Raisins Produced From Grapes Grown in California; Final Free and Reserve Percentages for the 1993-94 Crop Year for Natural (Sun-Dried) Seedless Raisins

DEPARTMENT OF AGRICULTURE

7 CFR Part 989

[FV94-989-1IFR]

Raisins Produced From Grapes Grown in California; Final Free and

Reserve Percentages for the 1993-94 Crop Year for Natural (Sun-Dried)

Seedless Raisins

AGENCY: Agricultural Marketing Service, USDA.

ACTION: Interim final rule with request for comments.

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SUMMARY: This interim final rule invites comments on the establishment

of final free and reserve percentages for 1993 crop Natural (sun-dried)

Seedless raisins. The percentages are 74 percent free and 26 percent

reserve. These percentages are intended to stabilize supplies and

prices and to help counter the destabilizing effects of the burdensome

oversupply situation facing the raisin industry. This rule was

unanimously recommended by the Raisin Administrative Committee

(Committee), the body which locally administers the marketing order.

DATES: This interim final rule becomes effective March 17, 1994, and

applies to all Natural (sun-dried) Seedless raisins acquired from the

beginning of the 1993-94 crop year. Comments which are received by

April 18, 1994 will be considered prior to any finalization of this

interim final rule.

ADDRESSES: Interested persons are invited to submit written comments

concerning this action. Comments must be sent in triplicate to the

Docket Clerk, Fruit and Vegetable Division, AMS, USDA, Room 2525-S,

P.O. Box 96456, Washington, DC 20090-6456, or faxed to (202) 720-5698.

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.

FOR FURTHER INFORMATION CONTACT: Richard Van Diest, Marketing

Specialist, California Marketing Field Office, Fruit and Vegetable

Division, AMS, USDA, 2202 Monterey Street, Suite 102B, Fresno,

California 93721; telephone: (209) 487-5901 or Richard Lower, Marketing

Specialist, Marketing Order Administration Branch, Fruit and Vegetable

Division, AMS, USDA, Room 2523-S, P.O. Box 96456, Washington, DC 20090-

6456; telephone: (202) 720-2020.

SUPPLEMENTARY INFORMATION: This interim final 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 (Department) is issuing this rule in

conformance with Executive Order 12866.

This interim final rule has been reviewed under Executive Order

12778, Civil Justice Reform. Under the marketing 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 Natural (sun-dried)

Seedless raisins for the 1993-94 crop year, beginning August 1, 1993,

through July 31, 1994. This interim final rule will not preempt any

State or local laws, regulations, or policies, unless they present an

irreconcilable conflict with this rule.

The Act provides that administrative proceedings must be exhausted

before parties may file suit in court. Under section 608c(15)(A) of the

Act, any handler subject to an order may file with the Secretary a

petition stating that the order, any provision of the order, or any

obligation imposed in connection with the order is not in accordance

with law and requesting a modification of the order or to be exempt

therefrom. Such handler is afforded the opportunity for a hearing on

the petition. After the hearing, the Secretary would rule on the

petition. The Act provides that the district court of the United States

in any district in which the handler is an inhabitant, or has his/her

principal place of business, has jurisdiction in equity to review the

Secretary's ruling on the petition, provided a bill in equity is filed

not later than 20 days after the date of the entry of the ruling.

Pursuant to requirements set forth in the Regulatory Flexibility

Act (RFA), the Administrator of the Agricultural Marketing Service

(AMS) has considered the economic impact of this action on small

entities.

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 25 handlers of California raisins who are

subject to regulation under the raisin marketing order, and

approximately 5,000 producers in the regulated area. Small agricultural

producers have been defined by the Small Business Administration (13

CFR 121.601) as those having annual receipts of less than $500,000, and

small agricultural service firms are defined as those whose annual

receipts are less than $3,500,000. A majority of producers and a

minority of handlers of California raisins may be classified as small

entities.

The order prescribes procedures for computing trade demands and

preliminary and final percentages that establish the amount of raisins

that can be marketed throughout the season. The regulations apply to

all handlers of California raisins. Raisins in the free percentage

category may be shipped immediately to any market, while reserve

raisins must be held by handlers in a reserve pool for the account of

the Committee, which is responsible for local administration of the

order. Under the order, reserve raisins may be: Sold at a later date by

the Committee to handlers for free use; used in diversion programs;

exported to authorized countries; carried over as a hedge against a

short crop the following year; or disposed of in other outlets

noncompetitive with those for free tonnage raisins.

While this rule may restrict the amount of Natural (sun-dried)

Seedless raisins that enter domestic markets, final free and reserve

percentages are intended to lessen the impact of the oversupply

situation facing the industry and promote stronger marketing

conditions, thus stabilizing prices and supplies and improving grower

returns. In addition to the quantity of raisins released under the

preliminary percentages and the final percentages, the order specifies

methods to make available additional raisins to handlers by requiring

sales of reserve pool raisins for use as free tonnage raisins under

``10 plus 10'' offers, and authorizing sales of reserve raisins under

certain conditions.

