[Federal Register Volume 66, Number 207 (Thursday, October 25, 2001)]
[Rules and Regulations]
[Pages 53945-53950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26899]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV01-989-3 FIR]


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: Final rule.

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SUMMARY: The Department of Agriculture (Department) is adopting, as a 
final rule, without change, an interim final rule that established 
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.

EFFECTIVE DATE: November 26, 2001.

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, room 2525-S, P.O. Box 
96456, Washington, DC 20090-6456; telephone: (202) 720-2491, Fax: (202)

[[Page 53946]]

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 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 crop year. This rule continues in effect final free 
and reserve percentages for Naturals and Zantes for the 2000-01 crop 
year, which began August 1, 2000, and ended 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 continues in effect final volume regulation percentages 
for 2000-01 crop Naturals and Zantes which were established through an 
interim final rule published on August 1, 2001, in the Federal Register 
(66 FR 39623). 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 carry-in 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 carryin inventory of 97,109 tons 
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 was 
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 interim 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 percent reserve, and for Zantes at 82.75 
percent free and 17.25 percent reserve.

[[Page 53947]]

    The Department reviewed the Committee's recommendation for interim 
percentages in light of unusual circumstances facing the industry. 
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 impact 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 percentage.         47       17
------------------------------------------------------------------------

    In addition, the Department's ``Guidelines for Fruit, 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 was met for Naturals and Zantes by the 
establishment of final percentages which released 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 raisins 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, and 22,091 tons were purchased. Adding the 22,091 tons 
of 10 plus 10 raisins purchased to the 233,344-ton trade demand figure, 
plus 97,109 tons of 1999-2000 carryin inventory, equates to about 
352,544 tons of natural condition raisins, or about 330,300 tons of 
packed raisins, that were made available for free use, or to the 
primary market. This is 133 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, 824 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 and purchased by handlers for 
free use through the 10 plus 10 offers. Adding the 824 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 6,223 tons natural condition 
raisins, or about 5,543 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.

Final 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 final regulatory flexibility analysis.
    The purpose of the RFA is to fit regulatory actions to the scale of 
business subject to such actions in order that small businesses will 
not be unduly or disproportionately burdened. Marketing orders issued 
pursuant to the Act, and 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 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 
$750,000. 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 non-
agricultural sources. No more than 7 handlers, and a majority of 
producers, of California raisins may be classified as small entities, 
excluding receipts from non-agricultural 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

[[Page 53948]]

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 continues in 
effect final volume regulation percentages for 2000-01 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 was warranted for 2000-01 crop Naturals because 
the final crop estimate of 440,000 tons combined with the 1999-2000 
carryin inventory of 97,109 tons, plus 41,395 tons of 1999-2000 reserve 
raisins released for free use through an export program, resulted in a 
total available supply of 578,504 tons, which was almost 150 percent 
higher than the 233,344-ton trade demand. Volume regulation was 
warranted for 2000-01 Zantes because the final crop estimate of 5,160 
tons combined with the carryin inventory of 1,109 tons resulted in a 
total available supply of 6,269 tons, which was 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 is 
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 that 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 1998-99 and 1999-2000 seasons 
increased significantly due to back-to-back short crops during those 
years.

                    Natural Seedless Producer Prices
------------------------------------------------------------------------
                                                              Producer
                 Crop year                     Production      prices
--------------------------------------------------\1\-------------------
1999-2000..................................       299,910   \2\ $1,211.2
                                                                       5
1998-99....................................       240,469   \3\ 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\ Natural condition tons.
\2\ Return to-date, reserve pool still open.
\3\ 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.
    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 decrease 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 the 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 carry-in 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

[[Page 53949]]

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 reserve raisins released through 
the export program and other purchases), then the total free supply 
would total 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
                    Crop year                       Production   --------------------------------    Total \1\
                                                                     Desirable       Physical
----------------------------------------------------------------------------------------------------------------
1999-2000.......................................           3,683             573           1,906         $771.14
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\Total season average produces price (per ton).
\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 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 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.
    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.
    An interim final rule concerning this action was published in the 
Federal Register on August 1, 2001 (66 FR 39623). Copies of the rule 
were mailed by Committee staff to all Committee members and alternates, 
the RBA, handlers and dehydrators. In addition, the rule was made 
available through the Internet by the Office of the Federal Register 
and the Department. That rule provided for a 30-day comment period that 
ended on August 31, 2001. No comments were received.
    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

[[Page 53950]]

that this rule, as hereinafter set forth, will tend to effectuate the 
declared policy of the Act.

List of Subjects in 7 CFR Part 989

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

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

    Accordingly, the interim final rule amending 7 CFR part 989 which 
was published at 66 FR 39623 on August 1, 2001, is adopted as a final 
rule without change.

    Dated: October 19, 2001.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 01-26899 Filed 10-24-01; 8:45 am]
BILLING CODE 3410-02-P