[Federal Register Volume 73, Number 33 (Tuesday, February 19, 2008)]
[Rules and Regulations]
[Pages 9005-9010]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2960]


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DEPARTMENT OF AGRICULTURE

Agricultural Marketing Service

7 CFR Part 989

[Docket No. AMS-FV-07-0130; FV08-989-1 IFR]


Raisins Produced from Grapes Grown in California; Final Free and 
Reserve Percentages for 2007-08 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 
2007-08 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 85 percent 
free and 15 percent reserve. The percentages are intended to help 
stabilize raisin supplies and prices, and strengthen market conditions.

DATES: Effective February 20, 2008. The volume regulation percentages 
apply to acquisitions of NS raisins from the 2007-08 crop until the 
reserve raisins from that crop are disposed of under the marketing 
order. Comments received by April 21, 2008, 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 Internet: 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.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Rose M. Aguayo, Marketing Specialist, 
or Kurt J. Kimmel, Regional Manager, California Marketing Field Office, 
Marketing Order Administration Branch, Fruit and Vegetable Programs, 
AMS, USDA; Telephone: (559) 487-5901; Fax: (559) 487-5906; or E-mail: 
[email protected] or [email protected].

[[Page 9006]]

    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, both as amended (7 CFR part 989), 
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 2007-08 crop year, which 
began August 1, 2007, and ends July 31, 2008. 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. A 
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 2007-
08 crop NS raisins covered under the order. The volume regulation 
percentages are 85 percent free and 15 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 for NS raisins on 
October 4, 2007, and October 11, 2007.

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 free and reserve percentages. Pursuant to 
Sec.  989.54(a) of the order, the Committee met on August 14, 2007, 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 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. In accordance with these 
provisions, the Committee computed and announced the 2007-08 trade 
demand for NS raisins at 232,822 tons as shown below.

                          Computed Trade Demand
                        [Natural condition tons]
------------------------------------------------------------------------
                                                              NS raisins
------------------------------------------------------------------------
Prior year's shipments.....................................      309,169
Multiplied by 90 percent...................................         0.90
Equals adjusted base.......................................      278,252
Minus carryin inventory....................................      105,430
Plus desirable carryout....................................       60,000
Equals computed NS trade demand............................      232,822
------------------------------------------------------------------------

Computation of Volume Regulation Percentages

    Section 989.54(b) of the order requires that the Committee announce 
crop estimates and determine whether volume regulation is warranted for 
the varietal types for which it computed a trade demand. If the 
Committee determines that volume regulation is warranted, it must also 
compute and announce preliminary free and reserve percentages. Section 
989.54(c) provides that the Committee may modify the preliminary free 
and reserve percentages prior to February 15 by announcing interim 
percentages which release less than the trade demand. Section 989.54(d) 
requires the Committee to recommend final percentages no later than 
February 15 which will tend to release the full trade demand. Final 
percentages are established by USDA through informal rulemaking.
    The Committee met on October 4 and October 11, 2007, and announced 
a 2007-08 crop estimate of 273,908 tons for NS raisins pursuant to 
Sec.  989.54(b). NS raisins are the major varietal type of California 
raisin. The crop estimate of 273,908 tons is significantly higher than 
the computed trade demand of 232,822 tons. Thus, the Committee 
determined that volume regulation for NS raisins was warranted. The 
Committee therefore announced preliminary volume regulation percentages 
of 72 percent free and 28 percent reserve for NS raisins. As required 
by the order, these percentages would release 85 percent of the 
computed trade demand. The Committee also announced interim volume 
regulation percentages of 84.75 percent free and 15.25 percent reserve, 
and recommended final volume regulation percentages of 85 percent free 
and 15 percent reserve pursuant to Sec.  989.54(d).
    The Committee has historically recommended interim and final volume 
regulation percentages later in the season. However, the Committee 
determined it was in the best interest of producers and handlers to 
establish interim and final percentages as soon as possible for the 
2007-08 crop year. Rains during the harvest period this

[[Page 9007]]

season while grapes were lying on the ground to dry caused a problem 
with embedded sand particles on a portion of the crop. To remedy this 
situation, growers must subject the raisins to a process known as 
reconditioning to remove the sand in order for the raisins to be 
acceptable for acquisition by handlers. This process results in 
additional costs to growers. Establishing interim and final percentages 
early in the season will allow growers to be paid on a higher 
percentage of their crop earlier in the season. This will help growers 
meet the costs of reconditioning, and the reconditioned product will 
then be suitable for acquisition and processing by handlers.
    Pursuant to Sec.  989.54(d), the Committee's calculations and 
determinations 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..............................................    232,822
Divided by crop estimate..................................    273,908
Equals the free percentage................................         85.00
100 minus free percentage equals the reserve percentage...         15.00
------------------------------------------------------------------------

