[Federal Register Volume 67, Number 64 (Wednesday, April 3, 2002)]
[Rules and Regulations]
[Pages 15707-15711]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8141]



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  Federal Register / Vol. 67, No. 64 / Wednesday, April 3, 2002 / Rules 
and Regulations  

[[Page 15707]]



DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV02-989-4 IFR]


Raisins Produced From Grapes Grown in California; Final Free and 
Reserve Percentages for 2001-02 Crop Natural (sun-dried) Seedless and 
Other Seedless Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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

SUMMARY: This rule establishes final volume regulation percentages for 
2001-02 crop Natural (sun-dried) Seedless (NS) and Other Seedless (OS) 
raisins 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 63 percent free and 37 percent reserve for both NS and 
OS raisins. The percentages are intended to help stabilize raisin 
supplies and prices, and strengthen market conditions.

DATES: Effective April 4, 2002. This rule applies to acquisitions of NS 
and OS raisins from the 2001-02 crop until the reserve raisins from 
that crop are disposed of under the marketing order. Comments received 
by June 3, 2002, 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, 1400 Independence Avenue, SW STOP 0237, Washington, DC 
20250-0237; Fax: (202) 720-8938, or e-mail: [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, 1400 Independence Avenue, SW STOP 0237, Washington, DC 
20250-0237; 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, 1400 Independence 
Avenue, SW STOP 0237, Washington DC 20250-0237; 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 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 (USDA) 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 establishes final free and 
reserve percentages for NS and OS raisins for the 2001-02 crop year, 
which began August 1, 2001, and ends July 31, 2002. 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 USDA 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 USDA 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 USDA'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 2001-
02 crop NS and OS raisins covered under the order. The volume 
regulation percentages are 63 percent free and 37 percent reserve for 
both NS and OS raisins. 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 recommended by the Committee on February 14, 2002. One 
Committee member opposed the NS raisin percentages. He believes that 
the Committee failed to properly consider certain factors in its 
deliberations, particularly the impact of additional free tonnage on a 
weakening market. Another Committee member opposed the OS percentages. 
That handler claims he has developed a specialty market for

[[Page 15708]]

OS raisins and indicated that he cannot meet his market needs under the 
volume regulation percentages.

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 14, 2001, 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 2001-02 trade 
demands for NS and OS raisins at 235,850 tons and 1,692 tons, 
respectively, as shown below.

                         Computed Trade Demands
                        [Natural condition tons]
------------------------------------------------------------------------
                                                        NS         OS
                                                     Raisins    Raisins
------------------------------------------------------------------------
Prior year's shipments............................    295,477      5,544
Multiplied by 90 percent..........................       0.90       0.90
Equals adjusted base..............................    265,929      4,990
Minus carryin inventory...........................    116,131      4,273
Plus desirable carryout...........................     86,052        975
Equals computed trade demand......................    235,850      1,692
------------------------------------------------------------------------

Computation of Preliminary Volume Regulation Percentages

    As required under Sec. 989.54(b) of the order, the Committee met on 
September 20, 2001, and announced a preliminary crop estimate for NS 
raisins of 359,341 tons, which is comparable to the 10-year average of 
344,303 tons. NS raisins are the major varietal type of California 
raisin. Adding the carryin inventory of 116,131 tons, plus 32,193 tons 
of reserve raisins released to handlers for free use in September 2001 
through an export program, plus the 359,341-ton crop estimate resulted 
in a total available supply of 507,665 tons, which was significantly 
higher (about 115 percent) than the 235,850-ton trade demand. Thus, the 
Committee determined that volume regulation for NS raisins was 
warranted. The Committee announced preliminary free and reserve 
percentages for Naturals, which released 85 percent of the computed 
trade demand since the field price (price paid by handlers to producers 
for their free tonnage raisins) had been established. The preliminary 
percentages were 56 percent free and 44 percent reserve.
    Also at its September 20, 2001, meeting, the Committee announced a 
preliminary crop estimate for OS raisins at 7,073 tons, which is almost 
double the 10-year average of 3,786 tons. Combining the carry-in 
inventory of 4,273 tons with the 7,073-ton crop estimate resulted in a 
total available supply of 11,346 tons. With the estimated supply 
significantly higher (over 500 percent) than the 1,692-ton trade 
demand, the Committee determined that volume regulation for OS raisins 
was warranted. The Committee announced preliminary percentages for OS 
raisins, which released 85 percent of the computed trade demand since 
field price had been established. The preliminary percentages were 20 
percent free and 80 percent reserve.
    In addition, preliminary percentages were also announced for Dipped 
Seedless, Oleate and Related Seedless, and Zante Currant raisins. The 
Committee ultimately determined that volume regulation was only 
warranted for NS and OS raisins. As in past seasons, the Committee 
submitted its marketing policy to USDA for review.

