,00
1997-98.......................................      382,448       946.52
1996-97.......................................      272,063     1,049.20
1995-96.......................................      325,911     1,007.19
1994-95.......................................      378,427       928.27
1993-94.......................................      387,007       904.60
1992-93.......................................      371,516      901.41
------------------------------------------------------------------------
\1\ Return to date, reserve pool still open.
\2\ No volume regulation.

    There are essentially two broad markets for raisins--domestic and 
export. In recent years, both export and domestic shipments have been 
decreasing. Domestic shipments decreased from a high of 204,805 packed 
tons during the 1990-91 crop year to a low of 156,325 packed tons in 
1999-2000. In addition, exports decreased from 114,576 packed tons in 
1991-92 to 91,599 packed tons in the 1999-2000 crop year.

[[Page 39627]]

    In addition, the per capita consumption of raisins has declined 
from 2.07 pounds in 1988 to 1.62 pounds in 1999. This decrease is 
consistent with the prices in the per capita consumption of dried 
fruits in general, which is due to the increasing availability of most 
types of fresh fruit through out the year.
    While the overall demand for raisins has been decreasing (as 
reflected in decline in commercial shipments), production has been 
increasing. The production of dried raisins reached an all-time high of 
an estimated 440,000 tons in the 2000-01 crop year. This large crop was 
preceded by two short crop years; production was 240,469 tons in 1998-
99 and 299,910 tons in 1999-2000. Production for the 2000-01 crop year 
soared to a record level because of increased bearing acreage and 
yields.
    The order permits the industry to exercise supply control 
provisions, which allow for the establishment of free and reserve 
percentages, and establishment of a reserve pool. One of the primary 
purposes of establishing free and reserve percentages is to equilibrate 
supply and demand. If raisin markets are over-supplied with product, 
grower prices will decline.
    Raisins are generally marketed at relatively lower price levels in 
the more elastic export market than in the more inelastic domestic 
market. This results in a larger volume of raisins being marketed and 
enhances grower returns. In addition, this system allows the U.S. 
raisin industry to be more competitive in export markets.
    To assess the impact that volume control has on the prices growers 
receive for their product, an econometric model has been constructed. 
The model developed is for the purpose of estimating nominal prices 
under a number of scenarios using the volume control authority under 
the Federal marketing order. The price growers receive for the harvest 
and delivery of their crop is largely determined by the level of 
production and the volume of carryin inventories. The Federal marketing 
order permits the industry to exercise supply control provisions, which 
allow for the establishment of reserve and free percentages for primary 
markets, and a reserve pool. The establishment of reserve percentages 
impacts the production that is marketed in the primary markets.
    The reserve percentage limits what handlers can market as free 
tonnage. Assuming the 47 percent reserve limits the total free tonnage 
to 233,200 natural condition tons (.53 x 440,000 tons) and carryin is 
97,109 natural condition tons, and purchases from reserve total 55,000 
natural condition tons (which includes anticipated reserve raisins 
released through the export program and other purchases), then the 
total free supply is estimated at 385,309 natural condition tons. The 
econometric model estimates prices to be $240 per ton higher than under 
an unregulated scenario. This price increase is beneficial to all 
growers regardless of size and enhances growers' total revenues in 
comparison to no volume control. Establishing a reserve allows the 
industry to help stabilize supplies in both domestic and export 
markets, while improving returns to producers.
    Regarding Zantes, Zante production is much smaller than that of 
Naturals. Volume regulation has been implemented for Zantes during the 
1994-95, 1995-96, 1997-98, 1998-99, 1999-2000, and 2000-01 seasons. 
Various programs to utilize reserve pool Zantes were implemented during 
those years. As shown in the table below, although production varied 
during those years, volume regulation helped to reduce inventories, and 
helped to strengthen total producer prices (free tonnage plus reserve 
Zantes) from $412.56 per ton in 1994-95 to a high of $1,034.03 per ton 
in 1998-99. The Committee is implementing an export program for Zantes, 
in addition to Naturals. Through this program, the Committee plans to 
continue to manage its Zante supply, build and maintain export markets, 
and ultimately improve producer returns. Volume regulation helps the 
industry not only to manage oversupplies of raisins, but also maintain 
market stability.

                 Zante Currant Inventories and Producer Prices During Years of Volume Regulation
                                            [Natural condition tons]
----------------------------------------------------------------------------------------------------------------
                                                                             Inventory             Total season
                                                                 --------------------------------     average
                    Crop year                       Production                                    producer price
                                                                     Desirable       Physical        (per ton)
----------------------------------------------------------------------------------------------------------------
1999-2000.......................................           3,683             573           1,906     \1\ $612.00
1998-99.........................................           3,880             694           1,188       $1,034.03
1997-98.........................................           4,826             788           1,679         $710.08
1996-97.........................................           4,491             987             549   \2\ $1,150.00
1995-96.........................................           3,294             782           2,890         $711.32
1994-95.........................................           5,377             837           4,364        $412.56
----------------------------------------------------------------------------------------------------------------
\1\ Return to date, reserve pool open.
\2\ No volume regulation.