    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 is 
expected to be met for NS raisins for the 2007-08 crop year. 
Application of the final percentages will make 232,822 tons of raisins 
available to handlers if the crop estimate is realized. In addition, 
handlers will be offered additional reserve raisins for sale 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 to handlers for free use. Handlers may sell their 10 
plus 10 raisins to any market.
    Based on 2006-07 NS shipments of 309,169 natural condition tons, 
61,833.8 tons should be made available in the 10 plus 10 offers. 
However, based on the 273,908-ton crop estimate and the 232,822-ton 
trade demand, only 41,086 tons of 2007-08 reserve raisins would be 
available. This tonnage combined with the 6,064 tons of remaining 2006-
07 reserve raisins should be available for the 10 plus 10 offers (a 
total of 47,150 tons). Thus, all available reserve pool raisins should 
be offered to handlers for free use through the 10 plus 10 offers.
    In addition to these anticipated 10 plus 10 purchases, 14,793 tons 
of 2006-07 reserve raisins were sold to handlers through 10 plus 10 
offers in July 2007 and released to handlers in the 2007-08 crop year 
(August 2007). Finally, 105,430 tons of free tonnage raisins were 
carried in to the 2007-08 crop year in handler's inventories. Combining 
all the raisins available to handlers for use as free tonnage for the 
2007-08 crop year (including the 232,822-ton trade demand) results in a 
total supply of 400,195 tons of natural condition raisins, or 376,195 
packed tons. This equates to 129 percent of the 2006-07 shipments of 
309,169 natural condition tons or 290,628 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 during 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 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 23 handlers of California raisins who are 
subject to regulation under the order and approximately 4,000 raisin 
producers in the regulated area. Small agricultural firms are defined 
by the Small Business Administration (SBA)(13 CFR 121.201) as those 
having annual receipts of less than $6,500,000, and small agricultural 
producers are defined as those having annual receipts of less than 
$750,000. No more than 10 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 regulation 
mechanism is used to stabilize supplies and prices and strengthen 
market conditions. If the primary market (the normal domestic market) 
is over-supplied with raisins, grower prices decline substantially.
    Pursuant to Sec.  989.54(d) of the order, this rule establishes 
final volume regulation percentages for 2007-08 crop NS raisins. The 
volume regulation percentages are 85 percent free and 15 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 crop 
estimate of 273,908 tons is significantly higher than the 232,822 ton 
trade demand.
    The 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 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, about 64 
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.

[[Page 9008]]

    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.
    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 $1,049.20 in 1996-97. Producer prices for the 1998-99 and 1999-
2000 seasons increased significantly due to back-to-back short crops 
during those years. Record large crops followed and producer prices 
dropped dramatically for the 2000-01 through 2003-04 crop years, as 
inventories grew while demand stagnated. However, producer prices were 
higher for the 2004-05, 2005-06, and 2006-07 crop years, as noted 
below:

                    Natural Seedless Producer Prices
------------------------------------------------------------------------
                                                 Deliveries
                                                  (natural     Producer
                   Crop year                     condition      prices
                                                   tons)      (per ton)
------------------------------------------------------------------------
2006-07.......................................      282,999          \1\
                                                               $1,089.00
2005-06.......................................      319,126   \1\ 998.25
2004-05.......................................      265,262          \2\
                                                                1,210.00
2003-04.......................................      296,864       567.00
2002-03.......................................      388,010       491.20
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. Domestic shipments have been generally increasing in recent 
years. Although 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, they increased from 174,117 packed tons during the 
2000-01 crop year to 188,944 tons during the 2006-07 crop year. Export 
shipments ranged from a high of 107,931 packed tons in 1991-92 to a low 
of 91,599 packed tons in the 1999-2000 crop year. Since that time, 
export shipments increased to 106,755 tons of raisins during the 2004-
05 crop year, but fell to 101,684 tons in 2006-07.
    The per capita consumption of raisins has declined from 2.07 pounds 
in 1988 to 1.44 pounds in 2005. 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 throughout the year.
    While the overall demand for raisins has increased in three of the 
last four years (as reflected in increased commercial shipments), 
production has been decreasing. Deliveries of NS 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. Deliveries for 
the 2001-02 crop year were at 377,328 tons, 388,010 tons for the 2002-
03 crop year, 296,864 for the 2003-04 crop year, and 265,262 tons for 
the 2004-05 crop year. After three crop years of high production and a 
large 2001-02 carryin inventory, the industry diverted raisin 
production to other uses or removed bearing vines. Diversions/removals 
totaled 38,000 acres in 2001; 27,000 acres in 2002; and 8,000 acres of 
vines in 2003. These actions resulted in declining deliveries of 
296,864 tons for the 2003-04 crop year and 265,262 tons for the 2004-05 
crop year. Although deliveries increased in 2005-06 to 319,126 tons, 
this may have been because fewer growers opted to contract with 
wineries, as raisin variety grapes crushed in 2005-06 decreased by 
161,000 green tons, the equivalent of over 40,000 tons of raisins. In 
2006-07, raisin deliveries were again less than 300,000 tons, at 
282,999 tons.
    The order permits the industry to exercise volume regulation 
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.
    The reserve percentage limits what handlers can market as free 
tonnage. Based on the 2007-08 crop estimate of 273,908 tons, the 15 
percent reserve would limit the total free tonnage to 232,822 natural 
condition tons (.85 x the 273,908 ton crop). Adding the 232,822 ton 
figure to the carryin of 105,430 tons, plus 41,086 tons of 2007-08 of 
reserve raisins anticipated for sale to handlers during the 2006-07 
crop year under the 10 plus 10 offers, and 20,857 tons of 2006-07 
reserve raisins available to handlers in the 2007-08 crop year results 
in a total free supply of 400,195 natural condition tons.
    With volume regulation, producer prices are expected to be higher 
than without volume regulation. This price increase is beneficial to 
all producers regardless of size and enhances producers' total revenues 
in comparison to no volume regulation. 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 was determined that volume regulation is warranted 
this season for only one of

[[Page 9009]]

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 and 2004-05 crop years, 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 
requirements 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 requirements on either small or 
large raisin 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, Vegetable and Specialty Crops. As with all Federal marketing 
order programs, reports and forms are periodically reviewed to reduce 
information requirements and duplication by industry and public sector 
agencies.
    AMS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes.
    In addition, USDA has not identified any relevant Federal rules 
that duplicate, overlap, or conflict with this rule.
    Further, the Committee's meetings were widely publicized throughout 
the raisin industry and all interested persons were invited to attend 
the meetings and participate in the Committee's deliberations. Like all 
Committee meetings, the August 14, 2007, October 4, 2007, and October 
11, 2007, meetings were public meetings and all entities, both large 
and small, were able to express their views on this issue.
    Also, the Committee has a number of appointed subcommittees to 
review certain issues and make recommendations to the Committee. The 
Committee's Reserve Sales and Marketing Subcommittee met on August 14, 
2007, and October 4, 2007, and discussed these issues in detail. Those 
meetings were also public meetings and both large and small entities 
were able to participate and express their views. Finally, interested 
persons are invited to submit comments on this interim final rule, 
including the regulatory and informational impacts of this action on 
small businesses.
    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.
    This rule invites comments on the establishment of final volume 
regulation percentages for 2007-08 crop NS raisins covered under the 
order. Any comments received will be considered prior to finalization 
of this rule.
    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.
    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 2007-08 crop year apply to 
all NS raisins acquired during the crop year; (2) handlers are aware of 
this action, which was unanimously recommended at a public meeting, and 
need no additional time to comply with these percentages; and (3) 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 revised to read as follows:


Sec.  989.257  Final free and reserve percentages.

    (a) The final percentages for the respective varietal type(s) of 
raisins acquired by handlers during the crop year beginning August 1, 
which shall be free tonnage and reserve tonnage, respectively, are 
designated as follows:

----------------------------------------------------------------------------------------------------------------
                                                                                          Free         Reserve
                   Crop year                                Varietal type              percentage    percentage
----------------------------------------------------------------------------------------------------------------
2003-04........................................  Natural (sun-dried) Seedless.......         70            30
2005-06........................................  Natural (sun-dried) Seedless.......         82.50         17.50
2006-07........................................  Natural (sun-dried) Seedless.......         90            10
2007-08........................................  Natural (sun-dried) Seedless.......         85            15
----------------------------------------------------------------------------------------------------------------


[[Page 9010]]

    (b) The volume regulation percentages apply to acquisitions of the 
varietal type of raisins for the applicable crop year until the reserve 
raisins for that crop are disposed of under the marketing order.

    Dated: February 12, 2008.
Lloyd C. Day,
Administrator, Agricultural Marketing Service.
[FR Doc. E8-2960 Filed 2-15-08; 8:45 am]
BILLING CODE 3410-02-P