Modification to Marketing Policy Regarding OS Raisins

    Pursuant to Sec. 989.54(f) of the order, the Committee met on 
December 11, 2001, and revised its marketing policy regarding OS 
raisins due to a major change in economic conditions. The 7,073-ton 
crop estimate was reduced to 5,000 tons, and the 1,692-ton trade demand 
was increased to 2,800 tons. This resulted in volume regulation 
percentages at 48 percent free and 52 percent reserve to release 85 
percent of the 2,800-ton trade demand.
    The Committee took this action in response to concerns raised by OS 
handlers who were facing difficulties under the preliminary percentages 
of 20 percent free and 80 percent reserve. Volume regulation has not 
been implemented for OS raisins since the 1994-95 season. Some handlers 
who developed markets since that time, in the absence of volume 
regulation, were having difficulties meeting their customers' needs. 
The merits of suspending volume regulation were deliberated by the 
Committee. However, the majority of Committee members supported some 
level of regulation. The Committee ultimately determined that the OS 
trade demand should be increased to 2,800 tons which resulted in less 
restrictive volume regulation percentages.

Computation of Final Volume Regulation Percentages

    Pursuant to Sec. 989.54(c), the Committee met on February 14, 2002, 
and recommended interim percentages for NS and OS raisins to release 
slightly less than their full trade demands. Specifically, interim 
percentages were announced for both NS and OS raisins at 62.75 percent 
free and 37.25 percent reserve. The interim percentages were based on 
revised crop estimates. The NS crop estimate was increased from 359,341 
to 372,499 tons, and the OS crop estimate was decreased from 5,000 to 
4,416 tons. Pursuant to Sec. 989.54(d), the Committee also recommended 
final percentages to release the full trade demands for NS and OS 
raisins. Final percentages compute to 63 percent free and 37 percent 
reserve for both varietal types. The Committee's calculations to arrive 
at final percentages for NS and OS raisins are shown in the table 
below:

                   Final Volume Regulation Percentages
                        [Natural condition tons]
------------------------------------------------------------------------
                                                        NS         OS
                                                     Raisins    Raisins
------------------------------------------------------------------------
Trade demand......................................    235,850      2,800
Divided by crop estimate..........................    372,499      4,416
Equals free percentage............................         63         63
100 minus free percentage equals reserve                   37         37
 percentage.......................................
------------------------------------------------------------------------

    In addition, USDA'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 
will be met for NS and OS raisins by the establishment of final 
percentages, which release 100 percent of the trade demands and the 
offer of additional reserve raisins for sale to handlers under the ``10 
plus 10 offers.''

[[Page 15709]]

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, 
or primary markets. Handlers may sell their 10 plus 10 raisins to any 
market.
    The ``10 plus 10 offers'' for NS raisins were held in November 
2001. A total of 59,095 tons was made available to raisin handlers, and 
4,000 tons of raisins were purchased. Adding the 4,000 tons of 10 plus 
10 raisins to the 235,850-ton trade demand figure, plus 116,131 tons of 
2000-01 carryin inventory, plus 32,193 tons of reserve raisins released 
for free use in September 2001 through an export program, equates to 
about 388,174 tons of natural condition raisins, or about 363,940 tons 
of packed raisins, that were actually under the control of handlers for 
free use to primary markets. This is about 131 percent of the quantity 
of NS raisins shipped during the 2000-01 crop year (295,477 natural 
condition tons or 277,030 packed tons).
    For OS raisins, a total of 1,108 tons were made available to 
handlers through 10 plus 10 offers in February 2002, and 407 tons were 
purchased. Adding the 407 tons of 10 plus 10 raisins to the 2,800-ton 
trade demand figure, plus 4,273 tons of 2000-01 carryin inventory 
equates to 7,480 tons of natural condition raisins, or about 6,843 tons 
of packed raisins, that were actually under the control of handlers for 
free use, or primary markets. This is about 135 percent of the quantity 
of OS raisins shipped during the 2000-01 crop year (5,544 tons natural 
condition tons or 5,072 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 USDA'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 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. No more than 7 handlers, and a 
majority of producers, of California raisins may be classified as small 
entities.
    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 2001-02 crop NS and OS raisins. 
The volume regulation percentages are 63 percent free and 37 percent 
reserve for both NS and OS raisins. 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 NS raisins because 
the crop estimate of 372,499 tons combined with the carryin inventory 
of 116,131 tons, plus 32,193 tons of reserve raisins released for free 
use in September 2001 through an export program, plus 18,439 tons of 
reserve raisins released to-date for free use through another export 
program, results in a total available supply of 539,262 tons, which is 
about 130 percent higher than the 235,850-ton trade demand. Volume 
regulation is warranted for OS raisins this season because the crop 
estimate of 4,416 tons combined with the carryin inventory of 4,273 
tons results in a total available supply of 8,689 tons, which is 
significantly higher than the 2,800-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 
reduce the burden of 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 NS raisins