The Department's ``Guidelines for Fruit, Vegetable, and Specialty

Crop Marketing Orders'' specifies that 110 percent of recent years'

sales should be made available to primary markets each season before

recommendations for volume regulation are approved. This goal is met by

the establishment of a final percentage which releases 100 percent of

the computed trade demand and the additional release of reserve raisins

to handlers under ``10 plus 10'' offers. The ``10 plus 10'' offers are

two simultaneous offers of reserve pool raisins which are made

available to handlers each season. For each such offer, a quantity of

raisins equal to 10 percent of the prior year's shipments is made

available for free use.

Pursuant to Sec. 989.54(a) of the order, the Committee which is

responsible for local administration of the order, met on August 16,

1993, 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. The trade demand is 90 percent of the

prior year's shipments of free tonnage and reserve tonnage raisins sold

for free use for each varietal type into all market outlets, adjusted

by subtracting the carryin of each varietal type on August 1 of the

current crop year and by adding to the trade demand the desirable

carryout for each varietal type at the end of that crop year. As

specified in Sec. 989.154, the desirable carryout for each varietal

type shall be equal to the shipments of free tonnage raisins of the

prior crop year during the months of August, September, and one half of

October. If the prior year's shipments are limited because of crop

conditions, the total shipments during that period of time during one

of the three years preceding the prior crop year may be used. In

accordance with these provisions, the Committee computed and announced

a 1993-94 trade demand of 282,909 tons for Natural (sun-dried) Seedless

raisins.

As required under Sec. 989.54(b) of the order, the Committee met on

October 5, 1993, and computed and announced a preliminary crop estimate

and preliminary free and reserve percentages for Natural (sun-dried)

Seedless raisins which released 85 percent of the trade demand since

field prices had been established. The preliminary crop estimate and

preliminary free and reserve percentages were as follows: 387,947 tons,

and 62 percent free and 38 percent reserve. Also at that meeting, the

Committee computed and announced preliminary crop estimates and

preliminary free and reserve percentages for Dipped Seedless, Oleate

and Related Seedless, Golden Seedless, Zante Currant, Sultana, Muscat,

Monukka, and Other Seedless raisins. On November 15, 1993, the

Committee decided that volume control percentages only were warranted

for Natural (sun-dried) Seedless raisins, which would remain at 62

percent free and 38 percent reserve. It determined that the supplies of

the other varietal types would be less than or close enough to the

computed trade demands for each of these varietals or could be

substituted to relieve anticipated shortages in some size ranges of

Natural (sun-dried) Seedless raisins used for baking. In view of these

factors, volume control percentages would not be necessary to maintain

market stability.

Pursuant to Sec. 989.54(c), the Committee may adopt interim free

and reserve percentages. Interim percentages may release less than the

computed trade demand for each varietal type. Interim percentages for

Natural (sun-dried) Seedless raisins of 73.75 percent free and 26.25

percent reserve were computed and announced on January 13, 1994. That

action released most, but not all the computed trade demand for Natural

(sun-dried) Seedless raisins.

Under Sec. 989.54(d) of the order, the Committee is required to

recommend to the Secretary, no later than February 15 of each crop

year, final free and reserve percentages which, when applied to the

final production estimate of a varietal type, will tend to release the

full trade demand for any varietal type.

The Committee's final estimate of 1993-94 production of Natural

(sun-dried) Seedless raisins is 384,501 tons. Dividing the computed

trade demand of 282,909 tons by the final estimate of production

results in a final free percentage of 74 percent and a final reserve

percentage of 26 percent.

Based on available information, the Administrator of the AMS has

determined that the issuance of this interim final rule will not have a

significant economic impact on a substantial number of small entities.

After consideration of all relevant information presented,

including the Committee's recommendations and other information, it is

found that this regulation, 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 that upon

good cause 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 1993-94 crop year apply to

all Natural (sun-dried) Seedless raisins acquired from the beginning of

that crop year; (2) handlers are currently marketing 1993-94 crop

raisins of the Natural (sun-dried) Seedless varietal type and this

action should be taken promptly to achieve the intended purpose of

making the full trade demand quantity computed by the Committee

available to handlers; (3) handlers are aware of this action, which was

recommended by the Committee at an open meeting, and need no additional

time to comply with these percentages; and (4) this interim final rule

provides a 30-day period for written comments and all comments received

will be considered prior to finalization of this interim final 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 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 989.246 is added to Subpart-Supplementary Regulations to

read as follows:

[Note: This section will not appear in the annual Code of

Federal Regulations].

Sec. 989.246 Final free and reserve percentages for the 1993-94 crop

year.

The final percentages for standard Natural (sun-dried) Seedless

raisins acquired by handlers during the crop year beginning on August

1, 1993, which shall be free tonnage and reserve tonnage, respectively,

are designated as follows:

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

Free Reserve

percentage percentage

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Natural (sun-dried) Seedless.................... 74 26

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Dated: March 11, 1994.

Martha B. Ransom,

Acting Deputy Director, Fruit and Vegetable Division.

[FR Doc. 94-6147 Filed 3-16-94; 8:45 am]

BILLING CODE 3410-02-P