    Free and reserve percentages are established by varietal type, and 
usually in years when the supply exceeds the trade demand by a large 
enough margin that the Committee believes volume regulation is 
necessary to maintain market stability. Accordingly, in assessing 
whether to apply volume regulation or, as an alternative, not to apply 
such regulation, the Committee recommended only two of the nine raisin 
varietal types defined under the order for volume regulation this 
season.
    The free and reserve percentages established by this rule release 
the full trade demands and apply uniformly to all handlers in the 
industry, regardless of size. For Naturals, with the exception of the 
1998-99 crop year, small and large raisin producers and handlers have 
been operating under volume regulation percentages every year since 
1983-84. There are no known additional costs incurred by small handlers 
that are not incurred by large handlers. While the level of benefits of 
this rulemaking are difficult to quantify, the stabilizing effects of 
the volume regulations impact small and large handlers positively by 
helping them maintain and expand markets even though raisin supplies 
fluctuate widely from season to season. Likewise, price stability 
positively impacts small and large producers by allowing them to better 
anticipate the revenues their raisins will generate.
    There are some reporting, recordkeeping and other compliance 
requirements under the order. The

[[Page 39628]]

reporting and recordkeeping burdens are necessary for compliance 
purposes and for developing statistical data for maintenance of the 
program. The requirements are the same as those applied in past 
seasons. Thus, this action will not impose any additional reporting or 
recordkeeping burdens on either small or large handlers. The forms 
require information which is readily available from handler records and 
which can be provided without data processing equipment or trained 
statistical staff. The information collection and recordkeeping 
requirements have been previously approved by the Office of Management 
and Budget (OMB) under OMB Control No. 0581-0178. As with other similar 
marketing order programs, reports and forms are periodically studied to 
reduce or eliminate duplicate information collection burdens by 
industry and public sector agencies. In addition, the Department has 
not identified any relevant Federal rules that duplicate, overlap, or 
conflict with this rule. Finally, interested persons are invited to 
submit information on the regulatory and informational impact of this 
action on small businesses.
    Further, Committee and subcommittee meetings are widely publicized 
in advance and are held in a location central to the production area. 
The meetings are open to all industry members, including small business 
entities, and other interested persons who are encouraged to 
participate in the deliberations and voice their opinions on topics 
under discussion.
    A small business guide on complying with fruit, vegetable, and 
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html. Any questions about the compliance 
guide should be sent to Jay Guerber at the previously mentioned address 
in the FOR FURTHER INFORMATION CONTACT section.
    After consideration of all relevant material presented, including 
the information and recommendation submitted by the Committee and other 
available information, it is hereby found that this rule, as 
hereinafter set forth, will tend to effectuate the declared policy of 
the Act.
    This rule invites comments for a 30-day period on the establishment 
of final volume regulation percentages for 2000-01 crop Natural and 
Zante raisins covered under the order. Thirty days is deemed 
appropriate because handlers are currently marketing their 2000-01 crop 
Natural and Zante raisins and this action should be taken promptly to 
achieve the intended purpose of making the full trade demands available 
to handlers. All comments received within the comment period will be 
considered prior to finalization of this rule.
    Pursuant to 5 U.S.C. 553, it is also found and determined upon good 
cause that it is impracticable, unnecessary, and contrary to the public 
interest to give preliminary notice prior to putting this rule into 
effect, and that good cause exists for not postponing the effective 
date of this rule until 30 days after publication in the Federal 
Register because: (1) The relevant provisions of this part require that 
the percentages designated herein for the 2000-01 crop year apply to 
all Natural and Zante raisins acquired from the beginning of that crop 
year; (2) handlers are currently marketing their 2000-01 crop Natural 
and Zante raisins and this action should be taken promptly to achieve 
the intended purpose of making the full trade demands available to 
handlers; (3) handlers are aware of this action, which was unanimously 
recommended at a public meeting, and need no additional time to comply 
with these percentages; and (4) this interim final rule provides a 30-
day comment period, and all comments timely received will be considered 
prior to finalization of this rule.

List of Subjects in 7 CFR Part 989

    Grapes, Marketing agreements, Raisins, Reporting and recordkeeping 
requirements.

    For the reasons set forth in the preamble, 7 CFR part 989 is 
amended to read as followed:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

    1. The authority citation for 7 CFR part 989 continues to read as 
follows:

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

    2. Section 989.254 is added to Subpart--Supplementary Regulations 
to read as follows:

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

Sec. 989.254  Final free and reserve percentages for the 2000-01 crop 
year.

    The final percentages for standard Natural (sun-dried) Seedless and 
Zante Currant raisins acquired by handlers during the crop year 
beginning on August 1, 2000, which shall be free tonnage and reserve 
tonnage, respectively, are designated as follows:

------------------------------------------------------------------------
                                               Free           Reserve
              Varietal type                 percentage      percentage
------------------------------------------------------------------------
Natural (sun-dried) Seedless............              53              47
Zante Currant...........................              83              17
------------------------------------------------------------------------


    Dated: July 27, 2001.
Barry L. Carpenter,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 01-19263 Filed 7-30-01; 10:06 am]
BILLING CODE 3410-02-M