[[Page 15710]]

remained fairly steady between the 1992-93 through the 1997-98 seasons, 
although production 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. Producer prices dropped dramatically for the 
2000-01 season due primarily to record-size production.

                    Natural Seedless Producer Prices
------------------------------------------------------------------------
                                            Deliveries
                                             (natural        Producer
                Crop Year                    condition        Prices
                                               tons)
------------------------------------------------------------------------
2000-01.................................         432,616     \1\ $570.82
1999-2000...............................         299,910        1,211.25
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 a low of 91,600 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 1.55 pounds in 2000. 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 decline in commercial shipments), production has been 
increasing. Deliveries of dried raisins from producers to handlers 
reached an all-time high of 432,616 tons in the 2000-01 crop year. This 
large crop was preceded by two short crop years; deliveries were 
240,469 tons in 1998-99 and 299,910 tons in 1999-2000. Deliveries for 
the 2000-01 crop year soared to a record level because of increased 
bearing acreage and yields. Estimated production is more moderate at 
372,499 tons in 2001-02. However, with 2000-01 carryin inventory 
totaling 116,131 tons, total available supply is quite large.
    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 37 percent reserve limits the total free tonnage 
to 234,674 natural condition tons (.63 x 372,499 tons) and carryin is 
116,131 natural condition tons, and purchases from reserve total 74,193 
natural condition tons (which includes anticipated reserve raisins 
released through the export program and other purchases), then the 
total free supply is estimated at 424,998 natural condition tons. The 
econometric model estimates prices to be $123 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 OS raisins, OS raisin production is much smaller than NS 
raisin production. Volume regulation is warranted this season because 
the available supply significantly exceeds the trade demand. In 
assessing the impact of OS regulation, the Committee addressed concerns 
raised by some handlers who were facing difficulties under the initial 
preliminary percentages of 20 percent free and 80 percent reserve. 
Volume regulation has not been implemented for OS raisins since the 
1994-95 season. Some handlers who developed markets since that time, in 
the absence of volume regulation, were having difficulties meeting 
their customers' needs under the preliminary percentages established. 
The merits of suspending volume regulation were deliberated by the 
Committee. However, the majority of Committee members supported some 
level of regulation. The Committee ultimately determined that the OS 
trade demand should be increased to 2,800 tons which resulted in less 
restrictive volume regulation percentages.
    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 that only two of the nine 
raisin varietal types defined under the order be subject to 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 NS raisins, 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

[[Page 15711]]

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 imposes no 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, USDA 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 impacts 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 60-day period on the establishment 
of final volume regulation percentages for 2001-02 crop NS and OS 
raisins covered under the order. 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 2001-02 crop year apply to 
all NS and OS raisins acquired from the beginning of that crop year; 
(2) handlers are currently marketing their 2001-02 crop NS and OS 
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 recommended 
at a public meeting, and need no additional time to comply with these 
percentages; and (4) this interim final rule provides a 60-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 follows:

PART 989--RAISINS PRODUCED FROM GRAPES GROWN IN CALIFORNIA

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

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

    2. Section 989.255 is added to Subpart--Supplementary Regulations 
to read as follows:

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

Sec. 989.255  Final free and reserve percentages for the 2001-02 crop 
year.

    The final percentages for standard Natural (sun-dried) Seedless and 
Other Seedless raisins acquired by handlers during the crop year 
beginning on August 1, 2001, which shall be free tonnage and reserve 
tonnage, respectively, are designated as follows:

------------------------------------------------------------------------
                                                    Free       Reserve
                 Varietal type                   percentage   percentage
------------------------------------------------------------------------
Natural (sun-dried) Seedless..................           63           37
Other Seedless................................           63           37
------------------------------------------------------------------------


    Dated: March 27, 2002.
A.J. Yates,
Administrator, Agricultural Marketing Service.
[FR Doc. 02-8141 Filed 4-1-02; 12:11 pm]
BILLING CODE 3410-02-P