[Federal Register Volume 69, Number 78 (Thursday, April 22, 2004)]
[Rules and Regulations]
[Pages 21695-21699]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-9098]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. FV04-989-1 IFR]


Raisins Produced From Grapes Grown in California; Final Free and 
Reserve Percentages for 2003-04 Crop Natural (Sun-Dried) Seedless 
Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This rule establishes final volume regulation percentages for 
2003-04 crop Natural (sun-dried) Seedless (NS) 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 70 percent 
free and 30 percent reserve. The percentages are intended to help 
stabilize raisin supplies and prices, and strengthen market conditions.

DATES: Effective April 23, 2004. The volume regulation percentages 
apply to acquisitions of NS raisins from the 2003-04 crop until the 
reserve raisins from that crop are disposed of under the marketing 
order. Comments received by June 21, 2004, 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], 
or http://www.regulations.gov. 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 raisins for the 2003-04 crop year, which 
began August 1, 2003, and ends July 31, 2004. 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 2003-
04 crop NS raisins covered under the order. The volume regulation 
percentages are 70 percent free and 30 percent reserve. 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. The 
Committee unanimously recommended final percentages on February 12, 
2004.

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, 2003, 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

[[Page 21696]]

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 NS raisins 
shall equal the total shipments of free tonnage during August and 
September for each of the past 5 crop years, converted to a natural 
condition basis, dropping the high and low figures, and dividing the 
remaining sum by three, or 60,000 natural condition tons, whichever is 
higher. For all other varietal types, the desirable carryout shall 
equal the total shipments of free tonnage during August, September and 
one-half of October for each of the past 5 crop years, converted to a 
natural condition basis, dropping the high and low figures, and 
dividing the remaining sum by three.
    At its August 2003 meeting, the Committee computed and announced 
the 2003-04 trade demand for NS raisins at 210,933 tons. The August 
trade demand, however, did not account for Oleate Seedless raisins 
(Oleates). Beginning with the 2003-04 crop year, the NS varietal type 
was modified to include Oleates (68 FR 42943; July 21, 2003). Prior to 
that time, Oleate was a separate varietal type. The Oleate and NS trade 
demands were calculated separately. Then the two individual trade 
demand figures were added together to obtain a combined trade demand 
reflecting the new combined varietal type. The RAC establishes a 500-
ton minimum trade demand for any varietal type for which the computed 
trade demand is zero or less. The computed trade demand for Oleates was 
less than zero, so the RAC established the trade demand for Oleates at 
500 tons. At USDA's request, the RAC met on September 9, 2003, and 
recomputed the combined NS trade demand to account for Oleates at 
211,493 tons (210,933 plus 500).

                         Computed Trade Demands
                        [Natural condition tons]
------------------------------------------------------------------------
                                                              NS raisins
------------------------------------------------------------------------
Prior year's shipments.....................................      297,176
Multiplied by 90 percent...................................         0.90
Equals adjusted base.......................................      267,458
Minus carryin inventory....................................      116,465
Plus desirable carryout....................................       60,000
Equals computed NS trade demand............................      210,993
Plus Oleate minimum trade demand tons......................          500
Equals revised trade demand................................      211,493
------------------------------------------------------------------------

Computation of Preliminary Volume Regulation Percentages

    Section 989.54(b) of the order requires that the Committee 
announce, on or before October 5, preliminary crop estimates and 
determine whether volume regulation is warranted for the varietal types 
for which it computed a trade demand. That section allows the Committee 
to extend the October 5 date up to 5 business days if warranted by a 
late crop.
    The Committee met on October 2, 2003, and announced a preliminary 
crop estimate for NS raisins of 276,931 tons, which is about 20 percent 
lower than the 10-year average of 348,419 tons. NS raisins are the 
major varietal type of California raisin. Adding the carryin inventory 
of 116,465 tons, plus the 276,931-ton crop estimate resulted in a total 
available supply of 393,396 tons, which was significantly higher (186 
percent) than the 211,493-ton trade demand. Thus, the Committee 
determined that volume regulation for NS raisins was warranted. The 
Committee announced preliminary free and reserve percentages for NS 
raisins, which released 85 percent of the computed trade demand since a 
minimum field price (price paid by handlers to producers for their free 
tonnage raisins) had been established. The preliminary percentages were 
65 percent free and 35 percent reserve.
    In addition, preliminary percentages were announced for Other 
Seedless raisins. It was ultimately determined that volume regulation 
was only warranted for NS raisins. As in past seasons, the Committee 
submitted its marketing policy to USDA for review.

Computation of Final Volume Regulation Percentages

    Pursuant to Sec.  989.54(c), at its February 12, 2004, meeting, the 
Committee announced interim percentages for NS raisins to release 
slightly less than the full trade demand. Based on a revised NS crop 
estimate of 304,072 tons (up from the October estimate of 276,931 
tons), interim percentages for NS raisins were announced at 69.75 
percent free and 30.25 percent reserve.
    Pursuant to Sec.  989.54(d), the Committee also recommended final 
percentages at its February 2004 meeting to release the full trade 
demands for NS raisins. Final percentages were recommended at 70 
percent free and 30 percent reserve. The Committee's calculations to 
arrive at final percentages for NS raisins are shown in the table 
below:

                   Final Volume Regulation Percentages
                        [Natural condition tons]
------------------------------------------------------------------------
                                                              NS raisins
------------------------------------------------------------------------
Trade demand...............................................      211,493
Divided by crop estimate...................................      304,072
Equals free percentage.....................................           70
100 minus free percentage and equals reserve percentage....           30
------------------------------------------------------------------------

    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 raisins 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 
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.
    For NS raisins, the first 10 plus 10 offer was held in February 
2004. A total of 30,513 tons was made available to raisin handlers; all 
of the raisins were purchased. The second 10 plus 10 offer of 30,513 
tons will be made available to handlers in April 2004. Adding the total 
figure of 61,026 tons of 10 plus 10 raisins to the 211,493 ton trade 
demand figure, plus 129,345 tons of 2002-03 carryin NS and Oleate 
inventory equates to 401,864 tons of natural condition raisins, or 
377,084 tons of packed raisins, that are available to handlers for free 
use or primary markets. This is about 132 percent of the quantity of NS 
and Oleate raisins shipped during the 2002-03 crop year (305,133 
natural condition tons or 286,260 packed tons). (Oleates were included 
in this computation because, as previously stated, Oleates were 
combined with the NS varietal type beginning with the 2003-04 crop 
year.)
    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

[[Page 21697]]

offers of reserve raisins make even more raisins available to primary 
markets, which is consistent with 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 2003-04 crop NS raisins. The 
volume regulation percentages are 70 percent free and 30 percent 
reserve. 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 because the final crop 
estimate of 304,072 tons combined with the carryin inventory of 129,345 
tons results in a total available supply of 433,417 tons, which is 
about 205 percent higher than the 211,493-ton trade demand. (Oleate 
inventory was included in this computation because, as previously 
stated, Oleates were combined with the NS varietal type beginning with 
the 2003-04 crop year.)
    The current volume regulation 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 remained fairly 
steady between the 1993-94 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 $904.60 in 1993-94 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 last three 
seasons due to record-size production, large carry-in inventories, and 
stagnant demand.

                    Natural Seedless Producer Prices
------------------------------------------------------------------------
                                            Deliveries
                                             (natural        Producer
                Crop year                    condition     prices  (per
                                               tons)           ton)
------------------------------------------------------------------------
2002-03.................................         388,010     \1\ $394.85
2001-02.................................         377,328         $650.94
2000-01.................................         432,616         $603.36
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
------------------------------------------------------------------------
\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 1.48 pounds in 2002. 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 NS dried raisins from producers to handlers 
reached an all-time high of 432,616 tons in the 2000-

[[Page 21698]]

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. Deliveries for the 2001-02 
crop year were at 377,328 tons, and deliveries for the 2002-03 crop 
year were 388,010 tons. This year's crop is estimated at 304,072 tons. 
Three crop years of high production and a large 2001-02 carryin 
inventory has contributed to the industry's burdensome supply of 
raisins.
    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, 
producer 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 producer 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 
producers 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 producers 
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 70 percent reserve limits the total free tonnage 
to 212,850 natural condition tons (.70 x the 304,072-ton crop estimate) 
and carryin is 129,345 natural condition tons, and purchases from 
reserve total 55,513 natural condition tons (which includes anticipated 
reserve raisins released through both 10 plus 10 offers), then the 
total free supply is estimated at 397,708 natural condition tons. The 
econometric model estimates prices to be $63 per ton higher than under 
an unregulated scenario. This price increase is beneficial to all 
producers regardless of size and enhances producers' 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.
    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, it has been determined that volume regulation is 
warranted this season for only one of the nine raisin varietal types 
defined under the order.
    The free and reserve percentages established by this rule release 
the full trade demand 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 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 2003-04 crop NS 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 2003-04 crop year apply to 
all NS raisins acquired from the beginning of that crop year; (2) 
handlers are currently marketing their 2003-04 crop NS raisins and this 
action should be taken promptly to achieve the intended purpose of 
making the full trade demand available to handlers; (3) handlers are 
aware of this action, which was unanimously recommended at a

[[Page 21699]]

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.

0
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

0
1. The authority citation for 7 CFR part 989 continues to read as 
follows:

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

0
2. Section 989.257 is added to Subpart--Supplementary Regulations to 
read as follows:


Sec.  989.257  Final free and reserve percentages for the 2003-04 crop 
year.

    The final percentages for standard Natural (sun-dried) Seedless 
raisins acquired by handlers during the crop year beginning on August 
1, 2003, which shall be free tonnage and reserve tonnage, respectively, 
are designated as follows:

------------------------------------------------------------------------
                                                  Free         Reserve
               Varietal  type                  percentage    percentage
------------------------------------------------------------------------
Natural (sun-dried) Seedless................           70            30
------------------------------------------------------------------------


    Dated: April 16, 2004.
Kenneth C. Clayton,
Acting Administrator, Agricultural Marketing Service.
[FR Doc. 04-9098 Filed 4-21-04; 8:45 am]
BILLING CODE 3410-02-P